PromotionChapter 15
The Role of Promotion in Marketing
• Inform
• Persuade
• Remind
Promotion Is a Communication Process
• Sender
• Encoding by the sender
• Message channel
• Decoding by the receiver
• Receiver
• Noise
• Feedback
Types of CommunicationInterpersonal communicationInterpersonal communication• Two-way communication• Involves two or more people in some kind of
person-to-person exchange
Mass communicationMass communication• One-way communication• Involves communicating to huge audiences,
usually through mass media, such as magazines, radio, television, or newspapers
*Advantages of advertising
*Disadvantages of advertising
Examples of Mass Media Advertising
• Direct mail
• Internet
• Magazines
• Newspaper
• Outdoor
• Radio
• Television
• SOCIAL
*Advantages of publicity
*Disadvantages of publicity
*Advantages of personal selling
*Disadvantages of personal selling
*Advantages of sales promotion
*Disadvantages of sales promotion
Elements of a Promotional Mix
• Advertising
• Personal selling
• Publicity
• Sales promotion
© South-Western Publishing
Factors that Affect the Factors that Affect the Promotional MixPromotional Mix
Financial Resources
Policy and Objectives
Marketing Mix
Target Market
PromotionalPromotionalMixMix
Promotional Planning
• The promotional planpromotional plan is a carefully arranged sequence of promotions designed around a common theme responsive to specific objectives.
The Steps in Promotional Planning
• Analyze the market
• Identify the target market
• Develop promotional objectives
• Develop a promotional budget
• Select the promotional mix
• Implement the promotional plan
• Evaluate the results
Promotion Chapter 16
Steps in Developing an Advertising Plan
1. Set objectives
2. Determine the budget
3. Develop the theme
4. Select media
5. Create the advertisements
6. Develop an advertising schedule
7. Evaluate the plan’s effectiveness
Laying Out the Parameters
• Set objectives
• Determine the budget– What you can afford– Percentage of sales– Competition matching– Objectives and task
• Developing the theme
Setting Objectives
Families who spend one week or more at the beach every year
Target market
Make reservations early to assure availability and save $100 off the weekly rate
Message
Increase reserved summer rentals by 10 percent by February 15
Desired results
Plan for Seaside ResortsElements
Selecting Media
• Cost
• Reach
• Frequency
• Lead time
Questions to Consider When Selecting Media
CostCost• What is the total cost of the medium?
• What is the cost per viewer?
• Does the cost fit into the advertising budget?
• Is it the most effective use of advertising dollars?
Questions to Consider When Selecting Media
ReachReach• What is the circulation?
• What is the viewership?
• Will it reach the target audience?
• Is there a strong pass-along rate?
Questions to Consider When Selecting Media
FrequencyFrequency• How often will the target audience receive
the advertising message?
• How many times will the ad run?
Questions to Consider When Selecting Media
Lead TimeLead Time• How quickly can the audience be reached?
• How flexible is this medium?
• How close to print or air time can the ad be changed?
Gauging Advertising Effectiveness
• Choosing evaluation techniques– Focus groups– Recall testing– Recognition testing
• Using advertising agencies
Using Personal Selling
AdvantagesAdvantages
• Information
• Flexibility
• Feedback
• Persuasion
• Follow-up
DisadvantagesDisadvantages
• Cost per customer
• Time
• Control
• Skill
Choosing Personal Selling
• Complex or expensive products• Markets made up of a few large customers• New or very unique products with which
customers are unfamiliar• Customers located in a limited area• Complicated or long decision-making process• Customers who expect personal attention and help
with decision-making
Mental Stages of Consumer Decision-Making
• Attention
• Interest
• Desire
• Conviction
• Action
Understanding the Product
• Product knowledge
• Communicating product information– Features – Benefits
Understanding the Competition
• Salespeople need to understand the differences between their product and the competition’s product.
• Salespeople need to explain the differences to help customers make the comparison.
Steps of the Selling Process
• Approach
• Determining needs
• Demonstration
• Answering questions
• Closing
• Suggestion selling
• Follow-up
Providing Sales Support
• Marketing information management
• Financing
• Pricing
• Promotion
• Product/Service Management
• Distribution