Chapter 16 – Using Effective Promotions
16-46
PPT 16-10
Advertising in the Firm
ADVERTISING in the FIRM
16-10
LO 16-2
• Advertising — Paid, non-
personal communication
through various media by
organizations and individuals
who are in some way
indentified in the message.
• Major goals of advertising:
– Inform
– Persuade
– Remind
Advertising is different from public relations, since adver-
tising is paid and public relations is free.
PPT 16-11
Impact of Advertising
IMPACT of ADVERTISING
16-11
LO 16-2
• Total advertising expenditures
exceed $215 billion yearly.
• Consumers benefit because
production costs of TV
programs, radio programs,
newspapers and magazines are
paid for by advertisers.
• Marketers choose ad media
that will reach the target market.
PPT 16-12
Major Categories of Advertising
MAJOR CATEGORIES of
ADVERTISING
Category What it is
Retail From retail stores to consumers
Trade From manufacturers to wholesalers and retailers
B2B From manufacturers to other manufacturers
Institutional Creates a desirable image for an organization
Product Creates a desirable image for a product or service
16-12
LO 16-2
1. This information presented on this and the follow-
ing slides are from Figure 16.3 in the text.
2. If time permits, ask students to bring magazines
and newspapers with examples of the above adver-
tising categories.
Chapter 16 – Using Effective Promotions
16-47
PPT 16-13
Major Categories of Advertising
MAJOR CATEGORIES of
ADVERTISING
Category What it is
Advocacy Supports a particular view of an issue
Comparative Compares competing products
Interactive Customer-oriented ads that allows customers to
choose information to receive
Online Computer ads featured on different sites
Mobile Ads that reach consumers on cell phones
16-13
LO 16-2
PPT 16-14
Advertising Expenditure by Media in $
Millions
ADVERTISING EXPENDITURE by
MEDIA in $ MILLIONS
16-14
LO 16-2
Before showing this slide, ask students to guess the top five
forms of direct advertising.
PPT 16-15
Dear Mr. Postman . . .
1. Plan: What should your mailing accomplish?
2. Get the Right List: The better the list, the better
your chance of success.
DEAR MR. POSTMAN…
Steps in Launching a Direct-Mail Campaign
16-15
LO 16-2
3. Stand Out: Make your ad like
no other.
4. Get Help: Contact a marketing
firm with direct mail experience.
5. Follow Up: One mailing is not
enough.
1. This slide highlights the steps in launching a direct-
mail campaign
2. Direct-mail is the number one form of advertising,
accounting for 21.6% of all ad dollars spent
3. Ask students: Why is direct-mail so popular as a
form of advertising? (Answers may vary but stu-
dents should understand that the cost of direct-mail
and the ability to target specific demographic
groups make direct-mail a popular choice.)
4. Once students have discussed the benefits of direct-
mail ask them about the drawbacks of this form of
advertising. (The main drawback to this form of
advertising is that people will look at each mailer
as just more junk and throw it in the trash can.)
Chapter 16 – Using Effective Promotions
16-48
PPT 16-16
Match Game
MATCH GAME
Match the Company with the Slogan
16-16
LO 16-2
• “Everybody doesn’t like something, but nobody
doesn’t like ___________.”
• “We bring good things to life.”
• “It takes a licking and keeps on ticking.”
• “With a name like _________, it has to be good.”
• “Good to the last drop.”
• “Betcha can’t eat just one!”
• “Because you’re worth it.”
1. This slide represents a few of the most recognized ta-
glines in the United States. It will be interesting to see
how many students recognize the taglines.
2. Ask the students: Do you know what products these
taglines represent? Taglines are very important to a
company’s advertising message. Companies want
people to respond to their message, therefore these
taglines must tell individuals how the product benefits
them:
Sara Lee, GE, Timex , Smucker’s, Maxwell
House, Lay’s, L’Oréal
PPT 16-17
It’s a Dog’s Life
IT’S a DOG’S LIFE
Famous and Not-so-Famous Dogs in Advertising
16-17
Pooch Company
Nipper RCA
Tige Buster Brown Shoes
Chihuahua Taco Bell
Spuds McKenzie Bud Light
McGruff The Crime Dog
Duke Bush’s Beans
Bullseye Target
LO 16-2
1. Dogs have been used in advertising for years.
2. This slide highlights some of the famous and not–
so-famous dogs used in advertising.
3. Ask students: Why are dogs so popular in advertis-
ing?
