Download V. The 4Ps of Marketing: Promotion Learning objective 4

V. THE 4Ps OF MARKETING:
PROMOTION
► LEARNING OBJECTIVE 4
Understand the five types of promotion. (Text
pages 334-349)
A. The final “P” is promotion.
1. Promotion is an effort by marketers to
inform and remind people in the target
market and about products and to
persuade them to participate in the
exchange.
a. The marketer must:
i. define the target audience;
ii. select methods to reach the
audience;
iii. design the right message for
the audience;
iv. make sure the audience gets
the message.
b. Many companies chose to hire
advertising agencies to:
i. develop the target market;
ii. create advertisements and
promotional plans;
iii. implement these plans.
c. The combination of promotional
tools, or its PROMOTIONAL MIX,
includes advertising, personal
selling, public relations, and sales
promotion.
2. INTEGRATED MARKETING
COMMUNICATION (IMC) combines
all the promotional tools into one
comprehensive and unified
promotional strategy.
a. Companies use all the
POWERPOINT 10-10
The 4Ps of Marketing:
Promotion (Refers to text
pages 334-337)
TEXT FIGURE 10.6
The Promotion Mix (Box in
text on page 335)
TEXT FIGURE 10.7
Steps in a Promotion
Campaign (Box in text on
page 335)
TEXT FIGURE 10.8
Advantages and
Disadvantages of Various
Forms of Media (Box in text
on page 336)
promotional tools and resources
to create a positive brand image
and meet strategic marketing
goals.
b. The concept involves unifying all
aspects of the product and its
marketing.
c. Good IMC should provide the
customer with a consistent
message about a product.
B. Advertising
1. ADVERTISING is paid, nonpersonal
communication through various media
by organizations and individuals who
are in some way identified in the
advertising message.
a. Total ad volume exceeds $281
billion yearly.
b. Television is the number one
advertising medium in terms of
total dollars spent.
c. The public benefits from
advertising:
i. Advertising is informative–it
provides information about
products, prices, features,
and so on.
ii. Advertising provides us with
free TV and radio programs,
because advertisers cover
most of the production costs.
iii. Advertising costs cover the
major costs of producing
newspapers and magazines.
d. Newspapers, radio, and the yellow
pages are especially attractive to
BONUS INTERNET
EXERCISE 10-4
Advertising on Google
A popular method of Internet
advertising is buying an ad
on a web search engine such
as Google. This Internet
exercise lets students explore
exactly what this involves.
(See complete exercise on
page 10.Error! Bookmark
not defined. of this manual.)
BONUS INTERNET
EXERCISE 10-5
Ethics in Advertising
The American Association of
Advertising Agencies is the
professional organization
representing the major
advertising agencies. Its
website provides guidelines
for ethical behavior in
advertising. (See complete
exercise on page 10.Error!
Bookmark not defined. of
this manual.)
CRITICAL THINKING
EXERCISE 10-4
Advertising Appeals
This exercise explores the
different advertising appeals
that marketers use in
television advertising. (See
complete exercise on page
10.Error! Bookmark not
defined. of this manual.)
TEXT FIGURE 10.9
Expenditures in 2006 for
Various Types of Media
(Box in text on page 337)
local advertisers.
e. TV has many advantages to
national advertisers, but it is
expensive.
i. However, few other media
can reach as many people
with such impact.
ii. Forty-three percent of U.S.
households are reached by
the Super Bowl.
2. PRODUCT PLACEMENT is paying to
put products into TV shows and
movies where they will be seen.
3. Marketers must choose which media
and which programs will best reach
the audience they desire.
C. PERSONAL SELLING is face-to-face
presentation and promotion of products
and services.
1. Personal selling occurs at both a B2B
level and at a consumer level.
a. Effective selling today is more
than persuading others to buy; it is
helping consumers satisfy their
wants and needs.
b. Salespeople now use technology,
such as the Internet, portable
computers, and fax machines, to
help customers and to complete
the sale.
c. The benefit of personal selling is
having a person help compete the
transaction.
d. Because personal attention for
customers is expensive, some
companies are replacing
CRITICAL THINKING
EXERCISE 10-5
Identifying Product
Placement
This exercise asks students to
watch prime time television
to identify product
placements in television
shows. (See complete
exercise on page 10.Error!
Bookmark not defined. of
this manual.)
POWERPOINT 10-11
Personal Selling
(Refers to text pages 337341)
2.
3.
4.
5.
salespeople with Internet services.
Step 1: Prospect and Qualify
a. PROSPECTING involves
researching potential buyers and
choosing those most likely to buy.
b. This is also called qualifying,
making sure that people have the
need for a product, the authority to
buy, and the willingness to listen
to a sales message.
c. A person who meets these criteria
is the prospect.
d. The best prospects are people
recommended by existing
customers.
