Chapter 16 – Using Effective Promotions
16-31
c. Sales promotion programs are designed to
SUPPLEMENT personal selling, advertising,
and public relations by creating enthusiasm
for the overall promotional program.
d. There has been a big increase in sales pro-
motions in the 21st century.
2. INTERNAL SALES PROMOTIONS (within the
company) generate employee enthusiasm about
a product, including:
a. Sales training
b. Development of sales aids such as flip
charts, portable audiovisual displays, and
videos
c. Participation in trade shows
3. EXTERNAL SALES PROMOTION (outside the
company, including distributors and dealers)
a. It is important to get distributors and dealers
involved so they, too, are enthusiastic.
b. TRADE SHOWS are important because
buyers are able to see products from many
different sellers.
c. VIRTUAL TRADE SHOWS—trade shows on
the Internet—enable buyers to see many
products without leaving the office.
4. The next step is to PROMOTE TO FINAL CON-
SUMERS.
a. Techniques include samples, coupons,
cents-off deals, displays, contests, rebates,
Chapter 16 – Using Effective Promotions
16-32
PPT 16-40
Some Key Consumer Promotions
SOME KEY
CONSUMER PROMOTIONS
16-40
LO 16-5
• Coupons
• Demonstrations
• Sampling
• Sweepstakes
• In-store Displays
• Contests
PPT 16-41
Clip These
CLIP THESE
Most Visited U.S. Coupon Clearing Sites
16-41
LO 16-5
• Coupons, Inc
• EverSave
• RetailMeNot
• CouponCabin
Chapter 16 – Using Effective Promotions
16-33
and so on.
b. Sales promotion is an ongoing effort to main-
tain enthusiasm.
B. SAMPLING is a promotional tool in which a compa-
ny lets consumers have a small sample of a product
for no charge.
1. Using sampling in GROCERY STORES is a
quick, effective way of demonstrating a product’s
superiority at the time consumers are making a
purchase decision.
2. Companies use sampling in conjunction with
other techniques such as EVENT MARKETING.
3. The text uses the example of Pepsi’s introduc-
tion of SoBe.
learning objective 6
Show how word of mouth, viral marketing, blogging, podcasting, e-mail market-
ing, and mobile marketing work.
VI. WORD OF MOUTH AND OTHER PROMOTION-
AL TOOLS
A. WORD OF MOUTH is one of the most effective
promotional tools.
1. WORD-OF-MOUTH PROMOTION is a promo-
tional tool that involves people telling other peo-
ple about products they have purchased.
2. Anything that encourages people to talk favora-
bly about an organization is effective word of
mouth.
3. Clever commercials and samples can generate
word of mouth.
Chapter 16 – Using Effective Promotions
16-34
test
prep
PPT 16-42
Test Prep
TEST PREP
16-42
• What are the three steps in setting up a public
relations program?
• What are the sales promotion techniques used to
reach consumers?
• What sales promotion techniques are used to
reach businesses?
PPT 16-43
Using Word-of-Mouth Promotion
USING WORD-of-MOUTH
PROMOTION
16-43
LO 16-6
• Word-of-Mouth Promotion — People tell others
about products they have purchased.
• Word-of-Mouth is important for products like:
– Restaurants
– Daycare and Eldercare
– Car Repair Shops
– Hair Stylists
– Hotels
Chapter 16 – Using Effective Promotions
16-35
B. VIRAL MARKETING
1. Some companies have begun creating word of
mouth by paying people to go online and hyping
the product in chat rooms.
2. These people get free tickets, T–shirts, and other
merchandise that the industry calls SWAG.
3. VIRAL MARKETING is the term now used to
describe everything from paying people to say
positive things on the Internet to setting up multi-
level selling schemes whereby consumers get
commissions for directing friends to specific
websites.
4. An effective strategy for spreading word of
mouth is to send TESTIMONIALS to current
customers.
a. These are effective in confirming customers’
belief that they chose the right company and
are effective in promotion to new customers.
b. But negative word of mouth can hurt a firm.
c. Upset customers are now publishing their
complaints on the Internet.
