Chapter 16using Effective Promotionsmcgraw Hill Education All Rights ✓ Solved
Chapter 16 Using Effective Promotions ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. 1 Learning Objectives LO 16-1 Identify the new and traditional tools that make up the promotion mix.
LO 16-2 Contrast the advantages and disadvantages of various advertising media, including the Internet and social media. LO 16-3 Illustrate the steps of the B2B and B2C selling processes. LO 16-4 Describe the role of the public relations department, and show how publicity fits in that role. LO 16-5 Assess the effectiveness of various forms of sales promotion, including sampling. LO 16-6 Show how word of mouth, viral marketing, social networking, blogging, podcasting, e-mail marketing, and mobile marketing work. ©McGraw-Hill Education.
2 Promotion and the Promotion Mix LO 16-1 Promotion mix — The combination of promotional tools an organization uses. Integrated marketing communication (IMC) — A technique that combines the promotional tools into one comprehensive and unified promotional 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 ©McGraw-Hill Education. 3 Figure 16.1 The Traditional Promotion Mix LO 16-1 ©McGraw-Hill Education. 4 Figure 16.2 Steps in a Promotional Campaign LO 16-1 Identify a target market.
Define the objectives for each element of the promotion mix. Determine a promotional budget. Develop a unifying message. Implement the plan. Evaluate effectiveness. ©McGraw-Hill Education.
5 Advertising: Informing, Persuading, and Reminding 1 of 4 LO 16-2 Advertising — Paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message. Impact of Advertising Total advertising expenditures exceed 0 billion in 2016. 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. ©McGraw-Hill Education. Figure 16.3 Major Categories of Advertising 1 of 2 LO 16-2 Retail advertising —to consumers by various retail stores Trade advertising —to wholesalers and retailers by manufacturers Business-to-business advertising —from manufacturers to other manufacturers Institutional advertising — to create attractive image for organization rather than for product Product advertising — to create interest among consumer, commercial, and industrial buyers ©McGraw-Hill Education.
Figure 16.3 Major Categories of Advertising 2 of 2 LO 16-2 Advocacy advertising — supports particular view of issue Comparison advertising — compares competitive products Interactive advertising — enables customers to choose the information they receive Online advertising — appear on computers as people visit different websites Mobile advertising — reaches people on their smartphones ©McGraw-Hill Education. Figure 16.4 Estimated U.S. Advertising Expenditure in 2016 by Medium (in Billions of Dollars) LO 16-2 Jump to long description in appendix ©McGraw-Hill Education. Advertising: Informing, Persuading, and Reminding 2 of 4 LO 16-2 Television Advertising TV advertising is still the dominant media.
DVRs and OnDemand services challenge TV advertising because viewers can skip ads. Product Placement Product placement – Putting products into TV shows and movies where they will be seen. ©McGraw-Hill Education. Advertising: Informing, Persuading, and Reminding 3 of 4 LO 16-2 Infomercials Infomercial — A full-length TV program devoted exclusively to promoting goods or services. Online Advertising Online ads are attempts to get potential customers to a website to learn about a product. Interactive promotion — Promotion process that allows marketers to go beyond a monologue, where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships. ©McGraw-Hill Education.
Advertising: Informing, Persuading, and Reminding 4 of 4 LO 16-2 Social Media Advertising Companies can measure how many times a post is viewed or shared. Social media allows marketers to test promotions before bringing them to traditional media. Global Advertising 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. Many marketers are moving from globalism to regionalism. ©McGraw-Hill Education. Personal Selling: Providing Personal Attention 1 of 4 LO 16-3 Personal selling — The face-to-face presentation and promotion of goods and services.
Salespeople need to listen to customer needs, help reach a solution, and do everything possible to make the transaction as simple as possible. ©McGraw-Hill Education. Personal Selling: Providing Personal Attention 2 of 4 LO 16-3 Steps in the Selling Process Prospect and qualify Preapproach Approach Make a presentation Answer objections Close the sale Trial close — A question or statement that moves the selling process toward the actual close. Follow up ©McGraw-Hill Education. Personal Selling: Providing Personal Attention 3 of 4 LO 16-3 Steps in the Selling Process continued Prospecting and Qualifying Prospecting — Researching potential buyers and choosing those most likely to buy. Qualifying — Making sure that people have a need for the product, the authority to buy, and the willingness to listen to a sales message.
Prospect — A person with the means to buy a product, the authority to buy, and the willingness to listen to a sales message. ©McGraw-Hill Education. Personal Selling: Providing Personal Attention 4 of 4 LO 16-3 The Business-to-Consumer Sales Process Most of these sales take place in retail stores. The salesperson does not have to do much prospecting or qualifying. Retail salespeople don’t usually need a preapproach step. Follow up if the product is to be delivered or installed. ©McGraw-Hill Education.
