This document discusses various promotional tools and techniques used in marketing. It begins by outlining the learning goals which focus on promotion mix, advertising media, selling processes, public relations, sales promotion, and emerging promotional methods. It then provides examples and descriptions of traditional and digital promotional strategies, challenges, and best practices. Key topics covered include integrated marketing communication, advertising, personal selling, publicity, and the steps involved in promotional campaigns and sales processes.
2. Chapter
Sixteen
LEARNING GOALS
1. Identify the new and traditional tools that make up
the promotion mix.
2. Contrast the advantages and disadvantages of
various advertising media, including the Internet
and social media.
3. Illustrate the steps of the B2B and B2C selling
processes.
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3. Chapter
Sixteen
LEARNING GOALS
4. Describe the role of the public relations
department, and show how publicity fits in that role.
5. Assess the effectiveness of various forms of sales
promotion, including sampling.
6. Show how word of mouth, e-mail marketing, viral
marketing, blogging, podcasting, and mobile
marketing work.
16-3
4. Profile
ANDREW MASON
Groupon
• Groupon grew faster than any
e-company in history, from
$740 million in 2010 to $4
billion in 2011.
• Google offered $6 billion in
December 2010, but Mason
rejected the offer.
• GrouponNow offers a variety
of discounts via smartphone.
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5. Chapter
Sixteen
NAME that COMPANY
This beverage company has 8.5 million Facebook
fans. It posts two daily messages and then
monitors how many times each message is
reviewed, how many times it is shared, and
what the fan response to the messages are. It
also uses Facebook to test potential ads before
airing them on traditional media like TV.
Name that company!
16-5
6. Promotion and
the Promotion
Mix
PROMOTION
LG1 in an ORGANIZATION
• Promotion Mix -- The combination of
promotional tools an organization uses. The
traditional mix includes:
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7. Promotion and
the Promotion
Mix
INTEGRATED MARKETING
LG1 COMMUNICATION (IMC)
• Integrated Marketing Communication
(IMC) -- Combines the promotional tools into one
comprehensive 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.
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8. FRESH-BAKED PROMOTION
Spotlight on Small Business
• Amy Scherber of Amy’s Bread can’t afford to
outsource her promotions, so she needs to get
creative.
• She sends newspaper editors stories about her
company and has an assortment of company
shirts.
• She builds strong word-of-mouth by keeping in
touch with her community members.
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9. Promotion and
the Promotion
Mix
STEPS in a
LG1 PROMOTIONAL CAMPAIGN
1. Identify a target market
2. Define objectives
3. Determine a promotional budget
4. Develop a unifying message
5. Implement the plan
6. Evaluate effectiveness
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10. Promotion and
the Promotion
Mix CLASSIC CAMPAIGNS
LG1 Brilliant Marketing Ideas
Source: Entrepreneur, February 2010 and Entrepreneur, February 2011.
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11. Advertising:
Informing,
Persuading and
Reminding
ADVERTISING in the FIRM
LG2
• Advertising -- Paid, non-
personal communication
through various media by
organizations and individuals
who are in some way
indentified in the message.
• Major goals of advertising:
- Inform
- Persuade
- Remind
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12. Advertising:
Informing,
Persuading and
Reminding
IMPACT of ADVERTISING
LG2
• Total advertising expenditures
exceed $241 billion yearly.
• 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.
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13. Advertising:
Informing,
Persuading and
Reminding
SOCIAL ADVERTISING
LG2
• Social media advertising
is growing so fast,
marketers can’t keep up.
• Starbucks has over 12
million followers on
Twitter.
• McDonald’s has over 7
million fans on Facebook.
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14. Advertising:
Informing,
Persuading and MAJOR CATEGORIES of
Reminding
LG2 ADVERTISING
Category What it is
Retail From retail stores to consumers
Trade From manufacturers to wholesalers and retailers
c
B2B From manufacturers to other manufacturers
Institutional Creates a desirable image for an organization
Product Creates a desirable image for a product or service
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15. Advertising:
Informing,
Persuading and
MAJOR CATEGORIES of
Reminding
LG2
ADVERTISING
(Continued)
Category What it is
Advocacy Supports a particular view of an issue
Comparative Compares competing products
Customer-oriented ads that allows customers to
Interactive choose information to receive
Online Computer ads featured on different sites
Mobile Ads that reach consumers on cell phones
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16. Advertising:
