Marketing: Real People, Real Choices

Ninth Edition, Global Edition

Chapter 12
Promotion I

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Learning Objectives
12.1 Understand the communication process and the
raditional promotion mix.
12.2 Describe the steps in traditional and multichannel
promotion planning.
12.3 Tell what advertising is, describe the major types
of advertising, discuss some of the major
criticisms of advertising, and describe the process
of developing an ad campaign and how marketers
evaluate advertising.
12.4 Explain what sales promotion is and describe the
different types of consumer and B2B sales
promotion activities.
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Integrated Marketing
Communications (IMC)
• Integrated marketing communication (IMC) involves
the planning, execution, and evaluation of coordinated,
brand communication programs over time to targeted
audiences.
 Aim is to deliver consistent messaging across
platforms.
 Must use a multichannel promotion strategy which
combines traditional marketing communication with
social media and other online activities.

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Figure 12.1 Three Models of
Marketing Communication

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Figure 12.2 Communication Model

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The Source Encodes
• Process begins with a source
with an idea that they want to
communicate to a receiver.
• Encoding is the process by
which the idea is translated
into a physically perceivable
form that conveys meaning.
 Words, music, and images
 Spokespeople
 Animated characters

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The Message

• The message is the actual

content of communication that
goes from the source to a
receiver.
• May be in the form of:
 Advertising
 Sales promotion
 A salesperson’s pitch
 Infomercial
 Websites, social media, blogs,
search engines
 Word of mouth
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The Medium
• The medium is the communication vehicle that
reaches members of the target audience.
• Marketers face two major challenges :
 Target market exposure to medium
 Product characteristics are not in conflict with the
medium.

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The Receiver Decodes
• For effective decoding to occur,
the source and the receiver
must share a frame of reference.
• In this ad, the receiver needs to
understand the meaning of the
“white flag” in order for the
message to make sense.

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Noise and Feedback
• The communication model also acknowledges that
noise—anything that interferes with effective
communication—can block messages.
• To complete the communication loop, the source gets
feedback from receivers.

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The Traditional Promotional Mix
• Promotion mix refers to communication elements
that the marketer controls.
 Mass (one-to-many) communication: includes
advertising, sales promotion, and public relations.
 Personal (one-to-one) communication: includes
personal selling and direct marketing.

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Figure 12.3 Control Continuum

Marketers face inherent trade-offs between the extent

of message control and the perceived credibility of the
message.

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Mass Communications:
The One-to-Many Model
• Some elements of the promotion mix include
messages intended to reach many prospective
customers at the same time.
 Advertising
 Consumer sales promotion
 Public relations

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Personal Communications:
The One-to-One Model
• Marketers may sometimes prefer to communicate on
a personal level.
 Personal selling
 Direct mail
 Telemarketing
 Direct marketing

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Marketing Communications
• Marketing communications inform, remind, persuade,
and build relationships with consumers.
 IMC involves coordination of messaging to target
customers across platforms over time.
• The communication model explains how organizations
create and transmit messages.
Marketers are spending less and less each year on
mass-media advertising in favor of digital and mobile
outlets. Do you expect this trend to reverse?

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Figure 12.4 Steps to Develop the
Promotional Plan

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Step 1: Identify the Target
Audience(s)
• Must communicate with more than just members of
the target market
• Other stakeholders influence the target market
• Consumers learn about products from
 News media
 Friends and family
 Producers of competitive products

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 Step 2: Establish the Communication
Objectives
• Creating a new customer
occurs as a result of a series
of messages.
• Messages are designed to
move the consumer closer to
purchase, and hopefully,
loyalty through a series of
steps known as the
hierarchy of effects.

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Step 3: Determine the Marketing
Communication Budget

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Determine the Total Marketing
Communication Budget
• Top-down budgeting techniques
 Percentage-of-Sales method
 Competitive-parity method
• Bottom-up budgeting techniques
 Objective-task method

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Step 4: Design the Promotion Mix
• Designing the promotion mix involves:
 Determining communication tools to be used
 Specifying message to be communicated
 Determining the communication channels to be used.

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Step 5: Evaluate the Effectiveness of
the Communication Program
• Marketers use a variety of ways to monitor and
evaluate the company’s communication efforts.
• Various types of sales promotion are the easiest to
evaluate as they often occur over a fixed, short
period.
• Advertising has lagged or delayed effects, more
difficult to clearly link to sales.
 Measure brand awareness, recall of product benefits
communicated, and image of the brand before and
after an ad campaign.

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Multichannel Promotion Strategies
• Combination of traditional advertising, sales
promotion, public relations, and direct marketing
activities with social media activities
• Boost effectiveness of either online or offline
strategies used alone
• Allow marketers to repeat their messages across
various channels.

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Advertising (1 of 2)
• Advertising is non-personal communication from an
identified sponsor using mass media.
 Practice dates to ancient Greece and Rome.
• Changes in media landscape have slowed growth of
traditional advertising …
 But mass communications remains the best way to
reach a large audience

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Figure 12.7 Types of Advertising

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Who Creates Advertising?
• An advertising campaign is a coordinated,
comprehensive plan that carries out promotion
objectives and results in a series of ads placed in
various media over a period of time.
• Most brands hire outside agencies.
 Limited-service agency
 Full-service agency

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Ethical Issues in Advertising (2 of 2)
• Corrective advertising clarifies or qualifies previous
deceptive advertising claims.
• Puffery relates to claims made in advertising of
product superiority that cannot be proven true or
untrue.
• Greenwashing is a practice in which companies
promote their products as environmentally friendly
when in truth the brand provides little ecological
benefit.

