Transcript What Is Promotion?

Unit 3: The Marketing Mix
Chapter 15
What Is Promotion?
Learning Goals
 State and explain the role of promotion and
list three goals of promotion
 Describe how the communication process
works in promotion
 Explain the difference between personal and
non-personal promotion and provide
examples for each
 Describe and give an example of each of the
four elements of promotion
Learning Goals
 Explain the AIDA promotional strategy
 Explain the push and pull promotional
strategies
 Summarize the role of integrated marketing
communications (IMC) in promotional
activities
 Explain why the marketing concept is
important in promotion
Day 1 Response Journal
Describe a memorable advertisement you saw
or heard recently, by answering the below
questions.
1.
2.
3.
4.
What product or service was the ad for?
What type of ad was it?
Provide a brief description of the ad.
Did this ad convince you to make a purchase? Why
or why not?
Knorr Sidekicks TV Commercial
*** Save As Jan 14 in your Response Journal
folder ***
What Is Promotion?
 Promotion is one of the Four
Ps of the marketing mix
 Promotion is the process of
telling people about a
product or the company
that offers it
 Most people think of
promotion as advertising
and sales only
 However, promotion is much
more than that
Promotion Is Marketing
Communication
Promotion is communication
from an organization to
 Its customers
 Its potential customers
 The public
 Marketing communication is
another term for promotion
Goals of Promotion
 The role of promotion is to help a business
achieve its marketing goals
 The basic marketing goals of most
businesses are to sell ___________
Products and
make a _________
Profit
Promotion;
a) Informs
b) Expresses
c) Persuades
a) Informs
Businesses want to keep customers informed
about;
 New products
 Existing products
 New features on existing products
 How to use or assemble products
 Safety issues
 Charities and cultural organizations the
business supports
 Community events that the business
sponsors
a) Informs
 There is another important aspect of
informing is to ____________
Remind
 Businesses know that if a product has been
on the market for a while, customers may
lose interest, forget, or be drawn to a
competitor's product
 Companies use promotion to continually
remind you about their products
Canadian Tire – A Bike Story Commercial
b) Expresses
 Promotional messages use words, pictures,
colour and music to express and entertain
Promotional messages are designed to;
 Attract customer attention
 Create demand
 Messages that entertain or create emotion are
more likely to be remembered
c) Persuades
 _____________
Persuasion is the use of logic,
argument, or pleading to get another person
to agree with you or act in a certain way
 The ultimate goal of promotion is to
persuade people to buy the product
 Promotional messages persuade people to
buy through the use of information,
reminders, expression, and entertainment
c) Persuades
 A promotional message might persuade you to
buy a product, if the message did the
following:
 Informed you about how the product
meets your needs
 Provided a reminder that was timely
 Used expressive elements that made an
impression
• Left you with a good feeling about the company
and its product(s)
The Communication
Process
 Promotion takes place through the communication
process
In promotion…
 The marketer is the sender
 The target market is the receiver
 Marketers must encode the promotional message so
that the target market can decode and understand it
 An important part of developing the promotional
message is choosing the best medium for the message
 Choices include salespeople, TV, radio, newspapers,
magazines, mail, billboards, flyers, and the Internet
The Communication
Process
Noise
 Noise can interfere with promotional messages, just the
same way noise can interfere with any communication
Noise can include;




Physical noise
Technical problems
External distractions
Internal distractions
 One of the major sources of noise is the sheer number
of promotional messages that each person is exposed
to every day
 Estimates of the number of promotional messages
each person encounters range from 500 to thousands
every day
Noise
 Marketers cannot control the environment
where marketing messages are received
However, they do have two methods to try to
counteract these distractions;
 Repeat the same message many times
 Make the message stand out from all others
Feedback
 Once the message reaches the receivers
(target market), they decode, understand, and
act on (or ignore) the message
 So, how do marketers determine whether a
promotion message was effective?
