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Chapter Sixteen

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Using Effective Promotions

McGraw-Hill/Irwin

Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

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LAUREL RICHIE
Girl Scouts of America
Profile

Joined the Girl Scouts after developing campaigns for American Express and Campbells Soup.

Her biggest challenge is to communicate with girls through channels unheard of when the organization was formed.
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PROMOTION in an ORGANIZATION

Promotion and the Promotion Mix

LG1

Promotion Mix -- The combination of promotional

tools an organization uses; the traditional mix includes:

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INTEGRATED MARKETING COMMUNICATION (IMC)

Promotion and the Promotion Mix

LG1

Integrated Marketing Communication (IMC) -Combines the promotional tools into one comprehensive strategy. IMC is used to: - Create a positive brand image. - Meet the needs of consumers. - Meet the strategic marketing and promotional goals of the firm.

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STEPS in a PROMOTIONAL CAMPAIGN

1. Identify a target market
2. Define objectives

Promotion and the Promotion Mix

LG1

3. Determine a promotional budget

4. Develop a unifying message

5. Implement the plan

6. Evaluate the plan
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DEAR MR. POSTMAN
Steps in Launching a Direct-Mail Campaign

Promotion and the Promotion Mix

LG1

1. Plan: What should your mailing accomplish?

2. Get the Right List: The better the list, the better your chance of success.

3. Stand Out: Make your ad like no other.

4. Get Help: Contact a marketing firm with direct mail experience. 5. Follow Up: One mailing is not enough.
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ADVERTISING in the FIRM

Advertising: Informing, Persuading and Reminding

LG2

Advertising -- Paid, non-personal

communication through various media by organizations and individuals who are in some way indentified in the message.

Major goals of advertising:

- Inform
- Persuade - Remind
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IMPACT of ADVERTISING
Total advertising expenditures exceed $294 billion yearly.

Advertising: Informing, Persuading and Reminding

LG2

Consumers benefit because production costs of TV programs, radio programs, newspapers and magazines are paid for by advertisers.
Marketers choose ad media that will reach the target market.
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*
ILL SPONSOR YOU
The Price of Sports Endorsements
Amount per Deal $ Several Million $1 - $4 Million $1 - $4 Million $ Several Million $100,000 $500,000

Advertising: Informing, Persuading and Reminding

LG2

Athlete Tiger Woods Yao Ming Michael Phelps Lebron James Shawn Johnson
Source: Conde Nast Portfolio.

Sport Golf Basketball Swimming Basketball Gymnastics

Companies Nike, Gatorade, AT&T McDonalds Visa, Apple AT&T, PowerBar

Coca-Cola, Microsoft, Nike

Adidas, McDonalds, Longines

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MAJOR CATEGORIES of ADVERTISING

Category
Retail Trade

Advertising: Informing, Persuading and Reminding

LG2

What it is
From retail stores to consumers From manufacturers to wholesalers and retailers c From manufacturers to other manufacturers

B2B

Institutional

Creates a desirable image for an organization

Product

Creates a desirable image for a product or service

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MAJOR CATEGORIES of ADVERTISING

(Continued)

Advertising: Informing, Persuading and Reminding

LG2

Category
Advocacy Comparative

What it is
Supports a particular view of an issue Compares competing products Customer-oriented ads that allows customers to choose information to receive Computer ads featured on different sites

Interactive

Online

Mobile

Ads that reach consumers on cell phones

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ADVERTISING EXPENDITURE by MEDIA in $ MILLIONS

Rank 1 2 Media Direct Mail Broadcast TV Projected 2008 Spending $63,732 48,300

Advertising: Informing, Persuading and Reminding

LG2

% of Total Ad Spending
21.6 16.4

3
4 5 6

Newspaper
Cable TV Radio Yellow Pages

42,147
21,718 18,635 14,705

14.3
7.4 6.3 5.0

7
8

Consumer Magazine
Internet Other Total

14,106
12,722 58,311 294,376

4.8
4.3 19.8 100.0
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MATCH GAME
Match the Company with the Slogan

Advertising: Informing, Persuading and Reminding

LG2

Everybody doesnt like something, but nobody doesnt like ___________.

