LO 16-1: Identify the new and traditional tools that make up the promotion mix.
LO 16-2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media.
LO 16-3: Illustrate the steps of the B2B and B2C selling processes.
LO 16-4: Describe the role of the public relations department and show how publicity fits in that role.
LO 16-5: Assess the effectiveness of various forms of sales promotion, including sampling.
LO 16-6: Show how word-of-mouth promotion, viral marketing, social networking, blogging, podcasting, email marketing, and mobile marketing work.
Promotion and the Promotion Mix
Definition of Promotion: Promotion is one of the four Ps of marketing, encompassing all techniques sellers use to motivate purchase of their products or services.
Use of Promotion: Both profit-making and non-profit organizations use promotional techniques to communicate with target markets about goods and services and persuade them to engage in a marketing exchange.
Traditional Promotional Tools: Advertising, personal selling, public relations, and sales promotion.
Modern Promotional Tools: Email, mobile, social media promotions, advertising, blogging, and podcasting.
Promotion Mix: The specific combination of promotional tools an organization uses.
Integrated Marketing Communication (IMC): A strategy that integrates all promotional tools into a unified strategy, creating a positive brand image and aligning with consumer needs and business goals.
Steps in a Promotional Campaign (Figure 16.2)
Identify Target Market: Refer back to Chapter 13 for insights on market segmentation and target marketing.
Define Objectives for Each Promotion Mix Element: Goals should be precise and measurable.
Determine Promotional Budget: Budgeting clarifies how much can be spent on each promotional effort.
Develop a Unifying Message: Maintain consistency across all promotional channels.
Implement the Plan: Ensure that all promotional pieces such as ads, blogs, and public relations efforts are scheduled to work cohesively.
Evaluate Effectiveness: Measure results to understand what works and refine future efforts based on clear objectives.
Advertising: The Most Visible Tool (LO 16-2)
Definition of Advertising: Paid, nonpersonal communication from identified sponsors through various media. Differentiated from propaganda as the sender is known.
Categories of Advertising (Figure 16.3):
Retail Advertising: Directed at consumers by various retailers (e.g., supermarkets).
Trade Advertising: Manufacturers advertising to wholesalers and retailers to encourage them to carry their products.
Business-to-Business (B2B) Advertising: Advertising focused between manufacturers (e.g., firms selling motors to automotive companies).
Institutional Advertising: Designed to create a favorable image for the organization (e.g., “Virginia is for lovers”).
Product Advertising: Focused on introducing goods or services to create consumer interest.
Advocacy Advertising: Supports a particular viewpoint (e.g., anti-nuclear power campaign).
Comparison Advertising: Compares competing products to highlight advantages (e.g., cold care product comparisons).
Interactive Advertising: Engages consumers directly allowing them to choose information (e.g., interactive video catalogs).
Mobile Advertising: Reaches consumers via smartphones.
Advertising Spending Insights (Page 416)
U.S. total ad spending estimated at nearly $390 billion (2020).
Digital media topped expenditure charts with $166 billion.
Television was the leading medium until 2018.
Benefits of Advertising:
Informative Ads: Provide information about products, prices, and features through various formats (e.g., direct mail, newspaper ads).
Impact on Media Costs: Funding from advertising supports production costs in TV and radio.
Trends in Advertising Media:
Preference growth toward digital and local advertising.
Radio offers a low-cost alternative, especially effective for certain service categories.
Limitations of Advertising: Ad saturation might cause consumer annoyance, decreasing effectiveness.
Personal Selling: Providing Personal Attention (LO 16-3)
Definition of Personal Selling: Face-to-face presentation and promotion of products and services, focusing on aiding consumers in fulfilling needs.
Benefits of Personal Selling: Tailored assistance in transactions, leveraging technology for product information and customer service.
Steps in the B2B Selling Process:
Prospect and Qualify: Identify potential buyers and ensure they fulfill purchasing criteria.
Preapproach: Gather detailed information on the customer prior to interaction.
Approach: Make a positive impression during the initial customer meeting.
Make a Presentation: Present product benefits that meet the customer’s needs effectively.
Answer Objections: Address customer concerns to build trust.
Close the Sale: Finalize the agreement by eliciting customer commitment.
Follow-Up: Ensure customer satisfaction and address post-sale needs.
B2C Selling Process Adaption: Similar steps to B2B but often simplified due to consumer nature…
The Role of Public Relations (LO 16-4)
Public Relations (PR): Evaluates public attitudes, modifies practices based on feedback, and conveys actions to earn public acceptance.
Three Steps to a PR Program:
Listen to the Public: Conducting market research to gauge public sentiment.
Change Policies: Align business practices with public interests.
Inform the Public: Communicate company actions and initiatives convincingly.
Publicity: Non-paid information distributed to the media about an organization—advantage in being seen as credible.
Publicity Challenges: Limited control over how messages are presented and the unpredictability of media coverage.
Sales Promotion: Creating Enthusiasm (LO 16-5)
Definition of Sales Promotion: Short-term promotional activities aimed at boosting consumer purchases or dealer interest through various incentives.
Types of Sales Promotion Techniques:
Internal Promotions: Such as training and motivational activities directed at sales staff.
Consumer Promotions: Coupons, contests, samples, and rebates designed to increase immediate purchase interest.
Sampling: Allowing consumers to try the product risk-free encourages buying decisions.
Word-of-Mouth and Other Promotional Tools (LO 16-6)
Word-of-Mouth Promotion: Encouraging consumers to share positive feedback about products, often enhanced by social media.
Viral Marketing: Strategies designed to provoke consumer sharing and exponential growth in message reach, often facilitated through appealing incentives.
Social Networking: Engaging consumers via platforms (e.g., Facebook, Instagram) to foster interaction and loyalty.
Blogging and Podcasting: Leveraging written and audio-visual content to attract and retain customer interest through valuable information.
Email Marketing: Keeping customers informed about deals and updates while ensuring brevity and effectiveness, particularly on mobile.
Mobile Marketing: Utilizing location-based marketing strategies to provide timely advertising and engagement opportunities to consumers.
Managing the Promotion Mix
Customization of Promotion: Each target group calls for a tailored promotion mix to achieve the most efficient reach and impact.
Stratifications: Combining push strategy (promoting to businesses to stock products) or pull strategy (promoting directly to consumers to create demand).
Summary - Key Insights:
Promotional Mix Elements: Identifying the tools at disposal and their interrelations is critical to effective marketing.
Integration of Strategies: A well-organized approach to mixing traditional and modern promotional techniques enhances overall effectiveness.
Consumer Engagement: Utilizing personal connections and external feedback can amplify marketing initiatives.