Presentation prepared by Robin Roberts, Griffith University and
Chapter
15
Mike Spark,
Swinburne University
Technology
Copyright Johnof
Wiley
& Sons 2007
Chapter 15
The promotion mix
Chapter 15
Copyright John Wiley & Sons 2007
Chapter Objectives
1. Describe the nature and types of advertising
2. Explain the major steps in developing an
advertising campaign
3. Recognise the tools used in public relations
4. Define personal selling and understand its
purpose
5. Explain what sales promotion activities are
and how they are used
6. Recognise specific consumer and trade
sales promotion methods
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An innovative and effective international
advertising campaign
Dial-Up
Broadband
Subway – the Jared Fogle campaign
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A consistent advertising platform: Virgin
Blue’s television advertising campaign
Dial-Up
Broadband
“If only you got Virgin Blue service everywhere”
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The nature and types of advertising
Advertising — Paid non-personal
communication about an organisation and
its products transmitted to a target
audience through mass media
– Mass Media includes: TV, radio, the Internet,
newspapers, magazines, direct mail, outdoor
displays and signs on buses and taxis.
– It promotes goods, services, ideas, images,
issues and people
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Types of advertising
• Institutional – organisational images, ideas
and political issues
• Advocacy – promotes a company’s position
• Product – highlights uses, features and
benefits
• Pioneer – attempts to stimulate demand for
a product category by informing
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Types of advertising
• Competitive – identifies special features, uses
and advantages relative to competition
• Comparative - compares two or more brands
• Reminder – used to remind about uses,
characteristics and benefits
• Reinforcement – assures users they chose the
right brand and tells them how to get the most
satisfaction from it
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Developing an advertising campaign
The creation and
execution of a series
of advertisements to
communicate with a
particular target
audience
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Creating an advertising campaign
1. Target audience – is the group of people at
whom advertisements are aimed
2. Defining the advertising objectives – what
does the firm hope to accomplish with the
campaign?
3. Creating the advertising platform – basic
issues or selling points to be included in
the advertising campaign
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Creating an advertising campaign
(cont'd)
4. Determining the advertising budget – the
total amount of money a marketer allocates
for advertising for a specific period
5. Developing the media plan – sets out the
media vehicles and the time schedule for
each medium.
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Creating an advertising campaign
(cont'd)
6. Creating the advertising message –
comprises both Content and Form
The content is affected by the product or
service features, uses and benefits
Both content and form are influenced by
the characteristics of the target audience
and the choice of media
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Creating an advertising campaign
(cont'd)
Copy
– the verbal portion of an advertisement
Copy Guidelines
– identify a specific desire or problem
– recommend the product to satisfy the desire
or solve the problem
– state product benefits
– substantiate advertising claims
– ask the buyer to take action
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Creating an advertising campaign
(cont'd)
Storyboard
– A mockup combining copy and visual
material to show the sequence of major
scenes in a commercial.
Artwork
– Illustration and layout of the advertisement
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Creating an advertising campaign
(cont'd)
Illustrations
– Photos, drawings, graphs, charts,
and tables used to spark audience interest.
Layout
– The physical arrangement of an
advertisements' illustration and copy.
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Creating an advertising campaign
(cont'd)
7. Executing the campaign
– Planning and coordination by people
and organisations
– Implementation by:
•
•
detailed scheduling of campaign
phases
evaluation and corrective action as
necessary to make the campaign more
effective
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Creating an advertising campaign
(cont'd)
8. Evaluating advertising effectiveness
• Pretest – before the campaign, often by
a consumer jury
• Enquiries – during the campaign
• Post-test – after the campaign, often by
consumer surveys
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Public Relations
Public relations
A broad range of
communications efforts
used to create and
maintain favourable
relations between an
organisation and its
stakeholders
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Tools
Written materials
– brochures
– Newsletters
– Annual reports
Corporate identity
materials
– logos, graphics
– speeches
– sponsored events
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Public relations (cont’d)
Publicity need not only be used in crisis – it
should be used on a positive, ongoing basis
Advantages
• Credibility
• Significant word-of-mouth communications
Limitations
• Acceptance by news media
• Timely, interesting, accurate, and in the
public interest
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Public relations (cont'd)
Dealing with unfavourable public relations
Prevention of negative incidents and events
– Safety programs, inspections, and effective
quality control procedures
Preparedness for negative incidents and events
– Predetermined policies and procedures
that expedite news coverage
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What is personal selling?
