1. Copyright, Professor W.T.G. Richardson
Promotion
Personal Selling
Mass Selling
Advertising
Publicity
Sales Promotion
Copyright, Professor W.T.G. Richardson

2. Copyright, Professor W.T.G. Richardson
Promotion
communication of information
influence the buyer
3 methods
Personal Selling
Mass Selling
Sales Promotion
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3. Copyright, Professor W.T.G. Richardson
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
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4. Copyright, Professor W.T.G. Richardson
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
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5. Copyright, Professor W.T.G. Richardson
Advertising
the main form of mass selling
any paid form of nonpersonal communication eg. Techniques include billboard ads and TV commercials
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6. Copyright, Professor W.T.G. Richardson
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.
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7. Copyright, Professor W.T.G. Richardson
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
Copyright, Professor W.T.G. Richardson

8. Copyright, Professor W.T.G. Richardson
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
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9. Copyright, Professor W.T.G. Richardson
Promotion People
Sales Managers
Advertising Managers
Sales Promotion Managers
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10. Copyright, Professor W.T.G. Richardson
Promotion People
Sales Managers
Are concerned with managing personal selling
In small companies this person also does the advertising and sales promotion
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11. Copyright, Professor W.T.G. Richardson
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
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12. Copyright, Professor W.T.G. Richardson
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
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13. Copyright, Professor W.T.G. Richardson
Sales Promotion
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
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14. Copyright, Professor W.T.G. Richardson
Sales Promotion
Sales Promotion includes:
Point-of-purchase advertising
specialty advertising
samples
coupons
premiums
loyalty points / air miles
rebates
contests
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15. Copyright, Professor W.T.G. Richardson
The 3
Promotion
Objectives
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16. Copyright, Professor W.T.G. Richardson
Informing
Persuading
Reminding
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17. Copyright, Professor W.T.G. Richardson
Relationship between Advertising and the Product Life Cycle
Not mentioned in your textbook
Copyright, Professor W.T.G. Richardson

18. Copyright, Professor W.T.G. Richardson
Promotion Objectives
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
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19. Copyright, Professor W.T.G. Richardson
Promotion Objectives
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
Copyright, Professor W.T.G. Richardson

20. Copyright, Professor W.T.G. Richardson
Promotion Objectives
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.
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21. Copyright, Professor W.T.G. Richardson
4 promotion jobs
A.I.D.A.
Attention
Interest
Desire
Action
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22. Effective Communication
Noise
distractions that reduce the effectiveness of the communication
things which make an ad, useless because people don’t get the message clearly
eg. Competition from similar ads
Copyright, Professor W.T.G. Richardson

23. Effective Communication
Encoding
means to make a code
the process of making your message, and hoping you do it so it will be understood
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24. Effective Communication
Decoding
means to break a code into language you can understand
the process of the customer listening to a message, and being able to correctly figure out what the advertiser wants you to know, or do
Copyright, Professor W.T.G. Richardson

25. Copyright, Professor W.T.G. Richardson
P U S H
P U L L
Pushing through the promotion channel
Producer personal selling 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
Copyright, Professor W.T.G. Richardson

26. Copyright, Professor W.T.G. Richardson
D i r e c t M a r k e t i n g
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.
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27. Copyright, Professor W.T.G. Richardson
D i r e c t M a r k e t i n g
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.
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28. Copyright, Professor W.T.G. Richardson
P U S H
P U L L
Pulling through the promotion channel
Producer personal selling 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
Copyright, Professor W.T.G. Richardson

29. Copyright, Professor W.T.G. Richardson
P U S H
P U L L
Pulling through the promotion channel
Producer personal selling wholesaler retailer customer
Sometimes you do “pulling” when the Middlemen cannot be pushed, that is they already have a competitors product, so the way to get Middlemen to WANT to carry the product, is to have customers ask for it.
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30. Copyright, Professor W.T.G. Richardson
Adoption Process
Innovators
Early Adopters - sales people concentrate their efforts here
Early majority
Late majority
Laggards, or nonadopters
Copyright, Professor W.T.G. Richardson

31. 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!
Copyright, Professor W.T.G. Richardson

32. 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
Copyright, Professor W.T.G. Richardson