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Chapter 8

Chapter 8- The 4 Ps- Promotion


Department
Management (MGT)
Course Code
MGTA02H3
Professor
Bill Mc Conkey
Chapter
8

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Chapter 8- The 4 Ps- Promotion
1- Identify the important objectives of promotion and discuss the considerations in
selecting a promotional mix
PROMOTING PRODUCTS AND SERVICES
Promotion- any technique designed to sell a product
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
products
Sales promotions include various programs that add value beyond the benefits
already in the product
Information and Exchange Values
In free-market systems, a business uses promotional methods to communicate
info about itself and its products to consumers and industrial buyers
Purpose is to influence purchase decisions
Promotions seek to accomplish 4 things with potential customers:
oMake them aware of products
oMake them knowledgeable about products
oPersuade them to like products
oPersuade them to buy products
Buyers’ gain= a more attractive product, sellers’ gain= sales and profits
Successful promotions provide communication about the product and create
exchanges that satisfy the customer’s and the organization’s objectives
Promotional program can determine the success or failure of any business or
product
Promotional Objectives
Communicating Information
Info can advise customers about the availability of a product, educate them on
the latest technology, or announce the entry of someone running for a
government office
May be in writing (newspaper), verbally (in person), or visually (television)
Positioning Products
Product positioning- the creation of an easily identifiable image of a product in the
minds of consumers
Trying to appeal to a specific segment of the market rather than to the market
as a whole
Adding Value
Value- customers gain benefits when the promotional mix is shifted so that it
communicates value- added benefits in its products (Ex: price discounts on
products)
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Controlling Sales Volume
By increasing promotional activities in slow periods, firms can achieve more
stable sales volume throughout the year
Keep production and distribution systems running evenly
Promotional Strategies
Push strategy- a company aggressively pushes its products through wholesalers and
retailers, which persuade customers to buy it
Makers of industrial products often uses this (Ex: personal selling)
Pull strategy- a company appeals directly to customers, who demand the product
from retailers, who demands the product from wholesalers (Ex: advertising)
Makers of consumer products often uses this
The Promotional Mix
4 types of promotional tools:
oAdvertising
oPersonal selling
oSales promotions
oPublicity and public relations
Promotional mix- choosing the best combination of advertising, personal selling, sales
promotions, and publicity and public relations to sell a product
The Target Audience: Promotion and the Buyer Decision Process
5 stages in the buyer decision process:
1. Recognize the need to make a purchase
Marketers must make sure that buyers know about the products
Advertising and publicity are important
2. Learn more about available products
Advertising and personal selling are important because both can
be used to educate consumers
3. Compare competing products
Personal selling can be vital
Sales representatives can demonstrate product quality and
performance in comparison with competitors’ products
4. Choose products and purchase them
Sales promotion is effective because it can give consumers a
reason to buy
Personal selling can help by bringing products to convenient
purchase locations
5. Evaluate products after purchase
Advertising or personal selling are sometimes used to remind
consumers that they made wise purchases
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2- Discuss the most important advertising strategies and describe the key
advertising media
ADVERTISING PROMOTIONS
Advertising- promotional tool consisting of paid, non-personal communication used by
an identified sponsor to inform an audience about a product
Advertising Strategies
Informative advertising- 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- 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- 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 2 products
Reminder advertising- appropriate to the late maturity/decline stage of the product
life cycle, in which the goal is to keep the product’s name in the minds on customers
Advertising Media
Marketers must find out who their customers are, which media they pay
attention to, what messages appeal to them, and how to get their attention
Advertising media- the specific communication device- television, radio, newspapers,
direct mail, magazines, billboards- used to carry a firm’s advertising message to
potential customers
May use combination of media for different objectives
Must match media choices to profile of target audience
Different options have different strengths and weaknesses
Newspapers
Pros
Many people read the paper everyday since the local market has at least 1 daily
newspaper
Ads can change from day to day
Ads are presented side by side with news
Cons
Generally thrown out after one day
Often do not print in colour
Have poor reproduction quality
Do not usually allow advertisers to target their audience well
Television
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