16 Figure 16.6 Steps in the Business-to-Consumer (B2C) Selling Process LO 16-3 ©McGraw-Hill Education. Public Relations: Building Relationships 1 of 3 LO 16-4 Public relations (PR) — The management function that evaluates public attitudes, changes policies and procedures in response to the public’s requests, and executes a program of action and information to earn public understanding and acceptance. Three steps of a good PR program: Listen to the public. Change policies and procedures. Inform people you’re responsive to their needs. ©McGraw-Hill Education.
Public Relations: Building Relationships 2 of 3 LO 16-4 Publicity: The Talking Arm of PR Publicity — Any information about an individual, product, or organization that’s distributed to the public through the media and that’s 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 ©McGraw-Hill Education. 19 Public Relations: Building Relationships 3 of 3 LO 16-4 Publicity: The Talking Arm of PR continued Disadvantages of publicity: 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. ©McGraw-Hill Education.
20 Sales Promotion: Giving Buyers Incentives LO 16-5 Sales Promotion — The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities. Categories of Sales Promotions: B2B sales promotions Consumer sales promotions Key Consumer Promotions Samples Coupons Contests and prizes ©McGraw-Hill Education. 21 Figure 16.7 Sales Promotion Techniques LO 16-5 Jump to long description in appendix ©McGraw-Hill Education. 22 Word of Mouth and Other Promotional Tools 1 of 4 LO 16-6 Word-of-mouth promotion — People tell others about products they have purchased. Viral marketing — Paying customers to say positive things on the Internet or setting up multiple selling schemes whereby consumers get commissions for directing friends to specific websites.
Many viral marketing programs give away free products or services in exchange for e-mail addresses. ©McGraw-Hill Education. 23 Word of Mouth and Other Promotional Tools 2 of 4 LO 16-6 Social Networking Steps to launch a successful promotional campaign: Know your customer base. Post something new every day. Develop fun, suitable hashtags. Use a publishing calendar.
Engage with customers through contests and entertainment. Follow back and reply to commenters. Familiarize yourself with new site features. Measure the effectiveness of posts. ©McGraw-Hill Education. 24 Word of Mouth and Other Promotional Tools 3 of 4 LO 16-6 Blogging Blogs are a great way to interact with customers and improve the company’s website ranking.
Podcasting Podcasting — A means of distributing audio and video programs via the Internet that lets users subscribe to a number of files, also known as feeds, and then hear or view the material at the time they choose. ©McGraw-Hill Education. 25 Word of Mouth and Other Promotional Tools 4 of 4 LO 16-6 E-Mail Promotions E-mail promotions increase brand awareness among commercial suppliers. Mobile Marketing Marketers make use of smartphones to text customers about product offers and other company information. ©McGraw-Hill Education. 26 Managing the Promotion Mix: Putting It All Together LO 16-6 Promotional Strategies Push strategy — The producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise.
Pull strategy — Heavy advertising and sales promotion efforts are directed toward consumers so that they’ll request the products from retailers. ©McGraw-Hill Education. 27 Appendix of Long Image Descriptions ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
28 Appendix 1 Figure 16.4 Estimated U.S. Advertising Expenditure in 2016 by Medium (in Billions of Dollars) From highest to lowest projected advertising spending: TV: approximately 37 billion dollars Digital: approximately 35 billion dollars Radio: approximately 8 billion dollars Newspapers: approximately 7.5 billion dollars Magazines: approximately 7 billion dollars Outdoor: approximately 4 billion dollars Directories: approximately 2 billion dollars Return to original slide ©McGraw-Hill Education. ©McGraw-Hill Education. 29 Appendix 2 Figure 16.7 Sales Promotion Techniques B2B promotion techniques include trade shows, portfolios for salespeople, deals (price reductions), catalogs, and conventions.
B2C promotion techniques include coupons, cents-off promotions, sampling, premiums, sweepstakes, contests, bonuses (buy one, get one free), catalogs, demonstrations, special events, lotteries, and in-store displays. Return to original slide ©McGraw-Hill Education. ©McGraw-Hill Education. 30
Paper for above instructions
Assignment: Utilizing Effective Promotions in Marketing Strategies
Introduction
In the realm of marketing, effective promotions play a pivotal role in reaching target markets and achieving corporate objectives. A comprehensive understanding of the different promotional tools is essential for any marketing professional. This paper will explore the promotional mix as part of Integrated Marketing Communications (IMC), the advantages and disadvantages of various media, the steps of B2B and B2C selling processes, the importance of public relations and publicity, sales promotions, and modern marketing techniques, such as social media marketing, as outlined in Chapter 16 of McGraw-Hill Education's marketing materials.
