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Slide 1: CHAPTER 13 Promoting Products Leonardo Matarrese @MyPlick
Slide 2: The Importance of Promotion Promotion Aspect of the marketing mix concerned with the most effective techniques for selling a product Leonardo Matarrese @MyPlick
Slide 3: Information & Exchange Values In free-market systems, a business uses promotional methods to communicate information about itself and its products to consumers and industrial buyers Leonardo Matarrese @MyPlick
Slide 4: “You’re not allowed to say or market anything online unless the customer wants to hear it. In cyberspace marketing, the customer is in charge.” ~ Chan Suh CEO, Agency.com Ltd. Leonardo Matarrese @MyPlick 13 - 4
Slide 5: Promotional Objectives Communicate Information  Position Products  Add Value  Control Sales Volume  Positioning Process of establishing an identifiable product image in the minds of consumers Leonardo Matarrese @MyPlick
Slide 6: Promotional Strategies Pull Strategy Promotional strategy designed to appeal directly to consumers who will demand a product from retailers Push Strategy Promotional strategy designed to encourage wholesalers or retailers to market products to consumers Leonardo Matarrese @MyPlick
Slide 7: Promotional Mix Four types of promotional tools: – Advertising – Personal Selling – Sales Promotions – Publicity and Public Relations Leonardo Matarrese @MyPlick
Slide 8: The Consumer Buying Process/Promotional Mix Stages of the Consumer Buying Process Problem (Need) Recognition Information Seeking Evaluation of Alternatives Purchase Decision Postpurchase Evaluation ADVERTISING Publicity ADVERTISING Personal Selling PERSONAL SELLING SALES PROMOTION Personnel Selling ADVERTISING Personal Selling Most Effective Promotional Tool Leonardo Matarrese @MyPlick 13 - 8
Slide 9: Advertising Promotions Advertising Promotional tool consisting of paid, nonpersonal communication used by an identified sponsor to inform an audience about a product Leonardo Matarrese @MyPlick
Slide 10: Advertising Strategies Persuasive Advertising Advertising strategy that tries to influence consumers to buy one company’s products instead of those of its rivals Comparative Advertising Advertising strategy that directly compares two or more products Reminder Advertising Advertising strategy that tries to keep a product’s Leonardo Matarrese @MyPlick name in the consumer’s mind
Slide 11: Advertising Media Variety of communication devices for carrying a seller’s message to potential customers Most common types of advertising media:       Newspapers Television Direct Mail Radio Magazines Outdoor Advertising Messages are mailed directly to consumers’ homes or places of business Leonardo Matarrese @MyPlick Billboards, signs, & advertisements on buses, street furniture, taxis, stadiums, & subways
Slide 12: Top Ten Network TV Advertisers Television accounts for about 22 percent of all advertising outlays. Network Television Ad Expenditures ($ Millions) 900 800 700 600 500 400 300 200 100 0 Johnson & Johnson Proctor & Gamble DaimlerChrysler General Motors Phillip Morris Walt Disney Unilever Diageo Ford Mconald's 778 670 420 412 341 311 294 294 290 275 Leonardo Matarrese @MyPlick
Slide 13: Advertising Media Most recent forms of advertising:  Internet: – Offers high potential, however, most marketers recognize that it also has limitations – Targeted advertising is meeting with success because, Internet advertisers can measure the success of each ad  Virtual Advertising: – Digital implants of brands or products in live or taped programming gives illusion product is part of the show – Advertiser’s productMatarrese @MyPlick part of the Leonardo can appear as television show instead of during commercial breaks
Slide 14: Advertising Media Other forms of advertising:        Catalogs Sidewalk Handouts Yellow Pages Skywriting Telephone Calls Special Events Door-to-Door Communication Leonardo Matarrese @MyPlick
Slide 15: Advertising Media Media Mix Combination of advertising media chosen to carry message about a product Types of advertising:   Brand Advertising: promotes a specific brand Advocacy Advertising: promotes a cause, viewpoint, or candidate Institutional Advertising: promotes a firm’s long-term image Leonardo Matarrese @MyPlick 
