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BUS110 Chap 16 - Effective Promotions
This chapter discusses various promotional strategies and tools used by organizations, including advertising, public relations, sales promotions, personal selling, and emerging digital promotional methods. It provides an overview of key concepts like the promotion mix, integrated marketing communications, and the steps involved in promotional campaigns, advertising, and the sales process.
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BUS110 Chap 16 - Effective Promotions
- 1. * * ChapterSixteen Using Effective Promotions Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
- 2. LAUREL RICHIE GirlScouts of America * * Profile Joined the Girl Scouts after developing campaigns for American Express and Campbell’s Soup. Her biggest challenge is to communicate with girls through channels unheard of when the organization was formed. 16-
- 3. PROMOTION inan ORGANIZATION * * Promotion and the Promotion Mix Promotion Mix -- The combination of promotional tools an organization uses; the traditional mix includes: LG1 16-
- 4. INTEGRATED MARKETING COMMUNICATION(IMC) * * Promotion and the Promotion Mix 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. LG1 16-
- 5. STEPS in a PROMOTIONAL CAMPAIGN * * Promotion and the Promotion Mix Identify a target market Define objectives Determine a promotional budget Develop a unifying message Implement the plan Evaluate the plan LG1 16-
- 6. DEAR MR. POSTMAN…Steps in Launching a Direct-Mail Campaign * * Plan: What should your mailing accomplish? Get the Right List: The better the list, the better your chance of success. LG1 Promotion and the Promotion Mix Stand Out: Make your ad like no other. Get Help: Contact a marketing firm with direct mail experience. Follow Up: One mailing is not enough. 16-
- 7. ADVERTISING in theFIRM * * Advertising: Informing, Persuading and Reminding 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 LG2 16-
- 8. IMPACT of ADVERTISING* * Advertising: Informing, Persuading and Reminding Total advertising expenditures exceed $294 billion yearly. 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. LG2 16-
- 9. I’LL SPONSOR YOUThe Price of Sports Endorsements * * LG2 Source: Conde Nast Portfolio. Advertising: Informing, Persuading and Reminding 16- Athlete Sport Amount per Deal Companies Tiger Woods Golf $ Several Million Nike, Gatorade, AT&T Yao Ming Basketball $1 - $4 Million McDonald’s Visa, Apple Michael Phelps Swimming $1 - $4 Million AT&T, PowerBar Lebron James Basketball $ Several Million Coca-Cola, Microsoft, Nike Shawn Johnson Gymnastics $100,000 - $500,000 Adidas, McDonalds, Longines
- 10. MAJOR CATEGORIES ofADVERTISING c * * LG2 Advertising: Informing, Persuading and Reminding 16- Category What it is Retail From retail stores to consumers Trade From manufacturers to wholesalers and retailers B2B From manufacturers to other manufacturers Institutional Creates a desirable image for an organization Product Creates a desirable image for a product or service
- 11. MAJOR CATEGORIES ofADVERTISING (Continued) * * LG2 Advertising: Informing, Persuading and Reminding 16- Category What it is Advocacy Supports a particular view of an issue Comparative Compares competing products Interactive Customer-oriented ads that allows customers to choose information to receive Online Computer ads featured on different sites Mobile Ads that reach consumers on cell phones
- 12. ADVERTISING EXPENDITURE byMEDIA in $ MILLIONS * * Advertising: Informing, Persuading and Reminding LG2 16- Rank Media Projected 2008 Spending % of Total Ad Spending 1 Direct Mail $63,732 21.6 2 Broadcast TV 48,300 16.4 3 Newspaper 42,147 14.3 4 Cable TV 21,718 7.4 5 Radio 18,635 6.3 6 Yellow Pages 14,705 5.0 7 Consumer Magazine 14,106 4.8 8 Internet 12,722 4.3 Other 58,311 19.8 Total 294,376 100.0
- 13. MATCH GAME Matchthe Company with the Slogan * * “ Everybody doesn’t like something, but nobody doesn’t 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 can’t eat just one!” “ Because you’re worth it.” LG2 Advertising: Informing, Persuading and Reminding 16-
