1. X100 Introduction to Business
Marketing Mix - Promotion
X100 Introduction to Business
Marketing Mix
Promotion
Advertising, Sales Promotion, Personal Selling & Public Relations
Professor Kenneth EA Wendeln
X100
X100 Introduction to Business

2. Marketing Mix - Promotion
The ‘PPPP’ Marketing Mix
Promotion
Product
Price $
Place
John Deere Video
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Marketing Mix - Promotion
X100 Introduction to Business

3. Marketing Mix - Promotion
Informing
Persuading
Reminding
Promotion is the communications about an organization & its products - that are intended to inform, persuade or remind target market members.
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Marketing Mix - Promotion
X100 Introduction to Business

4. Marketing Mix - Promotion
Roles of Promotion
Facilitate exchanges by informing individuals, groups, or organizations and influencing them to accept a firm’s products or to have more positive feelings about the firm.
Directly - convey product and service information to target market segments.
Indirectly - provide information to interest groups, regulatory agencies, investors, and the general public.
Maintain positive relationships between a company and various groups in the marketing environment.
Marketing
Environment
Economic
Global
Regulatory
Technology
Socio cultural
Competitive
Political
Promotion Mix Video
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Marketing Mix - Promotion
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5. Objectives of Promotion
Marketing Mix - Promotion
Objectives of Promotion
Source: Rearden, Marketing, 5the
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Marketing Mix - Promotion
X100 Introduction to Business

6. Marketing Mix - Promotion
The Promotion Mix
The particular combination of promotion methods a firm uses to reach a target market.
The PROMOTION mix typically consists of:
Advertising a paid, nonpersonal message communicated to a select audience through a mass medium.
Sales promotion the use of activities or materials as direct inducements to customers or salespersons.
Personal Selling personal communications aimed at informing customers and persuading them to buy a firm’s products.
Public relations (including publicity) communication activities used to create & maintain favorable relations between an organization and various public groups, both internal and external.
Kelley
Kelley
Kelley
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Marketing Mix - Promotion
X100 Introduction to Business

7. Ingredients for a Promotional Mix
Marketing Mix - Promotion
Ingredients for a Promotional Mix
Advertising
Depending on the type of product and target market involved two or more of these ingredients may be used in the promotion mix to achieve the promotion objectives.
Personal selling
Public relations
Sales promotion
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Marketing Mix - Promotion
X100 Introduction to Business

8. Marketing Mix - Promotion
Advertising 
A paid, non-personal message communicated to a select audience through a mass medium.
Types of advertising by purpose:
Primary-demand advertising used to increase demand for all brands of a product in a specific industry.
Selective-demand (brand) advertising used to sell a particular brand of product.
Immediate-response advertising - to persuade customers to buy the product within a short time.
Reminder advertising - designed to keep the firm’s name fresh in the public’s mind.
Comparative advertising - compares specific characteristics of two or more brands to show the advertiser’s brand is better.
Institutional advertising enhance a firm’s image or build its reputation.
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Marketing Mix - Promotion
X100 Introduction to Business

