CHAPTER 6:

Promotional Planning
Promotion- is used by business to inform, persuade, and remind consumers
about products and services.
- Involves all communication used by a business to create favorable
impression of its products or services.
The Promotional Mix
- Business use a promotional mix, which id s combination of advertising,
public relations, personal selling, and sales promotion, to reach their target
market. An effective promotional mix can help a business introduce products
and services to the market, increase sales, raise public awareness, and even
develop a good-citizen reputation.
The AIDA Concept and the Promotional Mix
The man objective of any promotion is to get someone to buy a product
or services. Many marketers use the AIDA concept to help accomplish this goal.
AIDA is an acronym that stands for Attention, Interest, Desire, Action, which
are the four stages of promotion. Promotion must attract the attention of the
consumer, create an interest, turn into a desire and then persuade the
consumer to take action.
1. Attention- To sell a product or services, a business must first capture
the attention of consumers and create awareness.
2. Interest- Product awareness does not always lead to a sale. Marketers
must gain the consumer’s interest.
3. Desire- Interest and desire are closely related. As marketers build
interest in their product or services, they should try to appeal to
consumer’s buying motives (emotional, rational, and patronage).
4. Action- Finally, promotions must motivate consumers to take action.
The Promotional Plan
To increase the effectiveness of its promotion, a business should create
promotional plan, which outlines how all of the elements in the promotional
mix will work together to reach the target market. Creating a promotional plan
takes time and involves a step-by-step process.
 Determine the Target Market
 Identify Promotional Objectives
 Set the Promotional Budget
 Determine the Promotional Mix
 Implement and Evaluate the Promotional Plan
Advertising and Public Relations
Advertising- Is a paid from of communication to inform and persuade an
audience to take some kin d of action. It is used more commonly than any
other form of promotion to introduce new products to the market.
 Advantages of Advertising
 It brings a sense of credibility to their products.
 Consumers’ opinions about a product’s legitimacy and equality are
more favorable when the product is advertised.
 Reinforcing the advertising message through repetition.
 To reach people around country.
 The cost-per-viewer is relatively low compared to other promotional
methods.
 The ability to make an emotional connection with the target
market through the use of actors, music, images, and other
production factors.
 Disadvantages of Advertising
 The overall cost to produce and run advertisement in various types
of media can be very expensive.
 It can become stale over time, causing consumers to block it out.
 Advertisement mostly cannot be modified or updated quickly.
 Advertising is also impersonal because it doesn’t allow for face-to-
face communication or provide ways for the consumer to give
feedback.
 Finally, just due to the sheer volume of advertisements, which is
referred to as advertising clutter, consumers have a tendency to
tune out.
Public relation and Publicity
Public relation- Involves writing press releases, organizing news conferences,
producing company newsletter, sponsoring events, and exhibiting at trade
shows. Public relations campaigns help the public develop a better
understanding of a company, its products, and its philosophies.
Publicity- often goes hand-in-hand with public relations. Publicity is any
nonpaid form of communication designed to arouse public interest about a
product, service, business, or event. Publicity occurs when a newspaper,
television news show, or other media outlet reports about donations made by a
business or special event sponsored by a business. Business may write Press
release, which is a written statement to inform the media about a new product
or special event. Press release are often posted on a company’s own website.
  Advantages and Disadvantages of Public Relations
 Most people perceive publicity as more credible than an
advertisement.
 Favorable product reviews on a newscast or by a celebrity are more
enticing to consumers than product claims made by an advertiser
in a commercial.
 When a trusted talk-show host recommends a product, the sales of
that product quickly grow.
 Publicity is often considered to be free advertising.
 The cost of public relations is relatively inexpensive.
 The biggest disadvantage of public relation is the lack of control.
 Information could be improperly reported or important details
could be omitted.
 If negative reviews of a product are reported, it could be disastrous
for the company.

Personal selling and Sales Promotion

Personal Selling- Is face-to-face communication between the buyer and seller
that attempts to influence the buying decision. It is often used for products
that are complex or relatively expensive, such as automobiles, homes,
insurance, furniture, and computers.
Steps in the Sales Process
 Generate Sales Leads
 Approach Customers
 Determine Customer Needs
 Present the Product
 Overcome Objection
 Close the Sale
 Follow Up
 Improving Sales Performance
Sales Promotion- Involves the use of marketing activities that provide extra
value and buying incentives for customers.
- Can be used to introduce a new product, increase
short-term consumer demand, strengthen brand loyalty, and influence
consumer behavior. Sales promotion are commonly use to get consumers to try
new products. Coupons, rebates, and free samples help reduce the consumer’s
risk of trying a new product.
Other types of Promotion
Product Placement- Is the place of placing a business’s products, services, or
name into a movie, television show, video game, or other form of entertainment.
Promotional Tools
 Endorsement- Is a public expression of approval or support for a
product or service. Also, known as Testimonials.

2 components of Endorsement
1. Celebrity Endorsement
2. Endorsement Consideration

 Word-of-Mouth Promotion- Is one of the most effective ways of

spreading the news about products and services.
 Direct Marketing- Is a technique including the direct mail, catalogs,
telemarketing, and e-mail to get consumers to buy products or services
from a nonretail setting.
Visual Merchandising- Is the process of displaying products in a way that
makes them appealing and enticing to customers. It’s used to catch the
attention of shoppers and persuade them to buy the product. Consumers who
can see, taste, or feel the merchandise are more likely to make a purchase.