- 14. IT’S a DOG’SLIFE Famous and Not-so-Famous Dogs in Advertising * * LG2 Advertising: Informing, Persuading and Reminding 16- Pooch Company Nipper RCA Tige Buster Brown Shoes Chihuahua Taco Bell Spuds McKenzie Bud Light McGruff The Crime Dog Duke Bush’s Beans Bullseye Target
- 15. POPULAR ADVERTISING MEDIA* * Television Advertising TV advertising is still the dominant media. 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. LG2 16-
- 16. INFOMERCIALS and ONLINE ADVERTISING * * Infomercials and Online Advertising 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. LG2 Interactive Promotion -- Allows marketers to open a dialogue between buyers and sellers and let them work together to create a beneficial exchange. 16-
- 17. GLOBAL ADVERTISING ** 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. LG2 16-
- 18. PERSONAL SELLING ** Personal Selling: Providing Personal Attention Personal Selling -- The face-to-face presentation and promotion of a product, including the salesperson’s search for new prospects and follow-up service. LG3 Salespeople need to listen to customer needs, help reach a solution and do everything possible to make the transaction as simple as possible. 16-
- 19. PROSPECTING and QUALIFYING in B2B SELLING * * Steps in the Selling Process Prospecting -- Researching potential buyers and choosing those most likely to buy. LG3 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. 16-
- 20. STEPS in theB2B SELLING PROCESS * * LG3 Steps in the Selling Process 16-
- 21. BUY THIS! SuccessfulSelling Strategies * * Know your competition Understand your customer’s 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 LG3 Steps in the Selling Process 16-
- 22. WHOOPS! Sales Slip-Ups* * Not feeling the customer’s 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 LG3 Steps in the Selling Process Source: Fortune Magazine. 16-
- 23. USING PUBLIC RELATIONSin PROMOTION * * Public Relations: Building Relationships Public Relations (PR) -- Evaluates public 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: Listen to the public Change policies and procedures Inform people you’re responsive to their needs LG4 16-
- 24. PUBLICITY * *Publicity: The Talking Arm of PR Publicity -- Any information about an individual, product or organization that’s 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 LG4 16-
- 25. DISADVANTAGES of PUBLICITY* * Publicity: The Talking Arm of PR 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 isn’t likely to run again. LG4 16-
- 26. SALES PROMOTIONS ** Sales Promotion -- The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities. LG5 Sales Promotion: Giving Buyers Incentives Categories of Sales Promotions: B2B Sales Promotions Consumer Sales Promotions 16-
- 27. SOME KEY CONSUMER PROMOTIONS * * Coupons Demonstrations Sampling Sweepstakes In-store Displays Contests LG5 Sales Promotion: Giving Buyers Incentives 16-
- 28. CLIP THESE MostVisited U.S. Coupon Clearing Sites * * Coupons, Inc EverSave RetailMeNot CouponCabin LG5 Sales Promotion: Giving Buyers Incentives 16-
- 29. USING WORD-of-MOUTH PROMOTION * * Word of Mouth and Other Promotional Tools 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 LG6 16-
- 30. EMERGING PROMOTIONALTOOLS * * Viral Marketing Viral Marketing -- Paying customers to say positive things on the Internet or setting up multiple selling schemes whereby consumers get commissions. People who promote through viral marketing often receive SWAG which can include free tickets, shirts, and other merchandise. LG6 16-
- 31. BLOGS, PODCASTS, andE-MAILS * * Blogging, Podcasting and E-mail Promotions 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. LG6 16-
- 32. PUSH, PULL, ANDPICK PROMOTIONAL STRATEGIES * * Managing the Promotion Mix: Putting it All Together 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. LG6 16-
- 33. Pros & Cons16-
- 34.