9. Growth of Advertising Expenditures & Employment
Marketing Mix - Promotion
Growth of Advertising Expenditures & Employment
Total advertising expenditures and employment in advertising have been increasing for several decades in the US.
132,000
$39 billion
159,000
$67 billion
212,000
$110 billion
232,000
$131 billion
268,000
1977
1982
1987
1992
1997
$185 billion
292,000
2001
$231 billion
Source: Pride Business 8e
Number of people employed
Amount of money spent
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Marketing Mix - Promotion
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10. Marketing Mix - Promotion
Advertising Media
The forms of communication through which advertising reaches its audience.
Newspapers — relatively inexpensive and timely; short life span.
Magazines — reach a specific market segment; more prestigious than newspapers; allows for high-quality reproduction; lack of timeliness.
Direct-mail advertising — promotional material mailed directly to individuals or businesses. Can be very selective.
Outdoor advertising — short promotional messages on billboards, posters, and signs.
Television advertising — primary medium to reach national or regional markets.
Radio advertising — selectivity based on a station programming format to specific groups of listeners.
Internet advertising — reaches target audiences through unique new methods such as banner, sponsorship ads, and messages.
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Marketing Mix - Promotion
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11. Advertising Expenditures by Advertising Media
Marketing Mix - Promotion
Advertising Expenditures by Advertising Media
Television
23.2% ($64.1 billion)
20.5% ($56.6 billion)
Direct mail
Newspapers
17.4% ($47.8 billion)
Radio
7.2% ($19.9 billion)
Over the last 20 years, television has become the #1 advertising medium and newspaper has slipped to #3.
Yellow Pages
5.2% ($14.2 billion)
Magazines
4.7% ($12.8 billion)
Internet
2.9% ($7.8 billion)
Out-of-Home
2.2% ($6.0 billion)
Other
16.8% ($46.3 billion)
Source: “Coen’s Spending Tables for 2005, Advertising Age
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Marketing Mix - Promotion
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12. Advertising Development and Evaluation
Marketing Mix - Promotion
Advertising Development and Evaluation
Adapted from: Rearden, Marketing, 5the
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13. Selecting and Scheduling Media
Marketing Mix - Promotion
Selecting and Scheduling Media
Media Classes
Media Vehicles
Media Schedules
Evaluation
Reach
Television
Magazines
Newspapers
Radio
Outdoor
Transit
Direct Mail
Specific
vehicle depends on the cost effective-
ness of a particular outlet for desired market
Pre-testing
Post-testing
Sales Effectiveness
Evaluation
Frequency
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Marketing Mix - Promotion
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14. Issues in Advertising Legal – But Ethical ??
Marketing Mix - Promotion
Issues in Advertising Legal – But Ethical ??
Some marketing communications may be technically legal but raise significant ethical questions:
Tobacco and liquor industry ads influencing younger people.
Extensive promotion of higher cost drugs when health care costs are spiraling out of control.
Heavy promotional allowances to pharmacies for agreement to push proprietary instead of generic drugs.
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Marketing Mix - Promotion
X100 Introduction to Business

