Textbook Notes (380,752)
CA (168,206)
UTSC (19,296)
MGT (1,095)
MGTA02H3 (363)
Chapter 8

Chapter 8

9 Pages
103 Views

Department
Management (MGT)
Course Code
MGTA02H3
Professor
Chris Bovaird

This preview shows pages 1-3. Sign up to view the full 9 pages of the document.
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
products.
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
potential customers:
oMake them aware of products
oMake them knowledgeable about products
oPersuade them to like products
oPersuade them to purchase products
Promotional Objectives
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.
Positioning Products
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.
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.
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
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:
oBuyers 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
important.
oBuyers also want to learn more about available products. Advertising and
personal selling are important because both can be used to educate
consumers.
oBuyers compare competing products. Personal selling can be vital. Sales
representatives can demonstrate product quality and performance in
comparison with competitors’ products.
oBuyers 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.
oBuyers evaluate products after purchase. Advertising, or even personal
selling, is sometimes used to remind consumers that they made wise
purchases.
ADVERTISING PROMOTIONS
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 slogan.
Advertising might convince customers to try a company’s product or service, but it is
the customers experience with the product or service that determines whether they
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
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 products. 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 potential customers: o Make them aware of products o Make them knowledgeable about products o Persuade them to like products o Persuade them to purchase products Promotional Objectives 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. Positioning Products 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. 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. 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 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 important. o Buyers also want to learn more about available products. Advertising and personal selling are important because both can be used to educate consumers. 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 purchases. ADVERTISING PROMOTIONS 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 slogan. 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. Advertising Strategies 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 Media Advertising medium is the specific communication device used to carry a firm’s advertising message to potential customers. Newspapers 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. www.notesolution.com Television 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 Mail 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
More Less
Unlock Document


Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit