Elements of the Promotion

Mix
Advertising

Ingredients Public Relations

of the
Promotion
Mix Personal Selling

Sales Promotion
 The Communication
Process
Noise

Sender Encoding Channel Decoding Receiver

Channel
Goals and Tasks of
Promotion
Informing Reminding

Target
Audience

Persuading
 AIDA and the Hierarchy of
Effects Purchase
Assurance

Preference

Liking

Knowledge

Awareness

Attention Interest Desire Action

 When Elements of Promotion Are Most
Useful
Advertising
Effectiveness

Personal
selling

Sales
promotion

Public
relations

Awareness Knowledge Liking Preference Conviction Purchase

Very effective
Somewhat effective
Either not effective or inefficient
Factors that Affect the Promotion
Mix
Nature of the Product

Stage in the Product

Life Cycle

Target Market Characteristics

Type of Buying Decision

$$$
Available Funds

Push–and–Pull Strategies
Creating a Promotion
Plan
Analyze the Marketplace

Identify Target Market

Set Promotion Objectives

Develop Promotion Budget

Choose Promotion Mix

Criteria for Setting Promotion
Objectives
Promotion objectives should:

be measurable, concrete

be based on sound research, with a

well-defined target audience

be realistic

reinforce the overall marketing plan

and
relate to specific marketing objectives
 Examples of Promotion
Objectives
Objective: To Inform (Awareness)

Objective: To Persuade (Attitudinal)

Objective: To Remind
Techniques for Setting Promotion
Budgets

• Arbitrary/ Random Allocation

• All - You - Can - Afford
• Competitive similarity
• Percent of Sales
• Market Share
• Objective and Task
 Regulation of
Promotion

Self-Regulation

• National Advertising Division (NAD)

• National Advertising Review Board (NARB)

 Major Types of
Advertising
Corporate Image

Institutional
Advertising
Advocacy/ encouragement
Advertising
Types
of
Advertising
Pioneering/ New Product

Product Competitive
Advertising

Comparative
 Advertising Campaign Decision
Process
Determine the campaign objectives.

Make creative decisions. Make media decisions.

Evaluate the campaign.

 Common Advertising
Appeals
Profit Save money, keep from losing money

Health Body-conscious, healthy

Love or Romance Sell cosmetics and perfumes

Social embarrassment, growing old, losing

Fear health, power

Admiration Celebrity endorsement effective

Convenience Fast-food and microwave products

Fun and Pleasure Vacations, beer, amusement parks

Vanity and Egotism Expensive, conspicuous items

 Executional Styles for
Advertising

Scientific Slice-of-Life
Musical Lifestyle

Demon-
Common Spokes-
person/
stration Executional Testimonial
Styles

Mood or
Fantasy
Image
Real/
Animated
Humorous
Product
Symbols
Methods Used to Evaluate Advertising
Campaigns
Pretests
Examples:
• Consumer jury tests
• Portfolio or unfinished rough tests
• Physiological tests

Post-tests
Examples:
• Recognition tests
• Recall tests
• Attitude measures
• Audience size measurement
 The Tools of Public
Relations
New Product Publicity

Product Placement

Customer Satisfaction
Major Phone Lines
Tools
Used By Consumer Education
PR
Professionals Event Sponsorship

Issue Sponsorship

Web Sites
 Types of Consumer & Sales Promotion
Type of buyer
Goals Sales promotion examples
Desired results
Loyal customers Reinforce behavior, • Loyalty marketing programs,
People who buy your increase consumption, such as frequent-buyer cards
product most or all change purchase timing or frequent-shopper clubs
of the time • Bonus packs that give loyal
consumers an incentive to
stock up or premiums offered
in return for proofs-of-purchase
Competitor’s Break loyalty, persuade •Sampling to introduce your
customers to switch to your brand product’s superior qualities
People who buy a compared to their brand
competitor’s product • Sweepstakes, contests, or
most or all of the time premiums that create interest
in the product
Brand switchers Persuade to buy your • Any promotion that lowers the
People who buy a brand more often price of the product, such as
variety of products coupons, price-off packages,
in the category and bonus packs
• Trade deals that help make the
product more readily available
than competing products
Price buyers Appeal with low prices • Coupons, price-off packages,
People who or supply added value refunds, or trade deals that
consistently buy the that makes price less reduce the price of brand to
least expensive brand important match that of the brand that
would have been purchased

Source: From Sales Promotion Essentials, 2E by Don. E. Schultz, William A. Robinson, and Lisa A. Petrison. Reprinted by permission of NTC Publishing Group, Lincolnwood, IL.
 Tools for Consumer Sales
Promotion
Coupons