- 35. INFOMERCIAL HALL ofFAME The Biggest Hits Over the Past 40 Years * * Veg-O-Matic Ginsu Knives The Clapper Thigh Master George Foreman Grill Bowflex LG2 Infomercials Source: Fortune Magazine, April 13, 2009. 16-
- 36. FINDING a COMPETITIVE ADVANTAGE in SUSTAINABILITY Thinking Green * * 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. 16-
- 37. FRESH-BAKED PROMOTION Spotlighton Small Business * * Amy Scherber of Amy’s Bread can’t 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. 16-
- 38. GOING DIGITAL ReachingBeyond 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 program’s effectiveness. 16-
- 39. PROGRESS ASSESSMENT ** Progress Assessment What’s viral marketing? What are blogging and podcasting? Describe a push strategy, a pull strategy and the pick strategy. 16-
- 40. 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? 16-
- 41. PROGRESS ASSESSMENT ** Progress Assessment 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? 16-
Editor's Notes
- #4 See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix.
- #5 See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix. Integrated marketing communication combines the various promotional tools to reach the consumer.
- #6 See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix.
- #7 See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix. Dear Mr. Postman… This slide highlights the steps in launching a direct-mail campaign Direct-mail is the number one form of advertising, accounting for 21.6% of all ad dollars spent Ask students to discuss the following: Why is direct-mail so popular as a form of advertising? ( Answers may vary but students should understand that the cost of direct-mail and the ability to target specific demographic groups make direct-mail a popular choice.) Once students have discussed the benefits of direct-mail ask them about the drawbacks of this form of advertising. ( The main drawback to this form of advertising is that people will look at each mailer as just more junk and throw it in the trash can. )
- #8 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet. Advertising is different from public relations, since advertising is paid and public relations is free.
- #9 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet.
- #10 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet. I’ll Sponsor You This slide highlights the price of sports endorsements. To start a discussion ask students: What are the benefits of using sports personalities for product endorsements? ( Answers will vary, but students should state that America’s love of sports and sports figures will help promote a particular product. ) What are the drawbacks? ( Students might cite Michael Phelps smoking bong photo and/or Tiger Woods not qualifying for British Open and how these events disappoint fans and make sponsors less likely to continue supporting these athletes ) Ask students to imagine they are the marketing manager for a chain of fast food restaurants would you consider using a professional athlete as a product spokesperson. Why or Why not?
- #11 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet. If time permits, ask students to bring magazines and newspapers with examples of the above advertising categories.
- #12 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet.
- #13 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet. Before showing this slide ask students to guess the top five forms of direct advertising.
- #14 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet. Match Game This slide represents some of the most recognized taglines in the U.S. It will be interesting to see just what percent of the class recognizes any of the taglines. Ask students if they know what products these taglines represent? Taglines are very important to a companies marketing message. Companies want people to respond to their message, therefore these taglines must tell an individual how it benefits them. Some major companies have changed to new jingles to improve responsiveness: Sara Lee GE Timex Smuckers Maxwell House Lays Loreal
- #15 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet. It’s a Dog’s Life Dog’s have been used for years in advertising. This slide highlights some of the famous and not-so-famous dogs used in advertising. Ask students: Why are dogs so popular in advertising today?
- #16 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet.
- #17 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet.
- #18 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet. Culturally sensitive advertising is key to successful international marketing.
- #19 See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. Selling is about more than trying to convince someone to buy a product; it is about listening to the needs of the customer.
- #20 See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. A key to B2B selling is qualifying customers, so that time is not wasted on customers who do not have a need.
- #21 See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes.
- #22 See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. Buy This! There are several strategies for selling that have been proven to work. Some of those are listed on this slide. Ask students to get into small groups or turn to a neighbor and discuss why they think these strategies work. Have students think about which of these strategies they think are the most successful (rank order) and support their answers. Ask students: Was it easy to rank order these? Do you think some are more effective than others? Why?
