Download LO 16-2

CHAPTER 16
Using
Effective
Promotions
McGraw-Hill/Irwin
Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.
LEARNING OBJECTIVES
1. Identify the new and traditional tools that make up
the promotion mix.
2. Contrast the advantages and disadvantages of
various advertising media, including the Internet and
social media.
3. Illustrate the steps of the B2B and B2C selling
processes.
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LEARNING OBJECTIVES
4. Describe the role of the public relations department,
and show how publicity fits in that role.
5. Assess the effectiveness of various forms of sales
promotion, including sampling.
6. Show how word of mouth, viral marketing, blogging,
podcasting, e-mail marketing, and mobile marketing
work.
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CHRIS HARDWICK
Nerdist Industries
• Hardwick broke into
entertainment after graduating
from UCLA.
• After his career hit a low, he
started following his nerd
passions and created The
Nerdist.
• Entered a partnership with
Peter Levin and expanded the
Nerdist franchise.
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NAME that COMPANY
This company put its product into the hands of
Spiderman. Viewers watched as the superhero
used the product throughout his latest movie.
Name that company!
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PROMOTION
in an ORGANIZATION
LO 16-1
• Promotion Mix -- The combination of promotional
tools an organization uses. The traditional mix
includes:
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INTEGRATED MARKETING
COMMUNICATION (IMC)
LO 16-1
• 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.
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STEPS in a
PROMOTIONAL CAMPAIGN
LO 16-1
1. Identify a target market
2. Define objectives
3. Determine a promotional budget
4. Develop a unifying message
5. Implement the plan
6. Evaluate effectiveness
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CLASSIC CAMPAIGNS
LO 16-1
Brilliant Marketing Ideas
Campaign
Company
Why it’s Cool
A Diamond is Forever
De Beers
Since 1939, it’s been tapping
into our emotions.
Marlboro Man
Marlboro
He’s the most successful trade
character ever.
Does she… or doesn’t she?
Clairol
The birth of the “shock ad” in
1957.
1984
Apple
The uncommercial didn’t
explain the product.
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.
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ADVERTISING in the FIRM
LO 16-2
• Advertising -- Paid, nonpersonal communication
through various media by
organizations and individuals
who are in some way
indentified in the message.
• Major goals of advertising:
- Inform
- Persuade
- Remind
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IMPACT of ADVERTISING
LO 16-2
• Total advertising expenditures
exceed $215 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.
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MAJOR CATEGORIES of
ADVERTISING
LO 16-2
Category
What it is
Retail
From retail stores to consumers
Trade
From manufacturers to wholesalers and retailers
B2B
From manufacturers to other manufacturers
Institutional
Creates a desirable image for an organization
Product
Creates a desirable image for a product or service
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MAJOR CATEGORIES of
ADVERTISING
LO 16-2
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
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ADVERTISING EXPENDITURE by
MEDIA in $ MILLIONS
LO 16-2
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DEAR MR. POSTMAN…
LO 16-2
Steps in Launching a Direct-Mail Campaign
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.
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MATCH GAME
LO 16-2
Match the Company with the Slogan
• “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.”
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IT’S a DOG’S LIFE
LO 16-2
Famous and Not-so-Famous Dogs in Advertising
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
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POPULAR ADVERTISING MEDIA
LO 16-2
• 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.
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NOT QUITE the NFL…
LO 16-2
Sport
Cost
Why?
Equestrian
$15,000+
The demographic skews to highincome females.
Bowling
$20,000+
It’s shown on television and
lower cost than other televised
sports.
Surfing
$25,000+
The young market is responsive
to guerrilla marketing.
$50,000+
A popular sport in Europe and
Asia and great for global
companies.
Women’s Golf
Source: Inc., www.inc.com, accessed November 2014.
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INFOMERCIALS and
ONLINE ADVERTISING
LO 16-2
• Infomercial -- A full length TV
program devoted exclusively to promote
a particular product.
• Online ads are attempts to get potential
customers to a web site 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.
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INFOMERCIAL HALL of FAME
LO 16-2
The Biggest Hits Over the Past 40 Years
• Veg-O-Matic
• Ginsu Knives
• The Clapper
• Thigh Master
• George Foreman Grill
• Bowflex
Source: Fortune, www.fortune.com, accessed November 2014.
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ONLINE EXPERIENCE
LO 16-2
How to Avoid Losing Customers Over a Bad Web Site
1. Brand messaging is key.
2. Site must be easy to
navigate.
