MGTA02H3 Chapter Notes - Chapter 84: Sales Process Engineering, Information Overload, Netcat
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Chapter 8 4Ps- 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.It must communicate the uses, features and benefits of products. Sales
promotions also include various programs that add value beyond the benefits inherent
in the product.
Information and Exchange Values
A business uses promotional methods to communicates information about itself and its
products to communicate information about itself and its products to consumers and
industrial buyers. From an industrial standpoint, it seeks to accomplish things with
- make them aware of products
- make the knowledgeable about products
- persuade them to like products
- persuade them to purchase products
The promotional program, then whether at the introduction stage(promoting for new
product awareness) or maturity stage(promoting brand benefits and customer loyalty)
can determine the success or failure of any business or product.
The objective of any promotion is to increase sales. Marketer uses promotion to
communicate information, position products, add value and control sales volume.
Communicating information: Information may be communicated in writing,
verbally or visually.
Positioning Products: It establishes an easily identifiable image of a produc in the
minds of consumers. With product positioning, the company is trying to appeal to
specific segment of the market rather than to the market as a whole.
Adding Value: Value conscious customers gain benefits when the promotional mix
is shifted so that it communicates value- add benefits in its products.
Controlling Sales Volume
By increasing promotional activities in slow periods, these firms can achieve more
stable sales volume throughout the year. They can thuse keep production and
distribution systems running evenly. Promotion can turn slow season into peak sales
A firm;s promotional objectives are clear, it must develop a promotional strategy to
achieve these objectives. Promotional strategies may be of the push or pull variety.
Push strategy: A promotional stagey in which a company aggressively pushes its
product through wholesalers and retailers, which persuade customers to buy it.
Pull strategy: A promotional stregy in which a company appeals directly to
customers, who demand the product from retailers, which demand the product from
The Promotion Mix
That portion of marketing concerned with choosing the best combination of advertising,
personal selling, sales promotions and publicity andpublic relations to sell a product.
The Target Audience: Promotion and the buyer decision process:
- Buyers must first recognize the need to make a purchase. Marketers must make sure
that buyers are aware of their products. Advertising and publicity, which can reach
people quickly, are important.
-Buyers also want to learn more about available products. Advertising and personal
selling are important because both can be used to educate consumers.
-Buyers compare competing products. Personal selling can be vital. Sales
representatives can demonstrate product quality and performance in comparison
with competitors’ products.
-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.
-Buyers evaluate products after purchase. Advertising or even personal selling is
sometimes used to remind consumers that they made wise decisions.
Advertising Promotions: Advertising might convince customers to try a company’s
product or service but it is customer’s experience with the product or service that
determines whether they will make repeat purchases.
Advertising is a promotional tool consisting of paid, non-personal communication used
by an identified sponsor to inform an audience about a product.
During the introduction stage, informative advertising can help develop an awareness of
the company and its product among buyers and can establish a primary demand for the
During the growth stage, persuasive advertising can influence a larger number of
consumers to buy the company’s products.
During maturity stage, comparative advertising, which involves comparing the
sponsoring company’s brand name with a competitor’s brand name in such a way that
the competitor’s brand looks inferior.
During the reminder advertising keeps the product’s name in front of the customer.
Marketers use several different advertising media- specific communication devices for
carrying a seller’s message to potential customers.
Advertising medium: The specific communication device that tv, radio, newspapers,
direct mail, magazines, bill boards- used to carry a firm’s advertising message to
- It is widely used advertising medium, but in recent years the volume of classified
ads placed in newspapers has declined as advertisiers have shifted their emphsis to
- Often flexible, rapid coverage since
ads can change from day to day.
-It offers believable coverage because
it always side by related news.
-Generally thrown out after a day
-Don’t print in color
- Poor reproduction quality
-Don’t a;;ow advertisers to target their
-It allows advertisers to combine sigh, sound, and motion, thus appealing to almost
all of the viewer’s sense.
- It allows advertisers to promote their
-Too many commercials cause viewers
to confuse with the products
-Some will skip the advertisement
-Poor medium to educate audience
about the function of the products
because it costs a lot.