Chapter 16
Using
Effective
Promotions
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
Sixteen
NAME that COMPANY
This beverage company has 8.5 million
Facebook fans. It posts two daily messages
and then monitors how many times each
message is reviewed, how many times it is
shared, and what the fan response to the
messages is. It also uses Facebook to test
potential ads before airing them on traditional
media like TV.
Name that company! Dr. Pepper
16-5
Promotion and
the Promotion
Mix
LG1
PROMOTION
in an ORGANIZATION
Promotion Mix –
Combination of four
promotional tools
16-6
the Promotion
Mix
LG1
INTEGRATED MARKETING
Advertising
Public
Relations
Selling
Integrated Marketing
Communication (IMC) –
Combines the promotional
tools into one strategy
• Creates positive brand image
• Meet the needs of consumers
• Meet the strategic goals
Sales
Promotion
Steps in a
Promotional Campaign
1.
2.
3.
4.
5.
6.
Identify a target market
Define objectives
Determine budget
Develop unifying message
Implement the plan
Evaluate effectiveness
Advertising:
Informing,
Persuading and
Reminding
LG2
ADVERTISING in the FIRM
Advertising
Selling
Public
Relations
Sales
Promotion
Advertising -- Paid, nonpersonal communication through
various media by organizations
and individuals who are in some
way identified in the message.
Major goals of advertising:
- Inform
- Persuade
- Remind
16-12
Advertising:
Informing,
Persuading and
Reminding
LG2
SOCIAL MEDIA ADVERTISING
Advertising
Selling
Public
Relations
Sales
Promotion
Social media advertising
is growing so fast, marketers
can’t keep up.
• Starbucks has over 12 million
followers on Twitter
• McDonald’s has over
7 million fans on Facebook
Do you follow any companies on Twitter or Facebook?
Television
Advertising
LG2
POPULAR ADVERTISING MEDIA
Advertising
Selling
Public
Relations
Sales
Promotion
TV advertising is still the dominant media
Digital Video Recorders (DVRs) challenge TV
advertising because viewers can skip ads.
Product Placement -Advertisers pay to put their
products into TV shows and
movies where the audience
will see them.
Television
Advertising
LG2
WHAT IF BUDGET IS SMALL?
Advertising
Selling
Public
Relations
Sales
Promotion
VIDEO – oxo (7 min)
Brand Management & Budget Advertising
Paper:
1. Rather than print/TV, how do they
communicate with their market?
2. Would you consider brand management or
advertising as a career? Why?
Making Ethical
Decisions
PAY-PER-TWEET
Celebrities can earn large sums
of money just buy mentioning a
product or site in their tweets
Do you think it’s ethical for
celebrities to get paid to tweet prewritten ads that appear to be their
own personal comments?
16-26
Personal Selling:
Providing
Personal
Attention
LG3
PERSONAL SELLING
Advertising
Selling
Public
Relations
Sales
Promotion
Personal Selling -- The face-to-face presentation and
promotion of a product, including the salesperson’s
search for new prospects and follow-up service.
• Listen to customer needs
• Help reach a solution
• Do everything possible to
make the transaction as
simple as possible.
16-32
Steps in the
Selling Process
LG3
RELATIONSHIP-BASED
SELLING PROCESS
VIDEO – Medtronic (6 min)
Relationship-based Sales
Paper:
1. What barriers did they face in sales?
2. How did they build relationships?
3. Would you consider sales as a career? Why?
16-33
Public Relations:
Building
Relationships
LG4
PUBLIC RELATIONS
Advertising
Selling
Public
Relations
Sales
Promotion
Public Relations (PR) –
Evaluates public attitudes, then changes policies and
procedures in response to the public, and executes a
program of action and information to earn public
understanding and acceptance
3 steps of a good PR program:
1) Listen to the public
2) Change policies and procedures
3) Inform people you’re responsive to their needs
PUBLICITY
Publicity: The
Talking Arm of
PR
LG4
Advertising
Selling
Public
Relations
Sales
Promotion
Publicity –
Information about an individual,
product or organization that’s
distributed to the public through the
media and is not paid for or controlled
by the seller (Press Releases)
Advantages of Publicity:
- Free
- Reaches people who would not
look at an advertisement
- More believable than advertising
Sales Promotion:
Giving Buyers
Incentives
LG5
SALES PROMOTIONS
Advertising
Selling
Public
Relations
Sales
Promotion
Sales Promotion –
Stimulate consumer purchasing and dealer interest by
means of short-term activities
Categories of Sales Promotions
B2B
Consumer
Trade shows, Contests
Costco free food, Coupons
Viral Marketing
LG6
EMERGING
PROMOTIONAL TOOLS
Viral Marketing –
Paying customers to say positive
things on the Internet or setting up
multiple selling schemes whereby
consumers get commissions.
• People who promote through
viral marketing often receive
SWAG which can include free
tickets, shirts, and other
merchandise.
16-49
Mobile Media
MOBILE MEDIA
LG6
• Marketers make use of cell
phones to text customers
about product offers and
other company information.
16-51
Promotional
Strategies
LG6
PUSH, PULL, AND PICK
PROMOTIONAL STRATEGIES
Push Strategy – (work with intermediaries)
Advertising, personal selling, sales promotion, and other
tools to get their products stocked on shelves
Sell out your existing supply of product
Pull Strategy – (work with end users)
Heavy advertising and sales promotions efforts towards
consumers and gets the public to request their products
from retailers
Generate interest so customers seek out your product