C. BLOGGING
1. A BLOG can attract new customers and help
maintain a relationship with new customers.
2. There are millions of blogs on the Internet.
D. PODCASTING
1. PODCASTING is a means of distributing multi-
media files via the Internet for downloading to a
Chapter 16 – Using Effective Promotions
16-36
ADAPTING TO
change
PPT 16-44
What Are Com-
panies Yelping
About?
WHAT ARE COMPANIES
YELPING ABOUT
16-44
• Many companies have a website, Facebook page
or some online presence.
• However, on review sites like Yelp, they cannot
control their public image.
• The Federal Trade Commission has received over
2,000 complaints about Yelp.
• Companies can respond to reviews. But often the
damage is already done.
PPT 16-45
Emerging Promotional Tools
EMERGING
PROMOTIONAL TOOLS
16-45
LO 16-6
• Viral Marketing — Paying
customers to say positive things
on the Internet or setting up
multiple selling schemes whereby
consumers get commissions.
• People who promote through
viral marketing often receive
SWAG which can include free
tickets, shirts, and other
merchandise.
Chapter 16 – Using Effective Promotions
16-37
portable media player.
2. Podcasting gives broadcast radio or television
programs a new distribution method.
3. Many companies have also found success in
creating video for YouTube.
E. E-MAIL PROMOTIONS
1. Many companies use e-mail to announce new
products and provide product updates.
2. While e-mails may lose their power over time,
they are still gaining in popularity.
3. One key to success is to keep the message brief
for mobile users.
F. MOBILE MARKETING
1. Marketers use the cell phone to send texts to
promote sweepstakes, send news and alerts,
and give company information.
2. TRADITIONAL PROMOTIONAL methods are
slowly but surely being replaced by new tech-
nology.
VII. MANAGING THE PROMOTION MIX: PUTTING
IT ALL TOGETHER
A. Each target group calls for a separate promotion
mix.
1. Large, homogeneous groups of consumers are
most efficiently reached through ADVERTISING.
2. Large organizations are best reached through
PERSONAL SELLING.
3. SALES PROMOTION motivates people to buy
Chapter 16 – Using Effective Promotions
16-38
PPT 16-46
Blogs, Podcasts, and E-Mails
BLOGS, PODCASTS,
and E-MAILS
16-46
LO 16-6
• Blogs are a great way to interact with customers
and improve the company’s website ranking.
• Podcasting — A way to distribute multimedia files via
the Internet.
• Email promotions increase brand awareness
among commercial suppliers.
lecture enhancer 16-6
CONAN’S TWITTER TRIUMPH
After losing the Tonight Show, Conan O’Brien’s future looked
grim. How did he reinvent himself? Through Twitter. (See the
complete lecture enhancer on page 16.63 of this manual.)
PPT 16-47
Mobile Media
MOBILE MEDIA
16-47
LO 16-6
• Marketers make use
of smartphones to
text customers about
product offers and
other company
information.
Chapter 16 – Using Effective Promotions
16-39
now rather than later.
4. PUBLICITY adds support to the other efforts
and can create a good impression.
5. WORD OF MOUTH is often the most powerful
promotional tool; often including blogs and pod-
casting.
B. PROMOTION STRATEGIES
1. In a PUSH STRATEGY, the producer uses ad-
vertising, personal selling, sales promotion, and
all other promotional tools to convince wholesal-
ers and retailer to stock and sell merchandise.
2. In a PULL STRATEGY, heavy advertising and
sales promotion efforts are directed toward con-
sumers so they will request the products from
retailers.
3. A company can use BOTH push and pull strate-
gies at the same time.
4. The latest in pull and push strategies are being
conducted on the INTERNET.
5. It is important to make promotion part of a TO-
TAL SYSTEMS APPROACH to marketing.
a. Thus, promotion would be an integral part of
supply-chain efforts.
b. The idea would be to develop a TOTAL
PRODUCT OFFER to appeal to everyone:
manufacturers, distributors, retailers, and
consumers.
6. Today push and pull strategies seem to be los-
ing some effectiveness.
