Marketing Communications &
PROMOTIONAL MIX
chapter
4.01
1
10 Year Old Statistics
 U.S. advertising spending exceeds
$215 billion per year
 Industry employs only 272,000
 Ad budgets of some firms exceed
over $2 billion per year
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Advertising and Market Share
 New brands spend proportionately
more for advertising than old ones.
 A certain level of exposure is needed
to affect purchase habits.
 Beyond a certain level, diminishing
returns set in.
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1
Advertising and the Consumer
 Average U.S. citizen is exposed to
hundreds of ads each day.
 Advertising may change a
consumer’s attitude toward a
product.
 Advertising can affect consumer
ranking of brand attributes.
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Promotional Mix
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What is promotion?
Any form of
communication a
business or
organization uses
to inform,
persuade, or
remind people
about its products.
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The Promotional Mix is a combination
of the different types of promotion.
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Elements of the Promotion Mix
Advertising
Ingredients
of the
Promotion
Mix
Public Relations
Personal Selling
Sales Promotion
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What is promotion?
There are two forms of promotion
– Product
– Institutional
It is important to our economy
Billions of dollars are spent on
promotion and promotion activities
provide millions of people with jobs.
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Major Types of Advertising
Corporate Image
Institutional
Advertising
Advocacy Advertising
Types
of
Advertising
Pioneering
Product
Advertising
Competitive
Comparative
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2
Major Types of Advertising
Institutional
Advertising
Designed to enhance a company’s
image rather than promote a
particular product.
Product
Advertising
Designed to tout the benefits of a
specific good or service.
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2
Major Types of Advertising
Institutional
Advertising
Enhance
corporation’s identify
Advocacy
advertising
Pioneering
Product
Advertising
Competitive
Comparative
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Product Advertising
Pioneering
Competitive
Comparative
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• Stimulates primary demand for
new product or category
• Influence demand for brand in the
growth phase of the PLC.
• Often uses emotional appeal.
• Compares two or more competing
brands’ product attributes.
• Used if growth is sluggish, or if
competition is strong.
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The Role of Promotion
 Promotion- any form of communication a
business or organization uses to inform,
persuade, or remind people about its products
and improve its public images.
 Product promotion - used to convince potential
customers to buy products from it instead of from
a competitor.
–
–
–
–
–
Explains major features and benefits of its products
Tells where those products are sold
Advertises sales on those products
Answers customer questions
Introduces new products
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The Role of Promotion
 Institutional Promotion- used to create a
favorable image for itself. Does not directly sell a
certain product. However, may ultimately result in
increased sales of a company’s products.
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Types of Promotion
Advertising
Publicity
Sales Promotion
Personal Selling
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Advertising
It is paid for.
One set format to carry a
message, rather than a personal,
one-on-one message.
Identifies the sponsor of the
message.
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Advertising….
Any paid form of
non-personal
presentation and
promotion of
ideas, goods, or
services by an
identified sponsor.
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Publicity
Builds a business’ image.
Publicity is free.
Not much control over the
message being sent to the
public.
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Publicity
 A specific kind of public
relations that involves
placing positive and
newsworthy information
about a business, its
products, or its policies
in the media is called…..
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Publicity
Advantage…
– It is free!
Disadvantage….
.
– Its contents
cannot be
controlled by
the business
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Principal function of publicity…
Building an image
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Public Relations
Any activity
designed to create
a favorable image
toward a business,
its products or its
policies.
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Sales Promotion
Usually involves short term
activities.
Offers some type of incentive to
make a purchase.
Can be successfully used in all
channels of distribution.
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Sales Promotion
All marketing
activities, other
than personal
selling,
advertising, and
public relations is
called….
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Sales Promotion (con’t)
Types of Promotions
Trade
Promotions
Consumer Sales
Promotions
– Slotting
Allowances
– Buying
Allowances
– Trade Shows and
Conventions
– Sales Incentives
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– Licensing
– Promotional Tie-Ins
– Visual Merchandising
and Displays
– Premiums &
Incentives
– Product Samples
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Personal Selling
The responsibility of sales
personnel.