PPT 16-18
Popular Advertising Media
• TV advertising is still the dominant media.
• Digital Video Recorders (DVRs) challenge TV
advertising because viewers can skip ads.
POPULAR ADVERTISING MEDIA
16-18
LO 16-2
• Product Placement —
Advertisers pay to put
their products into TV
shows and movies where
the audience will see
them.
Chapter 16 – Using Effective Promotions
16-49
PPT 16-19
Not Quite the NFL…
NOT QUITE the NFL…
16-19
LO 16-2
Sport Cost Why?
Equestrian $15,000+ The demographic skews to high-
income females.
Bowling $20,000+
It’s shown on television and
lower cost than other televised
sports.
Surfing $25,000+ The young market is responsive
to guerrilla marketing.
Women’s Golf $50,000+
A popular sport in Europe and
Asia and great for global
companies.
Source: Inc., www.inc.com, accessed November 2014.
PPT 16-20
Infomercials and Online Advertising
INFOMERCIALS and
ONLINE ADVERTISING
16-20
LO 16-2
• Infomercial — A full length TV program
devoted exclusively to promote a
particular product.
• Online ads are attempts to get potential
customers to a web site to learn about a
product.
• Interactive Promotion — Allows
marketers to open a dialogue between
buyers and sellers and let them work
together to create a beneficial
exchange.
PPT 16-21
Infomercial Hall of Fame
INFOMERCIAL HALL of FAME
The Biggest Hits Over the Past 40 Years
Source: Fortune, www.fortune.com, accessed November 2014. 16-21
LO 16-2
• Veg-O-Matic
• Ginsu Knives
• The Clapper
• Thigh Master
• George Foreman Grill
• Bowflex
1. This slide presents the biggest infomercial hits over
the past 40 years.
2. Ask students: Why are infomercials on the air?
(Simple, they work. It is estimated that infomer-
cials make up 25 percent of all television commer-
cials and that 66 percent of adults have watched
them.)
3. The following link is from YouTube and features
the top ten worst infomercials of all time. Students
love to watch this video and laugh at some of the
products featured.
http://www.youtube.com/watch?v=duaiVk_aRgQ.
Chapter 16 – Using Effective Promotions
16-50
PPT 16-22
Online Experience
ONLINE EXPERIENCE
How to Avoid Losing Customers Over a Bad Web Site
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014. 16-22
LO 16-2
1. Brand messaging is key.
2. Site must be easy to
navigate.
3. Make sure calls to action
are effective.
4. Users want fast, readable
sites.
5. Users with disabilities
should be able to navigate.
1. Failing to deliver an online experience to custom-
ers may result in losing them.
2. This slide shows ways to avoid a bad customer ex-
perience.
3. Ask students: What are examples of company or
product web sites you like? Navigate through sites
mentioned and ask other students to chime in on
why they think it’s a good customer experience.
PPT 16-23
Pay-Per-Tweet
PAY-PER-TWEET
16-23
• Celebrities can earn large sums
of money just buy mentioning a
product or site in their tweets.
• Do you think it is ethical for
celebrities to get paid to tweet
pre-written ads that appear to be
their own personal comments?
PPT 16-24
Monitoring Ad Effectiveness
MONITORING
AD EFFECTIVENESS
16-24
PhotoCredit:BrentMoore
LO 16-2
• Dr. Pepper posts messages
on Facebook and monitors
the results from their millions
of fans.
• Richard Branson and
Tony Hsieh all tweet their
customer base to maintain
two-way communication.
Chapter 16 – Using Effective Promotions
16-51
PPT 16-25
Social Scammers
SOCIAL SCAMMERS
How to Protect Yourself From Schemers
Source: Kiplinger’s Personal Finance, December 2010. 16-25
PhotoCredit:PaulKlintworth
LO 16-2
1. Be wary of requests for
money transfers — even
from friends’ accounts.
2. Be wary when you use
applications. Don’t give
unnecessary information.
3. Use URL expanders to see
the full address of links on
friends’ pages.
1. Although businesses want you to spread the word
about their products through social media, some
groups are using this trend to scam others.
2. Ask students: Have they experienced strange re-
quests or application problems? How else could
you protect yourself and your friends from online
scammers?
PPT 16-26
What’s in Your Oreo?
• To Americans, an Oreo is the same cookie
we’ve been enjoying for over 100 years.