Chapter 16 – Using Effective Promotions
16-40
PPT 16-48
Push, Pull, and Pick Promotional
Strategies
PUSH, PULL, AND PICK
PROMOTIONAL STRATEGIES
16-48
LO 16-6
• Push Strategy — Producers use advertising,
personal selling, sales promotion, and other tools to
get their products stocked on shelves.
• Pull Strategy — Directs heavy advertising and sales
promotions efforts towards consumers and gets the
public to request their products from retailers.
• Pick Economy — Refers to consumers who pick out
their products from online outlets.
Chapter 16 – Using Effective Promotions
16-41
a. Customers are increasingly using the Inter-
net to shop for products.
b. The term PICK ECONOMY refers to those
consumers who pick out their products from
online outlets or who do online comparison
shopping.
VIII. SUMMARY
Chapter 16 – Using Effective Promotions
16-42
test
prep
PPT 16-49
Test Prep
TEST PREP
16-49
• What’s viral marketing?
• What are blogging and podcasting?
• Describe a push strategy and a pull strategy.
16-43
PowerPoint slide notes
PPT 16-1
Chapter Title
Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Using
Effective
Promotions
CHAPTER 16
PPT 16-2
Learning Objectives
LEARNING OBJECTIVES
16-2
1. Identify the new and traditional tools that make up
the promotion mix.
2. Contrast the advantages and disadvantages of
various advertising media, including the Internet and
social media.
3. Illustrate the steps of the B2B and B2C selling
processes.
PPT 16-3
Learning Objectives
LEARNING OBJECTIVES
16-3
4. Describe the role of the public relations department,
and show how publicity fits in that role.
5. Assess the effectiveness of various forms of sales
promotion, including sampling.
6. Show how word of mouth, viral marketing, blogging,
podcasting, e-mail marketing, and mobile marketing
work.
Chapter 16 – Using Effective Promotions
16-44
PPT 16-4
Chris Hardwick
CHRIS HARDWICK
Nerdist Industries
16-4
• Hardwick broke into
entertainment after graduating
from UCLA.
• After his career hit a low, he
started following his nerd
passions and created The
Nerdist.
• Entered a partnership with
Peter Levin and expanded the
Nerdist franchise.
PPT 16-5
Name That Company
NAME that COMPANY
16-5
This company put its product into the hands of
Spiderman. Viewers watched as the superhero
used the product throughout his latest movie.
Name that company!
Company: Sony
PPT 16-6
Promotion in an Organization
• Promotion Mix — The combination of promotional
tools an organization uses. The traditional mix
includes:
PROMOTION
in an ORGANIZATION
16-6
LO 16-1
Chapter 16 – Using Effective Promotions
16-45
PPT 16-7
Integrated Marketing Communication
(IMC)
INTEGRATED MARKETING
COMMUNICATION (IMC)
16-7
LO 16-1
• Integrated Marketing Communication (IMC) —
Combines the promotional tools into one
comprehensive strategy. IMC is used to:
– Create a positive brand image.
– Meet the needs of consumers.
– Meet the strategic marketing and promotional
goals of the firm.
Emphasis today is on integrating traditional media with
social media.
PPT 16-8
Steps in a Promotional Campaign
STEPS in a
PROMOTIONAL CAMPAIGN
16-8
LO 16-1
1. Identify a target market
2. Define objectives
3. Determine a promotional budget
4. Develop a unifying message
5. Implement the plan
6. Evaluate effectiveness
PPT 16-9
Classic Campaigns
CLASSIC CAMPAIGNS
Brilliant Marketing Ideas
16-9
Campaign Company Why it’s Cool
A Diamond is Forever De Beers Since 1939, it’s been tapping
into our emotions.
Marlboro ManMarlboro He’s the most successful trade
character ever.
Does she… or doesn’t she? ClairolThe birth of the “shock ad” in
1957.
1984 Apple The uncommercial didn’t
explain the product.
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.
LO 16-1
1. This slide shows the evolution of marketing cam-
paigns from pulling onto heartstrings to shocking
viewers to engaging customers.
2. Ask students: Do you expect social media to con-
tinue to play a big part in marketing? How are
campaigns like Dove’s “Real Beauty” gaining a
new customer base?