2/15/2020
LOGO Contents
LOGO
Definition of promotion
Chapter 8 Advertising
PROMOTION
Sales promotion
STRATEGIES
Public relations
Personal selling
Direct and digital marketing
www.themegallery.com
1. Definition of promotion
• In marketing, promotion refers to any type of marketing
communication used to inform or persuade target
audiences of the relative merits of a product, service,
brand or issue.
• The promotion mix is the specific blend of promotion
tools that the company uses to persuasively communicate
customer value and build customer relationships.
1. Definition of promotion
5 major promotion tools
• advertising
• sales promotion
• public relations
• personal selling
• direct and digital marketing
1
2/15/2020
2.1. What is advertising?
• Advertising: any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by an
identified sponsor.
• The firm must pay for advertising.
2.1. What is advertising? 2.2. Advertising objectives
• Types of advertising:
– Informative advertising is used when introducing a
new product category to build primary demand.
– Persuasive advertising is important with increased
competition to build selective demand.
– Comparative advertising is when a company
compares its brand with other brands.
– Reminder advertising is important with mature
products to help maintain customer relationships and
keep customers thinking about the product
2.2. Advertising objectives 2.3. Setting ad buget
Factors to Consider
• Stage in product life cycle
• Market share
• Competition
2
2/15/2020
2.4. Developing ad strategy 2.4.1. Creating advertising messages
• Creating advertising messages Consumers often avoid watching ads.
• Selecting advertising media Merging advertising and entertainment:
• Madison & Vine
• Native advertising
2.4.1. Creating advertising messages 2.4.1. Creating advertising messages
Message and content strategy: the general message The creative concept is the compelling “big idea” that
that will be communicated to consumers. will bring an advertising message strategy to life in a
distinctive and memorable way.
• Identifies consumer benefits
Characteristics of the appeals should be:
• Follows from company’s broader positioning and
• Meaningful
customer value creation strategies
• Believable
• Distinctive
Message execution is when the advertiser turns the big
idea into an actual ad execution that will capture the
target market’s attention and interest.
2.4.1. Creating advertising messages 2.4.2 Selecting advertising media
Television
Message Execution Styles • Advantages: good mass-marketing coverage; low
cost per exposure; combine sight, sound and motion;
Slice of life Lifestyle Fantasy appealing to the sense
• Limitations: high absolute costs; high clutter; fleeting
exposure; less audience selectivity
Mood or Musical Personality
image symbol
Technical Scientific Testimonial or
expertise evidence endorsement
3
2/15/2020
2.4.2 Selecting advertising media 2.4.2 Selecting advertising media
Radio Newspapers
• Advantages: good local acceptance; high geographic • Advantages: flexibility; timeliness;
and demographic selectivity; low cost good local market coverage;
• Limitations: audio only; fleeting exposure; low broad accpetability; high
attention (the half-heard medium); fragmented believability
audience • Limitations: short life; poor
reproduction quality; small pass
along audience
2.4.2 Selecting advertising media 2.4.2 Selecting advertising media
Magazines
Digital, mobile and social media
• Advantages: high geographic and
demographic selectivity; credibility • Advantages: high selectivity;
and prestige; high-quality low cost; immediacy;
reproduction; long life and good engagement capability
pass-along readership • Limitations: potentially low
• Limitations: long ad purchase lead impact; high audience control
time; high cost; no guarantee of of content and exposure
position
2.4.2 Selecting advertising media 2.4.2 Selecting advertising media
Direct mail Outdoor
• Advantages: high audience • Advantages: flexibility; high
selectivity; flexibility; no ad repeat exposure; low cost;
competition within the low message competition;
same medium; allow good positional selectivity
personalization • Limitations: little audience
• Limitations: relatively high selectivity; creative
cost per exposure; “junk limitation
mail” image
4
2/15/2020
2.5. Advertising evaluation
• Return on advertising investment is the net return
on advertising investment divided by the costs of the
advertising investment.
• Communication effects indicate whether the ad and
media are communicating the ad message well and
can be tested before or after the ad runs.
• Sales and profit effects compare past sales and
profits with past expenditures or through
experiments.
3.1. Sales promotion
• Sales promotion refers to the short-term
incentives to encourage purchases or sales of
a product or service now.
• 3 sales promotion targets:
– consumers
– intermediaries (resellers)
– sales force
3.2. Sales promotion tools 3.2. Sales promotion tools
Consumers: Intermediaries and sales force
• display and demonstration at points-of-sales • quantity discount: buy in a great quantity and get a
• samples (a trial amount of a product) discount
• coupons, vouchers, etc. • delivery support: if the reseller buys more than a
• buy 3 get 1 free, gifts, sweepstake,etc. certain quantity, the manufacturer will deliver the
goods to the destination for them
• price cut in the next buy
• display support: provide or award money to
intermediaries who have really beautiful display of
the manufacturer's products
5
2/15/2020
3.2. Sales promotion tools
Intermediaries and sales force
• free goods: give products to shop owners for free
trial use and they will voluntarily sell and promote
the manufacturer's products
• Sales contests are effective in motivating salespeople
or dealers to increase performance over a given
period.
• Conventions and trade shows are effective to reach
many customers not reached with the regular sales
force.
4.1. Definition 4.1. Definition
• Public relations (PR) involves building good relations
with the company’s various publics by obtaining
favorable publicity, building up a good corporate image,
and handling or heading off unfavorable rumors, stories,
and events.
“Advertising is what you pay for;
publicity is what you pray for.”
Advertising vs PR 4.2. Functions of PR
Advertising PR • Press relations or press agency involves the creation
Paid Spreading and placing of newsworthy information to attract
Demonstrating products Focusing on building trust
attention to a person, product, or service.