3. Make sure calls to action
are effective.
4. Users want fast, readable
sites.
5. Users with disabilities
should be able to navigate.
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.
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PAY-PER-TWEET
• Celebrities can earn large sums
of money just buy mentioning a
product or site in their tweets.
• Do you think it is ethical for
celebrities to get paid to tweet
pre-written ads that appear to be
their own personal comments?
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MONITORING
AD EFFECTIVENESS
LO 16-2
• Dr. Pepper posts messages
on Facebook and monitors
the results from their millions
of fans.
• Richard Branson and Tony
Hsieh all tweet their customer
base to maintain two-way
communication.
Photo Credit: Brent Moore
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SOCIAL SCAMMERS
LO 16-2
How to Protect Yourself From Schemers
1. Be wary of requests for
money transfers -- even
from friends’ accounts.
2. Be wary when you use
applications. Don’t give
unnecessary information.
3. Use URL expanders to see
the full address of links on
friends’ pages.
Source: Kiplinger’s Personal Finance, December 2010.
Photo Credit: Paul Klintworth
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WHAT’S in YOUR OREO?
• To Americans, an Oreo is the same cookie
we’ve been enjoying for over 100 years.
• But Kraft has taken Oreos global which has led
to different variations.
• In China they enjoy green
tea Oreos while Argentina
has banana with dulce de
leche.
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GLOBAL ADVERTISING
LO 16-2
• 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.
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PERSONAL SELLING
LO 16-3
• Personal Selling -- The face-to-face presentation
and promotion of a product, including the
salesperson’s search for new prospects and followup service.
• Salespeople need to listen to
customer needs, help reach
a solution and do everything
possible to make the
transaction as simple as
possible.
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STEPS in the SELLING PROCESS
LO 16-3
1. Prospect and qualify
2. Pre-approach
3. Approach
4. Make a presentation
5. Answer objections
6. Close the sale
•
Trial Close -- A statement or question that
moves the process toward the purchase.
7. Follow up
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PROSPECTING and QUALIFYING
in SELLING
LO 16-3
• 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.
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BUY THIS!
LO 16-3
Successful Selling Strategies
• 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
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WHOOPS!
LO 16-3
Sales Slip-Ups
• 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
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STEPS in the B2C
SELLING PROCESS
LO 16-3
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TEST PREP
• 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? How does it differ from the B2C selling
process?
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USING PUBLIC RELATIONS in
PROMOTION
LO 16-4
• 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
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PUBLICITY
LO 16-4
• 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
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DISADVANTAGES of PUBLICITY
LO 16-4
• 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 is
not likely to run again.
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SALES PROMOTIONS
LO 16-5
• 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
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SALES PROMOTION TECHNIQUES
LO 16-5
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SOME KEY
CONSUMER PROMOTIONS
LO 16-5
• Coupons
• Demonstrations
• Sampling
• Sweepstakes
• In-store Displays
• Contests
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CLIP THESE
LO 16-5
Most Visited U.S. Coupon Clearing Sites
• Coupons, Inc
• EverSave
• RetailMeNot
• CouponCabin
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TEST PREP
• What are the three steps in setting up a public
relations program?
• What are the sales promotion techniques used to
reach consumers?
• What sales promotion techniques are used to
reach businesses?
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USING WORD-of-MOUTH
PROMOTION
LO 16-6
• 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
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WHAT ARE COMPANIES
YELPING ABOUT?
• Many companies have a website, Facebook page
or some online presence.
• However, on review sites like Yelp, they cannot
control their public image.
• The Federal Trade Commission has received over
2,000 complaints about Yelp.
• Companies can respond to reviews. But often the
damage is already done.
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EMERGING
PROMOTIONAL TOOLS
LO 16-6
• 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.
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BLOGS, PODCASTS,
and E-MAILS
LO 16-6
• Blogs are a great way to interact with customers
and improve the company’s website ranking.
• Podcasting -- A way to distribute multimedia files via
the Internet.
• Email promotions increase brand awareness
among commercial suppliers.
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MOBILE MEDIA
LO 16-6
• Marketers make use
of smartphones to
text customers about
product offers and
other company
information.
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PUSH, PULL, AND PICK
PROMOTIONAL STRATEGIES
LO 16-6
• 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 Economy -- Refers to consumers who pick out
their products from online outlets.
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TEST PREP
• What’s viral marketing?
• What are blogging and podcasting?
• Describe a push strategy and a pull strategy.
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