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Product Promotion
ApEc 4451
Communication Process
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Consider:
- Source: who/what will convey info.
- Message: factual; emotional (fear, sex appeal,
humor).
- Receiver.
Communicating effectively;
- Sender & receiver must have shared field of
experience.
- Feedback: from receiver to sender.
- Noise: want to reduce extraneous factors.
Major Methods
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Personal Selling: direct presentation of product to
perspective customer.
Advertising: non-personal paid communication.
- TV, radio, print, billboards, internet.
- Less mass market; more targeted selling.
Sales promotion: temporary incentives to
encourage purchases.
Public relations: to create favorable attitude
toward company and its products.
(Publicity): news coverage; can be positive or
negative.
Trade-oriented sales promotion
 Allowances
& discounts.
 Cooperative advertising.
 Slotting fees.
Consumer-oriented sales
promotion
Coupons- paper to electronic.
 Premiums.
 Deals- short-term price reductions.
 Contests- need to do something to win
(skill; ability).
 Sweepstakes- win purely by chance.
 Samples- tasting.
 Point-of-purchase display.
 Sponsorship of events.
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Advantages & Disadvantages
 Personal
selling:
- Permits flexible presentation and
gains immediate response.
- Costs more than other forms per
contact.
 Advertising:
-
Can reach large audience.
Cost in relation to audience.
Control over message.
Considerable waste.
Hard to close sale.
Hard to demonstrate product.
Difficult to measure results.
 Sales
promotion:
- Gains attention & has immediate
effect.
- Easy for others to imitate or
match.
 Public
Relations:
- High degree of believability when
done right.
- Not as easily controlled as other
forms.
- Difficult to measure or
demonstrate the results.
Hierarchy of Effects Model
 Awareness
(to inform)
 Knowledge
 Liking
(to persuade)
 Preference
 Conviction
 Adoption (Purchase).
 Remind.
Effective Advertising (AIDA)
 Gets
consumers attention.
 Holds her/his interest.
 Arouses their desire.
 Leads to consumer action to buy.
Packaging

Functional benefits:
- Protection.
- Convenience.
- Storage (shelf life).
- Preservation of quality (freshness).
- Consumer protection (tamper
resistance).
 Perceptual
benefits:
- Perception by the consumer:
- Can connote status, economy,
quality.
- Influenced by color; shape.
- Repackaging of existing products.
 Communication
benefits:
- Promotion and advertising at point
of purchase decision.
- Ingredients.
- Nutrition information.
- Directions.
- Menus.
Packaging Trends
 Reduced
& recyclable (to reduce
environmental impact & cost).
 More package sizes – smaller for 1-2
people; also large economy size
(Sam’s Club; Costco).
 Packaging for convenience.