*
Chapter
Sixteen
*
Using
Effective
Promotions
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
*
LAUREL RICHIE
Girl Scouts of America
Profile
*
• Joined the Girl Scouts after
developing campaigns for
American Express and
Campbell’s Soup.
• Her biggest challenge is to
communicate with girls
through channels unheard of
when the organization was
formed.
16-2
PROMOTION
in an ORGANIZATION
*
Promotion and
the Promotion
Mix
LG1
*
• Promotion Mix -- The combination of promotional
tools an organization uses; the traditional mix
includes:
16-3
INTEGRATED MARKETING
COMMUNICATION (IMC)
*
Promotion and
the Promotion
Mix
LG1
*
• Integrated Marketing Communication (IMC) -Combines the promotional tools into one
comprehensive strategy. IMC is used to:
- Create a positive brand image.
- Meet the needs of consumers.
- Meet the strategic marketing and promotional
goals of the firm.
16-4
STEPS in a
PROMOTIONAL CAMPAIGN
*
Promotion and
the Promotion
Mix
LG1
*
1. Identify a target market
2. Define objectives
3. Determine a promotional budget
4. Develop a unifying message
5. Implement the plan
6. Evaluate the plan
16-5
*
DEAR MR. POSTMAN…
Steps in Launching a Direct-Mail Campaign
Promotion and
the Promotion
Mix
*
LG1
1. Plan: What should your mailing accomplish?
2. Get the Right List: The better the list, the better
your chance of success.
3. Stand Out: Make your ad like
no other.
4. Get Help: Contact a marketing
firm with direct mail experience.
5. Follow Up: One mailing is not
enough.
16-6
*
ADVERTISING in the FIRM
Advertising:
Informing,
Persuading and
Reminding
LG2
*
• Advertising -- Paid, non-personal
communication through various
media by organizations and
individuals who are in some way
indentified in the message.
• Major goals of advertising:
- Inform
- Persuade
- Remind
16-7
*
IMPACT of ADVERTISING
Advertising:
Informing,
Persuading and
Reminding
LG2
*
• Total advertising expenditures
exceed $294 billion yearly.
• Consumers benefit because
production costs of TV
programs, radio programs,
newspapers and magazines
are paid for by advertisers.
• Marketers choose ad media
that will reach the target
market.
16-8
*
I’LL SPONSOR YOU
The Price of Sports Endorsements
Advertising:
Informing,
Persuading and
Reminding
*
LG2
Athlete
Sport
Amount per
Deal
Companies
Tiger Woods
Golf
$ Several Million
Nike, Gatorade,
AT&T
Yao Ming
Basketball
$1 - $4 Million
McDonald’s Visa,
Apple
Michael Phelps
Swimming
$1 - $4 Million
AT&T, PowerBar
Lebron James
Basketball
$ Several Million
Coca-Cola,
Microsoft, Nike
Gymnastics
$100,000 $500,000
Adidas,
McDonalds,
Longines
Shawn Johnson
Source: Conde Nast Portfolio.
16-9
MAJOR CATEGORIES of
ADVERTISING
*
Advertising:
Informing,
Persuading and
Reminding
LG2
Category
What it is
Retail
From retail stores to consumers
Trade
From manufacturers to wholesalers and retailers
c
B2B
From manufacturers to other manufacturers
Institutional
Creates a desirable image for an organization
Product
Creates a desirable image for a product or service
*
16-10
MAJOR CATEGORIES of
ADVERTISING
*
Advertising:
Informing,
Persuading and
Reminding
LG2
(Continued)
Category
What it is
Advocacy
Supports a particular view of an issue
Comparative
Compares competing products
Interactive
Customer-oriented ads that allows customers to
choose information to receive
Online
Computer ads featured on different sites
Mobile
Ads that reach consumers on cell phones
*
16-11
*
ADVERTISING EXPENDITURE by
MEDIA in $ MILLIONS
Advertising:
Informing,
Persuading and
Reminding
Rank
Media
Projected
2008
Spending
1
Direct Mail
$63,732
21.6
2
Broadcast TV
48,300
16.4
3
Newspaper
42,147
14.3
4
Cable TV
21,718
7.4
5
Radio
18,635
6.3
6
Yellow Pages
14,705
5.0
7
Consumer Magazine
14,106
4.8
8
Internet
12,722
4.3
Other
58,311
19.8
Total
294,376
100.0
LG2
% of Total Ad
Spending
*
16-12
*
MATCH GAME
Match the Company with the Slogan
Advertising:
Informing,
Persuading and
Reminding
*
LG2
• “Everybody doesn’t like something, but nobody
doesn’t like ___________.”
