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Chapter 8

MGTA02H3 Chapter Notes - Chapter 8: Promotional Mix, Sales Promotion, Order Processing

Management (MGT)
Course Code
Chris Bovaird

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Chapter 8 The 4 Ps - Promotion
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
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.

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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

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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
oBuyers also want to learn more about available products. Advertising and
personal selling are important because both can be used to educate
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
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
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