BUSINESS CHAPTER 13

Promoting
Products
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1 Copyright 2004 Prentice Hall, Inc.

 Chapter Outline

 The Importance of Promotion

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 Advertising Promotions
 Personal Selling
 Sales Promotions
 Publicity and Public Relations
 Promotional Practices in Small Business
 International Promotional Strategies
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 What Is Promotion?

Aspect of the marketing

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mix concerned with the
most effective
techniques for selling a
product
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 Information and Exchange
Values
Promotions seek to accomplish
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four goals:
 Make potential customers aware
of products
 Make them knowledgeable about
products
 Persuade them to like products
 Persuade them to purchase
products
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 Promotional Objectives
 Communicating Information
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 Positioning Products
 Positioning is the process of establishing
an identifiable product image in the
minds of consumers
 Adding Value
 Controlling Sales Volume
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 Promotional Strategies

 Pull strategy appeals directly to

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consumers who will demand the product

form retailers

 Push strategy encourages wholesalers

or retailers to market products to
consumers
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 The Promotional Mix
Four types of promotional tools:
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 Advertising
 Personal Selling
 Sales Promotions
 Publicity and
Public Relations
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 The Target Audience: Promotion
and the Buyer Decision Process

Five stages in the buyer decision

process:
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1. Buyers must recognize the need to

make a purchase.
2. Buyers want to learn more about
available products.
3. Buyers compare competing products.
4. Buyers choose products and purchase
them.
5. Buyers evaluate products after
purchase.
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 The Consumer Buying Process
BUSINESSand the Promotional Mix
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BUSINESS What Is Advertising?

Promotional tool
consisting of paid,
nonpersonal
communication used by
an identified sponsor to
inform an audience
about a product
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 Advertising Strategies
 Persuasive advertising seeks to
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influence consumers to buy a
company’s products rather than
its rivals’
 Comparative advertising directly
compares two or more products
 Reminder advertising helps to
keep the product name in the
consumer’s mind
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 What Is Advertising
Media?

Variety of
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communication
devices for carrying a
seller’s message to
potential customers
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 Advertising Media
 Television
 Newspapers
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 Direct Mail
 Radio
 Magazines
 Outdoor Advertising
 Internet Advertising
 Data Mining and Date Warehousing for Internet Advertising
 Virtual Advertising
 Other Advertising Channels
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 Top 10 Network TV
BUSINESS Advertisers
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BUSINESS Media Mix by Industry
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 What Is an Advertising
Campaign?

Arrangement of ads in
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selected media to
reach targeted
audiences
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 What Is an Advertising
Agency?
Independent company
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that provides some or
all of a client firm’s
advertising needs
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 Six Steps in Preparing the
Advertising Campaign

1. Identify the target audience.

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2. Establish the advertising budget.

3. Define the objectives of the advertising
messages.
4. Create advertising messages.
5. Select the appropriate media.
6. Evaluate the advertising effectiveness.
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 What Is Personal
Selling?

Promotional tool in
BUSINESS
which a salesperson
communicates one-
on-one with potential
customers
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BUSINESS What Is Telemarketing?

Use of telephone
solicitations to
conduct the
personal selling
process
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 Sales Force Management

Sales force management means:

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 Setting goals at the top levels of an

organization
 Setting practical objectives for
salespeople
 Organizing a sales force that can meet
sales objectives
 Implementing and evaluating the success
of the overall sales plan
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 Personal Selling Situations
 Retail selling is selling a
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consumer product for the
buyer’s personal or
household use
 Industrial selling is selling
products to other
businesses, either for the
purpose of manufacturing
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other products or for resale

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 Personal Selling Tasks
 Order processing is a task in which salespeople
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receive orders and sees to their handling and
delivery
 Creative selling is a task in which salespeople try
to persuade buyers to purchase products by
providing information about their benefits
 Missionary selling is a task in which salespeople
promote their firms and products rather than try to
close sales
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 The Personal Selling Process

1. Prospecting and Qualifying

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2. Approaching
3. Presenting and Demonstrating
4. Handling Objections
5. Closing
6. Following Up
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 What Is a Sales
Promotion?
Short-term promotional
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activity designed to
stimulate consumer
buying or cooperation
from distributors, sales
agents or other
members of the trade
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 Types of Sales Promotions
 Coupons are certificates entitling bearers to savings
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off regular prices
 Point-of-Purchase (POP) displays are used to grab
customers’ attention as they move through stores
 Premiums are gifts given to consumers in return for
buying a specified product
 Trade shows are sponsored by industries for
members and customers
 Contests are used to induce sales among customers,
distributors and sales representatives
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 What Is Publicity?
Promotional tool in
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which information
about a company or
product that is
transmitted by
general mass media
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 What Is Public
Relations?
Company-influenced
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publicity directed at
building goodwill with
the public or dealing
with unfavorable
events
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 Small-Business Advertising
 Small-business owners must decide
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which audiences to target and what
messages to send.
 Small-business owners prefer
newspaper, radio and direct mail to
reach local market.
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 The Role of Personal Selling in
Small Business
Small-business personal selling
strategies depend on intended
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markets.
 Some small firms maintain sales forces
where clients can be quickly visited.
 Some small firms contract with sales
agencies—companies that act on behalf
of several clients.
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BUSINESS Small-Business Promotions

Small companies use the same sales

promotion incentives as larger
companies.
 Small firms prefer premiums and special
sales.
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 International Promotional
Strategies

 Emergence of the Global Perspective

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 Global perspective is a philosophy that directs
marketing toward a worldwide rather than local
or regional markets
 The Movement toward Global
Advertising
 Four factors to consider:
 Product Variations
 Language Differences
 Cultural Receptiveness
 Image Differences
 Universal Messages and Regional
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Advertising Skills
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