1. Promotion involves a number of tools we can use to increase demand for products. This could either be in the sense that a larger quantity is bought, that some customers would be willing to buy a greater quantity, or that there would otherwise be a preference for the brand—possibly based on beliefs about its ostensible superiority.
PROMOTION

2. LEARNING OBJECTIVES Identify
Opportunities to use different elements of the promotion mix
Types of media more suitable for different communications tasks
Identify and address obstacles to “getting through” to potential customers
Identify implications of the S-shaped curve of advertising effectiveness for brand building

3. PROMOTION Ways to reach and influence potential customers
“Triggering” (thoughts about the brand or product)
Awareness
Behaviors (e.g., trial, brand choice)
Beliefs
Preference
Generally, a sequence of events is needed before a consumer will buy a product.  This is known as a “hierarchy of effects.”  The consumer must first be aware that the product exists.  He or she must then be motivated to give some attention to the product and what it may provide.  In the next stage, the need is for the consumer to evaluate the merits of the product, hopefully giving the product a try.  A good experience may lead to continued use.  Note that the consumer must go through the earlier phases before the later ones can be accomplished.
Promotional objectives that are appropriate differ across the Product Life Cycle (PLC).  Early in the PLC—during the introduction stage—the most important objective is creating awareness among consumers.  For example, many consumers currently do not know the Garmin is making auto navigation devices based on the global position satellite (GPS) system and what this system can do for them.  A second step is to induce trial—to get consumers to buy the product for the first time.  During the growth stage, important needs are persuading the consumer to buy the product and prefer the brand over competing ones.  Here, it is also important to persuade retailers to carry the brand, and thus, a large proportion of promotional resources may need to be devoted to retailer incentives.  During the maturity stage, the firm may need to focus on maintaining shelf space, distribution channels, and sales. 

4. Elements of the Promotion Mix
The most well known component of promotion is advertising, but we can also use tools such as the following:
Public relations (the firm’s staff provides information to the media in the hopes of getting coverage). This strategy has benefits (it is often less expensive and media coverage is usually more credible than advertising) but it also entails a risk in that we can’t control what the media will say. Note that this is particularly a useful tool for small and growing businesses—especially those that make a product which is inherently interesting to the audience.
Trade promotion. Here, the firm offers retailers and wholesalers temporary discounts, which may or may not be passed on to the consumer, to stimulate sales.
Sales promotion. Consumers are given either price discounts, coupons, or rebates.
Personal selling. Sales people either make “cold” calls on potential customers and/or respond to inquiries.
In-store displays. Firms often pay a great deal of money to have their goods displayed prominently in the store. More desirable display spaces include: end of an aisle, free-standing displays, and near the check-out counter. Occasionally, a representative may display the product.
Samples (temporary price discounts not requiring a coupon)
Premiums (e.g., free small tube of toothpaste with the purchase of a toothbrush).

5. Some Media Alternatives
Television
Generally limited attention
Both visual and auditory modality
Can target specialized audiences
Pre-recording and ad “zipping”
Seeing part of an ad through zipping appears to have a greater impact than seeing the complete ad (attention needed to see if you have “arrived”)
Radio
Can certain people at work
Increasing opportunities to “opt out” of ads through paid services
Magazines (print or online)—can reach specialty markets
Newspapers
Increasingly read online
Outdoor
Internet
Can involve animation and interactivity
Advertising based on previous online activity
Point-of-purchase
Other
Movie theaters
On other products
There are pros and cons to different types of advertising media, and some are better suited for certain purposes than others. Note that different types of media are useful for reaching potential customers under different situations. For example, in some occupations, people may be able to listen to radio while working. Point-of-purchase advertising may be helpful in “intercepting” potential customers and changing their decisions. Under all circumstances, there will usually be considerable attention for the customer’s attention. This should be considered in selecting media for a given strategy and target customer group.