• “We bring good things to life.”
• “It takes a licking and keeps on ticking.”
• “With a name like _________, it has to be good.”
• “Good to the last drop.”
• “Betcha can’t eat just one!”
• “Because you’re worth it.”
16-13
*
IT’S a DOG’S LIFE
Famous and Not-so-Famous Dogs in Advertising
Advertising:
Informing,
Persuading and
Reminding
Pooch
Company
Nipper
RCA
Tige
Buster Brown Shoes
Chihuahua
Taco Bell
Spuds McKenzie
Bud Light
McGruff
The Crime Dog
Duke
Bush’s Beans
Bullseye
Target
LG2
*
16-14
*
POPULAR ADVERTISING MEDIA
Television
Advertising
LG2
*
• TV advertising is still the dominant media.
• Digital Video Recorders (DVRs) challenge TV
advertising because viewers can skip them.
• Product Placement -- Advertisers pay to put their
products into TV shows and movies where the
audience will see them.
16-15
INFOMERCIALS and
ONLINE ADVERTISING
*Infomercials
and Online
Advertising
*
LG2
• Infomercial -- A full length TV program devoted
exclusively to promote a particular product.
• Online ads are attempts to get potential customers to
a website to learn about a product.
• Interactive Promotion -- Allows
marketers to open a dialogue
between buyers and sellers and let
them work together to create a
beneficial exchange.
16-16
*
INFOMERCIAL HALL of FAME
The Biggest Hits Over the Past 40 Years
Infomercials
LG2
*
• Veg-O-Matic
• Ginsu Knives
• The Clapper
• Thigh Master
• George Foreman Grill
• Bowflex
Source: Fortune Magazine, April 13, 2009.
16-17
*
GLOBAL ADVERTISING
Global
Advertising
LG2
*
• Requires marketers to
develop a single product and
promotional strategy to
implement worldwide.
• Problems can arise in global
markets with using one
advertising campaign in all
countries - especially bad
translations.
16-18
*
FINDING a COMPETITIVE
ADVANTAGE in SUSTAINABILITY
*
Thinking Green
• Marketers are gaining a competitive advantage
by touting their efforts for the environment.
• Mars Drinks promotes its efforts to use less
water, send less waste to landfills and help
customers reduce their own energy waste.
• First Global Direct competes with large rivals
because of their efforts to make operations more
eco-friendly.
16-19
*
PERSONAL SELLING
Personal Selling:
Providing
Personal Attention
*
LG3
• Personal Selling -- The face-to-face presentation
and promotion of a product, including the
salesperson’s search for new prospects and follow-up
service.
• Salespeople need to listen
to customer needs, help
reach a solution and do
everything possible to make
the transaction as simple as
possible.
16-20
PROSPECTING and QUALIFYING
in B2B SELLING
*Steps in the
Selling
Process
LG3
*
• Prospecting -- Researching potential buyers and
choosing those most likely to buy.
• Qualifying -- Making sure
customers have a need for a
product, the authority to buy
and the willingness to listen to
a sales message.
• Prospect -- A customer who
meets the qualifying criteria.
16-21
STEPS in the B2B SELLING
PROCESS
*Steps in the
Selling
Process
LG3
*
1. Pre-approach
2. Approach
3. Make a presentation
4. Answer objections
5. Close the sale
• Trial Close -- A statement or question that
moves the process toward the purchase.
6. Follow up
16-22
*Steps in the
BUY THIS!
Successful Selling Strategies
Selling
Process
LG3
*
• Know your competition
• Understand your customer’s business
• Differentiate your product or service
• Sell to the people most likely to buy
• Build relationships
• Put the right people in the right selling spots
16-23
*Steps in the
WHOOPS!
Sales Slip-Ups
Selling
Process
LG3
*
• Not feeling the customer’s pain
• Making money is the only goal
• Seeing sales as just a job
• Getting upset during the presentation
• Failing to properly prepare or over-preparing
• Not being yourself
• Neglecting the relationship
Source: Fortune Magazine.