Informing,
Persuading and ADVERTISING EXPENDITURE by
Reminding
LG2
MEDIA in $ MILLIONS
Projected 2010
Rank Media
Spending
1 Direct Mail $52.3
2 Broadcast TV 36.8
3 Newspaper 23.4
4 Cable TV 27
5 Radio 15.9
6 Yellow Pages 11.9
7 Consumer Magazine 9.1
8 Internet 25.3
Other 39.7
Total 241.4
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17. Promotion and
the Promotion
Mix DEAR MR. POSTMAN…
LG1 Steps in Launching a Direct-Mail Campaign
1. Plan: What should your mailing accomplish?
2. Get the Right List: The better the list, the
better your chance of success.
3. Stand Out: Make your ad like
no other.
4. Get Help: Contact a
marketing firm with direct mail
experience.
5. Follow Up: One mailing is not
enough. 16-17
18. Advertising:
Informing,
Persuading and
Reminding
MATCH GAME
LG2 Match the Company with the Slogan
• “Everybody doesn’t like something, but nobody
doesn’t like ___________.”
• “We bring good things to life.”
• “It takes a licking and keeps on ticking.”
• “With a name like _________, it has to be good.”
• “Good to the last drop.”
• “Betcha can’t eat just one!”
• “Because you’re worth it.”
16-18
20. Television
Advertising POPULAR ADVERTISING MEDIA
LG2
• TV advertising is still the dominant media.
• Digital Video Recorders (DVRs) challenge TV
advertising because viewers can skip ads.
• Product Placement
-- Advertisers pay to put
their products into TV
shows and movies where
the audience will see
them.
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21. Television
Advertising
LET’S GO to the MOVIES
LG2 Memorable Product Placements of 2011
Source: Fortune, February 28, 2011.
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22. Infomercials
and Online
Advertising
INFOMERCIALS and
LG2 ONLINE ADVERTISING
• Infomercial -- A full length TV program devoted
exclusively to promote a particular product.
• Online ads are attempts to get potential customers to
a web site to learn about a product.
• Interactive Promotion -- Allows marketers to
open a dialogue between buyers and sellers and let
them work together to create a beneficial exchange.
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23. Infomercials
and Online
Advertising INFOMERCIAL HALL of FAME
LG2 The Biggest Hits Over the Past 40 Years
• Veg-O-Matic
• Ginsu Knives
• The Clapper
• Thigh Master
• George Foreman Grill
• Bowflex
Source: Fortune, www.fortune.com, accessed July 2011.
16-23
24. Infomercials
and Online
Advertising ONLINE EXPERIENCE
LG2 How to Avoid Losing Customers Over a Bad Web Site
1. Brand messaging is key.
2. Site must be easy to
navigate.
3. Make sure calls to action
are effective.
4. Users want fast, readable
sites.
5. Users with disabilities
should be able to navigate.
Source: Entrepreneur, October 2010.
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25. SOCIAL MEDIA COMPLEMENTS
OTHER PROMOTION
(Social Media in Business)
• National Trust for Historic Preservation believes
that investing in social media helps the Trust
reach certain goals, such as building awareness
for preservation.
• Kassie Rempel of SimplySoles sends out hand
written thank-you notes and increases social
media accessibility. Both can help marketers
relate to customers on a personal level.
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26. SOCIAL SCAMMERS
How to Protect Yourself From Schemers
1. Be wary of requests for
money transfers -- even
from friends’ accounts.
2. Be wary when you use
applications. Don’t give
unnecessary information.
3. Use URL expanders to see Photo Courtesy of: Paul Klintworth
the full address of links on
friends’ pages.
Source: Kiplinger’s Personal Finance, December 2010.
16-26
27. Using Social
Media to Monitor MONITORING
Ad Effectiveness
LG2
AD EFFECTIVENESS
• Dr. Pepper posts messages
on Facebook and monitors
the results from their over
8.5 million fans.
• Richard Branson and Tony
Hsieh all tweet their
customer base to maintain
two-way communication. Photo Courtesy of: Brent Moore
16-27
28. Using Social
Media to Monitor
Ad Effectiveness SOCIALLY SUPERIOR
LG2 Lessons From the Wisdom of the Old Spice Man
1. Create a strong persona.
2. Have customers play along
through Twitter and
Facebook.
3. Engage bloggers.
4. Personalize the experience.
Photo Courtesy of: Dirk Houbrechts
5. Keep your videos short and
sweet!
