Promotion: the function of informing, persuading, and influencing a purchase
Promotional strategies try to develop:
o Primary Demand: objective is to stimulate sales for an entire industry
so that individual firms benefit from the total market growth (i.e. Get
o Selective Demand: create desire for a specific brand.
Integrated Marketing Communications (IMC): the coordination of all
promotional activities – media advertising, direct mail, personal selling, sales
promotion, and public relations – to produce a unified, customer-focused
The IMC strategy focuses on customer needs to create a unified promotional
message in the firm’s ads, in-store displays, product samples, and
presentations by company sales representatives.
Promotional Mix: the combination of personal and nonpersonal selling that
marketers use to meet the needs of a firm’s target customers and to
effectively and efficiently communicate its message to them.
Personal Selling: the most basic form of promotion; a direct person-to-person
promotional presentation to a potential buyer (B2B).
Nonpersonal Selling: forms of selling such as advertising, sales promotion,
direct marketing, and public relations (C2B).
Common objective of promotional strategy:
o Provide Information (i.e. credit cards providing info about
o Differentiating a Product (i.e. an ad comparing two laundry
Positioning: a concept whereby marketers try to establish their
products in the minds of customers by communicating to the
buyers the meaningful differences about the attributes, price,
quality, or use of a good or service.
o Increasing Sales Volume
o Stabilizing Sales
It evens out the production cycle and reduces some
management and production costs along with simplifying
financial, purchasing, and marketing planning.
o Highlighting the Product’s Value
Explains the hidden benefits of the ownership of a
Product Placement: a form of promotion where marketers pay placement
fees to have their products featured in various media, from newspapers and
magazines to television and movies (i.e. Coke on American Idol). Guerrilla Marketing: innovative, low-cost marketing efforts designed to get
customers’ attention in unusual ways (i.e. Coke vending machine).
Advertising: paid nonpersonal communication usually targeted at large
numbers of potential buyers.
Product Advertising: messages designed to sell a particular good or service.
Institutional Advertising: messages that promote concepts, ideas, or
philosophies. It can also promote goodwill toward industries, companies,
organizations, or government entities.
Cause (advocacy) Advertising: a form of institutional advertising that
promotes a specific viewpoint on a public issue as a way to influence public
opinion and the political process.
Informative Advertising: tries to build initial demand for a product in the
introductory phase of the product cycle.
Persuasive Advertising: tries to improve the competitive status of a product,
institution, or concept and is usually used in the growth and maturity stages
of the product cycle.
Comparative Advertising: compares products directly with their competitors
– either by naming the competing product or by suggesting it.
Reminder-oriented Advertising: used to maintain awareness of the
importance and usefulness of a product, concept, or institution and is usually
used in the late maturity to decline stages.
Marketers must choose how to distribute their advertising budgets among
the various media:
Television ads can be classified as network ads, national ads,
local ads, or cable ads.
o Direct Mail
Includes physical mail received or email.
o Outdoor Advertising
Includes billboards; signs in sports venues, airports etc.;
computerized paintings; billboards on trucks etc.
o Internet Advertising
Includes search engine marketing, display ads, and even
Viral Advertising: creates a message that is novel or
entertaining enough for consumers to forward it to others,
spreading like a virus.
Involves providing funds for a sporting or cultural event in
exchange for a direct association with the event.
o Other Media Options Infomercials (Direct Response Television): a form of broadcast
direct marketing; 30-minute programs resemble regular TV
programs, but sell goods or services.
Directory advertising in the Yellow Pages listings in telephone
Consumer-oriented promotions include:
Items given away for free or at a reduced price when another
product is purchased (i.e. happy meal toys).
Offer small price discounts when consumers purchase the
Offer cash back to consumers who mail in required proofs of
A gift of a product distributed by mail, door to door, in a
demonstration, or inside packages of another product.
o Games and Contests
Require entrants to solve problems or write essays, and they
must sometimes provide a proof of purchase.
Choose winners by chance and require no product purchase.
o Specialty Advertising
Promotional items that prominently display a firm’s name,
logo, or business slogan (i.e. complementary pens).
Trade Promotion: sales promotion geared to marketing intermediaries, not
to final consumers.
Major trade promotions include:
o Point-of-Purchase (POP) Advertising
Displays or demonstrations that promote products when and
where consumers buy them, such as in retail stores.
o Trade Shows
Shows that allow manufacturers and other sellers to promote
their goods or services to members of their distribution
channels (i.e. Consumer Electronic Show in LV).
Personal selling refers to a person-to-person promotional presentation to a
Firms are likely to focus on personal s