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MGTA02H3 Lecture Notes - Sales Promotion, Advertising Mail, Comparative Advertising

Management (MGT)
Course Code
Bill Mc Conkey

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Chapter 8: The 4 Ps Promotion
Promotion: any technique designed to sell a product
Product Positioning: the establishment of an easily identifiable image of a product in the minds of
Push Strategy: a promotional strategy in which a company aggressively pushes its product through
wholesalers and retailers, which persuade customers to buy it
Pull Strategy: a promotional strategy in which a company appeals directly to customers, who demand
the product from retailers, which demand the product from wholesalers
Promotional Mix: that portion of marketing concerned with choosing the best combination of
advertising, personal selling, sales promotions, and publicity and public relations to sell a product
Advertising: promotional tool consisting of paid, non-personal communication used by an identified
sponsor to inform an audience about a product
Informative Advertising: an advertisement strategy, appropriate to the introduction stage of the
product life cycle, in which the goal is to make potential customers aware that a product exists
Persuasive Advertising: an advertisement strategy, appropriate to the growth stage of the product life
cycle, in which the goal is to influence the customer to buy the firm’s product rather than the similar
product of a competitor
Comparative Advertising: an advertisement strategy, appropriate to the maturity stage of the product
life cycle, in which the goal is to influence the customer to switch from a competitor’s similar product to
the firm’s product by directly comparing the two products
Reminder Advertising: an advertisement strategy, appropriate to the latter part of the maturity stage of
the product life cycle, in which the goal is to keep the product’s name in the minds of customers
Advertising Medium: the specific communication device television, radio, newspapers, direct mail,
magazines, billboards used to carry a firm’s advertising message to potential customers
Direct Mail: printed advertisements, such as flyers, mailed directly to consumers’ homes or places of
Word of Mouth: opinions about the value of products passed among consumers in informal discussions
Ecommerce: buying and selling processes that make use of electronic technology
Internet Marketing: the promotional efforts of companies to sell their products and services to
consumers over the internet
Personal Selling: promotional tool in which a salesperson communicates one-on-one with potential
Sales Force Management: setting goals at top levels of an organization; setting practical objectives for
salespeople; organizing a sales force to meet those objectives; implementing and evaluating the success
of a sales plan
Retail Selling: selling a consumer product for the buyer’s own personal or household use
Industrial Selling: selling products to other businesses, either for manufacturing other products or for
Order Processing: in personal sales, the receiving and follow-through on handling and delivery of an
order by a salesperson
Creative Selling: in personal sales, the use of techniques designed to persuade a customer to buy a
product when the benefits of the product are not readily apparent or the item is very expensive
Missionary Selling: in personal sales, the indirect promotion of a product by offering technical
assistance and/or promoting the company’s image
Prospecting: in personal sales, the process of identifying potential customers
Qualifying: in personal sales, the process of determining whether potential customers have the
authority to buy and the ability to pay for a product
Closing: in personal sales, the process of asking the customer to buy the product
Sales Promotion: short-term promotional activities designed to stimulate consumers buying or co-
operation from distributors and other members of the trade
Coupon: a method of sales promotion featuring a certificate that entitles the bearer to stated savings off
a product’s regular price
Point-of-Purchase (POP) Display: a method of sales promotion in which a product display is so located
in a retail store as to encourage consumers to buy the product
Premium: a method of sales promotion in which some item is offered free or at a bargain price to
customers in return for buying a specified product
Trade Shows: a method of sale promotion in which members of a particular industry gather for displays
and product demonstrations designed to sell products to customers
Publicity: information about a company that is made available to consumers by the news media; not
controlled by the company, but it does not cost the company any money
Public Relations: public-service announcements by the company designed to enhance the company’s
Promotions seek to accomplish four things:
1) Make customers aware of products
2) Make customers knowledgeable about products
3) Persuade customers to like products
4) Persuade customers to purchase products
Promotional Objectives:
1) Communicating information: information can advise customers about the availability of a
product, educate them on the latest technological advances, or announce the candidacy of
someone running for a government office
2) Positioning products: the company is trying to appeal to a specific segment of the market rather
than to the market as a whole
3) Adding value: value-conscious customers gain benefits when the promotional mix is shifted so
that it communicates value-added benefits in its products
4) Controlling sales volume: increasing promotional activities in slow periods can result in more
stable sales volume throughout the year => keep production and distribution systems running
evenly (turn slow season into peak sale periods)
Promotional Strategies:
1) Push Strategy
2) Pull Strategy
The Promotional Mix, The Target Audience:
1) Buyers need to recognize the need to purchase marketers need to make buyers ware of their
products through advertising and publicity
2) Buyers want to learn about available products advertising and personal selling can educate
3) Buyers compare competing products sales representative demonstrates product quality and
performance in comparison with other products
4) Buyers choose products and purchase them sales promotion give consumers an incentive to
buy and personal selling bring products to convenient purchase locations
5) Buyers evaluate products after purchase advertising or personal selling reminds consumers
that they made wise purchases