1. Using Effective Promotions
CHAPTER 16
Using Effective Promotions
McGraw-Hill/Irwin
Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.

2. LEARNING OBJECTIVES
Identify the new and traditional tools that make up the promotion mix.
Contrast the advantages and disadvantages of various advertising media, including the Internet and social media.
Illustrate the steps of the B2B and B2C selling processes.
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3. LEARNING OBJECTIVES
Describe the role of the public relations department, and show how publicity fits in that role.
Assess the effectiveness of various forms of sales promotion, including sampling.
Show how word of mouth, viral marketing, blogging, podcasting, marketing, and mobile marketing work.
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4. CHRIS HARDWICK Nerdist Industries
Hardwick broke into entertainment after graduating from UCLA.
After his career hit a low, he started following his nerd passions and created The Nerdist.
Entered a partnership with Peter Levin and expanded the Nerdist franchise.
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5. NAME that COMPANY
This company put its product into the hands of Spiderman. Viewers watched as the superhero used the product throughout his latest movie.
Name that company!
Company: Sony Experia
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6. PROMOTION in an ORGANIZATION
LO 16-1
Promotion Mix -- The combination of promotional tools an organization uses. The traditional mix includes:
See Learning Objective 1: Identify the new and traditional tools that make up the promotion mix.
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7. INTEGRATED MARKETING COMMUNICATION (IMC)
LO 16-1
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.
See Learning Objective 1: Identify the new and traditional tools that make up the promotion mix.
Emphasis today is on integrating traditional media with social media.
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8. STEPS in a PROMOTIONAL CAMPAIGN
LO 16-1
Identify a target market
Define objectives
Determine a promotional budget
Develop a unifying message
Implement the plan
Evaluate effectiveness
See Learning Objective 1: Identify the new and traditional tools that make up the promotion mix.
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9. CLASSIC CAMPAIGNS Brilliant Marketing Ideas
LO 16-1
Campaign
Company
Why it’s Cool
A Diamond is Forever
De Beers
Since 1939, it’s been tapping into our emotions.
Marlboro Man
Marlboro
He’s the most successful trade character ever.
Does she… or doesn’t she?
Clairol
The birth of the “shock ad” in 1957.
1984
Apple
The uncommercial didn’t explain the product.
See Learning Objective 1: Identify the new and traditional tools that make up the promotion mix.
Classic Campaigns
This slide shows the evolution of marketing campaigns from pulling onto heartstrings to shocking viewers to engaging customers.
Ask students: Do you expect social media to continue to play a big part in marketing? How are campaigns like Dove’s “Real Beauty” and Burger King’s “Subservient Chicken” gaining a new customer base?
Source: Entrepreneur, accessed November 2014.
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10. ADVERTISING in the FIRM
LO 16-2
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
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Advertising is different from public relations, since advertising is paid and public relations is free.
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11. IMPACT of ADVERTISING
LO 16-2
Total advertising expenditures exceed $215 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.
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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12. MAJOR CATEGORIES of ADVERTISING
LO 16-2
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
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
This information presented on this and the following slides are from Figure 16.3 on p. 438.
If time permits, ask students to bring magazines and newspapers with examples of the above advertising categories.
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13. MAJOR CATEGORIES of ADVERTISING
LO 16-2
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
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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14. ADVERTISING EXPENDITURE by MEDIA in $ MILLIONS
LO 16-2
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Before showing this slide ask students to guess the top five forms of advertising.
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15. DEAR MR. POSTMAN… Steps in Launching a Direct-Mail Campaign
LO 16-2
Plan: What should your mailing accomplish?
Get the Right List: The better the list, the better your chance of success.
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.
See Learning Objective 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: 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.)
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16. MATCH GAME Match the 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.”
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Match Game
This slide represents a few of the most recognized taglines in the U.S. It will be interesting to see how many students recognizes the taglines.
Ask students: Do you know what products these taglines represent? Taglines are very important to a company’s advertising message. Companies want people to respond to their message, therefore these taglines must tell an individual how the product benefits them.
Sara Lee GE
Timex
Smuckers
Maxwell House
Lays
L'Oreal
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17. IT’S a DOG’S LIFE Famous and Not-so-Famous Dogs in Advertising
LO 16-2
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
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
It’s a Dog’s Life
Dogs have been used in advertising for years.
This slide highlights some of the famous and not-so-famous dogs used in advertising.
Ask students: Why are dogs so popular in advertising?
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18. POPULAR ADVERTISING MEDIA
LO 16-2
TV advertising is still the dominant media.
Digital Video Recorders (DVRs) challenge TV advertising because viewers can skip ads.
Product Placement -- Advertisers pay to put their products into TV shows and movies where the audience will see them.
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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19. NOT QUITE the NFL… Sport Cost Why? Equestrian $15,000+
LO 16-2
Sport
Cost
Why?
