CHAPTER 15:

Effective Promotion Means Effective Communication

Mrs. PiotrowskiPrinciples of Marketing

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PROMOTION AS A FORM OF COMMUNICATION

SECTION 1:

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3

Identify a marketing message you have seen or heard recently.

Describe how you received the marketing message.

What action or result will occur because of

that message?

SOLVE

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What is promotion?

Promotion is any form of communication that a company uses to inform, persuade, or remind customers about its products or

services.

It is one of the four elements of the marketing mix.

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Promotion is a Form of Communication

Promotion is a communication process, or the transfer of a message from a sender to a

receiver.

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Promotion is a Form of Communication

• The sender is the source of the message being sent (the “who”).

• The message is what is being communicated.• When the sender converts an idea into a message

that the receiver can understand, it is called encoding.

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Promotion is a Form of Communication

• The vehicle by which the message travels is the message channel (the “how”).

• The receiver is the person(s) to whom the message is directed or any person who understands the message that is sent.

• Decoding is the process by which the receiver interprets the transmitted language and symbols to comprehend the message.

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Promotion is a Form of Communication

• Any distracting information in the environment that may inhibit or distract from the message is called noise.

• Feedback is the receiver’s response to the message. – Feedback can be direct or indirect.

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The Role of Promotion

• Promotion fulfills three main roles for marketing. It can…– INFORM– PERSUADE– REMIND…an audience.

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Types of Communication

• There are two main types of communication used by marketers:1. Interpersonal communication2. Mass communication

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Interpersonal Communication

• Interpersonal communication is any person-to-person exchange.– Examples include telemarketing calls, in-person

sales calls, a customer service desk, in-store salespeople, and online chats.

– This tends to be a costly method of communication.

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Mass Communication

• Mass communication attempts to reach a wide audience through media such as radio, television, magazines, and newspapers.– It is much more cost efficient, but is often only

a one-way flow of information.

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TYPES OF PROMOTIONSECTION 2:

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Think of a product you like.

Describe the types of promotions used for that

product.Do the promotions all

communicate the same thing about the product?

Which form of promotional activity

do you find most effective? Why?

SOLVE

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AdvertisingAdvertising is any form of paid, nonpersonal

communication that uses mass media to deliver a marketer’s message to an audience.

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Advertising• The major types of media used for advertising are:

– Broadcast Media – television and radio commercials– Print Advertising – any paid message run in a

magazine or newspaper.– Direct Mail – messages sent to an audience through the

mail (junk mail)– Outdoor Advertising – billboards, buses, taxis,

benches, sporting events– Ambient Advertising – nontraditional media in the

environment of the audience (stickers on bananas)– Internet Advertising – can be targeted by interest and

location…the future of advertising?

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Advertising

Advantages• Efficient in terms of cost-

per-viewer• Controllable and repeatable• Not limited by geography• Has great potential to move

people emotionally

Disadvantages• Overall cost can be

prohibitive…can cost millions of dollars to be effective

• Impersonal in nature• Easy for audiences to tune it

out

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Public Relations• Publicity is any non-paid communication

about a product, service, company, or cause.• The effort to reach customers by generating

positive publicity is known as public relations (PR).

• Although the actual communication is free, companies often have PR departments on the payroll to identify media opportunities.

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Public Relations

Advantages• Third-party sources (such as

the news) are viewed as being more objective

• Relatively inexpensive

Disadvantages• Hard to control

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Personal Selling• Personal selling is person-to-person

communication with a potential customer.• Most commonly used in B2B promotion.• Includes salespeople in stores, telemarketers, real

estate agents, car dealers, etc.• This is usually used for complicated and relatively

expensive products, such as cars, insurance, and homes.

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Personal Selling

Advantages• Personal contact• Immediate feedback from

customers• Presentation is flexible

Disadvantages• Per-person cost

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Sales Promotion• Any activity or material that gives consumers a

direct incentive to buy is called sales promotion.• This is commonly used when companies are

introducing new products.• Common types of sales promotion include sales,

coupons, rebates, free features or options, and giveaways.

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Sales Promotion

Advantages• Generates short-term sales,

which boosts revenues and profits

• Usually measurable

Disadvantages• Builds customer

relationships motivated by incentives rather than a true preference for the brand

• Cost of providing the incentives

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MIXING THE PROMOTIONAL PLAN

SECTION 3:

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Select a product you own.

What types of promotion would you use for the product

if you were planning the promotional mix?

How would you decide what types of promotion would be the most effective?

SOLVE

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The Promotional MixThe promotional mix is the combination of advertising, public relations, personal selling

and sales promotion that marketers use to reach a target market.

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The Promotional Mix

Many factors impact promotional plans, which makes developing the right promotional mix a balancing act!

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Promotional Planning

The blueprint for how the elements of the promotional mix will work together is called

the promotional plan.

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Promotional Planning StepsResearch & Analyze Market

Select the Target Market

Identify Objectives

Set Budget

Develop Promotional Mix

Implement Plans

Evaluate Results

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Why is it important to follow a promotional planning process?

Push vs. Pull Promotion• Push - a promotional strategy where businesses

attempt to take their products to the customers. The term push stems from the idea that marketers are attempting to push their products at consumers. – Sales tactics include trying to sell merchandise directly to

customers via company showrooms and negotiating with retailers to sell their products for them, or set up point-of-sale displays. Often, these retailers will receive special sales incentives in exchange for this increased visibility.– attempt to induce a customer to buy a product.

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Push vs. Pull Promotion• Pull- promotion used to get the customers to come to

you, hence the term pull, where marketers are attempting to pull customers in. – Sales tactics used for pull marketing include mass media

promotions, word-of-mouth referrals and advertised sales promotions. From a business perspective, pull marketing attempts to create brand loyalty and keep customers coming back, whereas push marketing is more concerned with short-term sales.

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