CO1, CO2, CO3

CHAPTER 9
Promotional Mix

Learning Outcomes
LO1

Define promotion and discuss the goal of promotion.

LO2

Define promotional mix and discuss the elements of promotional mix.

LO3

Discuss the AIDA concept.

LO4

LO5

Define advertising. Discuss the major types of advertising and

media decisions in advertising.
Define public relations. Discuss the functions of public relations
and public relation tools.

LO6

Define sale promotion and discuss sales promotional tools.

LO7

Define personal selling.

Promotion

LO1

Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response.

Goals of Promotion
Informing
PLC Stages:
Introduction
Early Growth

PLC Stages:
Growth
Maturity

Reminding

Target
Audience

Persuading

PLC Stages:
Maturity

Goals of Promotion
Informative promotion

Increasing the awareness of a new brand, product class, or product attribute

Explaining how the product works
Suggesting new uses for a product
Building a company image

Persuasive promotion

Encouraging brand switching

Changing customers perceptions of product attributes
Influencing customers to buy now
Persuading customers to call

Reminder promotion
Reminding consumers that the product may be needed in the near future
Reminding consumers where to buy the product
Maintaining consumer awareness
5

Promotional Mix

The combination of promotional tools

including advertising, public relations,
personal selling, and sales promotion
used to reach the target market and
fulfill the organizations overall goals.

LO2

Elements of the Promotional Mix

The AIDA Concept

A model that outlines the process for

achieving promotional goals in terms
of stages of consumer involvement
with the messages; the acronym
stands for attention, interest, desire,
and action.

LO3

The AIDA Concept

Action

Desire

Interest

Attention

Conative (doing)

Affective (feeling)

Cognitive (thinking)

The AIDA Concept

10

Advertising

Impersonal, one-way
mass communication
about a product or
organization that is
paid for by a marketer

LO4

Major Types of Advertising

Corporate identity

Institutional
Advertising
Advocacy advertising

Pioneering

Product
Advertising

Competitive
Comparative

12

Product Advertising

Pioneering

Competitive

Comparative

13

Stimulates primary demand for

new product or category
Used in the PLC introductory stage
Influences demand for brand in the growth
phase of the PLC
Often uses emotional appeal
Compares two or more competing brands
product attributes
Used if growth is sluggish, or if competition is
strong

14

Media Decisions in Advertising

Medium
The channel used to convey a message to a target market.

Medium Planning
The series of decisions advertisers make regarding the selection
and use of media, allowing the marketer to optimally and costeffectively communicate the message to the target audience.

15

Major Advertising Media

Newspapers
Magazines

Radio
Television
Outdoor Media
Internet
16

Newspapers
Advantages

17

Geographic selectivity
Short-term advertiser
commitments
News value and immediacy
Year-round readership
High individual market
coverage
Co-op and local tie-in
availability
Short lead time

Disadvantages

Limited demographic
selectivity
Limited color
Low pass-along rate
May be expensive

Cooperative Advertising

An arrangement in which the manufacturer

and the retailer split the costs of advertising
the manufacturers brand.

18

Magazines
Disadvantages

Advantages

Good reproduction

Demographic selectivity

Regional/local selectivity

Long advertising life

High pass-along rate

19

Long-term advertiser
commitments

Slow audience build-up

Limited demonstration
capabilities

Lack of urgency

Long lead time

Radio
Advantages

Disadvantages

No visual treatment

Short advertising life

High frequency to generate

comprehension and
retention

Low cost

Immediacy of message

Short notice scheduling

No seasonal audience change

Highly portable

Background distractions

Short-term advertiser
commitments

Commercial clutter

Entertainment carryover

20

Television
Advantages

Wide, diverse audience

Low cost per thousand
Creative opportunities for
demonstration
Immediacy of messages
Entertainment carryover
Demographic selectivity
with cable

Disadvantages

21

Short life of message

Consumer skepticism
High campaign cost
Little demographic selectivity
with stations
Long-term advertiser
commitments
Long lead times for
production
Commercial clutter