Equestrian
$15,000+
The demographic skews to high-income females.
Bowling
$20,000+
It’s shown on television and lower cost than other televised sports.
Surfing
$25,000+
The young market is responsive to guerrilla marketing.
Women’s Golf
$50,000+
A popular sport in Europe and Asia and great for global companies.
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Not all companies can afford advertising during major sporting events.
Niche sports advertising can also get the word out for a much smaller price tag.
Source: Inc., accessed November 2014.
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20. INFOMERCIALS and ONLINE ADVERTISING
LO 16-2
Infomercial -- A full length TV program devoted exclusively to promote a particular product.
Online ads are attempts to get potential customers to a web site to learn about a product.
Interactive Promotion -- Allows marketers to open a dialogue between buyers and sellers and let them work together to create a beneficial exchange.
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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21. INFOMERCIAL HALL of FAME The Biggest Hits Over the Past 40 Years
Veg-O-Matic
Ginsu Knives
The Clapper
Thigh Master
George Foreman Grill
Bowflex
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Infomercial Hall of Fame
This slide presents the biggest infomercial hits over the past 40 years.
Ask students: 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. (
Source: Fortune, accessed November 2014.
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22. ONLINE EXPERIENCE How to Avoid Losing Customers Over a Bad Web Site
Brand messaging is key.
Site must be easy to navigate.
Make sure calls to action are effective.
Users want fast, readable sites.
Users with disabilities should be able to navigate.
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Online Experience
Failing to deliver an online experience to customers may result in losing them.
This slide shows ways to avoid a bad customer experience.
Ask students: What are examples of company or product web sites you like? Navigate through sites mentioned and ask other students to chime in on why they think it’s a good customer experience.
Source: Entrepreneur, accessed November 2014.
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23. PAY-PER-TWEET
Celebrities can earn large sums of money just buy mentioning a product or site in their tweets.
Do you think it is ethical for celebrities to get paid to tweet pre-written ads that appear to be their own personal comments?
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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24. MONITORING AD EFFECTIVENESS
LO 16-2
Dr. Pepper posts messages on Facebook and monitors the results from their millions of fans.
Richard Branson and Tony Hsieh all tweet their customer base to maintain two-way communication.
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Photo Credit: Brent Moore
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25. SOCIAL SCAMMERS How to Protect Yourself From Schemers
LO 16-2
Be wary of requests for money transfers -- even from friends’ accounts.
Be wary when you use applications. Don’t give unnecessary information.
Use URL expanders to see the full address of links on friends’ pages.
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Social Scammers
Although businesses want you to spread the word about their products through social media, some groups are using this trend to scam others.
Ask students: Have they experienced strange requests or application problems? How else could you protect yourself and your friends from online scammers?
Photo Credit: Paul Klintworth
Source: Kiplinger’s Personal Finance, December 2010.
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26. WHAT’S in YOUR OREO?
To Americans, an Oreo is the same cookie we’ve been enjoying for over 100 years.
But Kraft has taken Oreos global which has led to different variations.
In China they enjoy green tea Oreos while Argentina has banana with dulce de leche.
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
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27. GLOBAL ADVERTISING
LO 16-2
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.
See Learning Objective 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
Culturally sensitive advertising is key to successful international marketing.
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28. PERSONAL SELLING
LO 16-3
Personal Selling -- The face-to-face presentation and promotion of a product, including the salesperson’s search for new prospects and follow- up service.
Salespeople need to listen to customer needs, help reach a solution and do everything possible to make the transaction as simple as possible.
See Learning Objective 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.
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29. STEPS in the SELLING PROCESS
LO 16-3
Prospect and qualify
Pre-approach
Approach
Make a presentation
Answer objections
Close the sale
Trial Close -- A statement or question that moves the process toward the purchase.
Follow up
See Learning Objective 3: Illustrate the steps of the B2B and B2C selling processes.
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30. PROSPECTING and QUALIFYING in SELLING
LO 16-3
Prospecting -- Researching potential buyers and choosing those most likely to buy.
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.
See Learning Objective 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.
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31. BUY THIS! Successful Selling Strategies
LO 16-3
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
See Learning Objective 3: Illustrate the steps of the B2B and B2C selling processes.
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?
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32. WHOOPS! Sales Slip-Ups Not feeling the customer’s pain
LO 16-3
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
See Learning Objective 3: Illustrate the steps of the B2B and B2C selling processes.
There are several mistakes people make when trying to make the sale. Those are listed on this slide.
Ask students: Have you ever decided not to purchase something because of a sales person? What made you not want to buy from that particular person?
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33. STEPS in the B2C SELLING PROCESS
LO 16-3
See Learning Objective 3: Illustrate the steps of the B2B and B2C selling processes.
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34. TEST PREP 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? How does it differ from the B2C selling process?