– Order - taking personnel
– Order - getting personnel
The most flexible and
individualized type of promotion
available.
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What is the largest form of promotion?
Personal
Selling!
– This type of
promotion
requires
contact with
potential
buyers
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What do they do?
Advertising
– Creates awareness of a business’s product
Public Relations
– Creates a favorable image for the business
itself
Sales Promotion
– Efforts stimulate sales
Personal Selling
– Builds on all of the other efforts by helping
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complete
the sale
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404
Learning
Objective
1
Discuss the role of promotion
in the marketing mix.
Promotion
Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures.
404
Learning
Objective
1
Discuss the role of promotion
in the marketing mix.
Promotional
Strategy
A plan for the optimal
use of the elements of
promotion:
1. Advertising
2. Public Relations
3. Personal Selling
4. Sales Promotion
The Role of Promotion
404
Learning
Objective
1
Discuss the role of promotion
in the marketing mix.
Overall
Marketing
Objectives
•
•
•
•
Marketing Mix
Product
Place
Promotion Plan
Price
Target Market
Promotional Mix
•Advertising
•Public Relations
•Personal Selling
•Sales Promotion
To convince target
customers that the
goods/services offer a
DIFFERENTIAL
ADVANTAGE over
competitors
404
Learning
Objective
1
Discuss the role of promotion
in the marketing mix.
Create Awareness
Making People Aware: IPOD
Build Positive Images
Mercedes Benz
Goals of Market
Communications
Identify Prospects
Fair Giveaways
Build Channel Relationships
Cooperative Advertising
Retain Customers
Frequent Flyer Programs
404
Learning
Objective
1
Discuss the role of promotion
in the marketing mix.
High Product Quality
Cadillac
Rapid Delivery
John Deere Overnight Parts
Features
That Provide
Differential
Advantage
Low Prices
Walmart Everyday Low Prices
Excellent Service
“We will pick you up”
Unique Features
Hybrid Cars
405
Learning
Objective
2
Personal Selling
Discuss the elements
of the promotional mix.
Promotional Mix
Advertising
Public Relations
Sales Promotion
Combination of promotion
tools used to reach the
target market and fulfill
the organization’s
overall goals.
405
Learning
Objective
2
1. Personal
Selling
Discuss the elements
of the promotional mix.
Two people communicate in
order to influence each other
Traditional
Selling
Relationship
Selling
Planned presentation
to one or more
prospective buyers to
make a sale.
Accomplishment
of mutual
objectives.
CONSUMER PRD
CARS: QUICK SALE
WIN - LOSE
BUSINESS PRD
COMPUTERS: LONG REL
WIN - WIN
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Learning
Objective
PART 2
8
Describe Advantages of
Personal Selling
Provides a detailed explanation
or demonstration of product
 Message can be varied to fit the
needs of each prospective customer
 Can be directed to specific qualified
prospects
 Costs can be controlled by adjusting
sales force size
 Most effective in obtaining sales and
gaining satisfied customers
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Advertising Versus Personal Selling
Personal Selling is more important if...
The product has a high value.
It is a custom-made product.
There are few customers.
The product is technically complex.
Customers are geographically concentrated.
Advertising/Sales Promotion is more important if...
The product has a low value.
It is a standardized product.
There are many customers.
The product is simple to understand.
Customers are geographically dispersed.
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Advantages of Personal Selling
Detailed
Information
Message Control
Targeted
Cost Control
Closing Sales
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405
Learning
Objective
Discuss the elements
of the promotional mix.
2
2. Advertising
Impersonal, one-way
mass communication ...
...about a product,
service or
organization that is
paid for by a marketer.
406
Learning
Objective
2
Discuss the elements
of the promotional mix.
Advertising Media
Traditional
Advertising Media








Television
Radio
Newspapers
Magazines
Books
Direct mail
Billboards
Transit cards
Electronic
Advertising Media
 Internet
 Computer modems
 Fax machines
406
Learning
Objective
2
Discuss the elements
of the promotional mix.