 Effective promotion is promotion that achieves its
__________
Goals
• The most obvious sign of effective promotion is
an increase in sales
• Promotion can also be effective if it increases
product awareness or improves the image of the
company
Feedback
 Marketers need feedback to determine
whether a promotional message was
effective
Customer feedback can be obtained by;
 Monitoring sales
 Performing market research
 If the message is found to be ineffective, the
marketer might adapt the message and try
again
Types of Promotion
Promotion can be categorized based on;
 The target market
 Is the company’s target market other businesses (B2B) or
consumers (B2C)
 What is being promoted
 Organizations can promote one of two aspects of the business
 ___________________
Product Promotion is marketing communication that
focuses on selling a product
 _______________________
Institutional Promotion is marketing communication that
focuses on the image of the organization
• Goal: to give you positive feelings about the organization
• The marketers hope that by showing you how wonderful their
organization is, that when you see a product promotion, you might
be more likely to pay attention to it
Types of Promotion
 The four elements of promotion
a) Personal selling
b) Advertising
c) Sales promotion
d) Public relations
 B2B, B2C, institutional and product promotions use
all four elements
 These elements fall into two categories;
1. Personal promotion
2. Nonpersonal promotion
Day 1 Assigned Work
Students please complete the following;
 K&U Questions #6, 7, 9 & 10 on page 231
 Thinking Questions #1 & 2 on page 232
 Application Question #3 on page 232
***Save As Ch 15 Day 1 in your Unit 3
folder***
Day 2 Response Journal
Name a product that you would like to buy.
Describe what you know about the product
and the business that manufactures or sells it.
How did you get this information?
*** Save As Jan 15 in your Response
Journal folder ***
Types of Promotion
 As explained on Day 1, promotion is either personal or
nonpersonal
 ______________________
occurs directly between
Personal Promotion
customer and marketer
 Personal selling is the only element
 _______________________communicates
the
Nonpersonal Promotion
same message to the entire target market
 Includes advertising, sales promotion and public
relations
 There is no interaction between the marketer and the
target market at the time the message is sent and
received
 Mass communication and the mass media are used to
send nonpersonal promotion
Personal Promotion - Personal
Selling
 The seller communicates directly with the buyer
 The main feature of personal selling is that the
seller can customize the message, based on
the immediate response (feedback) from the
customer
 Personal selling can occur;
 Face to face
 Over the phone
 Over the internet
• If the customer and seller interact in real time
 Used in both B2C and B2B sales
Nonpersonal Promotion Advertising
 ______________
Advertising is nonpersonal promotion
paid for by an identified sponsor
Advertising includes;
 Print ads
 Newspaper and magazine
 Commercials
 TV and Radio
 Internet ads
 Outdoor advertising
 Billboards, transit ads, etc.
 Direct marketing
 Sales flyers, email ads, etc.
Nonpersonal Promotion –
Sales Promotion
 ____________________
consists of
Sales Promotions
marketing activities designed to entice
customers to buy a company’s products
 Examples include; coupons, contests, free
samples, free gifts, etc.