• But Kraft has taken Oreos global which has led
to different variations.
WHAT’S in YOUR OREO?
16-26
• In China they enjoy green
tea Oreos while Argentina
has banana with dulce de
leche.
PPT 16-27
Global Advertising
GLOBAL ADVERTISING
16-27
LO 16-2
• Requires marketers to
develop a single product
and promotional strategy to
implement worldwide.
• Problems can arise in global
markets with using one
advertising campaign in all
countries – especially bad
translations.
Culturally sensitive advertising is key to successful interna-
tional marketing.
Chapter 16 – Using Effective Promotions
16-52
PPT 16-28
Personal Selling
• Personal Selling — The face-to-face presentation
and promotion of a product, including the
salesperson
’
s search for new prospects and follow-
up service.
PERSONAL SELLING
16-28
LO 16-3
• Salespeople need to listen to
customer needs, help reach
a solution and do everything
possible to make the
transaction as simple as
possible.
Selling is about more than trying to convince someone to
buy a product; it is about listening to the needs of the cus-
tomer.
PPT 16-29
Steps in the Selling Process
1. Prospect and qualify
2. Pre-approach
3. Approach
4. Make a presentation
5. Answer objections
6. Close the sale
• Trial Close — A statement or question that
moves the process toward the purchase.
7. Follow up
STEPS in the SELLING PROCESS
16-29
LO 16-3
PPT 16-30
Prospecting and Qualifying in
Selling
• Prospecting — Researching potential buyers and
choosing those most likely to buy.
PROSPECTING and QUALIFYING
in SELLING
16-30
LO 16-3
• Qualifying — Making sure
customers have a need for a
product, the authority to buy
and the willingness to listen
to a sales message.
• Prospect — A customer
who meets the qualifying
criteria.
A key to B2B selling is qualifying customers, so that time
is not wasted on customers who do not have a need.
Chapter 16 – Using Effective Promotions
16-53
PPT 16-31
Buy This!
BUY THIS!
Successful Selling Strategies
16-31
LO 16-3
• Know your competition
• Understand your customer’s business
• Differentiate your product or service
• Sell to the people most likely to buy
• Build relationships
• Put the right people in the right selling spots
1. There are several strategies for selling that have
been proven to work. Some of those are listed on
this slide.
2. Ask students to get into small groups or turn to a
neighbor and discuss why they think these strate-
gies work.
3. Have students think about which of these strategies
they think are the most successful (rank order) and
support their answers. Ask students: Was it easy to
rank order these? Do you think some are more ef-
fective than others? Why?
PPT 16-32
Whoops!
WHOOPS!
Sales Slip-Ups
16-32
LO 16-3
• Not feeling the customer’s pain
• Making money is the only goal
• Seeing sales as just a job
• Getting upset during the presentation
• Failing to properly prepare or over-preparing
• Not being yourself
• Neglecting the relationship
1. There are several mistakes people make when try-
ing to make the sale. Those are listed on this slide.
2. Ask students: Have you ever decided not to pur-
chase something because of a sales person? What
made you not want to buy from that particular per-
son?
PPT 16-33
Steps in the B2C Selling Process
STEPS in the B2C
SELLING PROCESS
16-33
LO 16-3
Chapter 16 – Using Effective Promotions
16-54
PPT 16-34
Test Prep
TEST PREP
16-34
• What are the four traditional elements of the
promotion mix?
• What are the three most important advertising
media in order of dollars spent?
• What are the seven steps in the B2B selling
process? How does it differ from the B2C selling
process?
1. The four traditional elements of the promotion mix
include: advertising, personal selling, public rela-
tions, and sales promotion.
2. The three most important advertising media in or-
der of dollar spent are: television, direct mail, and
digital.
3. The seven steps in the B2B selling process are: (1)
prospecting and qualifying, (2) pre-approach, (3)
approach, (4) make presentation, (5) answer objec-
tions, (6) close sale, and (7) follow-up.
PPT 16-35
Using Public Relations in Promotion
USING PUBLIC RELATIONS in
PROMOTION
16-35
LO 16-4
• Public Relations (PR) — Evaluates public attitudes,
changes policies and procedures in response to the
public, and executes a program of action and
information to earn public understanding and
acceptance.
• 3 steps of a good PR program:
1) Listen to the public
2) Change policies and procedures
3) Inform people you’re responsive to their needs
PPT 16-36
Publicity
PUBLICITY
16-36
LO 16-4
• Publicity — Any information
about an individual, product or
organization that
’
s distributed to
the public through the media and
is not paid for or controlled by the
seller.