Slide 16: Preparing the Campaign with an Advertising Agency Advertising Campaign Arrangement of ads in selected media to reach targeted audiences Advertising Agency Independent company that provides some or allLeonardo Matarrese @MyPlick of a client firm’s
Slide 17: Preparing the Campaign with an Advertising Agency A campaign typically includes six steps: 1. Identifying the target audience 2. Establishing the advertising budget 3. Defining the objectives of the advertising messages 4. Creating the advertising messages 5. Selecting the appropriate media 6. Evaluating advertising effectiveness Leonardo Matarrese @MyPlick
Slide 18: Regulation of Advertising  1914, the Federal Trade Commission Act created the Federal Trade Commission (FTC) to protect competition from unfair trade practices 1938, the Wheeler-Lea Act gave the FTC power to protect consumers against advertising that makes misleading claims or suggestions 1971, the FTC instituted a program requiring companies furnish evidence that advertising claims are true The National Advertising Review Board (NARB) was established by a council of professional advertisers Leonardo Matarrese @MyPlick to investigate complaints against its members   
Slide 19: Personal Selling Promotional tool in which a salesperson communicates one-onone with potential customers Leonardo Matarrese @MyPlick
Slide 20: Personal Selling Retail Selling Personal Selling Situations Products are sold for buyers’ personal or household use Industrial Selling Products are sold to businesses for manufacturing other products or for resale Leonardo Matarrese @MyPlick
Slide 21: Personal Selling Order Processing Personal Selling Tasks Salespeople receive orders and see to their handling and delivery Creative Selling Salespeople try to persuade buyers to purchase products by providing information about their benefits Missionary Selling Salespeople promote their firms and products rather than try to close sales Leonardo Matarrese @MyPlick
Slide 22: The Personal Selling Process 1. 2. 3. 4. 5. 6. Prospecting & Qualifying Approaching Presenting & Demonstrating Handling Objections Closing Following up Leonardo Matarrese @MyPlick
Slide 23: Sales Promotions Short-term promotional activity designed to stimulate consumer buying or cooperation from distributors and sales agents Types of sales promotions:     Coupon: a certificate is issued entitling the buyer to a reduced price Point-of-Purchase (POP) Display: product displays are located in certain areas to stimulate purchase Premium: offers of free or reduced-price items are used to stimulate purchases Trade Show: various members of an industry gather to display, demonstrate, and sell@MyPlick products Leonardo Matarrese
Slide 24: Publicity & Public Relations Publicity Promotional tool in which information about a company or product is transmitted by general mass media Public Relations Company-influenced publicity directed at building Leonardo Matarrese @MyPlick good will between an
Slide 25: International Promotional Strategies Global Perspective Company’s approach to directing its marketing toward worldwide rather than local or regional markets Leonardo Matarrese @MyPlick
Slide 26: Movement Toward Global Advertising      Product Variations Language Differences Cultural Receptiveness Image Differences Universal Messages @MyPlick & Leonardo Matarrese Regional Advertising Skills
Slide 27: Promotional Practices in Small Business Small Business Advertising  Local Markets Markets Leonardo Matarrese @MyPlick  National  International Markets
Slide 28: The Role of Personal Selling in Small Business  Some small firms maintain sales forces to promote and sell their products in local markets Others prefer to contract with sales agencies: companies that handle the products of several clients to act on their behalf Many use sales agencies and other methods such as telemarketing for national markets Alliances and joint ventures offer an alternative Leonardo selling for small to person-to-person Matarrese @MyPlick   
Slide 29: Small Business Promotions  Small companies use the same sales promotion incentives as larger companies Larger firms tend to use more coupons, POP displays, and sales contests Smaller firms rely on premiums and special sales Matarrese @MyPlick Leonardo  