2. Ch. 36, Promotion Is Communication
Objectives
Describe the role of promotion.
List three goals of promotion.
Describe how the communication process works in promotion.
Explain the difference between institutional and product promotion.
Explain the difference between personal and nonpersonal promotion.

3. Objectives
Describe and give an example of each of the four elements of promotion.
Explain why the marketing concept is important in promotion.

4. Marketing Terms marketing communication effective promotion
product promotion
institutional promotion
personal promotion
nonpersonal promotion
advertising
sales promotion
trade show
trade allowance
coupon
rebate
premium
public relations
publicity

5. What Is Promotion? Promotion is one of the Four Ps of marketing
Promotion is the process of telling people about
a product or
the company that offers it

6. Promotion Is Marketing Communication
Promotion is communication
from an organization to
its customers
its potential customers
the public
Marketing communication is another term for promotion
1. Give an example that shows how promotion is communication.

7. Goals of Promotion
Goal of promotion: to help a business achieve its goals
by communicating with customers and the public
Promotion
informs
expresses
persuades
©2007 JupiterImages Corporation

8. Inform Businesses want to keep customers informed about new products
new features on existing products
how to use products
safety issues
charities and cultural organizations that the business supports
community events that the business supports

9. Express Promotional messages express emotion and entertain to
attract customer attention to products
create demand for products
Messages with emotion
are more likely to be remembered
2. Describe an ad or commercial that you remember. What makes it vivid?

10. Persuade Persuasion The ultimate goal of promotion is
use of logic, argument, or pleading to get another person to agree with you or act in a certain way
The ultimate goal of promotion is
to persuade people to buy the product
3. Describe a promotion that successfully persuaded you to buy a product. How did it persuade you?

11. Promotion uses the same communication process as does all communication
the marketer is the sender
the target market is the receiver

12. Noise Promotional messages encounter
physical noise, technical problems, external distractions, and internal distractions
Two methods to counteract distractions
repeat the same message many times
make the message stand out from all others
4. Describe an example of each method to counteract distractions for promotional messages.

13. 5. If promotion is effective, what will happen to sales?
Feedback
Effective promotion
promotion that achieves its goals
How do marketers determine whether a promotion message was effective?
through customer feedback obtained by
monitoring sales
performing market research
5. If promotion is effective, what will happen to sales?

14. 6. Describe different types of promotion.
Photo by Amy J. Berk
6. Describe different types of promotion.

15. Types of Promotion Promotion can be categorized based on
the target market
businesses or consumers
what is being promoted: a product or institution
product promotion: focuses on selling the product
institutional promotion: focuses on creating an image of the organization

16. Types of Promotion Personal or nonpersonal personal promotion
customer and marketer communicate in person
the only type of personal promotion is personal selling
nonpersonal promotion
communicates the same message to all potential customers
examples: advertising, sales promotion, and public relations

17. Four Elements of Promotion
Promotion can also be categorized based on the four elements of promotion
personal selling
advertising
sales promotion
public relations

18. Personal Selling Personal selling
seller communicates in person with buyer
a selling message can be customized for each buyer
based on immediate feedback from the customer

19. Advertising Advertising includes
print ads
commercials
Internet ads
outdoor advertising
transit advertising
direct marketing
Photo courtesy of IGA, Inc.
7. Describe an ad that you have seen. Who is the target market for this ad?

20. Sales Promotion Sales promotion B2B sales promotion
marketing activities designed to entice customers to buy a company’s products
B2B sales promotion
trade shows
trade allowances
point-of-purchase advertising
sales incentives

21. Sales Promotion B2C sales promotion coupons and rebates free samples
premiums
contests and sweepstakes
promotional tie-ins
product placement
visual merchandising

22. Public Relations Public relations Proactive public relations
promotional activities designed to create goodwill between a company and the public
Proactive public relations
communications initiated within the company for the purpose of image building
Reactive public relations
communications in response to negative events or damaging information

23. Public Relations Main functions of public relations Publicity
getting positive publicity
developing philanthropic activities
counteracting negative publicity
Publicity
information about a company and its products that appears in the media
company does not pay for the articles
the articles are part of the news-gathering function of the media

24. Public Relations Philanthropic activities
the public relations department usually
develops charitable and community activities
gets publicity for these activities

25. Review What is the goal of promotion? What is the difference between
B2B promotion and B2C promotion?
product promotion and institutional promotion?
personal promotion and nonpersonal promotion?
List the four elements of promotion.

26. Glossary
Back
advertising. Nonpersonal promotion paid for by an identified sponsor.
coupon. Printed piece of paper that indicates the product and the amount of price reduction when the coupon is used.
effective promotion. Promotion that achieves its goals.

27. Glossary
Back
institutional promotion. Communication that focuses on the image of the organization.
marketing communication. Communication from an organization to its customers, potential customers, and the public; promotion.

28. Glossary
Back
nonpersonal promotion. Promotion that communicates the same message to all potential customers.
personal promotion. Promotion in which the marketer and the customer communicate in person, and the marketer can immediately customize the message; personal selling.

29. Glossary
Back
premium. Item given to the customer for free or at a reduced price along with the purchase of a product.
product promotion. Marketing communication that focuses on the product and selling the product, in contrast to institutional promotion.

30. Glossary
Back
promotion. All communications from an organization to its customers, potential customers, and the public; marketing communication.
publicity. Information about a company and its products that appears in the media; however, the company does not pay the media to carry the message and therefore has no control over the story.

31. Glossary
Back
public relations. Promotional activities designed to create goodwill between a company and the public.
rebate. Return of a portion of the money paid for a purchase.

32. Glossary
Back
sales promotion. Marketing activities designed to entice customers to buy a company’s products. Examples include coupons, contests, free samples, and gift-inside.
trade allowance. Discount or money paid to the intermediary who buys the product.

33. Glossary
Back
trade show. Exhibit of products of interest to a specific industry.