Chpt 9 and Chpt 10

Product
Chpt 11

Place
Promotion
Chpt 13, Basic Promotion
– Intergrated Marketing Communications

Chpt 14, Personal Selling

Chpt 15, Advertising & Sales Promotion
Chpt 16,

Price
Promotion Slide 2

Promotion
• Personal Selling
• Mass Selling
• Advertising
• Publicity
• Sales Promotion

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 3

Promotion
• communication of information
• influence the buyer

3 methods
Personal Selling
Mass Selling
Sales Promotion
Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 4

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
Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 5

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

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 6

Advertising
• the main form of mass selling
• any paid form of nonpersonal
communication
eg. Techniques include billboard ads and
TV commercials

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 7

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.

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 8

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
Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 9

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
Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 10

Promotion People

• Sales Managers
• Advertising Managers
• Sales Promotion Managers

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 11

Promotion People

Sales Managers
• Are concerned with managing personal
selling
• In small companies this person also does
the advertising and sales promotion

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 12

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

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 13

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

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 14

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
Page 455

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 15

Sales Promotion includes:

• Point-of-purchase advertising
• specialty advertising
• samples
• coupons
• premiums
• loyalty points / air miles
• rebates
• contests
Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 16

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 17

Relationship between Advertising and the Product Life Cycle

Not mentioned in your textbook

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 18

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

Page 458 - 459

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 19

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

Page 458 - 459

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 20

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.
Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 21

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 22

• Pushing through the promotion channel

Producer - personal selling 2 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

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 23

• Pulling through the promotion channel

Producer - personal selling 2 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

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 24

• Pulling through the promotion channel

Producer - personal selling 2 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.

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 25

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.
Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion
Comparison of Direct Marketing and General Advertising
Direct Marketing
Selling to individuals. Customers are
often identifiable by name, address, and
purchase behaviour.
Products have added value or service.
Distribution is important product benefit.
The medium is the marketplace.
Marketer controls product until delivery.
Advertising used to motivate an
immediate order or inquiry.
Repetition used within ad.
Consumers feel high perceived risk –
product brought unseen. Recourse is
distant.
Chpt 13 in the Marketing 106 course
Slide 26
General Advertising
Mass selling. Buyers identified as broad
groups sharing common demographic and
psychographic characteristics.
Product benefits do not always include
convenient distribution channels.
Retail outlet is the marketplace.
Marketer may lose control as product
enters distribution channel.
Advertising used for cumulative effect
over time to build image, awareness,
loyalty, benefit recall. Purchase action
deferred.
Repetition used over time.
Consumers feel less risk – have direct
contact with the product and direct
recourse.
Not in your text
Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 27

Adoption Process

• Innovators
• Early Adopters - sales people concentrate their efforts here
• Early majority
• Late majority
• Laggards, or nonadopters

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 28

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!

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College
Promotion Slide 29

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

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College