Advertising
Advantages
Ability to reach large
number of people
 Cost per contact is low
Can be micro-targeted
Disadvantages
Total cost is high
Four Types of Promotion
 1. Advertising - any paid form of nonpersonal
presentation and promotion of ideas, goods, or services
by an identified sponsor.
 Six Advantages of Advertising
– 1. A large number of people usually see the advertiser’s
message
– 2. Costs per potential customer are usually lower than other
forms of promotion
– 3. Can choose the most appropriate media to reach target mkt
– 4. Can control the content of an advertisement
– 5. Ads are subject to repeat viewing
– Ads can “presale” products
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Four Types of Promotion
 Four Disadvantages of Advertising
– 1. Cannot focus well on individual needs
– 2. Some forms of advertising can be too expensive for
many businesses
– 3. Sometimes advertising is wasteful and inefficient message may be spent on non-potential customers
– 4. Advertising must be brief
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406
Learning
Objective
3. Public
Relations
2
Discuss the elements
of the promotional mix.
The marketing function
that evaluates public
attitudes, identifies areas
within the organization
that the public may be
interested in, and
executes a program of
action to earn public
understanding and
acceptance.
Four Types of Promotion
 2. Publicity - placing newsworthy information
about a company, product, or person in the
media. Can be used to promote particular events
and promote particular products. The main
purpose of publicity is to build an image. Image the way a business or organization is defined in
people’s minds.
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Four Types of Promotion
 Advantages of Publicity
– Publicity is free; advertising is not
– Can be used to create a positive image within the
community
– Viewed as being more credible or believable than
advertising
– Viewed as news, people more attention to publicity
 Disadvantages of Publicity
– Give up much of your control of your message
– Not all publicity is positive
– Lack of control by the business - bad stories can get
printed
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407
Learning
Objective
2
Discuss the elements
of the promotional mix.
Functions of
Public Relations
Executes
programs to
“win” public
Evaluates public
attitudes
Ecology
Identifies areas
of public interest
Curbside
Programs
Recycling
Publicity: Public information (good or bad )
about a company, good, or service appearing
in the mass media as a unpaid news item.
Publicity and Public Relations
 Public Relations - any activity designed to create
goodwill toward a business.
 Benefits of PR
– Increasing sales
– Increasing firm’s good reputation
– Increasing customers reception of advertising
messages
– Spreading accurate information to the public
– Conditioning customers to expect quality products from
the company
– Reducing the impact of problems
– Helping
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Audiences for PR
 Internal Audiences - groups within the organization
 Employee Relations - goal is to keep your
employees happy by using:
–
–
–
–
Tuition reimbursement
Newsletters
Health and wellness programs
Opportunities for communications
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Audiences for PR
 External Audiences - groups outside the organization
 Customers - Satisfied customers = repeat
business. Ways to keep customers happy
include:
– Provide special services and amenities such as giftwrapping, check cashing, free delivery, free parking, etc.
– Advisory boards - panels of consumers that make
suggestions about products and businesses
– Customer newsletters, annual reports
– Customer events - seminars, lunches, entertainment
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Audiences for PR
 Community - company sponsors activities that
benefit the civic, social, and cultural life of the
community. Activities can include:
– School partnerships - HP donating computers to the
high school
– Sponsorship of community events
– Scholarships
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Public Relations
 News Release - a pre-written story about the
company that is sent to various media for
publication. It usually contains information about
the company’s employees, stores, operations,
products, corporate philosophy, or participation in
an event or program. Can contain hard or soft news.
– Hard News - information that should be announced right
away because the public will want to know about it
immediately
– Soft News - information that does not need to be
announced immediately because it will be of as much
interest to the public later as it is now
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Purposes of News Releases
 To introduce new products
 To keep the business in the public eye
 To position the business’s image
 To support good employee relations
 To create good community relations
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Getting Your News Release in the
Media












Include a captioned photograph with the release
Meet media deadlines
Write an appropriate number of releases
Direct the release to a specific person
Advise the staff that you have sent out a release
Reread the release after setting it aside
Keep a copy of every release
Send a cover letter with the release
Send a thank-you note after the release is used
Avoid pressuring the editor
Avoid mentioning publicity or advertising
Avoid playing favorites
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Public Relations
 Press Kit - a folder containing articles, news
releases, feature stories, and photographs about
a company, product, or person. Press kits are
given to the media to assist them in reporting on
the intended news item.
