Chapter 8 – The 4 Ps - Promotion
PROMOTING PRODUCTS AND SERVICES
Promotion is any technique designed to sell a product.
It is part of the communication mix (the total message a company sends to
consumers about its product).
Promotional techniques must communicate the uses, features, and benefits of
Sales promotions also include various programs that add value beyond the benefits
of inherent in the product.
Information and Exchange Values
In free-market systems, a business uses promotional methods to communicate
information about itself and its products to consumers and industrial buyers.
The purpose is to influence purchase decisions.
From an information standpoint, promotions seek to accomplish four things with
o Make them aware of products
o Make them knowledgeable about products
o Persuade them to like products
o Persuade them to purchase products
The ultimate objective of any promotion is to increase sales.
Marketers also use promotion to communicate information, position products, add
value, and control sales volume.
www.notesolution.com Communicating Information
Information can advise consumers about the availability of a product, educate them
on the latest technological advances, or announce the candidacy of someone running
for a government office.
Product positioning is the establishment of an easily identifiable image of a product
in the minds of consumers.
With product positioning, the company is trying to appeal to a specific segment of
the market rather than to the market as a whole.
Today’s value-conscious customers gain benefits when the promotional mix is shifted
so that it communicates value–added benefits in its products.
Controlling Sales Volume
By increasing promotional activities in slow periods, firms can achieve more stable
sales volume throughout the year.
Promotion can even turn slow seasons into peak sales periods.
Promotional strategies may be of the push or pull variety.
Pull strategy is a promotional strategy in which a company aggressively pushes its
product through wholesalers and retailers, which persuade customers to buy it.
Pull strategy is a promotional strategy in which a company appeals directly to
customers, who demand the product from wholesalers.
Advertising “pulls” while personal selling “pushes.”
Makers of industrial products more often use a pull strategy, and makers of
consumer products more often use a pull strategy.
The Promotional Mix
www.notesolution.com Promotional mix is that portion of marketing concerned with choosing the best
combination of advertising, personal selling, sales promotions, and public relations
to sell a product.
The most important factor promotional mix depends on is the target audience.
The Target Audience: Promotion and the Buyer Decision Process
Five stages in the buyer decision process are:
o Buyers must first recognize the need to make a purchase. At this stage,
marketers must make sure that buyers are aware of their products.
Advertising and publicity, which can reach many people quickly, are
o Buyers also want to learn more about available products. Advertising and
personal selling are important because both can be used to educate
o Buyers compare competing products. Personal selling can be vital. Sales
representatives can demonstrate product quality and performance in
comparison with competitors’ products.
o Buyers choose products and purchase them. Sales promotion is effective
because it can give consumers an incentive to buy. Personal selling can help
by bringing products to convenient purchase locations.
o Buyers evaluate products after purchase. Advertising, or even personal
selling, is sometimes used to remind consumers that they made wise
Advertising is the promotional tool consisting of paid, non-personal communication
used by an identified sponsor to inform an audience about a product.
Consumers remember brand names more easily if the company has a catchy
Advertising might convince customers to try a company’s product or service, but it is
the customer’s experience with the product or service that determines whether they
www.notesolution.com will make repeat purchases.
Informative advertising is an advertising 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 is an advertising 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 is an advertising 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 is an advertising 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 is the specific communication device used to carry a firm’s
advertising message to potential customers.
Newspapers are a widely used advertising medium, but in recent years the volume of
classified ads placed in newspapers has declined as advertisers have shifted their
emphasis to the internet.
Newspapers offer excellent coverage, since each local market has at least one daily
newspaper, and many people read the paper every day.
This medium offers flexible, rapid coverage, since ads can change from day to day.
However, newspapers are generally thrown out after one day, often do not print in
colour, and have poor reproduction quality. Also, newspapers do not usually allow
advertisers to target their audience well.
Television allows advertisers to combine sight, sound, and motion, thus appealing to
almost all of the viewer’s senses.
Too many commercials cause viewers to confuse products. The brevity of TV ads also
makes television a poor medium in which to educate viewers about complex
products. Television is the most expensive medium in which to advertise.
Direct mails are printed advertisements mailed directly to consumers’ home or
places of business.
DM allows the company to select its audience and personalize its message. Although