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Promotion Process, Sales Promotion and
Publicity, Class Notes
Content List
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Role of Promotion
Promotion and Society
Promotion and Communication Process
Promotional Mix
Advertising Preview
Personal Selling Preview
Sales Promotion Preview
Publicity Preview
Selecting Promotional Tools
Nature of Sales Promotion
Scope and Importance of Sales Promotion
Sales Promotion: Opportunities and Limitations
Consumer Sales Promotion Techniques
Trade Sales Promotion Techniques
Publicity
Publicity and Advertising Compared
Dealing with unfavorable Publicity
Limitations of using Publicity
Return to Syllabus
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Role of Promotion
Definition:
To communicate with individuals, groups or organizations to directly or indirectly
facilitate exchanges by informing and persuading one or more audiences to accept
an organization's products
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Design communication to your specific target audience:
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Target Market
Part of Target Market
Different stakeholders of your organization
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$235 bn predicted to be spent in 1994 on advertising WW $94 bn in US
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1b 1994
Newspapers $25b*1993
Radio $9
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62 b 1993

Marketers need to communicate, therefore provide funds for Event Sponsorship
Handout
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Cost $1
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Employment
sales people
advertising agencies etc
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Chrysler market Cirrus
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Nine elements to the communication process
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Message New Car, Cirrus, comfort of a Lexus and handling of a BMW for less
money and the media TV, direct mail, Brooks Brothers etc are the major
communication tools
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Advertising Agencies
creating radio commercials, TV commercials, prepare direct mail pieces,
sales pitch etc
Decoding--consumer interprets message
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Response--reaction of the receiver buy or not to buy, take next step
down AIETA, go to the showroom etc
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Number of customers in show room etc
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how the target audience decodes messages
what media will effectively reach the target audience

Promotional Mix
Organizations combine specific ingredients of the promotional mix to promote a
particular product
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Advertising:
Definition:
Paid form of non personal communication about an organization or its products
that is transmitted to a target audience through a mass/broadcast medium
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Cost efficient-reach a large number at a low cost per person, allows the
message to be repeated, and can improve public image
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Very expressive, allows for dramatization
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Trigger quick sales, Sears advertising a weekend sale
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approx $150,000, local
ad
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30 second spot, Superbowl $1
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More specific communication aimed at one or more persons
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Cost per person is high, most expensive promotional tool
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Buyer feels a great need to listen and respond
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Public Relations/Publicity:
News story form about an organization or its products or both (MBA, Philadelphia
Inquirer), through mass medium at no charge
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Can be positive and negative
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Believable
Cirrus
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Sales Promotion:
Definition:
Materials that act as a direct inducement, offering added value, or incentive for the
product, to resellers, sales persons or consumers
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Cirrus
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Identify the Audience
Individuals, groups, special publics or the general public
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Identify the Stage of Product Life Cycle
o Introductory Inform Publicity/Advertising/Sales force (interm
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Product Characteristics
o Complexity How much information must be communicated
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o Risk Greater risk, greater need for personal selling
4
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Need to know where
the target audience now stands (in the process), and what state they need to
be moved to
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5
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Stresses personal selling, can use sales
promotions and advertising used in conjunction
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Since
consumers are persuaded to seek products in retail stores, retailers
will in turn go to wholesalers etc (use channels overhead)

Nature of Sales Promotion
Encompasses all promotional activities and materials other than personal
selling, advertising and publicity
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Funds are usually earmarked for
advertising are transferred to sales promotion
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Scope and importance of sales promotion:
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323 billion coupons were distributed 1993 nationally annually
(3,200/household), only 2
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9000 trade shows containing 10 exhibits or more/year
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$15-20 billion/year spent on point of purchase material in stores
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for promotions
advances in tech
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May focus
on resellers , consumers or both
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Balance between short term sales increase and long term need for
desired reputation and brand image
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Reminder functions-calendars, T Shirts, match books etc
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with high payoffs
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Reduces profit margins, customers may stock up during the
promotion
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Sales Promotion Methods
Consumer Sales Promotion Techniques
-encourage/stimulate customers to patronize a specific retail store or to try a
specific product
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Need to state the
offer clearly and make it easy to recognize
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Awash in Coupons
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Looks at more innovative media to deliver
coupons (currently over 80% are delivered via the Sunday paper)
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discussed delivering coupons to customers as they enter
the store, using a card that swipes to indicate past purchases
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Users only redeem coupons they would ordinarily purchase
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Stores/marketers are honoring competitors coupons etc
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Demonstrations:
Excellent attention getters
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Frequent User Incentives:
Major airlines, helps foster customer loyalty to a specific company
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Trading stamps-Co-ops back in England,
foster retail loyalty
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Cindy Crawford "Why wait for whats coming to you" CoBranded with immediate rewards
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immediate reward, as opposed to having to build up points
for an air flight etc
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Point of Purchase Display:
Outside signs, window displays, counter pieces, display racks
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Essential for product introductions
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Free Samples:
Stimulate trial of product
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Most expensive sales promotion technique
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Handout
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Money Refunds/Rebates:
Submit proof of purchase and mail specific refund, usually need
multiple purchase for refund
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Customers have a poor perception of rebate offered products
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Premium Items:
Offered free or at minimum cost as a bonus
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Gas stations give free glasses--basics buy!! McDonalds premium
items are considered collectors items by some!

Flintstones program last year with McDonalds
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Casper with Pepsi, Pizza Hut, Choice Hotels
Congo with Taco Bell
 Batman Forever with McDonalds, Kelloggs, Six Flags, Sears
 Pocahontas with Chrysler, Nestle,General Mills, Burger King
 Mighty Morphin with McDonalds
Cents-off Offer:
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Strong incentive for trying a product-very similar to coupons, but are
a part of the package
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Must
be accurate or you will anger customers/retailers
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Trade Sales Promotion Techniques
Push Policy emphasizes promotions focused on the next intermediary
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Producers use sales promotion techniques to encourage resellers to carry
their products and to promote them more effectively
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reimburse for extra retail support, i
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advertising, shelf space
 Case
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 Finance
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Cooperative Advertising:
Manufacturer agrees to pay a certain amount of retailers media
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Handout
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The Right Moves Babes
Discusses how Pepsi dealt with the Syringe incident, using primarily
publicity to overcome bad publicity
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Need to deal with bad
publicity
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), use policies and procedures to cover negative
publicity
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Avoid rumors and misinformation
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