 Press Conference - a meeting in which media
members are invited by the business or
organization to hear an announcement about a
newsworthy event.
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The Tools of Public Relations
New Product Publicity
Product Placement
Major
Tools
Used By
PR
Professionals
Customer Satisfaction
Phone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
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Web Sites
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407
Learning
Objective
2
Discuss the elements
of the promotional mix.
4. Sales Promotion
Marketing activities--other than personal selling,
advertising, and public relations--that stimulate
consumer buying and dealer effectiveness.
Sales Promotion
Targets
End
Consumers
Trade Customers
Company
Employees
407
Learning
Objective
Discuss the elements
of the promotional mix.
2
SOAP IN MAIL
A. Free samples
B. Contests
“WHY YOU LIKE...”
C. Premiums
BEANIE BABIES
D. Trade Shows
Popular Tools
for
Consumer Sales
Promotion
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CHIPS IN STORE
HORT: CENT
E. Vacation Giveaways
F. Coupons
OUT OF STORE
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IN STORE
Four Types of Promotion
 3. Sales Promotion - All marketing activities, other than
personal selling, advertising, and publicity, that are
used to stimulate consumer purchasing and sales
effectiveness.
 Objectives of Sales Promotion
– Increase sales
– Inform customers about new products
– Create a positive store or corporate image
 3 Characteristics
– Short term activities
– Offers some type of incentive
– Can be successfully used in all channels of distribution
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Four Types of Promotion
 Sales promotion can be either consumer or trade oriented
 Trade Promotions - sales promotion activities designed to gain
manufacturers’, wholesalers’, and retailers’ support for a product.
More money is spent on promoting to businesses than to consumers.
– 1. Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its
shelves.
– 2. Buying allowances - special price discount given by
manufacturers to wholesalers and retailers to encourage them to
either buy a product or buy a larger quantity.
– 3. Trade Shows and Conventions - designed to reach wholesalers
– 4. Sales incentives - awards given managers and employees who
successfully meet or exceed their company’s set sales quota.
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Four Types of Promotion
 Consumer Sales Promotions - designed to
encourage customers to buy a product.
– 1. Licensing - Organizations, such as manufactures, movie
makers, sports teams, and celebrities, may license for a fee
their logo, trademark, trade characters, names and
likenesses, or personal endorsements to a business to be
used in promoting the business’s products.
– 2. Promotional tie-ins - involve sales promotional
arrangements between one or more retailers or
manufacturers. They combine their resources (advertising
and sales promotional activities) to do a promotion that
creates additional sales for each partner.
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Four Types of Promotion
– 3. Visual Merchandising and Displays – Visual Merchandising - the coordination of all physical
elements in a place of business so that it projects the right
image to its customers
– Displays - visual and artistic aspects of presenting a product
to a target group of customers.
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Four Types of Promotion
– 4. Premium and Incentives - most popular and frequently used
sales promotion type
– Premiums - low cost items given away free to consumers as a
condition of purchase.
•
•
•
•
Coupons - certificates given to customers entitling cash discounts
Factory Packs (in-packs)- free gifts placed in product packages
Traffic Builders - low cost premiums like key chains, pens
Coupon Plans - ongoing programs in exchange for labels, coupons, or
other tokens from one or more purchases
– Incentives - higher-priced products given in contests or
sweepstakes
– 5. Product Samples - free trial size of a product that is sent through
the mail, distributed door-to-door, or through retail stores and
trade shows
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Four Types of Promotion
 Advantages of Sales Promotions
– Unique and has special appeal to a potential customer
– Helps build customer loyalty
 Disadvantages of Sales Promotions
– Difficult to end without the customers becoming
dissatisfied
– Store image and sales can suffer if the promotion is not
properly planned and managed
– Only designed to supplement other promotional efforts
and cannot make up for poor products
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The Concept of the Promotional Mix
Important to achieve
promotional goals.