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Figure 12.8 Steps to Develop an
Advertising Campaign

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Advertising Appeals
• Informational Appeals satisfies consumers’
practical need for information
• Emotional Appeals try to influence emotions
• A Unique Selling Proposition focuses on
clear reason why a product is superior
• Reminder Advertising keeps the name of a brand
in people’s minds
• Teaser or Mystery Ads generate curiosity

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Tonality

• Tonality refers to the

mood or attitude the
message conveys:
 Straightforward
 Humor
 Dramatic
 Romantic/Sexy
 Fear appeal ads

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Pretest What the Ads Will Say

• Advertisers try to minimize mistakes by getting

reactions to ad messages before they actually place
them
• Data from pretesting research may come from either
quantitative (e.g., surveys) or qualitative (e.g., focus
groups) sources

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Where to Say It: Traditional Mass
Media
• TV is often the medium of choice, but is expensive
• Radio is flexible but is declining in use
• Newspapers are excellent for local ads
• Magazines are varied in scope and can target local
markets with selective binding

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Where to Say It: Support Media
• Directory advertising is information-focused
advertising such as the Yellow Pages
• Out-of-home media reaches people in public places
• Place-based media transmits messages in public
places where certain people congregate (airports,
doctors’ offices, etc.)

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Where to Say It: Digital Media
• Owned media may include websites, blogs,
Facebook, and Twitter accounts.
 Controlled by company, effective for relationship
building
• Paid media includes display ads, sponsorships, and
paid key word searches.
 Most similar to traditional advertising, less trusted
by consumers
• Earned media refers to word of mouth or buzz on
social media.
 Most credible to consumers, no company control
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Website Advertising
• Online advertising is no passing fad.
 US adults spend more time on mobile devices than TV.
• Target customers via:
 Website advertising
 Banners, buttons, and pop-up ads
 Permission e-mail marketing
 Search engines
 Mobile advertising
 Video sharing

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Planning and Executing Effective
Advertising Campaigns
• Because marketers spend so much on advertising,
they must decide which type of ad will work best.
 Three main types of advertising are product,
institutional, and local/retail.
 Pretesting and post-testing ads are critical to
ensuring positive results.
More firms are using product placements in
movies and TV shows. How effective do you
think branded entertainment is for raising
product awareness?

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Sales Promotion
• Sales promotions are programs designed to build
interest in or encourage purchase of a good or service
during a specified period.
• How does sales promotion compare to advertising?
 Both are paid promotional activities with identifiable
sponsors
 Differ in that sales promotions typically have a more
immediate short-term objective.

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Figure 12.11 Types of Consumer
Sales Promotion

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Figure 12.12 Trade Sales Promotions

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Table 12.1 A Comparison of Elements
of the Traditional Promotion Mix (1 of 2)
Promotion
Pros Cons
Element
• Because of the high cost to produce
• The marketer has control
and distribute, it may not be an efficient
over what the message
means of communicating with some
Advertising will say, when it will
target audiences.
appear, and who is likely
• Some ads may have low credibility or
to see it.
be ignored by the audience.
• Short-term emphasis on immediate
• Provides incentives to
sales rather than a focus on building
retailers to support one’s
brand loyalty.
products.
• The number of competing promotions
• Builds excitement for
may make it hard to break through the
Sales promotion retailers and consumers.
promotion clutter.
• Price-oriented
• If marketers use too many price-related
promotions cater to
sales promotion activities, consumers’
price-sensitive
perception of a fair price for the brand
consumers.
may be lowered.
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Table 12.1 A Comparison of Elements
of the Traditional Promotion Mix (2 of 2)
• Lack of control over the message that is
eventually transmitted and no guarantee that the
Public • Relatively low cost.
message will ever reach the target.
relations • High credibility.
• It is difficult to measure the effectiveness of
public relations efforts.

• High cost per contact with customer.

• Direct contact with the customer gives
• Difficult to ensure consistency of message when
the salesperson the opportunity to be
it is delivered by many different company
Personal flexible and modify the sales message
representatives.
selling to coincide with the customer’s needs.
• The credibility of salespeople often depends on
• The salesperson can get immediate
the quality of their company’s image, which has
feedback from the customer.
been created by other promotion strategies.

• Targets specific groups of potential

customers with different offers.
• Marketers can easily measure the
results.
• Provides extensive product information • Consumers may have a negative opinion of
Direct
and multiple offers within a single some types of direct marketing.
marketing
appeal. • Costs more per contact than mass appeals.
• Provides a way for a company to
collect feedback about the
effectiveness of its messages in an
internal database.

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Sales Promotion Designed to
Increase Industry Visibility
• Other types of trade sales promotions increase the
visibility of a manufacturer’s products to industry
channel partners.
 Trade shows
 Promotional products
 Point-of-purchase displays
 Incentive programs

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Consumer and Trade
Sales Promotion
• Consumer sales promotion target end customers.
 Price-based and attention-getting sales promotions
• Trade sales promotions focus on members of the
supply chain.
 Discount and increased visibility trade promotions
Overuse of sales promotion has led to higher deal-
seeking by many consumers. How can companies
prevent this?

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Copyright

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