Source: Entrepreneur, September 2010.
16-28
29. ELECTRONIC ETHICS
(Making Ethical Decisions)
You have received personal info on your phone
about fellow workers, including your boss. You
know that the info could lead to firing of those
workers and managers. You also know that other
workers have received the same info.
Should you pass it along to your immediate supervisor or
not?
What are the ethical issues involved?
What would you do?
What do you expect to be the consequences of your
actions?
16-29
30. Global
Advertising GLOBAL ADVERTISING
LG2
• 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.
16-30
31. PROMOTION in
RURAL INDIA
(Reaching Beyond Our Borders)
• India's 700 million rural consumers are spending
more than ever.
• International brands are sending salesmen to
reach these customers by giving free Castrol oil
changes for tractors, passing out bowls of Nestlé
noodles, and selling Unilever soaps.
• These salesmen must be aware of social
customs to be successful.
16-31
32. Personal Selling:
Providing
Personal Attention PERSONAL SELLING
LG3
• Personal Selling -- The face-to-face
presentation and promotion of a product, including
the salesperson’s search for new prospects and
follow-up service.
• Salespeople need to listen
to customer needs, help
reach a solution and do
everything possible to make
the transaction as simple as
possible.
16-32
33. Steps in the
Selling
Process STEPS in the SELLING PROCESS
LG3
1. Prospect and qualify
2. Pre-approach
3. Approach
4. Make a presentation
5. Answer objections
6. Close the sale
• Trial Close -- A statement or question that
moves the process toward the purchase.
7. Follow up
16-33
34. Steps in the
Selling
Process
PROSPECTING and QUALIFYING
LG3 in SELLING
• Prospecting -- Researching potential buyers and
choosing those most likely to buy.
• Qualifying -- Making sure
customers have a need for a
product, the authority to buy
and the willingness to listen to
a sales message.
• Prospect -- A customer who
meets the qualifying criteria.
16-34
35. Steps in the
Selling
Process BUY THIS!
LG3 Successful Selling Strategies
• Know your competition
• Understand your customer’s business
• Differentiate your product or service
• Sell to the people most likely to buy
• Build relationships
• Put the right people in the right selling spots
16-35
36. Steps in the
Selling
Process WHOOPS!
LG3 Sales Slip-Ups
• Not feeling the customer’s pain
• Making money is the only goal
• Seeing sales as just a job
• Getting upset during the presentation
• Failing to properly prepare or over-preparing
• Not being yourself
• Neglecting the relationship
Source: Fortune Magazine.
16-36
38. Progress
Assessment PROGRESS ASSESSMENT
• What are the four traditional elements of the
promotion mix?
• What are the three most important advertising
media in order of dollars spent?
• What are the seven steps in the B2B selling
process?
16-38
39. Public Relations:
Building
Relationships
USING PUBLIC RELATIONS in
LG4 PROMOTION
• Public Relations (PR) -- Evaluates public
attitudes, changes policies and procedures in
response to the public, and executes a program of
action and information to earn public understanding
and acceptance.
• 3 steps of a good PR program:
1) Listen to the public
2) Change policies and procedures
3) Inform people you’re responsive to their needs
16-39
40. Publicity: The
Talking Arm of
PR
PUBLICITY
LG4
• Publicity -- Any information
about an individual, product or
organization that’s distributed to the
public through the media and is 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
16-40
41. Publicity: The
DISADVANTAGES of PUBLICITY
Talking Arm of
PR
LG4
• 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
isn’t likely to run again.
16-41
42. Sales Promotion:
Giving Buyers
Incentives
SALES PROMOTIONS
LG5
• Sales Promotion -- The promotional tool that
stimulates consumer purchasing and dealer interest
by means of short-term activities.
• Categories of Sales
Promotions:
1. B2B Sales
Promotions
2. Consumer Sales
Promotions
16-42
45. Progress
Assessment PROGRESS ASSESSMENT
• What are the three steps in setting up a public
relations program?
• What are the sales promotion techniques used to
reach consumers?
• What sales promotion techniques are used to
reach businesses?
16-45
46. Word of Mouth
and Other
Promotional Tools USING WORD-of-MOUTH
LG6 PROMOTION
• Word-of-Mouth Promotion -- People tell
others about products they have purchased.
