Promotion Slide 1
Promotion
• Personal Selling
• Mass Selling
• Advertising
• Publicity
• Sales Promotion
Promotion Slide 2
Promotion
• communication of information
• influence the buyer
3 methods
Personal Selling
Mass Selling
Sales Promotion
Promotion Slide 3
Personal Selling
• direct communication between seller
and buyer
• face2face contact
•Usually used to sell industrial goods and
services
•Also used to sell some expensive
consumer items, eg. Cars, computer
systems
Promotion Slide 4
Mass Selling
• communicating with large numbers of
potential customers
• “non”-personal selling
• used when the target market is large
and dispersed
•Advertising is a form of Mass Selling
Promotion Slide 5
Advertising
• the main form of mass selling
• any paid form of nonpersonal
communication
eg. Techniques include billboard ads and
TV commercials
Promotion Slide 6
Publicity
The generation of awareness about a product
beyond regular advertising methods.
Usually less costly than advertising because
sometimes the message is spread for free by
a newspaper article or TV story.
Promotion Slide 7
Publicity
Examples of Publicity
• famous person photographed using your
product
• your product mentioned in National News in
a positive way
• your product featured in a movie
• TV commentary about aspects of your
product trade magazines carrying a story
eg. Road and Track doing a feature on the new
Landrover
Promotion Slide 8
Publicity
Publicity can be negative
eg. If a famous movie star gets electrocuted using your
product, this can cause people to NOT want to buy it -
this would be a major problems
eg. If your product is sabotaged - this could include
tampering with medical products ie. Tylenol
eg. If there are negative rumours about the ingredients
in your product
eg. If there are negative ingredients about the moral
aspects of your company
Promotion Slide 9
Promotion People
• Sales Managers
• Advertising Managers
• Sales Promotion Managers
Promotion Slide 10
Promotion People
Sales Managers
• Are concerned with managing personal
selling
• In small companies this person also does
the advertising and sales promotion
Promotion Slide 11
Promotion People
Advertising Managers
• They manage the mass selling activities
• They chose the company to make the
commercials
• Pick the billboard signs etc.
• If the company is big enough they hire an
outside agency
• They may also do publicity as well
Promotion Slide 12
Promotion People
Sales Promotion Managers
• They manage the Sales Promotion activities
• They decide about in-store coupons, prizes,
contests etc.
• They spend a lot of time visiting the retail
outlets where the product is sold
Promotion Slide 13
People in Sales Promotion
Sales Promotion Managers
- they deal with
Point-of-purchase advertising
specialty advertising
samples
coupons
premiums
loyalty points / air miles
rebates
contests
Promotion Slide 14
Sales Promotion includes:
• Point-of-purchase advertising
• specialty advertising
• samples
• coupons
• premiums
• loyalty points / air miles
• rebates
• contests
Promotion Slide 15
Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 16
Relationship between Advertising and the Product Life Cycle
Not mentioned in your textbook
Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 17
Informing
• people have to know about it, in order to buy it
Advertising that seeks to develop demand through
presenting factual information on the attributes of a
product or service.
Tends to be used in promoting NEW products.
Use in the Introductory Stage of PLC
Page 458 - 459
Promotion Slide 18
Persuading
• when competition offers similar product, you have
to “persuade” them to try yours
Advertising that emphasizes using words and/or images
to try to create an image for a product and to influence
attitudes about it.
Used by Coke and Pepsi re: lifestyle ads.
Used after the Introductory Stage of the PLC
Promotion Slide 19
Reminding
• when new competition comes along, you have to
“remind” customers of your greater experience,
advantages etc.
Advertising whose goal is to reinforce previous
promotional activity by keeping the product’s or
service’s name in front of the public.
Used in the Maturity Period and the Decline Stage of the
PLC.
Promotion Slide 20
• Pushing through the promotion channel
Producer - personal selling 2 wholesaler retailer customer
Promotion techniques used
• run ads in trade magazines to make wholesalers aware of the product
• provide incentives to retailers to carry the item “… free case of drinks with each 2
cases it buys…” page 466
• run contests for salespeople to win prizes for selling the product
Promotion Slide 21
• Pulling through the promotion channel
Producer - personal selling 2 wholesaler retailer customer
Promotion techniques used
• run TV commercials so customers directly learn about the product - then
they go to the store and ask for it, or call around to find out where it is
sold
• give free samples to potential customers
Promotion Slide 22
Potential Mail Recipients
Once your name is on a list for a newspaper
subscription, your name and address can
be “sold” to another company who will mail
you information to try and convince you to
buy their product.
Buying and selling lists (databases) of such
names is big business.
Promotion Slide 23
Comparison of Direct Marketing and General Advertising
Direct Marketing General Advertising
Selling to individuals. Customers are Mass selling. Buyers identified as broad
often identifiable by name, address, and groups sharing common demographic and
purchase behaviour. psychographic characteristics.
Products have added value or service. Product benefits do not always include
Distribution is important product benefit. convenient distribution channels.
The medium is the marketplace. Retail outlet is the marketplace.
Marketer controls product until delivery. Marketer may lose control as product
enters distribution channel.
Advertising used to motivate an Advertising used for cumulative effect
immediate order or inquiry. over time to build image, awareness,
loyalty, benefit recall. Purchase action
deferred.
Repetition used within ad. Repetition used over time.
Consumers feel high perceived risk – Consumers feel less risk – have direct
product brought unseen. Recourse is contact with the product and direct
distant. recourse.
Not in your text
Promotion Slide 24
Setting the promotion budget
Most common method is based on using past
percentages
- that is to say,,,,
If you sold $ 1,000,000 and you spent 20% on
advertising, which = $200,000
then,
if you spend $400,000 you should sell $2 million!
Promotion Slide 25
Setting the promotion budget
Other methods - used in real world
• Matching what competition spends
• Based on what is required to get number of
customers that will meet corporate objectives -
called the Task Method
- sometimes stated as a % of sales
