Understanding business 11th by mchugh nickels chap016

CHAPTER 16

Using
Effective
Promotions

McGraw-Hill/Irwin

Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.


LEARNING OBJECTIVES

1. Identify the new and traditional tools that make up
the promotion mix.
2. Contrast the advantages and disadvantages of
various advertising media, including the Internet and
social media.
3. Illustrate the steps of the B2B and B2C selling
processes.
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LEARNING OBJECTIVES

4. Describe the role of the public relations department,
and show how publicity fits in that role.
5. Assess the effectiveness of various forms of sales
promotion, including sampling.
6. Show how word of mouth, viral marketing, blogging,
podcasting, e-mail marketing, and mobile marketing

work.
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CHRIS HARDWICK
Nerdist Industries

• Hardwick broke into
entertainment after graduating
from UCLA.
• After his career hit a low, he
started following his nerd
passions and created The
Nerdist.
• Entered a partnership with
Peter Levin and expanded the
Nerdist franchise.

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NAME that COMPANY

This company put its product into the hands of
Spiderman. Viewers watched as the superhero
used the product throughout his latest movie.
Name that company!

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PROMOTION
in an ORGANIZATION

LO 16-1

• Promotion Mix -- The combination of promotional
tools an organization uses. The traditional mix
includes:

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INTEGRATED MARKETING
COMMUNICATION (IMC)

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• Integrated Marketing Communication (IMC) -Combines the promotional tools into one
comprehensive strategy. IMC is used to:
- Create a positive brand image.
- Meet the needs of consumers.
- Meet the strategic marketing and promotional
goals of the firm.

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STEPS in a
PROMOTIONAL CAMPAIGN

LO 16-1

1. Identify a target market
2. Define objectives
3. Determine a promotional budget
4. Develop a unifying message
5. Implement the plan
6. Evaluate effectiveness
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CLASSIC CAMPAIGNS

LO 16-1

Brilliant Marketing Ideas

Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.

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ADVERTISING in the FIRM

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• Advertising -- Paid, nonpersonal communication
through various media by
organizations and individuals

who are in some way
indentified in the message.

• Major goals of advertising:
- Inform
- Persuade
- Remind
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IMPACT of ADVERTISING

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• Total advertising expenditures
exceed $215 billion yearly.
• Consumers benefit because
production costs of TV
programs, radio programs,
newspapers and magazines are
paid for by advertisers.
• Marketers choose ad media
that will reach the target market.
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MAJOR CATEGORIES of
ADVERTISING

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Category

What it is

Retail

From retail stores to consumers

Trade

From manufacturers to wholesalers and retailers

B2B

From manufacturers to other manufacturers

Institutional

Creates a desirable image for an organization

Product

Creates a desirable image for a product or service

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MAJOR CATEGORIES of
ADVERTISING

LO 16-2

Category

What it is

Advocacy

Supports a particular view of an issue

Comparative

Compares competing products

Interactive

Customer-oriented ads that allows customers to
choose information to receive

Online

Computer ads featured on different sites

Mobile

Ads that reach consumers on cell phones

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ADVERTISING EXPENDITURE by
MEDIA in $ MILLIONS

LO 16-2

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DEAR MR. POSTMAN…

LO 16-2

Steps in Launching a Direct-Mail Campaign

1. Plan: What should your mailing accomplish?
2. Get the Right List: The better the list, the better
your chance of success.
3. Stand Out: Make your ad like
no other.
4. Get Help: Contact a marketing
firm with direct mail experience.
5. Follow Up: One mailing is not
enough.

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MATCH GAME

LO 16-2

Match the Company with the Slogan

• “Everybody doesn’t like something, but nobody
doesn’t like ___________.”
• “We bring good things to life.”
• “It takes a licking and keeps on ticking.”
• “With a name like _________, it has to be good.”
• “Good to the last drop.”
• “Betcha can’t eat just one!”
• “Because you’re worth it.”
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IT’S a DOG’S LIFE

LO 16-2

Famous and Not-so-Famous Dogs in Advertising

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POPULAR ADVERTISING MEDIA

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• TV advertising is still the dominant media.
• Digital Video Recorders (DVRs) challenge TV

advertising because viewers can skip ads.
• Product Placement -Advertisers pay to put
their products into TV
shows and movies where
the audience will see
them.
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NOT QUITE the NFL…

Source: Inc., www.inc.com, accessed November 2014.

LO 16-2

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INFOMERCIALS and
ONLINE ADVERTISING

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• Infomercial -- A full length TV
program devoted exclusively to promote
a particular product.
• Online ads are attempts to get potential
customers to a web site to learn about a
product.

• Interactive Promotion -- Allows
marketers to open a dialogue between
buyers and sellers and let them work
together to create a beneficial
exchange.

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INFOMERCIAL HALL of FAME

LO 16-2

The Biggest Hits Over the Past 40 Years

• Veg-O-Matic
• Ginsu Knives
• The Clapper
• Thigh Master
• George Foreman Grill
• Bowflex

Source: Fortune, www.fortune.com, accessed November 2014.

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ONLINE EXPERIENCE

LO 16-2

How to Avoid Losing Customers Over a Bad Web Site

1. Brand messaging is key.
2. Site must be easy to
navigate.
3. Make sure calls to action
are effective.
4. Users want fast, readable
sites.
5. Users with disabilities
should be able to navigate.
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.

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PAY-PER-TWEET

• Celebrities can earn large sums
of money just buy mentioning a
product or site in their tweets.
• Do you think it is ethical for
celebrities to get paid to tweet
pre-written ads that appear to be
their own personal comments?
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MONITORING

AD EFFECTIVENESS

LO 16-2

• Dr. Pepper posts messages
on Facebook and monitors
the results from their millions
of fans.
• Richard Branson and Tony
Hsieh all tweet their customer
base to maintain two-way
communication.
Photo Credit: Brent Moore

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SOCIAL SCAMMERS

LO 16-2

How to Protect Yourself From Schemers

1. Be wary of requests for
money transfers -- even
from friends’ accounts.
2. Be wary when you use
applications. Don’t give
unnecessary information.
3. Use URL expanders to see

the full address of links on
friends’ pages.
Source: Kiplinger’s Personal Finance, December 2010.

Photo Credit: Paul Klintworth

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