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Chapter 8

MGTA02H3 Chapter Notes - Chapter 8: Promotional Mix, Sales Promotion, Digital Marketing


Department
Management (MGT)
Course Code
MGTA02H3
Professor
Chris Bovaird
Chapter
8

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Chapter 8: The 4 Ps- Promotion
Purpose:
1. Identify the important objectives of promotion and discuss the
considerations in selecting a promotional mix.
2. Discuss the most important advertising startegiesstrategies and
describe the key adversitingadvertising media.
3. Outline the tasks involved in personal selllingselling and list the
steps in the personal selling process.
4. Describe the various types of sales promotions, and distinguish
between publicity and public relations.
Purpose 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.
promotionPromotion is the part of the communication mix: the
total message a company sends to consumers about its product
Promotional techinquestechniques must communicate the uses,
features, and benefits
Sales promotion also include various programs that add value
beyond the benefits inherent in the product
In this section:
We look at Different objectives of and approaches to
promotion
Show when and why companies use particular
startegiesstrategies and tools and then describe the
special promotional problmesproblems faced by both
international and small businesses
Explain two general values added from promotional
activities
Information and Exchange Values
theThe purpose of promotion is to influence purchase decisions
and businesses use promotionaluse promotional methods to
communicate to consumers and industrial buyers
Promotions seek to accomplish four things with potential
customers:

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Make them aware of the products, make the
knowledgeable about products, persuade them to like
products, persuade them to purchase products
A succesfulsuccessful promotion provides communication about
the product and create exchange that statifiesstratifies the buyer
and seller
Promotions are expensive and choosing the right promotional
mix becomes critical, also promotional program can determine
the success or failure of the product at any stage ( stage
(introductinointroduction stage or maturity stage)
Promotional Objectives
ultimateUltimate objective of any promotion is to increase sales,
but marketer also use promotion to :to:
CommunicationgCommunicating Information
Consumers cannot buy a product unless they have been
informed about it
Information may be communicated in writing, verbally, or
visually
Today communication of information is so important that
marketers try to place it wheverwhoever conumsersconsumers
may be and an average consumers comes in contact with
approximately 1,500 bits of promotional communication per day
PositionigPositioning Products
Product Positioning: The establishment of an easily identifiable image
of a product in the minds of conusmersconsumers.
withWith product positioning the company is trying to appeal to a
specific segment of the market rather than to the market as a
whole
Adding Value
Today’s value-conscious customers gain benefits when the
promotional mix is shifted so that it communicates value- added
benefits in its products (BK)
Controlling Sales Volume
increasingIncreasing promotional activities in slow periods, firms
can achieve more stable sales volume throughout the year;
promotion can even turn slow seaonsseasons into peak sales
periods
Promotional Strategies

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Push Strategy: A promotional strategy in which a company
aggresivelyaggressively pushes its product through wholesales 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
deamnddemand the product from wholesalers.
Firm must develop a promotional strategy (push or pull variety)
to achieve these objectives after promotional objective are clear
Advertising “pulls” while personal selling “pushes”
Rare cases a company may purposely do very little promotion of
its products
Markets of indutrialindustrial products most often use push and
marketers of consumer products most often use a pull strategy
Many large firms use a combination of the two strategies
( General(General Foods)
The Promotional Mix
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.
fourFour types of promotional tools: adversitingadvertising,
personal selling, sales promotions, and publicity and public
relations
bestBest combination of these, the best promotional mix,
depends on many factors but most important is target audience
The Target AudieneceAudience: Promotion and the Buyer Decision
Process
In establishing a promotional mix, marketers match promotional
tools with five stages in the buyer decision process:
1. Buyers first recognize the need to buy, and marketers want to
make sure the buyers are aware of their products. (Advertising
and publicity)
2. Buyers want to learn more about the avaliableavailable products.
(Advertising and personal selling)
3. Buyers compare competing products. (Personal Selling)
4. Buyers choose products and purchase them. (Sales Promotion
and Personal Selling)
5. Buyers Evaluate products after purchase. (Advertising and
Personal Selling)
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