• Word-of-Mouth is important for products like:
- Restaurants
- Daycare and Eldercare
- Car Repair Shops
- Hair Stylists
- Hotels
16-46
47. Viral Marketing
EMERGING
LG6 PROMOTIONAL TOOLS
• Viral Marketing -- Paying
customers to say positive things on
the Internet or setting up multiple
selling schemes whereby
consumers get commissions.
• People who promote through
viral marketing often receive
SWAG which can include free
tickets, shirts, and other
merchandise.
16-47
48. Blogging,
Podcasting and
E-mail BLOGS, PODCASTS,
Promotions
LG6 and E-MAILS
• Blog -- Short for web log; an online diary that looks
like a webpage, but is easier to create and update by
posting text, photos, videos, or links.
• Podcasting -- A way to distribute audio and video
programs via the Internet.
• Email promotions increase brand awareness
among commercial suppliers.
16-48
49. Mobile Media
MOBILE MEDIA
LG6
• Marketers make use of cell
phones to text customers
about product offers and
other company information.
16-49
50. Promotional
Strategies PUSH, PULL, AND PICK
LG6 PROMOTIONAL STRATEGIES
• Push Strategy -- Producers use advertising,
personal selling, sales promotion, and other tools to
get their products stocked on shelves.
• Pull Strategy -- Directs heavy advertising and
sales promotions efforts towards consumers and gets
the public to request their products from retailers.
• Pick Economy -- Refers to consumers who pick
out their products from online outlets.
16-50
51. Progress
Assessment PROGRESS ASSESSMENT
• What’s viral marketing?
• What are blogging and podcasting?
• Describe a push strategy, a pull strategy and the
pick economy.
16-51
Notas del editor
Company: Dr. Pepper
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix.
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix. Emphasis today is on integrating traditional media with social media.
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix.
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix.
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix. Classic Campaigns This slide shows the evolution of marketing campaigns from pulling onto heartstrings to shocking viewers to engaging customers. Ask students: Do you expect social media to continue to play a big part in marketing? How are campaigns like Dove ’s “Real Beauty” and Burger King’s “Subservient Chicken” gaining a new customer base?
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media Advertising is different from public relations, since advertising is paid and public relations is free.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media This information presented on this and the following slides are from Figure 16.3 on p. 438. If time permits, ask students to bring magazines and newspapers with examples of the above advertising categories.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media Before showing this slide ask students to guess the top five forms of advertising.
See Learning Goal 1: Identify the new and traditional tools that make up the promotion mix. Dear Mr. Postman… This slide highlights the steps in launching a direct-mail campaign Direct-mail is the number one form of advertising, accounting for 21.6% of all ad dollars spent Ask students: Why is direct-mail so popular as a form of advertising? ( Answers may vary but students should understand that the cost of direct-mail and the ability to target specific demographic groups make direct-mail a popular choice.) Once students have discussed the benefits of direct-mail ask them about the drawbacks of this form of advertising. ( The main drawback to this form of advertising is that people will look at each mailer as just more junk and throw it in the trash can. )
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media Match Game This slide represents a few of the most recognized taglines in the U.S. It will be interesting to see how many students recognizes the taglines. Ask students: Do you know what products these taglines represent? Taglines are very important to a company’s advertising message. Companies want people to respond to their message, therefore these taglines must tell an individual how the product benefits them. Sara Lee GE Timex Smuckers Maxwell House Lays L'Oreal
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media It’s a Dog’s Life Dogs have been used in advertising for years. This slide highlights some of the famous and not-so-famous dogs used in advertising. Ask students: Why are dogs so popular in advertising?
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media Let’s Go to the Movies This slide shows examples of memorable product placement in 2011 Oscar nominated films. Ask students: Do you find product placements distracting? Do you not notice them at all? Do you think product placements help you choose products?
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media Infomercials are expected to rise to over $170 billion in 2014.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media Infomercial Hall of Fame This slide presents the biggest infomercial hits over the past 40 years. Ask students: Why are infomercials on the air? ( Simple, they work. It is estimated that infomercials make up 25 percent of all television commercials and that 66 percent of adults have watched them.) The following link is from YouTube and features the top ten worst infomercials of all time. Students love to watch this video and laugh at some of the products featured. (http://www.youtube.com/watch?v=duaiVk_aRgQ)
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media Online Experience Failing to deliver an online experience to customers may result in losing them. This slide shows ways to avoid a bad customer experience. Ask students: What are examples of company or product web sites you like? Navigate through sites mentioned and ask other students to chime in on why they think it’s a good customer experience.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media Social Scammers Although businesses want you to spread the word about their products through social media, some groups are using this trend to scam others. Ask students: Have they experienced strange requests or application problems? How else could you protect yourself and your friends from online scammers?
