Chapter 16 – Using Effective Promotions
16-1
Using Effective
Promotions
chapter
=
what’s new in this edition 16.3
brief chapter outline and learning goals 16.3
lecture outline and lecture notes 16.5
PowerPoint slide notes 16.40
lecture links 16.57
lecture link 16-1: MURPHY’S LAWS OF MARKETING 16.58
lecture link 16-2: EFFECTIVE ADVERTISING: CELEBRITY VOICE-OVERS 16.58
lecture link 16-3: PRODUCT PLACEMENT IN POP 16.58
lecture link 16-4: RANKING TV OUTSIDE THE NIELSEN SPECTRUM 16.59
lecture link 16-5: AS SEEN ON SOCIAL MEDIA 16.59
lecture link 16-6: AMERICANS RETURN TO CLIPPING COUPONS 16.60
lecture link 16-7: WRAP YOUR SUV 16.60
lecture link 16-8: CONAN’S TWITTER TRIUMPH 16.61
lecture link 16-9: BLOGS FOR SMALL BUSINESSES 16.62
critical thinking exercises 16.63
critical thinking exercise 16-1: ADVERTISING ON GOOGLE 16.63
critical thinking exercise 16-2: ADVERTISING APPEALS 16.64
16
Chapter 16 – Using Effective Promotions
16-2
critical thinking exercise 16-3: IDENTIFYING PRODUCT PLACEMENT 16.66
critical thinking exercise 16-4: ETHICS IN ADVERTISING 16.67
critical thinking exercise 16-5: DESIGNING A WEBSITE 16.68
bonus cases 16.71
bonus case 16-1: GROUPON’S TIGHT WALK TOWARD A RICH FUTURE 16.71
bonus case 16-2: THE NEW BREED OF SALESPERSON 16.72
bonus case 16-3: BP’S CRUDE REPUTATION 16.74
bonus case 16-4: GUERILLA MARKETING 16.75
bonus case 16-5: WIEDEN + KENNEDY: EXPERIMENTAL PROMOTIONS 16.77
what’s new in
this edition
additions to the 10th edition:
• Getting to Know Andrew Mason, CEO of Groupon
• Name That Company: Dr Pepper
revisions to the 10th edition:
• Text was revised to eliminate redundancy and tighten discussions.
• Statistical data and examples throughout the chapter were updated to reflect current information.
Chapter 16 – Using Effective Promotions
16-3
deletions from the 9th edition:
brief chapter outline
and learning goals
c h a p t e r 16
Using Effective Promotions
Getting To Know ANDREW MASON of GROUPON
learning goal 1
I. PROMOTION AND THE PROMOTION MIX
learning goal 2
II. ADVERTISING: INFORMING, PERSUADING, AND REMINDING
A. Television Advertising
B. Product Placement
C. Infomercials
D. Online Advertising
E. Using Social Media to Monitor Ad Effectiveness
F. Global Advertising
learning goal 3
III. PERSONAL SELLING: PROVIDING PERSONAL ATTENTION
A. Steps in the Selling Process
Chapter 16 – Using Effective Promotions
16-4
B. The Business-to-Consumer (B2C) Sales Process
learning goal 4
IV. PUBLIC RELATIONS: BUILDING RELATIONSHIPS
A. Publicity: The Talking Arm of PR
learning goal 5
V. SALES PROMOTION: GIVING BUYERS INCENTIVES
learning goal 6
VI. WORD OF MOUTH AND OTHER PROMOTIONAL TOOLS
A. Viral Marketing
VII. MANAGING THE PROMOTION MIX: PUTTING IT ALL TOGETHER
A. Promotional Strategies
VIII. SUMMARY
Chapter 16 – Using Effective Promotions
Getting to Know ANDREW MASON of GROUPON
Mason’s Groupon combines social networking with discounting. The site has grown faster
than any Web company in history and Mason has even turned down offers of $6 billion for his
company. Mason’s simplicity in running his site is what is credited for its success. There are
many competitors out there, which has led to Groupon expanding into mobile marketing.
learning goal 1
Identify the new and traditional tools that make up the promotion mix.
B. INTEGRATED MARKETING COMMUNICATION
This beverage company has 8.5 million Facebook friends. It posts two daily messages
and then monitors how many times each message is reviewed, how many times it’s
shared, and what the fan response to the messages are. It also uses Facebook to test
potential ads be-fore airing them on traditional media, like TV. Name that company
(Students should read the chapter before guessing the company’s name: Dr Pepper)
Chapter 16 – Using Effective Promotions
PPT 16-1
Chapter Title
PPT 16-2
Learning Goals
(See complete PowerPoint slide notes on page 16.40.)