15. Marketing Mix - Promotion
Sales Promotion 
Activities or materials that are direct inducements to customers or salespersons.
Sales promotion objectives:
To attract new customers.
To boost sales to current customers.
To encourage trial purchases for a new product.
To invigorate the sales of a mature brand.
To reinforce advertising.
To increase traffic in retail stores.
To improve shelf space and displays.
To steady irregular or seasonal sales patterns.
To build up reseller inventories.
To neutralize competitive promotional efforts.
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16. Sales Promotion Methods
Marketing Mix - Promotion
Sales Promotion Methods
Trade sales
A method designed to encourage wholesalers and retailers to stock and actively promote a manufacturer’s product.
Consumer sales
A method designed to attract consumers to particular retail stores and to motivate them to purchase certain new or established products.
Factors influencing the choice of the sales promotion method
Objectives of the sales promotional effort
Product characteristics
Target market profile
Distribution channels
Availability of resellers
Competitive and regulatory forces in the environment
Agent
Producer
Wholesaler
Retailer
Consumer
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17. Important Sales Promotion Methods
Marketing Mix - Promotion
Important Sales Promotion Methods
Sample — a free product to encourage customer trial.
Contests & Games — offering prizes for participation.
Premium — a gift offered to customers for buying the product.
Rebate — returning part of the purchase price.
Coupon — reducing the purchase price for purchase.
Price Deals & Allowances — a temporary price reduction for purchasing specified quantities of a product.
Frequent-user incentives — a program that rewards customers’ repeat (frequent) purchases of the product.
Cooperative advertising — the seller pays a portion of the retailer’s advertising costs for advertising the seller’s product.
Point-of-purchase displays — promotional material in the retail store designed to inform customers and encourage purchases.
Trade shows — industry-wide exhibits of sellers’ products.
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Marketing Mix - Promotion
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18. Limitations of Sales Promotions
Marketing Mix - Promotion
Limitations of Sales Promotions
It typically cannot reverse a genuine declining sales trend.
Marketers cannot reasonably expect sales promotion to convert rejection of an inferior product into acceptance.
Sales promotion may even weaken the brand image.
Sales promotion has also been blamed for encouraging competitive retaliation.
Short-term volume gain at the sacrifice of profits.
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Marketing Mix - Promotion
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19. Personal Selling and Kinds of Salespersons
Marketing Mix - Promotion
Personal Selling and Kinds of Salespersons
Personal communications aimed at informing customers & persuading them to buy a firm’s products.
Order getters - a salesperson who is responsible for creative selling: selling the firm’s products to new customers and increasing sales to present customers.
Order takers - a salesperson who handles repeat sales in ways that maintain positive relationships with customers.
Sales support personnel - employees who aid in selling but are more involved in: locating prospects, educating customers, building goodwill for the firm and providing follow-up service.
Missionary salespersons — visit retailers to encourage an initial purchase of the manufacturer’s products from wholesalers.
Trade salespersons — work with retailers & wholesalers to promote and increase retail sales of the manufacturer’s products.
Technical salespersons — assist current customers with technical matters related to the manufacturer’s products.
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Marketing Mix - Promotion
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20. Types of Personal Selling Jobs
Marketing Mix - Promotion
Types of Personal Selling Jobs
Direct to Consumer
Direct-to-consumer salespeople sell to individuals who personally use the products and services. This category includes over 4.5 million retail salespeople and over a million others who sell residential real estate and financial securities to ultimate consumers. Several additional million direct-to-consumer salespeople represent firms such as Avon, Mary Kay, Tupperware, Creative Memories, Amway, and other direct-selling companies.
Personal Selling Video
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Marketing Mix - Promotion
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21. Types of Personal Selling Jobs
Marketing Mix - Promotion
Types of Personal Selling Jobs
New
Business
Members of the sales force who concentrate on selling new products or selling to new customers are called new-business salespeople.
Existing
Business
Existing-business salespeople, sometimes called order takers, include wholesaler reps who follow an established route, writing up fairly routine orders from their customers.
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Marketing Mix - Promotion
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22. Types of Personal Selling Jobs
Marketing Mix - Promotion
Types of Personal Selling Jobs
Sales Support
Sales support salespeople are not directly involved in concluding customer purchases. They support the personal product selling function by promoting a product or providing technical support.
Technical Support
Technical support salespeople have expertise in areas such as design and installation of complex equipment and may provide specialized training to customer employees.
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Marketing Mix - Promotion
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23. The Personal-Selling Process
Marketing Mix - Promotion
The Personal-Selling Process
Prospecting 1
Approaching
the prospect 2
Making the
presentation 3
Answering
objections 4
Closing the sale 5
Following up 6
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Marketing Mix - Promotion
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24. Salesperson Competencies
Marketing Mix - Promotion
Salesperson Competencies
Align customers’ strategic objectives with your company’s so both gain.
Go beyond product needs to assess business potential and add value to the relationship.
Understand the financial impact of the decisions made by your company and the client’s organization.
Organize company resources to build customer-focused relationships.
Develop consultative problem solving and a willingness to change.
Establish a vision of a committed customer–supplier relationship.
Utilize self-appraisal and continuous learning by requesting feedback from customers, colleagues, and managers.
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Marketing Mix - Promotion
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25. Marketing Mix - Promotion
Public Relations 
A broad set of communication activities used to create & maintain favorable relationships between an organization & various groups.
Typical Audiences:
Customers, employees, stockholders – also suppliers, educators, the media, government officials, and society in general.
Types of public relations tools:
Written and spoken communications
Brochures, newsletters, company magazines, annual reports, press releases, and speeches
Event sponsorship
Special events such as concerts and charity functions that the firm underwrites wholly or partially
Publicity
Publicity & Public Relations Video
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Marketing Mix - Promotion
X100 Introduction to Business

26. Marketing Mix - Promotion
Publicity
Communications in news-story form about an organization, its products or both.
News release — a typed page about 300 words long provided by the organization to the media as a form of publicity.
Feature article — a piece (up to 3,000 words) prepared by the organization for inclusion in a particular publication.
Captioned photograph — a picture accompanied by a brief explanation.
Press conference — a meeting at which invited media personnel hear important news announcements and receive supplementary textual materials and photographs.
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Marketing Mix - Promotion
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27. Uses of Public Relations
Marketing Mix - Promotion
Uses of Public Relations
To promote people, places, activities, ideas.
To enhance the reputation of the organization by increasing awareness of company products and activities.
To create specific positive company images.
To maintain the public visibility of the company.
To reduce the effects of negative events on the company’s reputation.
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Marketing Mix - Promotion
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28. Marketing Communications Planning
Marketing Mix - Promotion
Marketing Communications Planning
The seven key tasks in marketing communications planning:       
Source: Rearden, Marketing, 5the
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Marketing Mix - Promotion
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29. Integrated Marketing Communications
Marketing Mix - Promotion
Integrated Marketing Communications
The coordination of promotion efforts – with a consistent message - for the maximum informational & persuasive impact to buyers.
Trends:
The overall $$$ cost of marketing communications has risen significantly, pressuring managers to make the most efficient use of marketing resources
Mass media advertising has given way to targeted promotional tools – (e.g., cable TV, direct mail, and the Internet).
Firms need to make most efficient & effective use of the various promotional resources
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Marketing Mix - Promotion
X100 Introduction to Business