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* Chapter
Sixteen
Using
Effective
Promotions
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
*
* Profile
• Joined the Girl Scouts after
developing campaigns for
American Express and
Campbell’s Soup.
• Her biggest challenge is to
communicate with girls
through channels unheard of
when the organization was
formed.
LAUREL RICHIE Girl Scouts of America
16-2
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* Promotion and
the Promotion
Mix
• Promotion Mix -- The combination of promotional
tools an organization uses; the traditional mix
includes:
PROMOTION
in an ORGANIZATION LG1
16-3
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* Promotion and
the Promotion
Mix
• 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.
INTEGRATED MARKETING
COMMUNICATION (IMC) LG1
16-4
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* Promotion and
the Promotion
Mix
1. Identify a target market
2. Define objectives
3. Determine a promotional budget
4. Develop a unifying message
5. Implement the plan
6. Evaluate the plan
STEPS in a
PROMOTIONAL CAMPAIGN LG1
16-5
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*
1. Plan: What should your mailing accomplish?
2. Get the Right List: The better the list, the better
your chance of success.
DEAR MR. POSTMAN… Steps in Launching a Direct-Mail Campaign
LG1
Promotion and
the Promotion
Mix
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. 16-6
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* Advertising:
Informing,
Persuading and
Reminding
• Advertising -- Paid, non-personal
communication through various
media by organizations and
individuals who are in some way
indentified in the message.
• Major goals of advertising:
- Inform
- Persuade
- Remind
ADVERTISING in the FIRM
LG2
16-7
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* Advertising:
Informing,
Persuading and
Reminding
• Total advertising expenditures
exceed $294 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.
IMPACT of ADVERTISING
LG2
16-8
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* I’LL SPONSOR YOU The Price of Sports Endorsements
LG2
Source: Conde Nast Portfolio.
Athlete Sport Amount per
Deal Companies
Tiger Woods Golf $ Several Million Nike, Gatorade,
AT&T
Yao Ming Basketball $1 - $4 Million McDonald’s Visa,
Apple
Michael Phelps Swimming $1 - $4 Million AT&T, PowerBar
Lebron James Basketball $ Several Million Coca-Cola,
Microsoft, Nike
Shawn Johnson Gymnastics $100,000 -
$500,000
Adidas,
McDonalds,
Longines
Advertising:
Informing,
Persuading and
Reminding
16-9
c
*
* MAJOR CATEGORIES of
ADVERTISING LG2
Advertising:
Informing,
Persuading and
Reminding
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
16-10
*
* MAJOR CATEGORIES of
ADVERTISING (Continued) LG2
Advertising:
Informing,
Persuading and
Reminding
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
16-11
*
* Advertising:
Informing,
Persuading and
Reminding
ADVERTISING EXPENDITURE by
MEDIA in $ MILLIONS LG2
Rank Media
Projected
2008
Spending
% of Total Ad
Spending
1 Direct Mail $63,732 21.6
2 Broadcast TV 48,300 16.4
3 Newspaper 42,147 14.3
4 Cable TV 21,718 7.4
5 Radio 18,635 6.3
6 Yellow Pages 14,705 5.0
7 Consumer Magazine 14,106 4.8
8 Internet 12,722 4.3
Other 58,311 19.8
Total 294,376 100.0
16-12
*
*
• “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.”
MATCH GAME Match the Company with the Slogan
LG2
Advertising:
Informing,
Persuading and
Reminding
16-13
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* IT’S a DOG’S LIFE
Famous and Not-so-Famous Dogs in Advertising LG2
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
Advertising:
Informing,
Persuading and
Reminding
16-14
*
* Television
Advertising
• TV advertising is still the dominant media.
• Digital Video Recorders (DVRs) challenge TV
advertising because viewers can skip them.
• Product Placement -- Advertisers pay to put their
products into TV shows and movies where the
audience will see them.
POPULAR ADVERTISING MEDIA
LG2
16-15
*
* Infomercials
and Online
Advertising
• Infomercial -- A full length TV program devoted
exclusively to promote a particular product.
• Online ads are attempts to get potential customers to
a website to learn about a product.
INFOMERCIALS and
ONLINE ADVERTISING LG2
• Interactive Promotion -- Allows
marketers to open a dialogue
between buyers and sellers and let
them work together to create a
beneficial exchange.
16-16
*
*
• Veg-O-Matic
• Ginsu Knives
• The Clapper
• Thigh Master
• George Foreman Grill
• Bowflex
INFOMERCIAL HALL of FAME The Biggest Hits Over the Past 40 Years
LG2
Infomercials
Source: Fortune Magazine, April 13, 2009.
16-17
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* Global
Advertising
• 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.
GLOBAL ADVERTISING
LG2
16-18
*
*
• Marketers are gaining a competitive advantage
by touting their efforts for the environment.
