Chapter 9:

Promotion Concept

The Communication Process

Source
(Encoding)

Message
Channel

Message

Noise

Feedback

Receiver
(Decoding)

What is PROMOTION?
Activities that communicate the merits of the
product & persuade one to buy it
Promotion mix, include
Advertising;
Personal Selling;
Sales Promotion; and
Public Relations

1. ADVERTISING:
Any form of non-personal presentation & promotion of
ideas, goods
Dissemination of mkg info thru the various media (TV,
radio, internet)
To increase & maintain effective demand & help the sale
of goods & services
Purpose of Advertising
Introduce a new product to the market - create
awareness
Help to increase sales of existing products (reminder
advertising)
Educate the public on the special feature, characteristic
& importance of products
Create or enhance company goodwill & maintain or

1. ADVERTISING (cont):
Characteristics of Advertising

Public Presentation
Confers legitimacy of the product

Persuasiveness
Scale of advertisement reflects the sellers size &
popularity

Amplified expressiveness
Opportunity to dramatise the company &its products

Impersonality
Less compelling than salesperson (Less persuasive: 1way
comm)

Able to
build up LT image, wide coverage at low cost per
exposure

2. Personal Selling:
Personal presentation by the firms sales force for the
purpose of making sales & building customer
relationships
Face-to-face with customer, a source of direct mkt
feedback on the firms product
Characteristics of Personal Selling
Personal Confrontation - Allows immediate

adjustments
Cultivation - Allow cultivation of long term
relationships
Response - Potential customer under some obligation
to respond
Cost - Most expensive contact tool

2. Personal Selling (cont):

Personal selling is effective when a product:
Complex & technical in nature (Eg.computer
system)
High value (eg. Aircraft, cars..)
Requires demonstration (eg. Cosmetics, filter,
utensils)
Tailor made to the customers requirement (eg.
Insurance policy)

3. SALES PROMOTION:
Short-term incentives to encourage purchase or sales of a
product or services
Rapid Growth of Sales Promotion
Targeted toward consumer, business & trade promotions
Several factors contributed to the rapid growth:
Pressures to increase sales;
Competition & competing brand;
Advertising efficiency declines, due to rising costs
&legal restraints;
Consumers are more deal-oriented, retailers are more
demanding

3. SALES PROMOTION (cont):

Selecting Sales-Promotion Tools
Consumer-Promotion Tools

Samples
A small amount of products for trial

Coupons
Certificate that gives buyers a saving when they
purchase a product
Stimulate sales of a mature brand/promote early trial of
new brand

Refund
Offer to refund part of the purchase price of a product
Send a proof of purchase to the manufacturer, then

 Price Packs
Reduced price that is marked by the producer directly on
the label
Can be single packages or two related products banded
together

Premiums
Goods offered either free or at low cost as an incentive to
buy
Eg. Collect points, free products (in/out-pack)

Patronage rewards
Cash or other award for the regular use of a certain
product
Eg. Airlines, 10 buys 1 free

Trade-Promotion Tools
Persuade one to carry & promote a brand, give shelf
space
Discount
A straight reduction in price on purchase during a
stated period of time
Allowance
Money paid for an agreement to feature the
manufacturers product.
Eg. Free goods, push money, & specialty advertising
items

4. PUBLIC RELATIONS:
Build good relations with various publics by getting

favorable publicity, good image, & handling rumours.

Press Relations
Place info in news media to attract attention
Product Publicity
Publicising specific products
Public Affairs
Build & maintain national or local community
relations

4. PUBLIC RELATIONS (cont):

Lobbying
Build relations with govrnmt officials to influence legislation

Investor Relations
Keep relations with shareholders in financial

community

Tools
News; speeches; special events (fireworks show),
audiovisual
Corporate identity materials
E.g. biz card, uniforms, company cars, stationery
Public service activities