- #23 See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. Whoops! There are several mistakes people make when trying to make the sale. Those are listed on this slide. Ask students if they have ever decided not to purchase something because of a sales person. What made them not want to buy from that particular person? Remind students that being in sales is more than just a job. Sales people often work long hard hours, but the payoff can be great.
- #24 See Learning Goal 4: Describe the role of the public relations department, and show how publicity fits in that role.
- #25 See Learning Goal 4: Describe the role of the public relations department, and show how publicity fits in that role.
- #26 See Learning Goal 4: Describe the role of the public relations department, and show how publicity fits in that role.
- #27 See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling.
- #28 See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling. Promotion needs to tie into the overall marketing strategy of the product being sold.
- #29 See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling. Clip These Coupons are no longer only in the Sunday newspaper, now we have websites dedicated to coupon clipping. First coupon was distributed in 1894 for Coca-Cola. Ask the students – how many of them have clipped and used the coupons? Where did they get the coupons used? Was clipping the coupon the motivation for trying the product? What was their experience? Would they have tried the product without the coupons? 4. Ask the students – Would using coupons be a push or oull strategy? (Pull strategy)
- #30 See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling. According to marketing consultant Jay Conrad Levinson, authentic advertising is like word-of-mouth which is often the most powerful form of promotion.
- #31 See Learning Goal 6: Show how word of mouth, e-mail marketing, viral marketing, blogging, podcasting, and mobile marketing work.
- #32 See Learning Goal 6: Show how word of mouth, e-mail marketing, viral marketing, blogging, podcasting, and mobile marketing work. Twitter, blogging, and podcasting are rapidly changing how products are promoted.
- #33 See Learning Goal 6: Show how word of mouth, e-mail marketing, viral marketing, blogging, podcasting, and mobile marketing work.
- #36 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet. Infomercial Hall of Fame This slide presents the biggest infomercial hits over the past 40 years. Why are infomercials on the air? Simple, they work. It is estimated that infomercials make up 25 percent of all television commercials and that 66 percent of adults have watched them. The following link is from YouTube and features the top ten worst infomercials of all time. Students love to watch this video and laugh at some of the products featured on the video. (http://www.youtube.com/watch?v=duaiVk_aRgQ)
- #37 See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet.
- #38 See Learning Goal 6: Show how word of mouth, e-mail marketing, viral marketing, blogging, podcasting, and mobile marketing work.
- #39 See Learning Goal 6: Show how word of mouth, e-mail marketing, viral marketing, blogging, podcasting, and mobile marketing work.
- #40 What’s viral marketing? Viral marketing is a broad term that describes everything from paying customers to say positive things on the internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific Web sites. What are blogging and podcasting? Blogging is a web log and is an online diary that allows the user to create and update with text, photos, or links to other sties. Podcasting is a means of distributing audio and video programs via the internet. Describe a push strategy, a pull strategy, and a pick strategy. In a push strategy, the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise. A pull strategy directs all advertising and sales promotion toward the consumer. The pick strategy refers to those consumers who pick their products out from online outlets.
- #41 What are the four traditional elements of the promotion mix? The four traditional elements of the promotion mix include: advertising, personal selling, public relations, and sales promotion. What are the three most important advertising media in order of dollars spent? Direct mail, broadcast television, and newspapers. What are the seven steps in the B2B selling process? The seven steps in the B2B selling process are: (1) prospecting and qualifying, (2) preapproach, (3) approach, (4) make presentation, (5) answer objections, (6) close sale, and (7) follow-up.
- #42 What are the three steps in setting up a public relations program? The three steps in a public relations program include: listen to the public, develop policies and procedures in the public interest, and tell people you’re being responsive to their needs. What are the sales promotion programs used to reach consumers? External sales promotions to consumers rely on samples, coupons, cents-off deals, displays, store demonstrators, premiums, and other incentives. What sales promotion programs are used to reach businesses? Internal sales promotion activities include sales training, sales aids, audiovisual displays, and trade shows.