• Mars Drinks promotes its efforts to use less
water, send less waste to landfills and help
customers reduce their own energy waste.
• First Global Direct competes with large rivals
because of their efforts to make operations more
eco-friendly.
FINDING a COMPETITIVE
ADVANTAGE in SUSTAINABILITY Thinking Green
16-19
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* Personal Selling:
Providing
Personal Attention
• Personal Selling -- The face-to-face presentation
and promotion of a product, including the
salesperson’s search for new prospects and follow-up
service.
PERSONAL SELLING
LG3
• Salespeople need to listen
to customer needs, help
reach a solution and do
everything possible to make
the transaction as simple as
possible.
16-20
*
* Steps in the
Selling
Process
• Prospecting -- Researching potential buyers and
choosing those most likely to buy.
PROSPECTING and QUALIFYING
in B2B SELLING LG3
• 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.
16-21
*
* Steps in the
Selling
Process
1. Pre-approach
2. Approach
3. Make a presentation
4. Answer objections
5. Close the sale
• Trial Close -- A statement or question that
moves the process toward the purchase.
6. Follow up
STEPS in the B2B SELLING
PROCESS LG3
16-22
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*
• 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
BUY THIS! Successful Selling Strategies
LG3
Steps in the
Selling
Process
16-23
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*
• 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
WHOOPS! Sales Slip-Ups
LG3
Steps in the
Selling
Process
Source: Fortune Magazine.
16-24
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* STEPS in the B2C
SELLING PROCESS LG3
Steps in the
Selling
Process
16-25
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* Progress
Assessment
• 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?
PROGRESS ASSESSMENT
16-26
*
* Public Relations:
Building
Relationships
• 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
USING PUBLIC RELATIONS in
PROMOTION LG4
16-27
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* Publicity: The
Talking Arm of
PR
• 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
PUBLICITY
LG4
16-28
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* Publicity: The
Talking Arm of
PR
• 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
isn’t likely to run again.
DISADVANTAGES of PUBLICITY
LG4
16-29
*
*
• Sales Promotion -- The promotional tool that
stimulates consumer purchasing and dealer interest
by means of short-term activities.
SALES PROMOTIONS
LG5
Sales Promotion:
Giving Buyers
Incentives
• Categories of Sales
Promotions:
1. B2B Sales
Promotions
2. Consumer Sales
Promotions
16-30
*
*
• Coupons
• Demonstrations
• Sampling
• Sweepstakes
• In-store Displays
• Contests
SOME KEY
CONSUMER PROMOTIONS LG5
Sales Promotion:
Giving Buyers
Incentives
16-31
*
*
• Coupons, Inc
• EverSave
• RetailMeNot
• CouponCabin
CLIP THESE Most Visited U.S. Coupon Clearing Sites
LG5
Sales Promotion:
Giving Buyers
Incentives
16-32
*
* Progress
Assessment
• What are the three steps in setting up a public
relations program?
• What are the sales promotion programs used to
reach consumers?
• What sales promotion programs are used to
reach businesses?
PROGRESS ASSESSMENT
16-33
*
* Word of Mouth
and Other
Promotional Tools
• 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
USING WORD-of-MOUTH
PROMOTION LG6
16-34
*
* Viral Marketing
• 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.
EMERGING
PROMOTIONAL TOOLS LG6
16-35
*
* Blogging,
Podcasting and
Promotions
• Blog -- Short for web log; an online diary that looks
like a webpage but is easier to create and update by
posting text, photos, videos, or links.
• Podcasting -- A way to distribute audio and video
programs via the Internet.
• Email promotions increase brand awareness
among commercial suppliers.
BLOGS, PODCASTS, and E-MAILS LG6
16-36
*
*
• Amy Scherber of Amy’s Bread can’t afford to
outsource her promotions, so she needs to get
creative.
• She sends newspaper editors stories about her
company and has an assortment of company
shirts.
• She builds strong word-of-mouth by keeping in
touch with her community members.
FRESH-BAKED PROMOTION Spotlight on Small Business
16-37
*
* Managing the
Promotion Mix:
Putting it All
Together
• 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 Strategy -- Refers to consumers who pick out
their products from online outlets.
PUSH, PULL, AND PICK
PROMOTIONAL STRATEGIES LG6
16-38
*
*
• Agencies like Publicis Groupe knew they had to
move forward into the digital age.
• Publicis bought Digitas, an interactive ad agency,
and tried to blend the firms.
• Publicis created the Global Marketing Navigator
and simplifies masses of data from clients and
measures the program’s effectiveness.
GOING DIGITAL Reaching Beyond Our Borders
16-39
*
* Progress
Assessment
• What’s viral marketing?
• What are blogging and podcasting?
• Describe a push strategy, a pull strategy and the
pick strategy.
PROGRESS ASSESSMENT
16-40