More reliable due to the third
The public doubts • Product publicity involves publicizing specific
confirmation
Select where to appear
No guarantee, must persuade the products.
media
• Public affairs involves building and maintaining
The third party control the final
Free creativity
content national or local community relations.
Mostly use the visual
PR uses words
element
Costly Less costly
“Buy the product” “This is very important”
Source: Forbes
6
2/15/2020
4.2. Functions of PR 4.3. The Role and Impact of PR
• Lobbying involves building and maintaining relations
with legislators and government officials to influence • Lower cost than advertising
legislation and regulation. • Stronger impact on public awareness than
• Investor relations involves maintaining relationships advertising
with shareholders and others in the financial • Has power to engage consumers and make
community.
them part of the brand story
• Development involves public relations with donors
or members of nonprofit organizations to gain
financial or volunteer support.
4.4. PR tools
News Speeches Special events
Corporate
Written Public service
identity
materials activities
materials
Buzz Social
marketing networking Internet
5.1. Definition 5.1 Definition
• Personal selling is the interpersonal part of the
promotion mix and can include: • Salespeople are an effective link between the
– Face-to-face communication company and its customers to produce customer
– Telephone communication value and company profit by
– Video or Web conferencing – Representing the company to customers
• Characteristics: face-to-face, building relationships, – Representing customers to the company
interactives – Working closely with marketing
• Drawbacks: costly, hard to change immediately due
to signed contracts with sales teams
7
2/15/2020
5.2. Process 5.2.1. Prospecting and qualifying
• Prospecting identifies qualified potential customers
through referrals from: customers, suppliers,
dealers, Internet
• Qualifying involves identifying good customers and
screening out poor ones by looking at: financial
ability, volume of business, needs, location, growth
potential
5.2.2. Preapproach 5.2.3. Approach
• Preapproach is the process of learning as much as • Approach is the process where the salesperson
possible about a prospect, including needs, who is meets and greets the buyer and gets the relationship
involved in the buying, and the characteristics and off to a good start and involves the salesperson’s:
styles of the buyers – Appearance
– Opening lines
Objectives Approaches
– Follow-up remarks
• Qualify the prospect • Personal visit
• Gather information • Phone call
• Make an immediate sale • Letter/e-mail
5.2.4. Presentation 5.2.5. Handling objections
• Presentation is when the salesperson tells the • Handling objections is the process where
product story to the buyer, presenting customer salespeople resolve problems that are logical,
benefits and showing how the product solves the psychological, or unspoken.
customer’s problems.
8
2/15/2020
5.2.6. Closing 5.2.7. Follow-up
• Closing is the process where salespeople • Follow-up is the last step in which the
should recognize signals from the buyer— salesperson follows up after the sale to ensure
including physical actions, comments, and customer satisfaction and repeat business.
questions—to ask for a order and finalize the
sale.
6.1. Definition
• Direct and digital marketing involve engaging
directly with carefully targeted individual
consumers and customer communities to both
obtain an immediate response and build lasting
customer relationships.
6.2. Benefits 6.3. Forms of Direct and Digital
Marketing
• Convenience
• Ready access to many products
• Access to comparative information about companies,
products, and competitors
• Interactive and immediate
• Tool to build customer relationships
• Low-cost, efficient, fast alternative to reach markets
• Flexible
• Access to buyers not reachable through other
channels
9
2/15/2020
6.3.1. Digital and social media 6.3.1. Digital and social media
marketing marketing
• Online marketing is marketing via the Internet using Social Media Marketing
company Web sites, online ads and promotions, e- Advantages:
mail, online video, and blogs. • Targeted and personal
• Online marketing forms: Marketing websites, • Interactive
branded community websites, online advertising,
email marketing, spam, online video, viral marketing, • Immediate and timely
blogs • Real-time marketing
• Cost effective
• Engagement and social sharing capabilities
6.3.1. Digital and social media 6.3.2. Traditional Direct Marketing
marketing Forms
• Mobile marketing delivers messages, promotions, • Direct-mail marketing
and other content to on-the-go consumers through
• Catalog direct marketing
mobile phones, smartphones, tablets, and other
mobile devices. • Telemarketing
• Direct-response television
• Kiosk Marketing
6.4. Public Policy Issues in
Direct and Digital Marketing
• Irritation includes annoying and offending
customers.
• Unfairness includes taking unfair advantage of
impulsive or less-sophisticated buyers.
• Deception includes “heat merchants” who design
mailers and write copy designed to mislead
consumers.
• Fraud includes identity theft and financial scams.
• Consumer privacy involves concerns that marketers
may have too much information and use it to take
unfair advantage.
10
2/15/2020
Above vs Below the line Above vs Below the line
• ATL (Above The Line) - PULL MARKETING: consist of
advertising activities that are largely non-targeted
and have a wide reach. ATL communication is done to
build the brand and inform the customers about the
product.
• BTL (Below the line) - PUSH MARKETING or BRAND
ACTIVATION consists of very specific, memorable and
direct advertising activities focused on targeted
groups of consumers.
Above vs Below the line
Above the line Below the line
Target
Objectives
Interaction
Result
measuring
Activities
Product or market type Readiness to buy
• Consumer goods: Effectiveness
Sales
promotion
Personal
selling
• Industrial goods:
Advertising,
PR
Know Understand Trust Buy
11
2/15/2020
Product life cycle stage Pull/push strategy choice
Effectiveness
• Push strategy:
– focus on personal selling
Sale promotion – sales promotion for intermediaries and sales force
Advertising,
PR
• Pull strategy:
– a lot of advertsing and sales promotion for
Personal selling
consumers
Introduction Growth Maturity Decline
LOGO
LOGO
12