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media Socially Superior This slide shows 5 essentials to a successful online campaign. Ask Students: Have you seen the YouTube videos featuring Isaiah Mustafa and Old Spice products? Did you forward these videos to friends or have videos forwarded to you? (Here is a link to one of the commercials: http://www.youtube.com/watch?v=owGykVbfgUE.) Companies are implementing social media into their promotional plans and are creating web-exclusive content to engage customers.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media Culturally sensitive advertising is key to successful international marketing.
See Learning Goal 2: Contrast the advantages and disadvantages of various advertising media, including the Internet and social media
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. Selling is about more than trying to convince someone to buy a product; it is about listening to the needs of the customer.
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes.
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. A key to B2B selling is qualifying customers, so that time is not wasted on customers who do not have a need.
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. Buy This! There are several strategies for selling that have been proven to work. Some of those are listed on this slide. Ask students to get into small groups or turn to a neighbor and discuss why they think these strategies work. Have students think about which of these strategies they think are the most successful (rank order) and support their answers. Ask students: Was it easy to rank order these? Do you think some are more effective than others? Why?
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. Whoops! There are several mistakes people make when trying to make the sale. Those are listed on this slide. Ask students: Have you ever decided not to purchase something because of a sales person? What made you not want to buy from that particular person?
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes.
The four traditional elements of the promotion mix include: advertising, personal selling, public relations, and sales promotion. The the three most important advertising media in order of dollar spent are: direct mail, broadcast television, and cable TV networks. (Internet advertising is climbing quickly and may move to the upper ranks soon.) The seven steps in the B2B selling process are: (1) prospecting and qualifying, (2) pre-approach, (3) approach, (4) make presentation, (5) answer objections, (6) close sale, and (7) follow-up.
See Learning Goal 4: Describe the role of the public relations department, and show how publicity fits in that role.
See Learning Goal 4: Describe the role of the public relations department, and show how publicity fits in that role.
See Learning Goal 4: Describe the role of the public relations department, and show how publicity fits in that role.
See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling.
See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling. Information in this slide is based on Figure 16.8 on p. 452. Other forms of promotion listed in the figure are: cents-off promotions, premiums, bonuses, catalogs, special events and lotteries. Promotion needs to tie into the overall marketing strategy of the product being sold.
See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling. Clip These Coupons are no longer only in the Sunday newspaper, now we have web sites dedicated to coupon clipping. First coupon was distributed in 1894 for Coca-Cola. Ask students: Have you clipped and used coupons? Where did you get the coupons used? Was clipping the coupon the motivation for trying the product? What was your experience? Would you have tried the product without the coupons? 4. Ask students: Would using coupons be a push or pull strategy? (Pull strategy)
The three steps in a public relations program include: (1) listen to the public, (2) develop policies and procedures in the public interest, and (3) tell people you ’re being responsive to their needs. External sales promotions to consumers rely on samples, coupons, cents-off deals, displays, store demonstrators, premiums, and other incentives. Internal sales promotion activities include sales training, sales aids, audiovisual displays, and trade shows.
See Learning Goal 5: Assess the effectiveness of various forms of sales promotion, including sampling.
See Learning Goal 6: Show how word of mouth, e-mail marketing, viral marketing, blogging, podcasting, and mobile marketing work.
See Learning Goal 6: Show how word of mouth, e-mail marketing, viral marketing, blogging, podcasting, and mobile marketing work. Tweeting, blogging, and podcasting are rapidly changing how products are promoted.
See Learning Goal 6: Show how word of mouth, e-mail marketing, viral marketing, blogging, podcasting, and mobile marketing work.
See Learning Goal 6: Show how word of mouth, e-mail marketing, viral marketing, blogging, podcasting, and mobile marketing work.
Viral marketing is a broad term that describes everything from paying customers to say positive things on the internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific Web sites. A blog (web log) is an online diary that allows the user to create and update with text, photos, or links to other sties. Podcasting is a means of distributing audio and video programs via the internet. In a 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. A pull strategy directs all advertising and sales promotion toward the consumer. The pick economy refers to those consumers who pick their products out from online outlets.