• Advantages of Publicity:
– Free
– Reaches people who would not
look at an advertisement
– More believable than advertising
Chapter 16 – Using Effective Promotions
16-55
PPT 16-37
Disadvantages of Publicity
DISADVANTAGES of PUBLICITY
16-37
LO 16-4
• No control over whether the
media will use a story or when
they may release it.
• It can be good or bad.
• Once a story has been run, it is
not likely to run again.
PPT 16-38
Sales Promotions
• Sales Promotion — The promotional tool that
stimulates consumer purchasing and dealer interest
by means of short-term activities.
SALES PROMOTIONS
16-38
LO 16-5
• Categories of Sales
Promotions:
1. B2B Sales
Promotions
2. Consumer Sales
Promotions
PPT 16-39
Sales Promotion Techniques
SALES PROMOTION TECHNIQUES
16-39
LO 16-5
Chapter 16 – Using Effective Promotions
16-56
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
1. Coupons are no longer only in the Sunday newspa-
per, now we have web sites dedicated to coupon
clipping.
2. First coupon was distributed in 1894 for Coca-
Cola.
3. Ask students: Have you clipped and used coupons?
Where did you get the coupons used? Was clipping
the coupon the motivation for trying the product?
What was your experience? Would you have tried
the product without the coupons?
4. Ask students: Would using coupons be a push or
pull strategy? (Pull strategy)
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?
1. The three steps in a public relations program in-
clude: (1) listen to the public, (2) develop policies
and procedures in the public interest, and (3) tell
people you’re being responsive to their needs.
2. External sales promotions to consumers rely on
samples, coupons, cents-off deals, displays, store
demonstrators, premiums, and other incentives.
3. Internal sales promotion activities include sales
training, sales aids, audiovisual displays, and trade
shows.
Chapter 16 – Using Effective Promotions
16-57
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
PPT 16-44
What Are Companies 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
16-58
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.
Tweeting, blogging, and podcasting are rapidly changing
how products are promoted.
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.
PPT 16-48
Push, Pull, and Pick Promotional Strat-
egies
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
16-59
PPT 16-49
Progress Assessment
TEST PREP
16-49
• What’s viral marketing?
• What are blogging and podcasting?
• Describe a push strategy and a pull strategy.
1. Viral marketing is a broad term that describes eve-
rything from paying customers to say positive
things online to setting up multilevel selling
schemes whereby consumers get commissions for
directing friends to specific sites.
2. A blog is an online diary that allows the user to
create and update with text, photos, or links to oth-
er sties. Podcasting is a means of distributing audio
and video programs online.
3. In a push strategy, the producer uses advertising,
personal selling, sales promotion, and all other
promotional tools to convince wholesalers and re-
tailers to stock and sell merchandise. A pull strate-
gy directs all advertising and sales promotion to-
ward the consumer.
Chapter 16 – Using Effective Promotions
16-60
lecture
links
“The first rule of business is never sell something you love. Otherwise, you may as well
be selling your children”
Hugh Macleod
“If everything seems to be going well, you have obviously overlooked something.”
Steven White
“Doing business without advertising is like winking at a girl in the dark. You know what
you are doing, but nobody else does.”
Stuart Henderson
lecture enhancer 16-1
MURPHY’S LAWS OF MARKETING
The study of marketing doesn’t always have to be serious and academic. When you need some ir-
reverence, a good source is Arthur Bloch’s book, Murphy’s Laws, first published in 1978. To celebrate
the 25th anniversary of its publication, Arthur Block reissued it as Murphy’s Law: The 25th Anniversary
Edition. Following are a few of Murphy’s laws of marketing.
Robbin’s Rules of Marketing
1. Your share of the market is lower than you think.
2. The combined market position goals of all competitors always totals at least 150%.
3. The existence of a market does not ensure the existence of a customer.
4. Beware of alleged needs that have no real market.
5. Low price and long shipment will win over high price and short shipment.
6. If the customer buys lunch, you’ve lost the order.
Things That Can Be Counted on in a Crisis
MARKETING says yes.
FINANCE says no.
LEGAL has to review it.
PERSONNEL is concerned.
PLANNING is frantic.
ENGINEERING is above it all.
MANUFACTURING wants more floor space.
TOP MANAGEMENT wants someone responsible.