We bring good things to life.

It takes a licking and keeps on ticking.

With a name like _________, it has to be good. Good to the last drop. Betcha cant eat just one! Because youre worth it.
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ITS a DOGS LIFE
Famous and Not-so-Famous Dogs in Advertising

Advertising: Informing, Persuading and Reminding

LG2

Pooch
Nipper Tige Chihuahua Spuds McKenzie

Company
RCA Buster Brown Shoes Taco Bell Bud Light

McGruff
Duke Bullseye

The Crime Dog

Bushs Beans Target

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POPULAR ADVERTISING MEDIA
TV advertising is still the dominant media.

Television Advertising LG2

Digital Video Recorders (DVRs) challenge TV advertising because viewers can skip them.

Product Placement -- Advertisers pay to put their

products into TV shows and movies where the audience will see them.

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INFOMERCIALS and ONLINE ADVERTISING

*Infomercials
and Online Advertising LG2

Infomercial -- A full length TV program devoted exclusively to promote a particular product.

Online ads are attempts to get potential customers to a website to learn about a product.

Interactive Promotion -- Allows

marketers to open a dialogue between buyers and sellers and let them work together to create a beneficial exchange.
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INFOMERCIAL HALL of FAME
The Biggest Hits Over the Past 40 Years
Infomercials LG2

Veg-O-Matic Ginsu Knives

The Clapper
Thigh Master George Foreman Grill Bowflex
Source: Fortune Magazine, April 13, 2009.

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GLOBAL ADVERTISING
Requires marketers to develop a single product and promotional strategy to implement worldwide. Problems can arise in global markets with using one advertising campaign in all countries - especially bad translations.

Global Advertising LG2

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FINDING a COMPETITIVE ADVANTAGE in SUSTAINABILITY

Thinking Green

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Marketers are gaining a competitive advantage by touting their efforts for the environment.

Mars Drinks promotes its efforts to use less water, send less waste to landfills and help customers reduce their own energy waste. First Global Direct competes with large rivals because of their efforts to make operations more eco-friendly.
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PERSONAL SELLING

Personal Selling: Providing Personal Attention

LG3

Personal Selling -- The face-to-face presentation

and promotion of a product, including the salespersons search for new prospects and follow-up service.

Salespeople need to listen to customer needs, help reach a solution and do everything possible to make the transaction as simple as possible.
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PROSPECTING and QUALIFYING in B2B SELLING

*Steps in the
Selling Process LG3

Prospecting -- Researching potential buyers and

choosing those most likely to buy.

Qualifying -- Making sure

customers have a need for a product, the authority to buy and the willingness to listen to a sales message.

Prospect -- A customer who

meets the qualifying criteria.
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STEPS in the B2B SELLING PROCESS

1. Pre-approach
2. Approach 3. Make a presentation 4. Answer objections

*Steps in the
Selling Process LG3

5. Close the sale Trial Close -- A statement or question that

moves the process toward the purchase.

6. Follow up
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*Steps in the
BUY THIS!
Successful Selling Strategies
Selling Process LG3

Know your competition Understand your customers business Differentiate your product or service Sell to the people most likely to buy Build relationships Put the right people in the right selling spots
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*Steps in the
WHOOPS!
Sales Slip-Ups
Selling Process LG3

Not feeling the customers pain

Making money is the only goal

Seeing sales as just a job

Getting upset during the presentation Failing to properly prepare or over-preparing Not being yourself Neglecting the relationship
Source: Fortune Magazine.

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STEPS in the B2C SELLING PROCESS

*Steps in the
Selling Process LG3

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PROGRESS ASSESSMENT

Progress Assessment

*
What are the four traditional elements of the promotion mix? What are the three most important advertising media in order of dollars spent? What are the seven steps in the B2B selling process?