Decide on the promotional mix
that will be most effective in
persuading customer or other
businesses to purchase and
support the businesses
products.
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PROMOTIONAL MIX
 Promotional Mix - a combination of different
types of promotion. A business decides on a
promotional mix that will be most effective in
persuading customers or other businesses to
purchase and support the business’s products.
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Tools for Consumer Sales Promotion
Coupons
Premiums
Six
Categories
of
Consumer
Sales
Promotions
Frequent Buyer Programs
Contests and
Sweepstakes
Samples
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Point-of-Purchase
Displays
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Promotional Mix
Factors affecting the selection of a
promotional mix
– Good, Service, or Idea
• Type of product
• Product nature
• Stage of life cycle
– Product’s market
• Type of consumer
• Number of Consumers
• Geographical location
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Promotional Mix
– Distribution System
– Product’s Company
• Historical perspective
• Available funds
• Size of sales force
– Competition
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408
Learning
Objective
3
Discuss concept of integrated
marketing communications.
Integrated Marketing
Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent,
unified message that is
customer focused.
NEW MOVIE – NEW TOY AT McDonalds
428
Learning
Objective
3
Discuss concept of integrated
marketing communications.
IMC Popularity Growth
 Proliferation of thousands of media
choices
 Fragmentation of the mass market
 Slash of advertising spending in favor
of promotional techniques
409
Learning
Objective
4
Describe the
communication process.
Communication
The process by which we
exchange or share
meanings through a
common set of symbols.
Interpersonal
Communication
ONE TO FEW
PERSON TO PERSON
Categories of
Communication
Mass
Communication
ONE TO MANY
IMPERSONAL
410
Learning
Objective
4
Describe the
communication process.
The Communication Process
Sender
Originator of the message in the communication
process.
Encoding
Conversion of a sender’s ideas & thoughts into a
message, usually words or signs.
Message
Transmission
Passage of the message through a
communication media
Receiver
Decoding
Interpretation of language and symbols sent
through the communication media
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Feedback
Receiver
response to the sender
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411
Learning
Objective
4
Describe The
Communication Process.
The
Communication
Process
Noise
Sender
Idea
Encoding
Message
Decoding
Message
Message
Channel
Receiver
The Communication Process
Noise
Sender
Encoding
Channel
Decoding
Receiver
Channel
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414
Learning
Objective
4
Describe the
communication process.
Characteristics of Advertising
A. Advertising
Communication Mode
Indirect and non-personal
Communication Control
Low
Feedback Amount
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
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Message Flexibility
Fast
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Same message to all audiences
414
Learning
Objective
4
Describe the
communication process.
Characteristics of Public Relations
B. Public Relations
Communication Mode
Usually indirect, non-personal
Communication Control
Moderate to low
Feedback Amount
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
No
Sponsor Identification
No
Reaching Large Audience
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Message
Flexibility
Usually fast
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414
Learning
Objective
4
Describe the
communication process.
Characteristics of Sales Promotion
C. Sales Promotion
Communication Mode
Usually Indirect and non-personal
Communication Control
Feedback Amount
Moderate to low
Little to moderate
Feedback Speed
Varies
Message Flow Direction
Mostly one-way
Message Content Control
Sponsor Identification
Yes
Reaching Large Audience
Fast
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Message
Flexibility
Yes
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None: Same message
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414
Learning
Objective
4
Describe the
communication process.
Characteristics of Personal Selling
D. Personal Selling
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Direct and face-to-face
High
Much
Immediate
Two-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
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Message
Slow
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Tailored
to prospect
80
415
Learning
Objective
5
Explain the goal & tasks
of promotion.