The four traditional elements of the promotion mix include: advertising, personal selling, public relations, and sales promotion.
The three most important advertising media in order of dollar spent are: television, direct mail, and digital.
The seven steps in the B2B selling process are: (1) prospecting and qualifying, (2) pre-approach, (3) approach, (4) make presentation, (5) answer objections, (6) close sale, and (7) follow-up. B2B differs from B2C in that the sales person does not have to do much prospecting or qualifying.
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35. USING PUBLIC RELATIONS in PROMOTION
LO 16-4
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
See Learning Objective 4: Describe the role of the public relations department, and show how publicity fits in that role.
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36. PUBLICITY
LO 16-4
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
See Learning Objective 4: Describe the role of the public relations department, and show how publicity fits in that role.
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37. DISADVANTAGES of PUBLICITY
LO 16-4
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 is not likely to run again.
See Learning Objective 4: Describe the role of the public relations department, and show how publicity fits in that role.
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38. SALES PROMOTIONS
LO 16-5
Sales Promotion -- The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
Categories of Sales Promotions:
B2B Sales Promotions
Consumer Sales Promotions
See Learning Objective 5: Assess the effectiveness of various forms of sales promotion, including sampling.
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39. SALES PROMOTION TECHNIQUES
LO 16-5
See Learning Objective 5: Assess the effectiveness of various forms of sales promotion, including sampling.
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40. SOME KEY CONSUMER PROMOTIONS
LO 16-5
Coupons
Demonstrations
Sampling
Sweepstakes
In-store Displays
Contests
See Learning Objective 5: Assess the effectiveness of various forms of sales promotion, including sampling.
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41. CLIP THESE Most Visited U.S. Coupon Clearing Sites
LO 16-5
Coupons, Inc
EverSave
RetailMeNot
CouponCabin
See Learning Objective 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 web sites dedicated to coupon clipping.
First coupon was distributed in 1894 for Coca-Cola.
Ask students: Have you clipped and used coupons? Where did you get the coupons used? Was clipping the coupon the motivation for trying the product? What was your experience? Would you have tried the product without the coupons?
4. Ask students: Would using coupons be a push or pull strategy? (Pull strategy)
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42. TEST PREP
What are the three steps in setting up a public relations program?
What are the sales promotion techniques used to reach consumers?
What sales promotion techniques are used to reach businesses?
The three steps in a public relations program include: (1) listen to the public, (2) develop policies and procedures in the public interest, and (3) tell people you’re being responsive to their needs.
External sales promotions to consumers rely on samples, coupons, cents- off deals, displays, store demonstrators, premiums, and other incentives.
Internal sales promotion activities include sales training, sales aids, audiovisual displays, and trade shows.
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43. USING WORD-of-MOUTH PROMOTION
LO 16-6
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
See Learning Objective 6: Show how word of mouth, viral marketing, blogging, podcasting, marketing, and mobile marketing work.. Objectiveg work.
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44. WHAT ARE COMPANIES YELPING ABOUT?
Many companies have a website, Facebook page or some online presence.
However, on review sites like Yelp, they cannot control their public image.
The Federal Trade Commission has received over 2,000 complaints about Yelp.
Companies can respond to reviews. But often the damage is already done.
See Learning Objective 6: Show how word of mouth, viral marketing, blogging, podcasting, marketing, and mobile marketing work.. Objectiveg work.
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45. EMERGING PROMOTIONAL TOOLS
LO 16-6
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.
See Learning Objective 6: Show how word of mouth, viral marketing, blogging, podcasting, marketing, and mobile marketing work.. Objectiveg work.
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46. BLOGS, PODCASTS, and E-MAILS
Blogs are a great way to interact with customers and improve the company’s website ranking.
Podcasting -- A way to distribute multimedia files via the Internet.
promotions increase brand awareness among commercial suppliers.
See Learning Objective 6: Show how word of mouth, viral marketing, blogging, podcasting, marketing, and mobile marketing work.. Objectiveg work.
Tweeting, blogging, and podcasting are rapidly changing how products are promoted.
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47. MOBILE MEDIA
LO 16-6
Marketers make use of smartphones to text customers about product offers and other company information.
See Learning Objective 6: Show how word of mouth, viral marketing, blogging, podcasting, marketing, and mobile marketing work.. Objectiveg work.
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48. PUSH, PULL, AND PICK PROMOTIONAL STRATEGIES
LO 16-6
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 Economy -- Refers to consumers who pick out their products from online outlets.
See Learning Objective 6: Show how word of mouth, viral marketing, blogging, podcasting, marketing, and mobile marketing work.. Objectiveg work.
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49. TEST PREP What’s viral marketing? What are blogging and podcasting?
Describe a push strategy and a pull strategy.
Viral marketing is a broad term that describes everything from paying customers to say positive things online to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific sites.
A blog 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 online.
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.
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