6. Reaching the Customer: Encoding, “Noise,” and “Decoding”
(Distractors)
Note that things can go wrong in steps 2, 3, and 4. The message must compete with other ads and for limited customer attention. Repetition is crucial.
Other ads
News articles
Other store displays
SENDER
ENCODING
THE
MESSAGE
MESSAGE
CHANNEL
DECODING
THE
MESSAGE
RECEIVER
We have previously discussed just how much can go wrong in trying to get a message to potential customers. At this time, we will examine this idea within a model involving encoding of messages, transmission, and decoding.
Note that there are a number of steps that are needed before the message can reach the potential customer. Because of limited consumer attention and motivation to process the information presented, there are a number of opportunities for the information to be ignored or misunderstood. This problem is exacerbated the “noise” that is constantly taking away the customer’s attention—e.g., others talking, thoughts coming up in the customer’s mind, movement by the customer away from the TV or other advertising stimulus.
Marketers could simply state their message in an advertisement. This, however, would be too boring for many consumers to make the ad worth watching or processing. Therefore, the message is usually “encoded” into a message that is more interesting and, often, easier to process. Rather than just saying that Glad trash bags are more durable than selected bargain brands, an ad, for example, shows a man going through the discomfort and mess from a bargain bag that burst. In order for the ad to be effective, however, the consumer must decode the message to get this point. If the consumer did not pay attention, for example, he or she might concl
Media, Salesperson
Retail store
Marketing mgr
Advertising mgr
Advertising
agency
Advertisement
Coupon
Sales presentation
Press release
Store display
Receiver
Interpretation of
the message
Customers
Media audience
News media
Clients
CHANNEL FEEDBACK

7. Adjusting the Message to the Medium
Messages in specialty magazines (print or online) can be more specific and involve more text
Billboard messages require very concise messages
In a TV ad, the message usually has to get through in thirty seconds or less
Radio advertising has to rely entirely on the auditory modality
Animation and interaction are possible in online advertising
Different considerations must be made when working with different kinds of media.

8. Involvement and Communication
The amount of detail that customers will process will depend on the importance of the product
Assuming interest, more information will be absorbed under conditions of low distraction than
While driving or being otherwise engaged
When access to cell phone or computer is more difficult
For more decisions considered more important by the customer, involvement is likely to be higher. This means that the customer is willing to put more effort into making the decision. This may include the willingness to give attention to more information and more complex information in advertising and social media.

9. Advertising Intensity and Return—A Typical Relationship
The “S”-Shaped Curve 1
0.8
high effectiveness
Relatively
0.6
Saturation
Point
Response (e.g., sales, recall)
0.4
0.2
Too little to do
much good
The effectiveness of advertising is a highly controversial topic. Research suggests that in many cases advertising leads to a relatively modest increase in sales. One study suggests, for example, that when a firm increases its advertising spending by 1%, sales go up by 0.05%. (The same research found that, in contrast, if prices are lowered by 1%, sales tend to increase by 2%). In general, it appears that advertising is more effective in selling durable goods (e.g., stereo systems, cars, refrigerators, and furniture) than for non-durable goods (e.g., restaurant meals, candy bars, toilet paper, and bottled water). Also, advertising appears to be more effective for new products. This suggests that advertising is probably most effective for providing information (rather than persuading people). Note that many advertising agencies make a large part of their money on commissions on advertising sold. Thus, they have a vested interest in selling as much advertising as possible, and may strongly advise clients to spend excessive amounts on advertising.
Research suggests that advertising effectiveness follows a sort of “S-“ shaped curve.
Very small amounts of advertising are too small to truly register with consumers. At the medium level, advertising may be effective. However, above a certain level (labeled “saturation point” on the chart), additional adverting appears to have a limited effect. (This is comparable to the notion of “diminishing returns to scale” encountered in economics). 5 10 15 20 25
Amount of Advertising Spending

10. The Personal Selling Process
Generate and qualify leads
Customer potential will need to be sufficient to justify the cost of a sales call
Pre-approach—learning relevant background about the customer; identifying value to offer
Sales presentation and overcoming objections
Closing the sale
Follow-up
Satisfaction with immediate purchase and issues experienced
Maintaining long term relationship
The personal selling process generally involves a number of steps. These are discussed in more detail in the text.