© South-Western Publishing PROMOTION MEANS EFFECTIVE COMMUNICATION 15.1 Promotion as a Form of Communication 15.2 Types of Promotion 15.3 Mixing the Promotional

© South-Western Publishing

PROMOTION MEANS PROMOTION MEANS EFFECTIVE EFFECTIVE COMMUNICATIONCOMMUNICATION

15.1 Promotion as a Form of Communication15.2 Types of Promotion15.3 Mixing the Promotional Plan


PROMOTION AS A FORM PROMOTION AS A FORM OF COMMUNICATIONOF COMMUNICATIONGOALSGOALS for Lesson 15.1Explain the three roles of promotion in

marketing.Describe how the communication

process works in marketing.Define the two types of communication

that are important to marketers.


The Role of Promotion The Role of Promotion in Marketingin MarketingPromotion – any form of communication

used to:

InformPersuadeRemind


The Role of Promotion in The Role of Promotion in MarketingMarketingInform potential or current customers

of a new product or service or of an improvement to an existing productIntroduction Stage of the Product Life

CycleBenefits and characteristicsChanges and Improvements


The Role of Promotion in The Role of Promotion in MarketingMarketingPersuade - attempts to encourage a

customer to take a specific action, such as purchasing a productNegative meaning to some customersGrowth Stage of the product life cycleAdvantages over the competitors

productCoupons, rebates, samples


The Role of Promotion in The Role of Promotion in MarketingMarketingRemind customers about existing

products on the market

Maturity Stage of the product life cycleHow good, how attractive, how it

satisfies customer’s wants and needs


Noise

The Communication ProcessThe Communication Process

ReceiverDecoding

by ReceiverMessage Channel

Encoding by Sender

Sender

Feedback


Promotion Is a Promotion Is a Communication ProcessCommunication ProcessSender – source or originator of the

messagemay be an organization or personMessage to be shared with a group“Pepsi Generation”


Promotion Is a Promotion Is a Communication ProcessCommunication ProcessEncoding – putting the message into

language or symbols that are familiar to the intended receiverPepsi – popular music, loud colors, young

people

Message Channel – the medium the sender chooses to transmit the messageTV, radio, newspapers, magazines, direct mail,

sales presentations, bill boards


Promotion Is a Promotion Is a Communication ProcessCommunication ProcessDecoding – interpreting the message or

symbols and converting them into concepts and ideasManipulate, alter the message to their needs

Receiver – the person or persons to whom the encoded message is directedThe target audience of a product or service


Promotion Is a Promotion Is a Communication ProcessCommunication ProcessNoise – interference that can cause the

message to be interpreted by the receiver incorrectlyRadio static, poor printing quality, unfamiliar

words, misinterpretation

Feedback – the receiver’s reaction or response to the source’s messageHelps measure the effectiveness of a

promotional activity


Noise

The Communication ProcessThe Communication Process

ReceiverDecoding

by ReceiverMessage Channel

Encoding by Sender

Sender

Feedback


Types of CommunicationTypes of CommunicationInterpersonal communicationInterpersonal communicationTwo-way communicationInvolves two or more people in some kind of

person-to-person exchange

Mass communicationMass communicationOne-way communicationInvolves communicating to huge audiences,

usually through mass media, such as magazines, radio, television, or newspapers


TYPES OF PROMOTIONTYPES OF PROMOTION

GOALSGOALS for Lesson 15.2Describe the advantages and disadvantages

of advertising and publicity as types of promotion.

Explain the advantages and disadvantages of personal selling as a type of promotion.

Define sales promotion and describe its advantages and disadvantages as a type of promotion.


AdvertisingAdvertising

Any paid form of nonpersonal communciation sent through a mass medium by an organization about its products

Advantages reaches a lot for a low cost per person,

geographical advantages, repeat the message

Disadvantagescosts, target audience might not be in the right

place, impersonal


Examples of Mass Examples of Mass Media AdvertisingMedia AdvertisingDirect mailInternetMagazinesNewspaper

OutdoorRadioTelevision


PublicityPublicity

A non-paid form of communication about a business or organization that is transmitted through a mass medium

Advantages the Goodwill that is created (Disney and Safety

Reports)

Disadvantagesorganizations have little control over it


Personal SellingPersonal Selling

Person to person communication with potential customers in an effort to inform, persuade, or remind

Advantages much more informative and persuasive, feedback

is immediate and can be acted upon right away

Disadvantages cost per person is high


Sales PromotionSales Promotion Activities or materials that offer consumers a

direct incentive to buy a good or service (coupons, contests, samples, rebates)

Advantages generated immediate short-term sales, supports

other promotions (commercial – coupon)

Disadvantagescost, on average $110 billion a year is spent on

sales promotions


MIXING THE MIXING THE PROMOTIONAL PLANPROMOTIONAL PLANGOALSGOALS for Lesson 15.3Explain the four major factors that affect

the promotional mix.Describe the seven steps in the

promotional planning process.


Elements of a Promotional Elements of a Promotional MixMixAdvertisingPersonal sellingPublicitySales promotion


Factors that Affect the Factors that Affect the Promotional MixPromotional Mix

Financial Resources

Policy and Objectives

Marketing Mix

Target Market

PromotionalPromotionalMixMix


Promotional PlanningPromotional Planning

The promotional planpromotional plan is a carefully arranged sequence of promotions designed around a common theme responsive to specific objectives.


The Steps in Promotional The Steps in Promotional PlanningPlanningAnalyze the marketIdentify the target marketDevelop promotional objectives

Achievable, measurable, fit into marketing plan

Develop a promotional budgetSelect the promotional mixImplement the promotional planEvaluate the results

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© South-Western Publishing PROMOTION MEANS EFFECTIVE COMMUNICATION 15.1 Promotion as a Form of Communication 15.2 Types of Promotion 15.3 Mixing the Promotional