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1-1McGraw-Hill/IrwinUnderstanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights

Reserved.

Nickels McHugh McHughNickels McHugh McHugh

**Using Effective

PromotionalTechniques

16

CH

AP

TE

R*

* *

16-2

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Traditional Promotional MixTraditional Promotional Mix

Personal Selling

Sales Promotion

Public Relations

Advertising

Product

16-3

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Steps In A Steps In A Promotional CampaignPromotional Campaign

1.1. Identify the target marketIdentify the target market

2.2. Define the objectivesDefine the objectives

3.3. Determine the promotional budgetDetermine the promotional budget

4.4. Develop a unifying messageDevelop a unifying message

5.5. Implement the planImplement the plan

6.6. Evaluate effectivenessEvaluate effectiveness

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AdvertisingAdvertising

• Advertising media: Newspaper, Advertising media: Newspaper, television, radio, magazines, television, radio, magazines, outdoor, direct mail, yellow-pages, outdoor, direct mail, yellow-pages, InternetInternet

• The growing use of InfomercialsThe growing use of Infomercials

• Moving to the InternetMoving to the Internet

• Global advertisingGlobal advertising

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Steps in the Steps in the Selling Process (B2C)Selling Process (B2C)

Start

Approach

Ask questions

Make presentation

Close sale

Follow up

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Steps in the SellingSteps in the Selling Process (B2B)Process (B2B)

1.1. Prospect and QualifyProspect and Qualify

2.2. PreapproachPreapproach

3.3. ApproachApproach

4.4. Make PresentationMake Presentation

5.5. Answer ObjectionsAnswer Objections

6.6. Close Sale Close Sale

7.7. Follow UpFollow Up

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Public RelationsPublic Relations

StepsSteps• Listen to the public.Listen to the public.

• Change policies and Change policies and procedures.procedures.

• Inform people that Inform people that you’re being you’re being responsive to their responsive to their needs.needs.

PublicityPublicity• FreeFree

• More Effective Than More Effective Than AdvertisingAdvertising

• BelievableBelievable

• No ControlNo Control

• No RepetitionNo Repetition

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Sales Promotion TechniquesSales Promotion Techniques

B2BB2B• Trade ShowsTrade Shows• PortfoliosPortfolios• DealsDeals• CatalogsCatalogs• ConventionsConventions

B2CB2C• CouponsCoupons• Cents-off PromotionsCents-off Promotions• SamplingSampling• PremiumsPremiums• SweepstakesSweepstakes• ContestsContests• BonusesBonuses• CatalogsCatalogs• DemonstrationsDemonstrations• Special EventsSpecial Events• LotteriesLotteries• In-store DisplaysIn-store Displays

16-9

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Sales PromotionSales Promotion

• Internal & ExternalInternal & External

• SamplingSampling

• Word-Of-MouthWord-Of-Mouth

• Viral Marketing/SwagViral Marketing/Swag

• BloggingBlogging

• PodcastingPodcasting

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Putting it all TogetherPutting it all Together

• Convince wholesalers and Convince wholesalers and retailers to stock and sellretailers to stock and sell

• Producer uses advertising, Producer uses advertising, personal selling, sales personal selling, sales promotion to convince the promotion to convince the intermediariesintermediaries

• Idea is to push the product Idea is to push the product through the distribution through the distribution system to the storessystem to the stores

• Heavy advertisements and Heavy advertisements and sales promotion effortssales promotion efforts

• Directed at consumers so Directed at consumers so that they will request the that they will request the products from retailersproducts from retailers

• Products are pulled down Products are pulled down through the distribution through the distribution systemsystem