Goals and Tasks of Promotion
INFORMATIVE OBJECTIVE
• Increase awareness
CELL PHONES
• Explain how product works
BACK OF PACKAGE
• Suggest new uses
RICE KRISPIE BARS
• Build company image
WORLD’S LEADER IN ...
415
Learning
Objective
5
Explain the goal & tasks
of promotion.
Goals and Tasks of Promotion
PERSUASION OBJECTIVE
• Encourage brand switching
• Change customers’ perception
of product attributes
• Influence buying decision
• Persuade customers to call
SWITCH PHONE CO
HUYNDI CARS
???
“ON SALE UNTIL..”
416
Learning
Objective
5
Explain the goal & tasks
of promotion.
Goals and Tasks of Promotion
REMINDER OBJECTIVE
• Remind customers that
product/service may be
needed
• Remind customers where
to buy product
• Maintain customer
awareness
“NORTHERN OHIO
BUICK DEALERS
Learning
Objective
5
Explain the goal & tasks
of promotion.
Goals and Tasks of Promotion
REASSURE OBJECTIVE
• Reduce Cognitive Dissonance
HOUSES
CARS
BIG BOATS
416
Learning
Objective
6
Discuss the AIDA concept
and its relationship to
the promotional mix.
The AIDA Concept
Model that outlines the
process for achieving
promotional goals in terms
of stages of consumer
involvement with the
message.
Learning
Objective
6
Discuss the AIDA concept
and its relationship to
the promotional mix.
Action
Desire
Interest
Attention
THE AIDA CONCEPT
THE AIDA CONCEPT
416
AIDA and the Hierarchy of
Effects
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
Attention
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Interest
Desire
©2003 South-Western
Action
87
417
Learning
Objective
6
Discuss the AIDA concept
and its relationship to
the promotional mix.
AIDA and the Promotional Mix
Awareness Interest
Desire
Action
Advertising
Very
effective
Very
effective
Somewhat
effective
Not
effective
Public
Relations
Very
effective
Very
effective
Very
effective
Not
effective
Sales
Promotion
Somewhat
effective
Somewhat
effective
Very
effective
Very
effective
Personal Somewhat
Chapter Version 3e
effective
Selling
Very
Very
©2003
South-Western effective
effective
Somewhat
88
effective
Factors that Affect the Promotion Mix
Nature of the Product
Stage in the Product
Life Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds
$$$
Push–and–Pull Strategies
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89
418
Learning
Objective
7
Describe the factors that
affect the promotional mix.
A. Nature of the Product
 Product characteristics
– Business product vs. consumer product
 Costs and risks
HIGH COST OF PERSONAL SELLING
 Social risk
CLOTHING, JEWELRY
Goals and Tasks of Promotion
Informing
Reminding
Target
Audience
Persuading
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91
414
Learning
Objective
Explain the goal & tasks
of promotion.
5
PLC Stages: 1. Informing
Introduction
Early Growth
3. Reminding
PLC Stages:
Maturity
Target
Audience
PLC Stages:
Growth
Maturity
2. Persuading
PLC Stages:
ALL
4. Reassuring
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Learning
Objective
7
Describe the factors that
affect the promotional mix.
Sales ($)
B. Product Life Cycle & Promotional Mix
Maturity
Introduction
Growth
Decline
Time
Light
Heavy use of
Advertising, advertising,
prePR for
introduction awareness;
Publicity
sales
promotion
for trial
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Advertising,
PR, Brand
loyalty
Personal
Selling for
distribution
©2003 South-Western
Ads
decrease.
Sales
Promotion,
Personal
Selling
Reminder &
Persuasive
AD/PR
decrease
Limited
Sales
Promotion,
Personal
Selling
93 for
distribution
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Learning
Objective
7
Describe the factors that
affect the promotional mix.
C. Target Market Characteristics
FOR:
Advertising
 Widely scattered
market
Sales Promotion
 Informed buyers
Less Personal Selling
 Repeat buyers
420
Learning
Objective
7
Describe the factors that
affect the promotional mix.