16-24
STEPS in the B2C
SELLING PROCESS
*Steps in the
Selling
Process
LG3
*
16-25
*
PROGRESS ASSESSMENT
Progress
Assessment
*
• What are the four traditional elements of the
promotion mix?
• What are the three most important advertising
media in order of dollars spent?
• What are the seven steps in the B2B selling
process?
16-26
USING PUBLIC RELATIONS in
PROMOTION
*
Public Relations:
Building
Relationships
LG4
*
• Public Relations (PR) -- Evaluates public
attitudes, 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
16-27
PUBLICITY
*Publicity: The
Talking Arm of
PR
*
LG4
• Publicity -- Any 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.
• Advantages of Publicity:
• Free
• Reaches people who would not look at an advertisement
• More believable than advertising
16-28
DISADVANTAGES of PUBLICITY
*Publicity: The
Talking Arm of
PR
LG4
*
• No control over whether the
media will use a story or when
they may release it.
• It can be good or bad.
• Once a story has been run, it
isn’t likely to run again.
16-29
*
SALES PROMOTIONS
Sales Promotion:
Giving Buyers
Incentives
LG5
*
• Sales Promotion -- The promotional tool that
stimulates consumer purchasing and dealer interest
by means of short-term activities.
• Categories of Sales
Promotions:
1. B2B Sales
Promotions
2. Consumer Sales
Promotions
16-30
SOME KEY
CONSUMER PROMOTIONS
*
Sales Promotion:
Giving Buyers
Incentives
LG5
*
• Coupons
• Demonstrations
• Sampling
• Sweepstakes
• In-store Displays
• Contests
16-31
*
CLIP THESE
Most Visited U.S. Coupon Clearing Sites
Sales Promotion:
Giving Buyers
Incentives
LG5
*
• Coupons, Inc
• EverSave
• RetailMeNot
• CouponCabin
16-32
*
PROGRESS ASSESSMENT
Progress
Assessment
*
• What are the three steps in setting up a public
relations program?
• What are the sales promotion programs used to
reach consumers?
• What sales promotion programs are used to
reach businesses?
16-33
USING WORD-of-MOUTH
PROMOTION
*
Word of Mouth
and Other
Promotional Tools
LG6
*
• Word-of-Mouth Promotion -- People tell others
about products they have purchased.
• Word-of-Mouth is important for products like:
- Restaurants
- Daycare and Eldercare
- Car Repair Shops
- Hair Stylists
- Hotels
16-34
EMERGING
PROMOTIONAL TOOLS
*
Viral Marketing
LG6
*
• 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.
16-35
*
BLOGS, PODCASTS, and E-MAILS
Blogging,
Podcasting and
E-mail
Promotions
LG6
*
• Blog -- Short for web log; an online diary that looks
like a webpage but is easier to create and update by
posting text, photos, videos, or links.
• Podcasting -- A way to distribute audio and video
programs via the Internet.
• Email promotions increase brand awareness
among commercial suppliers.
16-36
*
FRESH-BAKED PROMOTION
Spotlight on Small Business
*
• Amy Scherber of Amy’s Bread can’t afford to
outsource her promotions, so she needs to get
creative.
• She sends newspaper editors stories about her
company and has an assortment of company
shirts.
• She builds strong word-of-mouth by keeping in
touch with her community members.
16-37
PUSH, PULL, AND PICK
PROMOTIONAL STRATEGIES
*
Managing the
Promotion Mix:
Putting it All
Together
*
LG6
• Push Strategy -- Producers use advertising,
personal selling, sales promotion, and other tools to
get their products stocked on shelves.
• Pull Strategy -- Directs heavy advertising and sales
promotions efforts towards consumers and gets the
public to request their products from retailers.
• Pick Strategy -- Refers to consumers who pick out
their products from online outlets.
16-38
*
GOING DIGITAL
Reaching Beyond Our Borders
*
• Agencies like Publicis Groupe knew they had to
move forward into the digital age.
• Publicis bought Digitas, an interactive ad agency,
and tried to blend the firms.
• Publicis created the Global Marketing Navigator
and simplifies masses of data from clients and
measures the program’s effectiveness.
16-39
*
PROGRESS ASSESSMENT
Progress
Assessment
*
• What’s viral marketing?
• What are blogging and podcasting?
• Describe a push strategy, a pull strategy and the
pick strategy.
16-40