PPT 16-3
Learning Goals
(See complete PowerPoint slide notes on page 16.40.)
PPT 16-4
Andrew Mason
(See complete PowerPoint slide notes on page 16.41.)
bonus case 16-1
GROUPON’S TIGHT WALK TO-
WARD A RICH FUTURE
Andrew Mason made headlines when he turned down a $6
billion buyout. (See the complete case, discussion questions, and
suggested answers beginning on page 16.71 of this manual.)
PPT 16-5
Name That Company
(See complete PowerPoint slide notes on page 16.41.)
lecture link 16-1
MURPHY’S LAWS OF
MARKETING
The study of marketing doesn’t always have to be serious
and academic. For a good shot of irreverence, try Murphy’s
Laws by Arthur Bloch. (See the complete lecture link on page
16.57 in this manual.)
PPT 16-6
Promotion in an Organization
TEXT FIGURE 16.1
The Traditional Promotion Mix
(Text page 436)
(See complete PowerPoint slide notes on page 16.41.)
PPT 16-7
Integrated Marketing
Communication (IMC)
(See complete PowerPoint slide notes on page 16.42.)
16-7
1. All promotional tools and company resources are
learning goal 2
Contrast the advantages and disadvantages of various advertising media, including the
Internet and social media.
II. ADVERTISING: INFORMING, PERSUADING,
AND REMINDING
Chapter 16 – Using Effective Promotions
16-8
SPOTLIGHT ON
small
business
(Text page 437)
PPT 16-8
Fresh-Baked
Promotion
(See complete PowerPoint slide notes on page 16.42.)
PPT 16-9
Steps in a Promotional Campaign
TEXT FIGURE 16.2
Steps in a Promotional Campaign
(Text page 437)
(See complete PowerPoint slide notes on page 16.42.)
PPT 16–10
Classic Campaigns
(See complete PowerPoint slide notes on page 16.43.)
PPT 16-11
Advertising in the Firm
(See complete PowerPoint slide notes on page 16.43.)
PPT 16-12
Impact of Advertising
(See complete PowerPoint slide notes on page 16.43.)
PPT 16-13
Social Advertising
(See complete PowerPoint slide notes on page 16.44.)
PPT 16-14
Major Categories of Advertising
TEXT FIGURE 16.3
Major Categories of Advertising
(Text page 438)
(See complete PowerPoint slide notes on page 16.44.)
Chapter 16 – Using Effective Promotions
producing newspapers and magazines.
reminders, and recipes.
2. However, few other media can REACH AS
PPT 16-15
Major Categories of Advertising
(See complete PowerPoint slide notes on page 16.44.)
PPT 16-16
Advertising Expenditures by Media
in $ Millions
TEXT FIGURE 16.4
Advertising Expenditure by Media
(in millions of dollars)
(Text page 439)
(See complete PowerPoint slide notes on page 16.45.)
PPT 16–17
Dear Mr. Postman . . .
(See complete PowerPoint slide notes on page 16.45.)
TEXT FIGURE 16.5
Advantages and Disadvantages of
Various Advertising Media
(Text page 440)
This text figure presents the advantages and disadvantages
of various advertising media to the advertiser.
PPT 16-18
Match Game
(See complete PowerPoint slide notes on page 16.45.)
lecture link 16-2
EFFECTIVE ADVERTISING:
CELEBRITY VOICE-OVERS
Celebrity voice-overs are effective in reaching consumers,
but are most effective when consumers can’t quite identify the
celebrity. (See the complete lecture link on page 16.58 in this
manual.)
PPT 16-19
It’s a Dog’s Life
(See complete PowerPoint slide notes on page 16.46.)
PPT 16-20
Popular Advertising Media
(See complete PowerPoint slide notes on page 16.46.)
Chapter 16 – Using Effective Promotions
C. PRODUCT PLACEMENT
1. PRODUCT PLACEMENT is putting products into
TV shows and movies where they will be seen.
2. Another type of placement puts virtual products in-
to video games.
D. INFOMERCIALS
1. An INFOMERCIAL is a full-length TV program de-
Chapter 16 – Using Effective Promotions
16–12
lecture link 16-3
PRODUCT PLACEMENT IN POP
Product placement is not just for television anymore. Prod-
ucts are now mentioned and shown within pop songs and their
videos. (See the complete lecture link on page 16.58 in this
manual.)