D. Type of Buying Decision
Routine
Type of
Buying Decision
affects
Promotional
Mix Choice
Advertising
Sales Promotion
Advertising
Not Routine
or Complex
Public Relations
Complex
Personal Selling
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Learning
Objective
7
Describe the factors that
affect the promotional mix.
E. Available Funds
 Trade-offs with funds available
 Number of people in target market
 Quality of communication needed
 Relative costs of promotional elements
FIGURE 18-5 A comparison of push and pull promotional
strategies
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97
Slide 18-35
Push Policy
Promotion policy
used only with the
next partner in the
distribution
channel.
Manufacturers PUSH
a product to the
retailers for sale….
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98
Pull Policy
Promotion policy
designed to create
consumer interest
When a product is
consumer driven
or PUSHED into a
store….
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421
Learning
Objective
Describe the factors that
affect the promotional mix.
7
F. Push and Pull Strategies
PUSH STRATEGY
Manufacturer
promotes to
wholesaler
Wholesaler
promotes to
retailer
Retailer
promotes to
consumer
Consumer
buys from
retailer
Orders to manufacturer
PULL STRATEGY
Manufacturer
promotes to
consumer
Consumer
demands
product
from retailer
Retailer
demands
product
from wholesaler
Orders to manufacturer
Wholesaler
demands
product from
manufacturer
Ethical Aspects of
Advertising and
Promotion
Advertising and Promotion. McGraw-Hill/Irwin© 2004 The McGrawHill Companies, Inc., Chapter 22.
101
Advertising and Ethics
 Proponents
 Encourages a
standard of living
improvement
 Produces jobs
 Promotes competition
 Critics
 Creates needs and
faults
 More propaganda
than information
 Promotes materialism
102
Ethics in Promotion
 Ethics: Moral principles and
values that govern the actions of
and individual or group individual
group..
103
Ethics in Promotion
 Not all issues can be regulated
 A marketing or promotion action may be
legal but not considered ethical
 Marketers must make decisions
regarding the appropriateness of their
actions
 Companies are scrutinized for their ethics
104
Social and Ethical Criticisms
of Promotion





Advertising as untruthful or deceptive
Advertising as offensive or in bad taste–
Advertising of personal products–Sexual appeals
Advertising and Children
Social and Cultural Consequences–Making people buy
things they don’t need–Encouraging materialism–
Stereotyping–Advertisings’ influence on the media
105
Social and Ethical Criticisms
of Promotion
 Advertising as untruthful or deceptive–
 General mistrust of ads
–Deliberately untruthful or misleading vs.
puffery
 Problems often more at local level rather
than national
106
Social and Ethical Criticisms
of Promotion
 Advertising as offensive, in bad taste, or
irritating
 Advertising of personal products
 Sexual appeals
 􀂃Suggestive, demeaning, raunchy
107
Many people
found
Benetton’s
“Death Row”
ad campaign
offensive
108
Children and Promotion
 Children's TV Watching Behavior
 Children between ages 2-11 watch on
average 21.5 hours of TV per week and may
see 22,000 commercials per year
 Television is an important source of
information for children about products
109
Children and
Promotion
 Some studies have shown…
 Children lack experience and knowledge to
evaluate advertising critically
 They can not differentiate between
commercials and program (fantasy vs.
reality)
 Children are vulnerable to advertising
110
Children and Promotion
 ……while other studies argue that
 Children must learn through the consumer
socialization process; need to acquire
skills to function in the marketplace
 Acquired skills have helped teens evaluate
ads and recognize persuasion techniques
111
Children and Promotion
 From: ADText
112
Stereotyping
 Portrayal of women
 Gender stereotyping
 Portrayal of women as sex objects
 Role portrayal of women to reflect changing
role in society
 Blacks and Hispanics
 Gays
 Elderly
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Do You Agree With Leo
Burnett?
 “It must be said that without advertising
we would have a far different nation, and
one that would be much the poorer-not
merely in material commodities, but in
the life of the spirit.”

These excerpters are from a speech given by Leo Burnett on the American
Association or Advertising Agencies’ 50th anniversary, April 20,1967
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