Step 2: Preapproach
a. Before making a sales call, sales
representatives must learn as
much as possible about
customers and their wants and
needs.
b. In B2B situations, salespeople
often e-mail potential clients with
proposals before making a formal
visit.
Step 3: Approach
a. You don’t have a second chance
to make a first impression.
b. The approach should give an
impression of friendly
professionalism to create rapport,
to build credibility, and to start a
relationship.
Step 4: Make presentation
a. The presentation should match
the benefits of your value package
6.
7.
8.
9.
to the client’s needs.
b. Using research, salespeople can
tailor their presentation to fit
clients.
c. This is a good time to use
testimonials.
Step 5: Answer objections
a. A salesperson should anticipate
potential objections and prepare
proper responses.
b. Questions should be viewed as
opportunities to create better
relationships.
Step 6: Close sale
a. The trial close consists of a
question or statement that moves
the selling process toward the
actual close.
b. The final step is to ask for the
order.
Step 7: Follow Up
a. The selling process isn’t over until
the order is approved and the
customer is happy.
b. Selling includes establishing
relationships, not just selling
goods and services.
c. Follow-up includes handling
customer complaints, making sure
that the customer’s questions are
answered, and supplying what the
customer wants.
d. Customer service is often as
important to the sale as the
product itself.
The selling process varies somewhat
among different goods and services,
but the general idea is the same.
D. Public Relations
1. PUBLIC RELATIONS (PR) is the
management function that evaluates
public attitudes, changes policies and
procedures accordingly, and executes
a program of action and information to
earn public understanding and
acceptance.
a. A good public relations program
has three steps:
i. listen to the public: start with
good marketing research;
ii. change policies and
procedures in response to
what customers want;
iii. inform people that you’re
being responsive to their
needs.
b. Customers often complain that it
is nearly impossible to reach a
human being with a complaint.
i. Today PR is taking a more
active role in listening to
consumer with problems.
ii. PR must maintain good
relationships with production
and service people so they
can answer questions quickly.
c. Public relations is one of the
fastest-growing industries.
d. The public relations department is
responsible for maintaining close
relationships with the media,
community leaders, government
POWERPOINT 10-12
Public Relations
(Refers to text pages 341344)
BONUS INTERNET
EXERCISE 10-6
Protecting Competition and
Consumers
The Federal Trade
Commission is the
enforcement arm for
consumer protection laws
and laws ensuring fair
competition. This Internet
exercise asks students to
explore the specific laws that
affect advertising and
competition. (See complete
exercise on page 10.Error!
Bookmark not defined. of
this manual.)
2.
officials, and other stakeholders.
Publicity
a. PUBLICITY is any information
about an individual, product, or an
organization that is distributed to
the public through the media and
that’s not paid for or controlled by
the sponsor.
i. Press releases must be
carefully written so the media
will publish them.
ii. Publicity works only if the
media finds the material
interesting or newsworthy.
b. Advantages of publicity:
i. Publicity is free.
ii. Publicity may reach people
who wouldn’t read an ad.
iii. The greatest advantage of
publicity may be its
believability.
c. Disadvantages of publicity
include:
i. Marketers have no control
over how, when, or if the
media will use the story.
ii. The media does not have to
publish it.
iii. The story can be altered so
it’s not positive.
iv. There is good publicity and
there is bad publicity.
v. Stories are not likely to be
repeated; advertising can be
repeated as often as needed.
TEXT FIGURE 10.10
A Press Release Announced
Apple’s Introduction of the
iPhone (Box in text on page
343)
TEXT FIGURE 10.11
Examples of Business-to-
d.
To see that publicity is handled
well by the media, the marketer
should establish a friendly
relationship with the media and
cooperate with them.
E. SALES PROMOTION is the promotional
tool that stimulates consumer purchasing
and dealer interest by means of short-term
activities.
1. Examples of consumer sales
promotions include free samples,
cents-off coupons, and prizes.
a. Sales promotion programs are
designed to supplement personal
selling, advertising, and public
relations by creating enthusiasm
for the overall promotional
program.
b. Internal sales promotions (within
company) generate employee
enthusiasm about a product,
including:
i. sales training;
ii. development of sales aids
such as flip charts, portable
audiovisual displays, and
videotapes;
iii. participation in trade shows.
c. External sales promotion (outside
company, including distributors
and dealers)
i. It is important to get
distributors and dealers
involved so they, too, are
enthusiastic.
ii. Trade shows are important
because buyers are able to
Business Sales Promotion:
Techniques and Consumer
Sales Promotion
Techniques (Box in text on
page 344)
POWERPOINT 10-13
Sales Promotion
(Refers to text pages 344349)
TEXT REFERENCE
Career Development: Make
an Impression That
Counts!