 All sales promotions have the goal of getting
the customer to buy the product
 Most sales promotions are short-term
activities
 Used by both B2C and B2B
Nonpersonal Promotion –
Sales Promotion
 B2C sales promotion activities are designed to
create excitement about the product or the
company that offers it
B2C sales promotion include;
 Visual merchandising
 Coupons and rebates
 Free samples
 Premiums
 Contests and sweepstakes
 Promotional tie-ins
 Product placement
Product Placement
Video Clip
Nonpersonal Promotion Sales Promotion
 Another term for B2B sales promotion is trade
promotion
 The purpose of trade promotion is to get
members of the distribution channel to buy the
product, and then sell it to the next member of
the channel
B2B sales promotion include;
 Trade shows
 Trade allowances
 Point-of-purchase advertising
 Sales incentives
Nonpersonal Promotion –
Public Relations
 ___________________
consists of
Public Relations
promotional activities designed to create
goodwill between a company and the public
 Creating a positive image of the company and
its products often influences people to buy
products from the company
 The main functions of public relations is
______________
and ___________________
Philanthropy
Publicity
Nonpersonal Promotion –
Public Relations
There are two types of public relations;
1. Proactive Public Relations
 Communications initiated within the company for the
purpose of image building
 Includes providing information on new products, developing
and running charitable events, and sponsoring sporting and
cultural events
2. Reactive Public Relations
 Communications in response to negative events or
damaging information
 Reactive public relations is used when the media covers an
accident caused by a company's product, for example SUV
rollover accidents
Maple Leaf Foods Apology
Nonpersonal Promotion –
Public Relations
 _______________
is information about a
Publicity
company and its products that appears in
the media
 Publicity is different from advertising in that
the company does not pay the media to
carry the message
 However, the company often has no control
over article or story content
Nonpersonal Promotion –
Public Relations
The main tools of publicity are;
 Press release
 A press release is a story about the company that
the public relations specialist writes and sends to
the media
 Press kit
 A press kit consists of information about the
company and its products
 Press conference
 A press conference is a meeting called by a
business to which the media is invited
Nonpersonal Promotion –
Public Relations
 _________________
is any actions that improve
Philanthrophy
human welfare and spread goodwill
 Includes supporting a charity, sport, or cultural activity
 The public relations department makes the sure the
public knows about these activities
 Potential customers will feel good about a company
that supports causes they care about
 One example of philanthropy is shown by Air Canada
and Aeroplan. Together these companies provide
Aeroplan miles to 15 pediatric hospitals across Canada.
This means that children who need medical treatment
outside their community can travel to receive it - along
with their parents or caregivers - without cost
Review - Four Elements of
Promotion
The four elements of promotion include;
1. Personal selling
 Personal promotion
2. Advertising
 Nonpersonal promotion
3. Sales promotion
 Nonpersonal promotion
4. Public relations
 Nonpersonal promotion
Day 2 Assigned Work
Students please complete the following;
 Types of Sales Promotion Worksheet
 Handout provided
Day 3 Response Journal
Who is the target market for this ad? Why is this ad an
example of nonpersonal promotion?
***Save As Jan 18 in your Response Journal
folder***
AIDA: The Basic Promotional
Strategy
 How do promotional efforts work?
 By following the customer's decision process
 In Ch 6, you learned that customers go through a sixstep decision process
1.
2.
3.
4.
5.
6.
Awareness
Information search
Evaluation of options
Decision to buy
Purchase
Evaluation
 At each step of the decision process, the customer
either needs information or is open to suggestions
AIDA: The Basic Promotional
Strategy
 The basic promotional strategy is often
referred to as ________
AIDA
 These letters stand for each of the four steps
in the strategy;
 Attention
 Interest
 Desire
 Action
 A fifth step, evaluation, is not actually part of
the strategy but is a very valuable part
Attention
Step 1
Attract the customer’s attention.
 Before a promotion can have any effect, it must have
the customer's attention
Techniques;
 Ask an intriguing question
 Offer something for free
 Shock the receiver
 Flatter the receiver
 Use music, colour, light, design, movement, and size
 Use repetition
Interest
Step 2
Activate interest in the product.
 Promotions achieve this by providing information
Techniques;
 Appeal to customer’s needs
 Create needs in customers
• Based on Maslow's hierarchy of needs, marketers design
promotions that appeal to people's needs for belonging,
friendship, popularity, or prestige
 Demonstrate the product
 Display the product
 Provide information about the product
Desire
Step 3
Create desire and demand.
 The product can be offered as a way to satisfy the
need
 The words of the promotional message can show
how the product will satisfy the need or solve the
problem
Techniques;
 Encourage potential customers to try the product
 Offer sales promotions
• Free samples, coupons, rebates, etc.
