Transcript Marketing Dynamics Chapter 36

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Objectives
Describe the role of promotion.
List three goals of promotion.
Describe how the communication
process works in promotion.
Explain the difference between
institutional and product promotion.
Explain the difference between
personal and nonpersonal promotion.
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Objectives
Describe and give an example of each
of the four elements of promotion.
Explain why the marketing concept is
important in promotion.
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Marketing Terms
 marketing
communication
 effective promotion
 product promotion
 institutional
promotion
 personal promotion
 nonpersonal
promotion
 advertising
 sales promotion
 trade show
 trade allowance
 coupon
 rebate
 premium
 public relations
 publicity
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What Is Promotion?
Promotion is one of
the Four Ps of
marketing
Promotion is the
process of telling
people about
a product or
 the company that
offers it

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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
1. Give an example that shows
how promotion is communication.
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Goals of Promotion
Goal of promotion: to
help a business achieve
its goals

by communicating with
customers and the public
Promotion
informs
 expresses
 persuades

©2007 JupiterImages Corporation
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Inform
Businesses want to keep customers
informed about
new products
 new features on existing products
 how to use products
 safety issues
 charities and cultural organizations that the
business supports
 community events that the business supports

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Express
Promotional messages express emotion
and entertain to
attract customer attention to products
 create demand for products

Messages with emotion

are more likely to be remembered
2. Describe an ad or commercial that you
remember. What makes it vivid?
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Persuade
Persuasion

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
3. Describe a promotion that successfully
persuaded you to buy a product.
How did it persuade you?
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 Promotion uses the same communication
process as does all communication
 the marketer is the sender
 the target market is the receiver
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Noise
Promotional messages encounter

physical noise, technical problems, external
distractions, and internal distractions
Two methods to counteract distractions
repeat the same message many times
 make the message stand out from all others

4. Describe an example of each method to
counteract distractions for
promotional messages.
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Feedback
Effective promotion

promotion that achieves its goals
How do marketers determine whether a
promotion message was effective?

through customer feedback obtained by
– monitoring sales
– performing market research
5. If promotion is effective,
what will happen to sales?
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Photo by Amy J. Berk
6. Describe different types of promotion.
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Types of Promotion
Promotion can be categorized based on
the target market
– businesses or consumers
 what is being promoted: a product or
institution
– product promotion: focuses on selling
the product
– institutional promotion: focuses on
creating an image of the organization

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Types of Promotion
Personal or nonpersonal
personal promotion
– customer and marketer communicate in
person
– the only type of personal promotion is
personal selling
 nonpersonal promotion
– communicates the same message to all
potential customers
– examples: advertising, sales promotion,
and public relations

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Four Elements of
Promotion
Promotion can also be categorized
based on the four elements of
promotion
personal selling
 advertising
 sales promotion
 public relations

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Personal Selling
Personal selling
seller communicates
in person with buyer
 a selling message
can be customized
for each buyer
– based on
immediate
feedback from the
customer

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Advertising
Advertising includes
print ads
 commercials
 Internet ads
 outdoor advertising
 transit advertising
 direct marketing

Photo courtesy of IGA, Inc.
7. Describe an ad that you have seen.
Who is the target market for this ad?
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Sales Promotion
Sales promotion

marketing activities designed to entice
customers to buy a company’s products
B2B sales promotion
trade shows
 trade allowances
 point-of-purchase advertising
 sales incentives

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Sales Promotion
B2C sales promotion
coupons and rebates
 free samples
 premiums
 contests and
sweepstakes
 promotional tie-ins
 product placement
 visual merchandising

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Public Relations
Public relations

promotional activities designed to create
goodwill between a company and the public
Proactive public relations

communications initiated within the company
for the purpose of image building
Reactive public relations

communications in response to negative
events or damaging information
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Public Relations
Main functions of public relations
getting positive publicity
 developing philanthropic activities
 counteracting negative publicity

Publicity
information about a company and its
products that appears in the media
 company does not pay for the articles
– the articles are part of the newsgathering function of the media

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Public Relations
Philanthropic activities

the public relations
department usually
– develops charitable
and community
activities
– gets publicity for
these activities
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Review
What is the goal of promotion?
What is the difference between
B2B promotion and B2C promotion?
 product promotion and institutional
promotion?
 personal promotion and nonpersonal
promotion?

List the four elements of promotion.
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Glossary
Back
advertising. Nonpersonal promotion
paid for by an identified sponsor.
coupon. Printed piece of paper that
indicates the product and the amount of
price reduction when the coupon is
used.
effective promotion. Promotion that
achieves its goals.
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Glossary
Back
institutional promotion. Communication
that focuses on the image of the
organization.
marketing communication.
Communication from an organization to
its customers, potential customers, and
the public; promotion.
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Glossary
Back
nonpersonal promotion. Promotion that
communicates the same message to all
potential customers.
personal promotion. Promotion in which
the marketer and the customer
communicate in person, and the
marketer can immediately customize
the message; personal selling.
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Glossary
Back
premium. Item given to the customer for
free or at a reduced price along with the
purchase of a product.
product promotion. Marketing
communication that focuses on the
product and selling the product, in
contrast to institutional promotion.
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Glossary
Back
promotion. All communications from an
organization to its customers, potential
customers, and the public; marketing
communication.
publicity. Information about a company
and its products that appears in the
media; however, the company does not
pay the media to carry the message and
therefore has no control over the story.
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Glossary
Back
public relations. Promotional activities
designed to create goodwill between a
company and the public.
rebate. Return of a portion of the money
paid for a purchase.
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Glossary
Back
sales promotion. Marketing activities
designed to entice customers to buy a
company’s products. Examples include
coupons, contests, free samples, and
gift-inside.
trade allowance. Discount or money
paid to the intermediary who buys the
product.
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Glossary
Back
trade show. Exhibit of products of
interest to a specific industry.
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