Chapter 7: PROMOTION
7.1 The role of promotion in
marketing mix
7.2 The goals of promotion
7.3 The AIDA concept
7.4 The promotional mix
7.5 Factors affecting
promotional mix
7.6 Advertising
7.6.1 Major types of
advertising
7.6.2 Media types
7.7 Public Relations
7.7.1 Major public relations
tools
7.8 Sales Promotion
7.8.1 Tools for consumer sales
promotion
7.9 Personal Selling
7.9.1 Advantages of personal
selling
7.9.2 Steps in the selling
process
 7.7 Public Relations

• Public relations evaluates public attitudes, identifies issues

that may elicit public concern, and executes programs to gain
public understanding and acceptance.
• Publicity is the effort to capture media attention.
• Public relations campaigns strive to achieve and maintain a
corporation's positive image in the eyes of the public.
1. New-Product Publicity is instrumental in
introducing new products and services. Publicity
can help advertisers explain what’s different
about their new product by prompting free news
stories or positive word of mouth about it.
2. Product Placement Marketers are increasingly
using product placement to reinforce brand
awareness and create favorable attitudes. 7.7.1
3. Consumer Education Some major firms believe
that educated consumers are better, more loyal
customers.
Major
4. Sponsorships a company spends money to
support an issue, cause, or event that is
public
consistent with corporate objectives, such as
improving brand awareness or enhancing
corporate image.
relations
5. Internet Web Sites are used to introduce new
products, promote existing products, obtain tools
consumer feedback, post news releases,
communicate legislative and regulatory
information, showcase upcoming events, provide
links to related sites, release financial
information, interact with customers and
potential customers.
7.8 Sales Promotion
• Sales promotion is an activity in
which a short-term incentive is
offered to consumers or channel
members to induce the
purchase of a particular good or
service.
• Consumer sales promotion is
aimed at the ultimate consumer
of a good.
• Trade sales promotion is
directed to members of the
marketing channel, such as
wholesalers and retailers.
 7.8.1 Tools for
consumer sales
promotion

1. Coupons and Rebates

A coupon is a certificate that entitles
consumers to an immediate price reduction
when they buy the product. Rebates are
similar to coupons in that they offer the
purchaser a price reduction; however,
because the purchaser must mail in a
rebate form and usually some proof of
purchase, the reward is not as immediate.
 7.8.1 Tools for
consumer sales
promotion

2. Premium
An extra item offered to the
consumer, usually in exchange
for some proof that the
promoted product has been
purchased. Premiums reinforce
the consumer’s purchase
decision, increase consumption,
and persuade nonusers to switch
brands.
 7.8.1 Tools for
consumer sales
promotion

3. Loyalty Marketing Programs

A form of reward towards loyal
consumers for making multiple
purchases. The objective of loyalty
marketing programs is to build long-
term, mutually beneficial relationships
between a company and its key
customers.
7.8.1 Tools for consumer
sales promotion

4. Contests and Sweepstakes

Designed to create interest in a good
or service, often to encourage brand
switching.
Contests are promotions in which
participants use some skill or ability to
compete for prizes. A consumer
contest usually requires entrants to
answer questions, complete
sentences, or write a paragraph about
the product and submit proof of
purchase.
Winning a sweepstakes, on the other
hand, depends on chance or luck, and
participation is free.
 7.8.1 Tools for consumer sales promotion

5. Sampling
Consumers generally
perceive a certain
amount of risk in trying
new products. Many are
afraid of trying
something they will not
like (such as a new food
item) or spending too
much money and
getting little reward.
Sampling enables
customers to try a
product risk-free.
7.8.1 Tools for consumer sales promotion
6. Point-of-purchase (P-O-P)
promotion
Includes any promotional
display set up at the retailer’s
location to build traffic,
advertise the product, or
induce impulse buying. Point-
of-purchase promotions
include shelf “talkers”, shelf
extenders, ads on grocery
carts and bags, end-aisle and
floor-stand displays, television
monitors at supermarket
checkout counters, in-store
audio messages, and
audiovisual displays.
 7.8.1 Tools for consumer sales promotion
Online sales promotions
Expanded dramatically in recent years. Marketers are now
spending billions of dollars annually on such promotions. Sales
promotions online have proved effective and cost-efficient,
generating response rates three to five times higher than off-
line promotions. The most effective types of online sales
promotions are free merchandise, sweepstakes, free shipping
with purchases, and coupons
7.9 Personal Selling

• Personal selling is direct

communication between
a sales representative and
one or more prospective
purchasers, for the
purpose of making a sale.
• It can be accomplished
through a face-to-face,
personal sales call or over
the telephone by
telemarketing.
It provides a detailed explanation or
demonstration of the product. This capability
is especially needed for complex or new goods

7.9.1 Advantages of personal

and services.

The sales message can be varied according to

the motivations and interests of each
prospective customer. Moreover, when the
prospect has questions or raises objections,
the salesperson is there to provide

selling
explanations.

It can be directed only to qualified prospects.

Other forms of promotion include some
unavoidable waste because many people in
the audience are not prospective customers.

Costs can be controlled by adjusting the size

of the sales force (and resulting expenses) in
one-person increments.

Is considerably more effective than other

forms of promotion in obtaining a sale and
gaining a satisfied customer.
7.9.2 Steps in the selling process
 9.7 Personal Selling
PERSONAL SELLING PROCESS
1. Prospecting and
Qualifying

Prospecting identifies Qualifying is identifying

good customers and
qualified potential screening out poor ones by
looking at:
customers through – Financial ability
referrals from: Customers, – Volume of business
Suppliers, Dealers, – Needs
– Location
Internet – Growth potential
9.7 Personal Selling
PERSONAL SELLING PROCESS
2. Pre-approach is the process of learning as much
as possible about a prospect, including needs, who
is involved in the buying, and the characteristics and
styles of the buyers

Objectives Approaches
•Qualify the prospect •Personal visit
•Gather information •Phone call
•Make an immediate sale •Letter
9.7 Personal Selling
PERSONAL SELLING PROCESS
3. Approach is the process where the salesperson
meets and greets the buyer and gets the relationship
off to a good start and involves the salesperson’s:
Appearance
Opening lines
Follow-up remarks

Opening lines should be positive, build goodwill, and be

followed by key questions to learn about the customer’s
needs or showing a display or sample to attract the buyer’s
attention and curiosity
The most important attribute is for the salesperson to: listen
9.7 Personal Selling
PERSONAL SELLING PROCESS

4. Presentation & Demonstration

Presentation is when the salesperson tells the product
story to the buyer, presenting customer benefits and
showing how the product solves the customer’s
problems
Need-satisfaction approach: Buyers want solutions and
salespeople should listen and respond with the right
products and services to solve customer problems
9.7 Personal Selling
PERSONAL SELLING PROCESS

5. Handling objections is the process where

salespeople resolve problems that are logical,
psychological, or unspoken

6. Closing is the process where salespeople should

recognize signals from the buyer—including
physical actions, comments, and questions—to
close the sale
7.9 Personal Selling
PERSONAL SELLING PROCESS
7. Follow-up is the last step in which the salesperson
follows up after the sale to ensure customer satisfaction
and repeat business