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USING PUBLIC RELATIONS in PROMOTION

Public Relations (PR) -- Evaluates public

Public Relations: Building Relationships

LG4

attitudes, changes policies and procedures in response to the public, and executes a program of action and information to earn public understanding and acceptance.

3 steps of a good PR program:

1.
2. 3.

Listen to the public

Change policies and procedures Inform people youre responsive to their needs
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PUBLICITY

*Publicity: The
Talking Arm of PR LG4

Publicity -- Any information about an individual,

product or organization thats distributed to the public through the media and is not paid for or controlled by the seller.

Advantages of Publicity:
Free

Reaches people who would not look at an advertisement

More believable than advertising

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DISADVANTAGES of PUBLICITY

*Publicity: The
Talking Arm of PR LG4

No control over whether the media will use a story or when they may release it. It can be good or bad. Once a story has been run, it isnt likely to run again.

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SALES PROMOTIONS

Sales Promotion: Giving Buyers Incentives

LG5

Sales Promotion -- The promotional tool that

stimulates consumer purchasing and dealer interest by means of short-term activities.

Categories of Sales Promotions:

1. B2B Sales Promotions

2. Consumer Sales Promotions

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SOME KEY CONSUMER PROMOTIONS

Coupons
Demonstrations

Sales Promotion: Giving Buyers Incentives

LG5

Sampling
Sweepstakes

In-store Displays
Contests
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CLIP THESE
Most Visited U.S. Coupon Clearing Sites

Sales Promotion: Giving Buyers Incentives

LG5

Coupons, Inc EverSave RetailMeNot CouponCabin

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PROGRESS ASSESSMENT

Progress Assessment

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What are the three steps in setting up a public relations program?
What are the sales promotion programs used to reach consumers? What sales promotion programs are used to reach businesses?

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USING WORD-of-MOUTH PROMOTION

Word of Mouth and Other Promotional Tools

LG6

Word-of-Mouth Promotion -- People tell others about products they have purchased.
Word-of-Mouth is important for products like:
- Restaurants - Daycare and Eldercare

- Car Repair Shops

- Hair Stylists - Hotels
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EMERGING PROMOTIONAL TOOLS

Viral Marketing -- Paying
customers to say positive things on the Internet or setting up multiple selling schemes whereby consumers get commissions.

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Viral Marketing LG6

People who promote through viral marketing often receive SWAG which can include free tickets, shirts, and other merchandise.
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BLOGS, PODCASTS, and E-MAILS

Blogging, Podcasting and E-mail Promotions

LG6

Blog -- Short for web log; an online diary that looks

like a webpage but is easier to create and update by posting text, photos, videos, or links.

Podcasting -- A way to distribute audio and video

programs via the Internet.

Email promotions increase brand awareness among commercial suppliers.

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FRESH-BAKED PROMOTION
Spotlight on Small Business

Amy Scherber of Amys Bread cant afford to outsource her promotions, so she needs to get creative. She sends newspaper editors stories about her company and has an assortment of company shirts. She builds strong word-of-mouth by keeping in touch with her community members.
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PUSH, PULL, AND PICK PROMOTIONAL STRATEGIES

Managing the Promotion Mix: Putting it All Together

LG6

Push Strategy -- Producers use advertising,

personal selling, sales promotion, and other tools to get their products stocked on shelves.

Pull Strategy -- Directs heavy advertising and sales

promotions efforts towards consumers and gets the public to request their products from retailers.

Pick Strategy -- Refers to consumers who pick out

their products from online outlets.
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GOING DIGITAL
Reaching Beyond Our Borders

Agencies like Publicis Groupe knew they had to move forward into the digital age.
Publicis bought Digitas, an interactive ad agency, and tried to blend the firms. Publicis created the Global Marketing Navigator and simplifies masses of data from clients and measures the programs effectiveness.
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PROGRESS ASSESSMENT

Progress Assessment

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Whats viral marketing?
What are blogging and podcasting?

Describe a push strategy, a pull strategy and the pick strategy.

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