Promoting Products

1
CHAPTER 13

• Promoting Products

2
The Importance of Promotion

• Promotion
• Aspect of the marketing mix concerned with the
  most effective techniques for selling a product

3
Information Exchange Values

• In free-market systems, a business uses
  promotional methods to communicate information
  about itself and its products to consumers and
  industrial buyers

4
Youre not allowed to say or market anything
online unless the customer wants to hear it. In
cyberspace marketing, the customer is in
charge. Chan Suh CEO, Agency.com Ltd.
13 - 4
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Promotional Objectives

• Communicate Information
• Position Products
• Add Value
• Control Sales Volume

Positioning Process of establishing an
identifiable product image in the minds of
consumers
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Promotional Strategies

• Pull Strategy
• Promotional strategy designed to appeal directly
  to consumers who will demand a product from
  retailers
• Push Strategy
• Promotional strategy designed to encourage
  wholesalers or retailers to market products to
  consumers

7
Promotional Mix

• Four types of promotional tools
• Advertising
• Personal Selling
• Sales Promotions
• Publicity and Public Relations

8
The Consumer Buying Process/Promotional Mix
Stages of the Consumer Buying Process
Problem (Need) Recognition
Information Seeking
Evaluation of Alternatives
Postpurchase Evaluation
THANKS!
NEW!
Most Effective Promotional Tool
ADVERTISING Publicity
ADVERTISING Personal Selling
PERSONAL SELLING
SALES PROMOTION Personnel Selling
ADVERTISING Personal Selling
13 - 8
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Advertising Promotions

• Advertising
• Promotional tool consisting of paid, nonpersonal
  communication used by an identified sponsor to
  inform an audience about a product

10
Advertising Strategies

• Persuasive Advertising
• Advertising strategy that tries to influence
  consumers to buy one companys products instead
  of those of its rivals
• Comparative Advertising
• Advertising strategy that directly compares two
  or more products
• Reminder Advertising
• Advertising strategy that tries to keep a
  products name in the consumers mind

11
Advertising Media

• Variety of communication devices for carrying a
  sellers message to potential customers

• Most common types of advertising media
• Newspapers
• Television
• Direct Mail

Messages are mailed directly to consumers homes
or places of business

• Radio
• Magazines
• Outdoor Advertising

Billboards, signs, advertisements on buses,
street furniture, taxis, stadiums, subways
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Top Ten Network TV Advertisers
Television accounts for about 22 percent of all
advertising outlays.
Ford
Diageo
Unilever
Mconald's
Walt Disney
Phillip Morris
General Motors
DaimlerChrysler
Proctor Gamble
Johnson Johnson
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Advertising Media

• Most recent forms of advertising
• Internet
• Offers high potential, however, most marketers
  recognize that it also has limitations
• Targeted advertising is meeting with success
  because, Internet advertisers can measure the
  success of each ad
• Virtual Advertising
• Digital implants of brands or products in live or
  taped programming gives illusion product is part
  of the show
• Advertisers product can appear as part of the
  television show instead of during commercial
  breaks

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Advertising Media

• Other forms of advertising
• Catalogs
• Sidewalk Handouts
• Yellow Pages
• Skywriting
• Telephone Calls
• Special Events
• Door-to-Door Communication

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Advertising Media

• Media Mix
• Combination of advertising media chosen to carry
  message about a product

• Types of advertising
• Brand Advertising promotes a specific brand
• Advocacy Advertising promotes a cause,
  viewpoint, or candidate
• Institutional Advertising promotes a firms
  long-term image

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Preparing the Campaign with an Advertising Agency

• Advertising Campaign
• Arrangement of ads in selected media to reach
  targeted audiences
• Advertising Agency
• Independent company that provides some or all of
  a client firms advertising needs

17
Preparing the Campaign with an Advertising Agency

• A campaign typically includes six steps
• Identifying the target audience
• Establishing the advertising budget
• Defining the objectives of the advertising
  messages
• Creating the advertising messages
• Selecting the appropriate media
• Evaluating advertising effectiveness

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Regulation of Advertising

• 1914, the Federal Trade Commission Act created
  the Federal Trade Commission (FTC) to protect
  competition from unfair trade practices
• 1938, the Wheeler-Lea Act gave the FTC power to
  protect consumers against advertising that makes
  misleading claims or suggestions
• 1971, the FTC instituted a program requiring
  companies furnish evidence that advertising
  claims are true
• The National Advertising Review Board (NARB) was
  established by a council of professional
  advertisers to investigate complaints against its
  members

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Personal Selling

• Promotional tool in which a salesperson
  communicates one-on-one with potential customers

20
Personal Selling

• Personal Selling Situations

Retail Selling Products are sold for buyers
personal or household use Industrial
Selling Products are sold to businesses for
manufacturing other products or for resale
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Personal Selling

• Personal Selling Tasks

Order Processing Salespeople receive orders and
see to their handling and delivery Creative
Selling Salespeople try to persuade buyers to
purchase products by providing information about
their benefits Missionary Selling Salespeople
promote their firms and products rather than try
to close sales
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The Personal Selling Process

• Prospecting Qualifying
• Approaching
• Presenting Demonstrating
• Handling Objections
• Closing
• Following up

23
Sales Promotions

• Short-term promotional activity designed to
  stimulate consumer buying or cooperation from
  distributors and sales agents

• Types of sales promotions
• Coupon a certificate is issued entitling the
  buyer to a reduced price
• Point-of-Purchase (POP) Display product displays
  are located in certain areas to stimulate
  purchase
• Premium offers of free or reduced-price items
  are used to stimulate purchases
• Trade Show various members of an industry gather
  to display, demonstrate, and sell products

24
Publicity Public Relations

• Publicity
• Promotional tool in which information about a
  company or product is transmitted by general mass
  media
• Public Relations
• Company-influenced publicity directed at building
  good will between an organization and potential
  customers

25
International Promotional Strategies

• Global Perspective
• Companys approach to directing its marketing
  toward worldwide rather than local or regional
  markets

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Movement Toward Global Advertising

• Product Variations
• Language Differences
• Cultural Receptiveness
• Image Differences
• Universal Messages Regional Advertising Skills

27
Promotional Practices in Small Business

• Small Business Advertising
• Local Markets
• National Markets
• International Markets

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The Role of Personal Sellingin Small Business

• Some small firms maintain sales forces to promote
  and sell their products in local markets
• Others prefer to contract with sales agencies
  companies that handle the products of several
  clients to act on their behalf
• Many use sales agencies and other methods such as
  telemarketing for national markets
• Alliances and joint ventures offer an alternative
  to person-to-person selling for small companies
  who cannot afford to establish international
  offices

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Small Business Promotions

• Small companies use the same sales promotion
  incentives as larger companies
• Larger firms tend to use more coupons, POP
  displays, and sales contests
• Smaller firms rely on premiums and special sales