(Box in text on page 347)
An additional exercise and
discussion is available on
page 10.Error! Bookmark
not defined. of this manual.
TEXT REFERENCE
Thinking Critically: SmallScreen Dream: Launch a
Cable Ad Campaign
(Box in text on page 348)
Cable networks have lured
audiences away from
broadcast TV networks. Now
local commercials are the
mainstay of cable systems
and allow marketers to reach
a wide yet qualified
audience.
TEXT REFERENCE
Real World Business Apps
(Box in text on page 351)
F.
see products from many
different sellers.
d. Virtual trade shows—trade shows
on the Internet—let buyers to see
many products without leaving the
office.
2. Next promote to final consumers.
a. Techniques include samples,
coupons, cents-off deals, displays,
contests, rebates, and so on.
b. Sales promotion is an ongoing
effort to maintain enthusiasm.
3. SAMPLING is letting consumers have
a small sample of a product for no
charge.
a. Using sampling in grocery stores
is a quick, effective way of
demonstrating a product’s
superiority at the time consumers
are making a purchase decision.
b. Sampling is a quick, effective way
of showing a product’s benefits.
4. Companies use sampling in
conjunction with other techniques such
as event marketing.
a. EVENT MARKETING is
sponsoring events such as rock
concerts or being at various
events to promote your products.
b. Companies can also support
charitable organizations in order
to give back to their communities.
Other Types of Promotion
1. To create a “buzz” companies can try
viral marketing and word-of-mouth.
2. VIRAL MARKETING is the term now
Wei Zhang has learned that
he needs to develop a
promotional plan to expand
his customer base. He has
developed an advertisement
for the yellow pages and
plans to use public relations
as part of his marketing plan.
LECTURE LINK 10-8
Measuring Web Traffic
Is the “most popular” website
the one with the most unique
visitors or the most
individual hits? It makes a
big difference. (See complete
lecture link on page
10.Error! Bookmark not
defined. of this manual.)
LECTURE LINK 10-9
Desktop Distribution
Internet providers and
software companies use a
form of sampling, trial
software preloaded on new
PCs. (See complete lecture
link on page 10.Error!
Bookmark not defined. of
this manual.)
LECTURE LINK 10-10
Promotional Bits
Celebrity voice-overs, phone
booth ads, advertising and
TiVo, and an online
chicken—a collection of
interesting bits about
promotion. (See complete
lecture link on page
10.Error! Bookmark not
defined. of this manual.)
BONUS CASE 10-4
Wieden & Kennedy:
Experimental Promotions
Wieden and Kennedy
(W&K), is known as one of
the most creative advertising
agencies in the United States.
One of its ads even used a
3.
used to describe everything from
paying people to say positive things on
the Internet to setting up multilevel
selling schemes whereby consumers
get commissions for directing friends
to specific websites.
a. Viral marketing can include:
i. paying people to say positive
things on the Internet;
ii. setting up multilevel selling
schemes.
b. Example: Barnes & Noble sends
an e-mail to customers’ friends
telling them if you enjoy reading a
book.
Word-of-mouth is one of the most
effective promotional tools.
a. WORD-OF-MOUTH PROMOTION
is a promotional tool that involves
people telling other people about
products they have purchased.
b. Anything that encourages people
to talk favorably about an
organization is effective word-ofmouth.
c. Clever commercials and samples
can generate word-of-mouth.
d. An effective strategy for spreading
word-of-mouth is to send
testimonials to current customers.
e. Testimonials are effective in
confirming customers’ belief that
they chose the right company and
are effective in promotion to new
customers.
streaker. (See complete case,
discussion questions, and
suggested answers on page
10.Error! Bookmark not
defined. of this manual.)
BONUS CASE 10-5
Night Agency (Video Case)
This bonus case ties in with
the video available for use
with this chapter The
challenge for marketers
today is to create promotions
for the new realities of the
marketplace. That means, for
one thing, creating
advertising and other
promotions on the Internet.
(See complete case,
discussion questions, and
suggested answers on page
10.Error! Bookmark not
defined. of this manual.)
BONUS CASE 10-6
Guerrilla Marketing
Dietrich Mateschitz is the
man who introduced Red
Bull to the U.S. market. The
secret to Red Bull’s success
is something called guerrilla
marketing. (See complete
case, discussion questions,
and suggested answers on
page 10.Error! Bookmark
not defined. of this manual.)
SELF CHECK QUESTIONS (Text page 349)
1.
List each type of promotion we discussed.
2.
Which method of promotion do you think is most
effective in selling to you? Which is the least effective?