Desire
 Use personal selling
• Clothing retailers provide dressing rooms for customers
• Car salespeople want you to test drive the car to give you a
sense of ownership
 An important part of creating desire is building
credibility for the product
 _______________
is the belief that the product
Credibility
will meet your needs or solve a problem
 For example, in advertisements for weight-loss
systems, people who have used the product are
often shown before and after they lost weight, thus
lending credibility to the product
Action
Step 4
Motivate the customer to take action.
 To buy your product
Techniques;
 Marketers often work in messages that explicitly
urge the customer to buy
• A message that motivates action is a call to action
• E.g. “buy now while supply lasts” and “sale ends today,”
 The action step in personal selling is called
the __________
Close
Evaluation
Step 5
Evaluation.
 A critical part of developing effective promotional
strategies
 Marketers gather feedback from customers, which is
then analyzed to determine whether customers were
satisfied
 Some businesses try to determine satisfaction
immediately
 E.g. salespeople will ask the customer questions at the close
of the sale
 Others make follow-up phone calls or send thank-you
letters
The Decision Process & AIDA
Pull and Push Strategies
Two other popular promotional strategies are;
 Pull strategy
 Push strategy
Pull Strategy
 In a pull strategy, promotional efforts are focused on
the ____________
Customer
 Accomplished primarily through advertising to customers
to create demand
 A B2C strategy
 Consumers see advertisements for the product. They go to
the store expecting to find the product. If the product is not
available, they ask for it
 This customer demand often causes the retailer to contact
the wholesaler or manufacturer to increase the product
order
 Consumer demand ________
Pulls the product through
the supply chain
Push Strategy
 In a push strategy, promotional efforts are
Wholesalers ___________,
Distributors
focused on the ____________,
and ____________
Retailers
 In other words, a company directs its promotion at
the intermediaries in the channel of distribution
 These intermediaries buy the product, then promote
it to the next link in the supply chain
 The last link, the retailer, promotes it to the consumer
• B2B strategy
Push the product through the
 Intermediaries ______
supply chain
Pull & Push Strategy
 Companies often use both strategies to
better promote their products
 After its initial introduction, manufacturers
use both the pull strategy and the push
strategy to continue the promotion of their
products
 The combination push/pull strategy is used
more often than either the push or pull
strategy separately
The Marketing Concept
and Promotion
 Promotion has been criticized for manipulating people
into buying things that they do not really want or need
 Deceptive advertising not only makes customers angry, it is also
illegal
 However, marketers that follow the marketing concept
do not run into these sorts of problems
 The ______________________
is an approach to
Marketing Concept
business that says the way to make a profit is to focus
on customer satisfaction
 Creating customer satisfaction is more effective than
manipulation or deception
 Effective promotional activities should be designed with
the needs and wants of customers in mind
Integrated Marketing
Communications
 The marketing mix is like a puzzle
 If all the pieces do not fit together,
the puzzle will never be complete
 To complete the marketing mix
puzzle, it is important to use
integrated marketing
communications (IMC)
Integrated Marketing Communications
 ________________________________
is a process designed to convey a
single, unified message through all
promotional activities
 This includes online and off-line
marketing activities
Integrated Marketing
Communications
Online marketing includes;
 E-marketing campaigns
 E-mails
 Pay-per-clicks
 Web banners
 Webinars
 Blogs
 Podcasts
 Internet TV
Integrated Marketing
Communications
Off-line marketing includes;
 Print (TV and magazine)
 Direct mail
 Billboards
 Radio/television
 Public relations
 Sales promotions
 Packaging
 Sponsorships
 Exhibits
Day 3 Assigned Work
Students please complete the following;
 K&U Question #16 on page 231
 Thinking Questions #4 & 6 on page 232
 Imagine that you are opening a new teenoriented clothing store at Conestoga Mall
 What would you do to attract attention to your store?
 What personal promotions would you use?
 What nonpersonal promotions would you use?
***Save As Ch 15 Day 3 in your Unit 3 folder***