Personal Selling — Paid personal
communication that informs customers and
persuades them to buy products
– Most adjustable to customer information
needs
– Most precise (targeted) form of promotion
methods
– Most expensive element in promotion mix
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Personal selling process
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How important is personal selling to your
organisation?
Dial-Up
Broadband
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Personal selling process
1. Prospecting
– Developing a list of potential customers
2. Preapproach
– Before contacting prospects, information is
found and analysed about each prospect
3. Approach
– The manner in which a salesperson
contacts a potential customer
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Personal selling process (cont'd)
4. Making the presentation
–
–
Key actions to undertake during the
presentation: stimulate interest, hold interest
Ways to enhance presentation’s
effects/interactions through touching, holding
or using product
5. Overcoming objectives
–
–
Treat objections as requests for further
information
Anticipate likely objections and prepare your
responses.
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Personal selling process (cont'd)
6. Closing the sale
– The stage in the selling process when the
sales person ask the prospect to buy the
product
7. Following up
– Determining if the delivery and setup of order
was completed to the customer’s satisfaction
– This is the most under-used part of the selling
process by most sales people
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Sales promotion
Sales promotion
An activity and/or
material that acts as
a direct inducement
• Encourages
product trial and
purchase
Choice of Sales promotion
depends on
• Product characteristics
• Target market
• Distribution Channel
• Resellers
• Competitive and legal
environment
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Consumer sales promotion methods
Consumer sales promotion methods are ways
of encouraging consumers to patronise
specific stores or to try particular products
1.
2.
3.
4.
5.
6.
Coupons and cents-off offers
Refunds and rebates
Loyalty programs
Point of purchase materials and demonstrations
Free samples and premiums
Consumer games, contests and sweepstakes
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Consumer sales promotion methods
(cont’d)
Coupons and cents-off offers
• Coupons – written price reductions used to
encourage consumers to buy
• Cents-off offers let buyers pay less than the
regular price to encourage purchase
Refunds and rebates
• Cash Refund – Offers consumers money when
they mail in a proof of purchase
• Rebate – Sends consumers a specific amount
of money for making a product purchase
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Consumer sales promotion methods
(cont'd)
Loyalty programs
– Reward customers who purchase repeatedly
Point-of-purchase materials and demonstrations
• Point-of-purchase displays
– Signs, window displays, display racks, and
similar means used to attract customers and to
encourage immediate purchases
• Demonstrations
– Used temporarily to encourage trial use
– Highly effective, yet costly in practice
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Consumer sales promotion methods
(cont’d)
Free Samples and Premiums
• Free Samples
– Free products given out to encourage trial and to
increase sales volume
• Premiums
– Items offered free or at a minimal cost as a bonus for
purchasing a product
– Consumer Games, Contests and Sweepstakes
– Generates retail traffic and increases exposure to
promotional messages
– Entrants submit their names for inclusion in a
drawing for prizes
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Trade sales promotion methods
Trade sales promotion methods
• ways of persuading wholesalers and
retailers to carry a producer’s products and
to market them aggressively
Trade allowances
• Buying allowance
– A temporary price reduction to resellers
for purchasing specified quantities of a
product
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Trade sales promotion methods (cont’d)
Trade allowances
•
•
•
Buy-back allowance
– A sum of money a producer gives a reseller
for each additional unit bought after an initial
promotion deal is over
Scan-back allowance
– A manufacturers reward to retailers based on
number of items scanned
Merchandise allowance
– A manufacturer’s agreement to help reseller’s
pay for promotional efforts
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Trade sales promotion methods (cont’d)
Cooperative advertising and dealer listings
• Cooperative advertising
– Sharing of media costs by manufacturer and
retailer for advertising the manufacturer’s
products.
• Dealer listings
– Identifying retailers that sell the product;
influences retailers to carry the products, builds
traffic at the retail level, and encourages
consumers to shop at participating dealers.
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Copyright John Wiley & Sons 2007
Trade sales promotion methods (cont’d)
Free merchandise and gifts
• Free merchandise
– A manufacturer’s reward given to
resellers for purchasing a stated
quantity of goods.
• Dealer loader
– A gift, often part of a display, offered to
a retailer who purchases a specified
quantity of merchandise.
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Trade sales promotion methods (cont’d)
Premium (Push) Money
– Extra compensation to salespersons for
pushing a line of products
Sales Contests
– A means of motivating distributors,
retailers, and salespeople by
recognising outstanding achievements
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What are the pros and cons of advertising
on radio versus other media?
Country
Rap
(Audio only)
(Audio only)
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Chapter 15
Copyright John Wiley & Sons 2007