PPT 16-21
Let’s Go to the Movies
(See complete PowerPoint slide notes on page 16.46.)
PPT 16–22
Infomercials and Online Advertising
(See complete PowerPoint slide notes on page 16.47.)
PPT 16-23
Infomercial Hall of Fame
(See complete PowerPoint slide notes on page 16.47.)
critical thinking
exercise 16-1
ADVERTISING ON GOOGLE
A popular method of Internet advertising is buying an ad on
a Web search engine such as Google. This Internet exercise
lets students explore exactly what this involves. (See complete
exercise on page 16.63 of this manual.)
critical thinking
exercise 16-2
ADVERTISING APPEALS
This exercise explores the different advertising appeals that
marketers use in television advertising. (See complete exercise
on page 16.64 of this manual.)
critical thinking
exercise 16-3
IDENTIFYING PRODUCT
PLACEMENT
This exercise asks students to watch prime-time television
to identify product placements in television shows. (See com-
plete exercise on page 16.66 of this manual.)
PPT 16-24
Online Experience
(See complete PowerPoint slide notes on page 16.47.)
Chapter 16 – Using Effective Promotions
16–13
pany and its products.
2. E-MAIL MARKETING has become a huge com-
ponent of online advertising.
3. However, advertisers have to be careful not to
Chapter 16 – Using Effective Promotions
16–14
social
media in
business
(Text page 443)
PPT 16-25
Social Media
Complements
Other Promotion
(See complete PowerPoint slide notes on page 16.48.)
PPT 16-26
Social Scammers
(See complete PowerPoint slide notes on page 16.48)
lecture link 16-4
RANKING TV OUTSIDE THE
NIELSEN SPECTRUM
Our favorite shows can now be seen on our favorite devices
and Optimedia is there to redo the current rating system. (See
the complete lecture link on page 16.59 of this manual.)
PPT 16-27
Monitoring Ad Effectiveness
(See complete PowerPoint slide notes on page 16.48.)
PPT 16-28
Socially Superior
(See complete PowerPoint slide notes on page 16.49.)
MAKING
ethical
decisions
(Text page 445)
PPT 16-29
Electronic Ethics
(See complete PowerPoint slide notes on page 16.49.)
Chapter 16 – Using Effective Promotions
F. USING SOCIAL MEDIA TO MONITOR AD EFFEC-
is critical, but tricky.
Chapter 16 – Using Effective Promotions
lecture link 16-5
AS SEEN ON SOCIAL MEDIA
Guthy-Renker, an infomercial powerhouse, is turning to
social media to advertise products for younger audiences. (See
complete lecture link on page 16.59 of this manual.)
PPT 16-30
Global Advertising
(See complete PowerPoint slide notes on page 16.49.)
critical thinking
exercise 16-4
ETHICS IN ADVERTISING
The American Association of Advertising Agencies is the
professional organization representing the major advertising
agencies. Its website provides guidelines for ethical behavior
in advertising. (See complete exercise on page 16.67 of this
manual.)
critical thinking
exercise 16-5
DESIGNING A WEBSITE
A well-designed website is a powerful promotional tool.
This exercise asks students to design a basic website—
developing an overall message, developing interesting visual
features, and building a basic page hierarchy. (See complete
exercise on page 16.68 of this manual.)
REACHING BEYOND
our borders
(Text page 446
PPT 16-31
Promotion in Rural
India
(See complete PowerPoint slide notes on page 16.50.)
Chapter 16 – Using Effective Promotions
learning goal 3
III. PERSONAL SELLING: PROVIDING PERSONAL
ATTENTION
A. PERSONAL SELLING is the face-to-face presenta-
tion and promotion of products and services.
1. It also involves searching out prospects and
4. The benefit of personal selling is having a person
portant to establishing long-term relationships
PPT 16-32
Personal Selling
(See complete PowerPoint slide notes on page 16.50.)
PPT 16-33
Steps in the Selling Process
(See complete PowerPoint slide notes on page 16.50.)
Chapter 16 – Using Effective Promotions
c. In both, it is critical for the salesperson to know
compares to those of competitors.
2. STEP 1. PROSPECT AND QUALIFY
Chapter 16 – Using Effective Promotions
PPT 16-34
Prospecting and Qualifying in
Selling
(See complete PowerPoint slide notes on page 16.51.)
PPT 16-35
Buy This!
(See complete PowerPoint slide notes on page 16.51.)
PPT 16-36
Whoops!
(See complete PowerPoint slide notes on page 16.51.)