1. * * Chapter Sixteen Using Effective Promotions Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. * * Profile Joined the Girl Scouts after developing campaigns for American Express and Campbell’s Soup.Girl Scouts Her biggest challenge is to communicate with girls through channels unheard of when the organization was formed. LAUREL RICHIE Girl Scouts of America 16-2

3. * * Promotion and the Promotion Mix Promotion Mix -- The combination of promotional tools an organization uses; the traditional mix includes: PROMOTION in an ORGANIZATION LG1 16-3

4. * * Promotion and the Promotion Mix 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. INTEGRATED MARKETING COMMUNICATION (IMC) LG1 16-4

5. * * Promotion and the Promotion Mix 1. Identify a target market 2. Define objectives 3. Determine a promotional budget 4. Develop a unifying message 5. Implement the plan 6. Evaluate the plan STEPS in a PROMOTIONAL CAMPAIGN LG1 16-5

6. * * 1. Plan: What should your mailing accomplish? 2. Get the Right List: The better the list, the better your chance of success. DEAR MR. POSTMAN… Steps in Launching a Direct-Mail Campaign LG1 Promotion and the Promotion Mix 3. Stand Out: Make your ad like no other. 4. Get Help: Contact a marketing firm with direct mail experience. 5. Follow Up: One mailing is not enough. 16-6

7. * * Advertising: Informing, Persuading and Reminding 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 ADVERTISING in the FIRM LG2 16-7

8. * * Advertising: Informing, Persuading and Reminding Total advertising expenditures exceed $294 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. IMPACT of ADVERTISING LG2 16-8

9. * * I’LL SPONSOR YOU The Price of Sports Endorsements LG2 Source: Conde Nast Portfolio. AthleteSport Amount per Deal Companies Tiger WoodsGolf$ Several Million Nike, Gatorade, AT&T Yao MingBasketball$1 - $4 Million McDonald’s Visa, Apple Michael PhelpsSwimming$1 - $4 MillionAT&T, PowerBar Lebron JamesBasketball$ Several Million Coca-Cola, Microsoft, Nike Shawn JohnsonGymnastics $100,000 - $500,000 Adidas, McDonalds, Longines Advertising: Informing, Persuading and Reminding 16-9

10. c * * MAJOR CATEGORIES of ADVERTISING LG2 Advertising: Informing, Persuading and Reminding CategoryWhat it is RetailFrom retail stores to consumers TradeFrom manufacturers to wholesalers and retailers B2BFrom manufacturers to other manufacturers InstitutionalCreates a desirable image for an organization ProductCreates a desirable image for a product or service 16-10

11. * * MAJOR CATEGORIES of ADVERTISING (Continued) LG2 Advertising: Informing, Persuading and Reminding CategoryWhat it is AdvocacySupports a particular view of an issue ComparativeCompares competing products Interactive Customer-oriented ads that allows customers to choose information to receive OnlineComputer ads featured on different sites MobileAds that reach consumers on cell phones 16-11

12. * * Advertising: Informing, Persuading and Reminding ADVERTISING EXPENDITURE by MEDIA in $ MILLIONS LG2 RankMedia Projected 2008 Spending % of Total Ad Spending 1Direct Mail$63,73221.6 2Broadcast TV48,30016.4 3Newspaper42,14714.3 4Cable TV21,7187.4 5Radio18,6356.3 6Yellow Pages14,7055.0 7Consumer Magazine14,1064.8 8Internet12,7224.3 Other58,31119.8 Total294,376100.0 16-12

13. * * “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.” MATCH GAME Match the Company with the Slogan LG2 Advertising: Informing, Persuading and Reminding 16-13

14. * * IT’S a DOG’S LIFE Famous and Not-so-Famous Dogs in Advertising LG2 PoochCompany NipperRCA TigeBuster Brown Shoes ChihuahuaTaco Bell Spuds McKenzieBud Light McGruffThe Crime Dog DukeBush’s Beans BullseyeTarget Advertising: Informing, Persuading and Reminding 16-14

15. * * Television Advertising TV advertising is still the dominant media. Digital Video Recorders (DVRs) challenge TV advertising because viewers can skip them. Product Placement -- Advertisers pay to put their products into TV shows and movies where the audience will see them. POPULAR ADVERTISING MEDIA LG2 16-15

16. * * Infomercials and Online Advertising Infomercial -- A full length TV program devoted exclusively to promote a particular product. Online ads are attempts to get potential customers to a website to learn about a product. INFOMERCIALS and ONLINE ADVERTISING LG2 Interactive Promotion -- Allows marketers to open a dialogue between buyers and sellers and let them work together to create a beneficial exchange. 16-16

17. * * Veg-O-Matic Ginsu Knives The Clapper Thigh Master George Foreman Grill Bowflex INFOMERCIAL HALL of FAME The Biggest Hits Over the Past 40 Years LG2 Infomercials Source: Fortune Magazine, April 13, 2009. 16-17