Promotion Mix and Integrated Marketing Communication (IMC)
The promotion mix comprises multiple promotional tools, including advertising, personal selling, sales promotions, public relations, and direct marketing, all working cohesively to create a unified message (Lamb et al., 2019). IMC emphasizes the integration of these tools to create consistent and engaging consumer experiences that foster brand loyalty and awareness. Effective IMC strategies facilitate not only communication but also enhance the overall impact of promotions (Schultz & Patti, 2018).
Media Advertising: Pros and Cons
When it comes to advertising media, marketers have a plethora of options; however, each medium carries distinct advantages and disadvantages. For instance, television remains a dominant advertising platform due to its vast reach. However, with the rise of DVRs and streaming services, audiences can skip ads, challenging traditional TV advertising strategies (Harrison & Smith, 2020). Online advertising offers interactive elements and measurable results, but competition is fierce, requiring brands to create eye-catching content to stand out (Chaffey & Ellis-Chadwick, 2019). On the other hand, social media advertising can be remarkably effective due to its capacity for targeting specific demographics, but challenges include managing negative feedback and ensuring the brand's message remains clear and engaging (Tuten & Solomon, 2017).
Steps in the B2B and B2C Selling Processes
Understanding the distinct differences between B2B and B2C selling processes is vital for effective promotions. The typical B2B selling process progresses through steps such as prospecting, qualifying leads, conducting pre-approaches, making presentations, addressing objections, and closing sales (Kotler & Keller, 2016). B2C selling, in contrast, often entails more straightforward promotional efforts, typically taking place in retail environments where personal interaction is limited (Zhang et al., 2020).
In both scenarios, establishing rapport, listening to customers’ needs, and developing trust are crucial for successful outcomes. A B2B sale may involve long-term relationships and larger transaction sizes, while B2C sales are characterized by shorter transaction cycles and immediate gratification (Chaffey, 2021).
The Role of Public Relations
Public relations (PR) significantly contributes to the perception of a brand among its audience. According to Cutlip and Center (2018), the PR function entails evaluating public attitudes, adjusting policies accordingly, and disseminating information to build understanding. Publicity serves as a fundamental aspect of PR, encompassing the communication of relevant information about the company’s offerings through non-paid channels. The advantages of publicity include its cost-effectiveness and credibility; however, the lack of control over the narrative can pose drawbacks (Wilcox & Cameron, 2016).
Evaluating Sales Promotions
Sales promotions are events or short-term incentives aimed at increasing consumer purchase interest. Various forms of sales promotions include sampling, offering coupons, contests, and price reductions (Bennett, 2019). While these promotions can successfully attract consumers and increase sales volume, marketers must balance short-term incentives with long-term brand strategy to ensure sustainability (Mallalieu et al., 2021). For example, sampling can effectively encourage trial use of products, particularly in food and beverage sectors, yet frequent promotions may dilute brand value (Shankar et al., 2021).
Modern Promotional Techniques
Modern promotional strategies leverage innovative technologies to engage consumers. Word-of-mouth marketing remains a powerful tool, as satisfied customers share their experiences with others, fostering organic promotion. Viral marketing utilizes this concept by encouraging users to share promotional content across their networks (Kaplan & Haenlein, 2011). Social networking platforms allow brands to interact with consumers, tailoring messages for distinct target markets while fostering community engagement (Cohen et al., 2018). Blogging and podcasting serve as effective channels for content marketing, where brands share expertise, creating value for users and enhancing brand loyalty (Bernoff & Li, 2018).
Additionally, email marketing continues to be an impactful tool, fostering direct relationships with consumers and promoting product awareness (Carter, 2020). Mobile marketing, through SMS and app notifications, provides timely information directly to consumers, capitalizing on the ubiquity of smartphones (Chaffey, 2021).
Conclusion
Effective promotions are essential to business success across various industries. The integration of traditional and modern marketing tools enables organizations to reach, inform, and engage their target audiences effectively. From understanding the promotion mix and the distinct selling processes to leveraging PR, sales promotions, and digital marketing technologies, businesses must develop comprehensive strategies that align with their marketing goals.
References
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4. Chaffey, D. (2021). Digital marketing: Strategy, implementation, and practice. Pearson.
5. Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson.
6. Cohen, E., Tishberg, M., & Gafni, R. (2018). Social networks and brand loyalty: The role of user experience. Journal of Consumer Marketing, 35(7), 689-700.
7. Cutlip, S. M., & Center, A. H. (2018). Effective public relations. Pearson.
8. Harrison, T., & Smith, M. (2020). The impact of TV advertising in the era of streaming services. Advertising Research Journal, 10(2), 25-38.
9. Kaplan, A. M., & Haenlein, M. (2011). The early bird catches the virus: How to make viral marketing work. Business Horizons, 54(3), 253-263.
10. Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.
In understanding these varied perspectives on promotions, firms can implement strategies that lead to increased brand recognition, customer loyalty, and overall business success.