Outdoor Media
Advantages

Disadvantages

Repetition

Short message

Moderate cost

Lack of demographic
selectivity

Flexibility

High noise level

Geographic selectivity

22

Internet
Advantages

Fast growing

Ability to reach narrow

target audience

Short lead time

Moderate cost

23

Disadvantages

Difficult to measure ad
effectiveness and ROI

Ad exposure relies on click

through from banner ads

Not all consumers have

access to Internet

Media Selection Consideration

24

Media Mix Combination of media to be used for a

promotional campaign

Cost per contact The cost of reaching one member of the

target market

Reach The number of target consumers exposed to a

commercial at least once during a specific period, usually
four weeks

Frequency The number of times an individual is exposed to

a given message during a specific period

Media Selection Consideration

25

Flexibility The lead time required to prepare and make

changes in advertisements.

Noise level The level of distraction associated with the

medium.

Life span Media have either a short or a long life span. It

means that messages can either quickly fade or persist as
tangible copy to be carefully studied.

Media fragmentation Forcing media planners to pay as

much attention to where they place their advertising, as to
how often the advertisement is repeated.

Qualitative Factors in Media Selection

26

Attention to the commercial

and the program

Involvement

Program liking

Lack of distractions

Other audience behaviors

Media Scheduling

27

Continuous
Media Schedule

Advertising is run steadily throughout

the period.

Flighted
Media Schedule

Advertising is run heavily every other

month or every two weeks.

Pulsing
Media Schedule

Advertising combines continuous

scheduling with flighting.

Seasonal
Media Schedule

Advertising is run only when the

product is likely to be used.

Public Relations
Public Relations
The marketing function that evaluates public attitudes, identifies
areas within the organization the public may be interested in, and
executes a program of action to earn public understanding and
acceptance.

Publicity
Public information about a company, product, service, or issue
appearing in the mass media as a news item.

LO5

Functions of Public Relations

Press relations
Product publicity
Corporate communication

Public affairs
Lobbying
Employee and investor relations

Crisis management

Public Relations Tools

New product publicity
Product placement

Consumer education
Sponsorship
Web sites
30

Sales Promotion
Sales Promotion
Marketing activities other than personal selling, advertising, and
public relations that stimulate consumer buying and dealer
effectiveness.

Consumer Sales Promotion

Sales promotion activities targeting the ultimate consumer.

Trade Sales Promotion

Sales promotion activities targeting a channel member, such as a
wholesaler or retailer.

LO6

Objectives of Sales Promotion

Type of Buyer
Loyal
Customers
Competitors
Customers
Brand
Switchers
Price Buyers
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Desired Results

Sales Promotion
Examples

Reinforce behavior
Increase consumption
Change purchase timing

Loyalty marketing
Bonus packs

Break loyalty
Persuade to switch

Sampling
Sweepstakes,
contests, premiums

Persuade to buy your

brand more often

Price-lowering promotion
Trade deals

Appeal with low prices

Supply added value

Coupons, price-off
packages, refunds
Trade deals

Tools for Consumer Sales Promotion

Coupons and Rebates
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
Sampling
Point-of-Purchase Promotion
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LO7

Personal Selling
Personal Selling
A purchase situation involving a
personal, paid-for
communication between two
people in an attempt to
influence each other.

Advantages
Detailed explanation or
demonstration
Variable sales message
Directed to qualified
prospects
Controllable adjustable
selling costs

Effective at obtaining sale and

gaining customer satisfaction

Comparison of Personal Selling, and

Advertising/Sales Promotion

35

Personal Selling
is more important if...

Advertising & Sales Promotion

are more important if...

Product has a high value.

Product has a low value.

Product is custom made.

Product is standardized.

There are few customers.

There are many customers.

Product is technically complex.

Product is simple to understand.

Customers are concentrated.

Customers are geographically

dispersed.