PROMOTION
MEANS EFFECTIVE
COMMUNICATION
15.1 Promotion as a Form of Communication
15.2 Types of Promotion
15.3 Mixing the Promotional Plan
© South-Western Publishing
PROMOTION AS A FORM
OF COMMUNICATION
GOALS for Lesson 15.1
Explain the three roles of promotion in
marketing.
Describe how the communication
process works in marketing.
Define the two types of communication
that are important to marketers.
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The Role of
Promotion in Marketing
Promotion – any form of communication
used to:
Inform
Persuade
Remind
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The Role of Promotion in
Marketing
Inform potential or current customers of
a new product or service or of an
improvement to an existing product
 Introduction Stage of the Product Life
Cycle
 Benefits and characteristics
 Changes and Improvements
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The Role of Promotion in
Marketing
Persuade - attempts to encourage a
customer to take a specific action, such
as purchasing a product
 Negative meaning to some customers
 Growth Stage of the product life cycle
 Advantages over the competitors
product
 Coupons, rebates, samples
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The Role of Promotion in
Marketing
Remind customers about existing
products on the market
 Maturity Stage of the product life cycle
 How good, how attractive, how it
satisfies customer’s wants and needs
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The Communication Process
Sender
Encoding
by Sender
Message
Channel
Decoding
by Receiver
Receiver
Feedback
Noise
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Promotion Is a
Communication Process
Sender – source or originator of the
message
 may be an organization or person
 Message to be shared with a group
 “Pepsi Generation”
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Promotion Is a
Communication Process
 Encoding – putting the message into
language or symbols that are familiar to the
intended receiver
 Pepsi – popular music, loud colors, young
people
 Message Channel – the medium the sender
chooses to transmit the message
 TV, radio, newspapers, magazines, direct mail,
sales presentations, bill boards
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Promotion Is a
Communication Process
 Decoding – interpreting the message or
symbols and converting them into concepts
and ideas
 Manipulate, alter the message to their needs
 Receiver – the person or persons to whom
the encoded message is directed
 The target audience of a product or service
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Promotion Is a
Communication Process
 Noise – interference that can cause the
message to be interpreted by the receiver
incorrectly
 Radio static, poor printing quality, unfamiliar
words, misinterpretation
 Feedback – the receiver’s reaction or
response to the source’s message
 Helps measure the effectiveness of a
promotional activity
© South-Western Publishing
The Communication Process
Sender
Encoding
by Sender
Message
Channel
Decoding
by Receiver
Receiver
Feedback
Noise
© South-Western Publishing
Types of
Communication
Interpersonal communication
 Two-way communication
 Involves two or more people in some kind of
person-to-person exchange
Mass communication
 One-way communication
 Involves communicating to huge audiences,
usually through mass media, such as
magazines, radio, television, or newspapers
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TYPES OF PROMOTION
GOALS for Lesson 15.2
 Describe the advantages and disadvantages
of advertising and publicity as types of
promotion.
 Explain the advantages and disadvantages of
personal selling as a type of promotion.
 Define sales promotion and describe its
advantages and disadvantages as a type of
promotion.
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Advertising
Any paid form of nonpersonal communciation
sent through a mass medium by an
organization about its products
 Advantages
 reaches a lot for a low cost per person,
geographical advantages, repeat the message
 Disadvantages
 costs, target audience might not be in the right
place, impersonal
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Examples of Mass
Media Advertising
Direct mail
Internet
Magazines
Newspaper
Outdoor
Radio
Television
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Publicity
A non-paid form of communication about a
business or organization that is transmitted
through a mass medium
 Advantages
 the Goodwill that is created (Disney and Safety
Reports)
 Disadvantages
 organizations have little control over it
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Personal Selling
Person to person communication with
potential customers in an effort to inform,
persuade, or remind
 Advantages
 much more informative and persuasive, feedback
is immediate and can be acted upon right away
 Disadvantages
 cost per person is high
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Sales Promotion
Activities or materials that offer consumers a
direct incentive to buy a good or service
(coupons, contests, samples, rebates)
 Advantages
 generated immediate short-term sales, supports
other promotions (commercial – coupon)
 Disadvantages
 cost, on average $110 billion a year is spent on
sales promotions
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MIXING THE
PROMOTIONAL PLAN
GOALS for Lesson 15.3
Explain the four major factors that affect
the promotional mix.
Describe the seven steps in the
promotional planning process.
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Elements of a
Promotional Mix
Advertising
Personal selling
Publicity
Sales promotion
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Factors that Affect the
Promotional Mix
Marketing
Mix
Target Policy and Financial
Market Objectives Resources
Promotional
Mix
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Promotional Planning
The promotional plan is a carefully
arranged sequence of promotions
designed around a common theme
responsive to specific objectives.
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The Steps in
Promotional Planning
Analyze the market
Identify the target market
Develop promotional objectives
 Achievable, measurable, fit into marketing plan
Develop a promotional budget
Select the promotional mix
Implement the promotional plan
Evaluate the results
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