MultiMedia by Stephen M.

Peters 2001 South-Western College Publishing

Chapter
15
Promotion
Strategies
Introduction to
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Learning Objectives
OExplain how promotion can benefit firms.
ODescribe how advertising is used.
ODescribe the steps involved in personal selling.
ODescribe the sales promotion methods that are used.
ODescribe how firms can use public relations to
promote products.
OExplain how firms select the optimal mix of
promotions to use.
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Defining Promotion
The act of informing or reminding
consumers about the firms products or
services.
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Promotional Goals
Creating awareness.
Getting customers to try new product.
Providing information.
Keep consumers from switching brands.
To get customers to use more product and to use it
more often.
Business Online:
Star Kist Tuna
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Promotional Mix
Four Elements
Combination of promotion methods that a firm
uses to increase acceptance of its products.
C Advertising
CPersonal selling
CSales promotion
CPublic relations
Optimal promotional mix is dependent on the
characteristics of the target market.
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Five Types of Advertising
CProduct/Brand: features a specific product or
service.
CComparative: compares the companys product
with a major competing product.
CReminder: used to keep a products name in the
minds of the consumer.
CInstitutional: creates a positive picture about the
specific institution.
CIndustry: enhances the image of a specific
industry.
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Major Media Forms
Nontraditional Consideration
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Additional Media Forms
Dans Art
Transportation ads:
Good visual effect
Moving ad
Example: local ads
Valley
Federal
Bank
Specialty ads:
T-shirts, hats,
balloons
Example: Coke,
beer companies
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Personal Selling
Personal selling:
Is expensive.
Requires high training.
Business Online:
Just Sell .Com
Personal selling: personal sales presentation used to
influence one or more consumers.
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Six Personal Selling Steps
C Identify target market.
C Contract potential customers.
C Make sales presentation.
C Answer questions.
C Close the sale.
Follow up.
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Sales Promotion
Most common strategies:
Rebates
Coupons
Sampling
Displays
Premiums
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Public Relations
Public relations:
Gains free publicity.
Enhances firms image.
Most common strategies:
Special events.
News releases.
Press conferences.
Actions taken with the goal of creating or maintaining a favorable image.
Business Online
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Pull vs Push Strategy
Retailers
Wholesalers
Retailers
Consumers
Manufacturer
Promotion
Consumers
Manufacturer
Wholesalers
Promotion
1
2
3
4
1
2
3
4
Pull
Push
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Promotional Budget Influenced By
Phase of product life cycle.
Competition.
Economic conditions.
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Promotion and Product Life Cycle
Heavy
promotion
spending
Moderate
promotion
spending
Light
promotion
spending
Little or no
promotion
spending
Introduction Growth Maturity Decline
Phases
MultiMedia by Stephen M. Peters 2001 South-Western College Publishing

Evaluating Effects of Promotion
Establish measurable objectives.
Determine whether goal is achieved.
Recognize that economic conditions may have
an impact on overall success.