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Promotion
Chapter 15
The Role of Promotion in
Marketing
• Inform
• Persuade
• Remind
Promotion Is a Communication
Process
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Sender
Encoding by the sender
Message channel
Decoding by the receiver
Receiver
Noise
Feedback
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
* Advantages of advertising
* Disadvantages of advertising
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Examples of Mass
Media Advertising
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Direct mail
Internet
Magazines
Newspaper
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Outdoor
Radio
Television
SOCIAL
* Advantages of publicity
* Disadvantages of publicity
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* Advantages of personal selling
* Disadvantages of personal selling
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* Advantages of sales promotion
* Disadvantages of sales promotion
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Elements of a Promotional Mix
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Advertising
Personal selling
Publicity
Sales promotion
Factors that Affect the
Promotional Mix
Marketing
Mix
Target Policy and Financial
Market Objectives Resources
Promotional
Mix
© South-Western Publishing
Promotional Planning
• The promotional plan is a carefully
arranged sequence of promotions designed
around a common theme responsive to
specific objectives.
The Steps in Promotional
Planning
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Analyze the market
Identify the target market
Develop promotional objectives
Develop a promotional budget
Select the promotional mix
Implement the promotional plan
Evaluate the results
Promotion Chapter 16
Steps in Developing an
Advertising Plan
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Set objectives
Determine the budget
Develop the theme
Select media
Create the advertisements
Develop an advertising schedule
Evaluate the plan’s effectiveness
Laying Out the Parameters
• Set objectives
• Determine the budget
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What you can afford
Percentage of sales
Competition matching
Objectives and task
• Developing the theme
Setting Objectives
Elements
Plan for Seaside Resorts
Desired
results
Increase reserved summer rentals by
10 percent by February 15
Message
Make reservations early to assure
availability and save $100 off the
weekly rate
Families who spend one week or
more at the beach every year
Target
market
Selecting Media
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Cost
Reach
Frequency
Lead time
Questions to Consider When
Selecting Media
Cost
• What is the total cost of the medium?
• What is the cost per viewer?
• Does the cost fit into the advertising
budget?
• Is it the most effective use of advertising
dollars?
Questions to Consider When
Selecting Media
Reach
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What is the circulation?
What is the viewership?
Will it reach the target audience?
Is there a strong pass-along rate?
Questions to Consider When
Selecting Media
Frequency
• How often will the target audience receive
the advertising message?
• How many times will the ad run?
Questions to Consider When
Selecting Media
Lead Time
• How quickly can the audience be reached?
• How flexible is this medium?
• How close to print or air time can the ad be
changed?
Gauging Advertising
Effectiveness
• Choosing evaluation techniques
– Focus groups
– Recall testing
– Recognition testing
• Using advertising agencies
Using Personal Selling
Advantages
• Information
• Flexibility
• Feedback
• Persuasion
• Follow-up
Disadvantages
• Cost per customer
• Time
• Control
• Skill
Choosing Personal
Selling
• Complex or expensive products
• Markets made up of a few large customers
• New or very unique products with which
customers are unfamiliar
• Customers located in a limited area
• Complicated or long decision-making process
• Customers who expect personal attention and help
with decision-making
Mental Stages of Consumer
Decision-Making
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Attention
Interest
Desire
Conviction
Action
Understanding the
Product
• Product knowledge
• Communicating product information
– Features
– Benefits
Understanding the
Competition
• Salespeople need to understand the
differences between their product and the
competition’s product.
• Salespeople need to explain the differences
to help customers make the comparison.
Steps of the Selling Process
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Approach
Determining needs
Demonstration
Answering questions
Closing
Suggestion selling
Follow-up
Providing Sales Support
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Marketing information management
Financing
Pricing
Promotion
Product/Service Management
Distribution