Premiums
Six
Categories Frequent Buyer Programs
of
Consumer Contests and
Sales Sweepstakes
Promotions
Samples

Point-of-Purchase
Displays
 Tools for Trade Sales
Promotion
Trade Allowances

Push Money
Six
Training Categories
of
Trade
Free Merchandise Sales
Promotions
Store Demonstrations

Business Meetings,
Conventions, Trade-Shows
Advantages of Personal
Selling
Detailed
Information
Message Control

Targeted

Cost Control

Closing Sales
 Advertising Versus Personal
Selling
Personal Selling is more important if...
The product has a high value.
It is a custom-made product.
There are few customers.
The product is technically complex.
Customers are geographically concentrated.

Advertising/Sales Promotion is more important if...

The product has a low value.
It is a standardized product.
There are many customers.
The product is simple to understand.
Customers are geographically dispersed.
 Differences Between Traditional & Relationship
Selling
Traditional Personal Selling Relationship Selling
Sell products (goods and services) Sell advice, assistance, and counsel
Focus on closing sales Focus on improving the customer’s bottom line
Limited sales planning Considers sales planning as top priority
Spend most contact time telling Spend most contact time attempting to build a
customers about product problem-solving environment with the customer
Conduct “product-specific” needs Conduct discovery in the full scope of the
assessment customer’s operations
“Lone-wolf” approach to the account Team approach to the account
Proposals and presentations based Proposals and presentations based on profit
on pricing and product features impact and strategic benefits to the customer
Sales follow-up focused on product Sales follow-up is long term, focused on
delivery long-term relationship enhancement

Source: Robert M. Peterson, Patrick L. Shul, and George H. Lucas, Jr., “Consultative Selling: Walking the Walk in the New Selling Environment,”
National Conference on Sales Management, Proceedings, March 1996.
 Steps in the Selling
Process
Generating Sales Leads

Qualifying Sales Leads

Basic Making the Sales Approach

Steps in
Making the Sales
the Presentation
Selling
Process Handling Objections

Closing the Sale

Following Up
 Functions of Sales
Management

Set Sales
Evaluate Objectives Structure
Sales Force Sales Force

Manage Major Tasks of Determine

Sales Force
Turnover Sales Size
Management

Develop
Motivate
Compen-
Sales Force
sation Plan
Train Sales Recruit Sales
Force Force
Steps in Setting the Right
Price
Establish Pricing Goals

Estimate Demand, Costs,

and Profits

Choose Strategy

Fine-Tune Base Price

$ $ $Right
$ Price
$$$$
 Legal and Ethical Issues in
Pricing
Unfair Trade Practices

Key Legal Price Fixing

and Ethical
Issues
Related to
Price Price Discrimination

Predatory Pricing
 Discounts, Allowances, and
Rebates
Cash EDLP
Discount (Every day low price)

Quantity Seasonal
Discount Price Discounts
Reductions
Functional Promotional
Discount Allowances

Trade Loading Rebates

 Geographic
Pricing
FOB Origin

Uniform Delivered
Pricing
Tactics
Zone Pricing
Based on
Geography
Freight-Absorption

Basing-Point
 Special Pricing
Tactics

Single
Two-Part Price Flexible
Pricing Pricing

Bundle
Common Professional
Pricing Special Pricing Services

Tactics

Odd-Even Price
Pricing Lining
Bait Leader
Pricing Pricing
 Integrated Marketing
Communication
A strategic
business process
used to plan, develop,
execute, and evaluate
Coordinated
communication
with an organization’s public
 Implementing IMC
Personal
Selling
Advertising Sales
Promotion
Coordinated
Direct to accomplish Public
objectives
Marketing Relations
 IMC Elements
Awareness of audience’s information sources

Understanding of audience’s knowledge and beliefs

Mix of promotional tools contributing to common goal

Promotional effort coordinated to communicate

a consistent message tailored to needs
 Evaluating IMC
Examine results

Awareness of company
or brand

Knowledge of company
or brand
Interest in a product or
brand

Action:
usage or responses
 Barriers to IMC
Resistance
Departmental To alternatives
barriers

Marketing
Communications
Manager
Communication Process
Determining the Promotional
Mix
STRATEGIC DECISIONS

Target Audience
Promotion Objectives
Nature of product

Product Life Cycle Stage

Funds Available
Push and Pull Strategies
 Promotion Objectives
Hierarchy of Objectives

Awareness
Knowledge
Liking
Preference
Conviction
Purchase