18. * * Global Advertising 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. GLOBAL ADVERTISING LG2 16-18

19. * * Marketers are gaining a competitive advantage by touting their efforts for the environment. Mars Drinks promotes its efforts to use less water, send less waste to landfills and help customers reduce their own energy waste.Mars Drinks First Global Direct competes with large rivals because of their efforts to make operations more eco-friendly.First Global Direct FINDING a COMPETITIVE ADVANTAGE in SUSTAINABILITY Thinking Green 16-19

20. * * Personal Selling: Providing Personal Attention Personal Selling -- The face-to-face presentation and promotion of a product, including the salesperson’s search for new prospects and follow-up service. PERSONAL SELLING LG3 Salespeople need to listen to customer needs, help reach a solution and do everything possible to make the transaction as simple as possible. 16-20

21. * * Steps in the Selling Process Prospecting -- Researching potential buyers and choosing those most likely to buy. PROSPECTING and QUALIFYING in B2B SELLING LG3 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. 16-21

22. * * Steps in the Selling Process 1. Pre-approach 2. Approach 3. Make a presentation 4. Answer objections 5. Close the sale Trial Close -- A statement or question that moves the process toward the purchase. 6. Follow up STEPS in the B2B SELLING PROCESS LG3 16-22

23. * * 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 BUY THIS! Successful Selling Strategies LG3 Steps in the Selling Process 16-23

24. * * 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 WHOOPS! Sales Slip-Ups LG3 Steps in the Selling Process Source: Fortune Magazine. 16-24

25. * * STEPS in the B2C SELLING PROCESS LG3 Steps in the Selling Process 16-25

26. * * Progress Assessment 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? PROGRESS ASSESSMENT 16-26

27. * * Public Relations: Building Relationships 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: 1. Listen to the public 2. Change policies and procedures 3. Inform people you’re responsive to their needs USING PUBLIC RELATIONS in PROMOTION LG4 16-27

28. * * Publicity: The Talking Arm of PR 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 PUBLICITY LG4 16-28

29. * * Publicity: The Talking Arm of PR 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 isn’t likely to run again. DISADVANTAGES of PUBLICITY LG4 16-29

30. * * Sales Promotion -- The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities. SALES PROMOTIONS LG5 Sales Promotion: Giving Buyers Incentives Categories of Sales Promotions: 1. B2B Sales Promotions 2. Consumer Sales Promotions 16-30

31. * * Coupons Demonstrations Sampling Sweepstakes In-store Displays Contests SOME KEY CONSUMER PROMOTIONS LG5 Sales Promotion: Giving Buyers Incentives 16-31

32. * * Coupons, Inc EverSave RetailMeNot CouponCabin CLIP THESE Most Visited U.S. Coupon Clearing Sites LG5 Sales Promotion: Giving Buyers Incentives 16-32

33. * * Progress Assessment What are the three steps in setting up a public relations program? What are the sales promotion programs used to reach consumers? What sales promotion programs are used to reach businesses? PROGRESS ASSESSMENT 16-33

34. * * Word of Mouth and Other Promotional Tools 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 USING WORD-of-MOUTH PROMOTION LG6 16-34

35. * * Viral Marketing 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. EMERGING PROMOTIONAL TOOLS LG6 16-35

36. * * Blogging, Podcasting and E-mail Promotions Blog -- Short for web log; an online diary that looks like a webpage but is easier to create and update by posting text, photos, videos, or links. Podcasting -- A way to distribute audio and video programs via the Internet. Email promotions increase brand awareness among commercial suppliers. BLOGS, PODCASTS, and E-MAILS LG6 16-36

37. * * Amy Scherber of Amy’s Bread can’t afford to outsource her promotions, so she needs to get creative.Amy’s Bread She sends newspaper editors stories about her company and has an assortment of company shirts. She builds strong word-of-mouth by keeping in touch with her community members. FRESH-BAKED PROMOTION Spotlight on Small Business 16-37

38. * * Managing the Promotion Mix: Putting it All Together 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 Strategy -- Refers to consumers who pick out their products from online outlets. PUSH, PULL, AND PICK PROMOTIONAL STRATEGIES LG6 16-38

39. * * Agencies like Publicis Groupe knew they had to move forward into the digital age.Publicis Groupe Publicis bought Digitas, an interactive ad agency, and tried to blend the firms.Digitas Publicis created the Global Marketing Navigator and simplifies masses of data from clients and measures the program’s effectiveness. GOING DIGITAL Reaching Beyond Our Borders 16-39

40. * * Progress Assessment What’s viral marketing? What are blogging and podcasting? Describe a push strategy, a pull strategy and the pick strategy. PROGRESS ASSESSMENT 16-40