Chapter 18, Promotion Process, Sales Promotion and Publicity, Class Notes

Chapter 18, Content List

Role of Promotion

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.

-Companies must communicate with their customers, this communication should not be left to chance.
Design communication to your specific target audience:

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Promotion and Society

Marketers need to coomunicate, therefore need a medium to facilitate communication.
$235 bn predicted to be spent in 1994 on advertising WW $94 bn in US.
Pay for media (1994)
Marketers need to communicate, therefore provide funds for Event Sponsorship

Handout...Projected surplus for 96 summer Olympics

no tax payer money needed to finance the games. Cost $1.54 bn, financed mostly by marketers wanting to use the Olympics as a medium to communicate to customers.

sales people
advertising agencies etc.
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Promotion and the Communication Process

Handout...Chrysler market Cirrus...

This article illustrates a number of elements in the communication process.

Nine elements to the communication process.

Sender Chrysler and Receiver Target Market (35-50yr aspire BMW/Lexus) are the major parties in the communication process.
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.

4 more major functions:

Last element is Noise in the system, more noise with non-personal communication

Sender needs to know:

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Promotional Mix

Organizations combine specific ingredients of the promotional mix to promote a particular product.

All promotionals tools (promotional mix):

must blend harmoniously into an effective communication strategy, to meet the promotional objectives.
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Paid form of non personal communication about an organization or its products that is transmitted to a target audience through a mass/broadcast medium.


Cons Cirrus...used national advertising, local, direct mail, posters etc.
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Personal Selling:

Occurs through personal communication in an exchange situation.

Cirrus..sales representatives in show rooms.
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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.

Sponsor does not pay (generally), may be expected/required to run advertisements in the media. Can be positive and negative. Pepsi Syringe.
Cirrus...Articles in Car and Buyer, WSJ, and this article etc.
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Sales Promotion:

Materials that act as a direct inducement, offering added value, or incentive for the product, to resellers, sales persons or consumers.
Designed for immediate (short term) increase in product sales.
Cirrus...Sweepstakes, cocktail parties, test drives
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Selecting Promotional Tools

A marketer must do the following while planning and sending communications to a target audience:
  1. Identify the Audience
    Individuals, groups, special publics or the general public.
    Intermediaries vs Consumer
  2. Identify the Stage of Product Life Cycle
  3. Product Characteristics
  4. Stages of Buying Decision
    In many cases the final response sought is purchase, but purchase is the result of a long process of consumer decision making. Need to know where the target audience now stands (in the process), and what state they need to be moved to.

    Adoption Process

    Communication programs goal must lead consumers to take the final step.
  5. Channel Strategies
    -Push Vs Pull Policy Return to Content List

    Nature of Sales Promotion

    Encompasses all promotional activities and materials other than personal selling, advertising and publicity. Grown dramatically in the last ten years due to short term focus on profits. Funds are usually earmarked for advertising are transferred to sales promotion.
    Often used in conjunction with other promotional efforts.
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    Scope and importance of sales promotion:

    Why?? Return to Content List

    Sales Promotion Opportunities and Limitations

    Limitations Return to Content List

    Sales Promotion Methods

    Consumer Sales Promotion Techniques

    -encourage/stimulate customers to patronize a specific retail store or to try a specific product. Return to Content List

    Trade Sales Promotion Techniques

    Push Policy emphasizes promotions focused on the next intermediary.
    Trade Sales Promotion Techniques-stimulate wholesalers and retailers to carry products and to market them aggressively.
    Producers use sales promotion techniques to encourage resellers to carry their products and to promote them more effectively. Return to Content List


    At no charge (most of the time) Part of public relations, a broad set of communication activities used to create and maintain favorable relations between the organization and its publics: Need to cultivate effective media relations, and targeting publicity to key markets are viewed as the highest priorities.

    Handout...Communicators Guide To Publicity

    What is news?
    Planning Publicity Program
    Writing a news release
    Radio and TV News
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    Publicity and Advertising compared

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    Dealing with Unfavorable Publicity

    Handout...The Right Moves Babes

    Discusses how Pepsi dealt with the Syringe incident, using primarily publicity to overcome bad publicity.

    Bad news receives much attention in the media. Need to deal with bad publicity.
    First, need to try to reduce the # of incidents that produce negative publicity (effective TQM etc.), use policies and procedures to cover negative publicity.
    Expedite coverage as opposed to blocking it.
    Avoid rumors and misinformation.
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    Limitations of Using Publicity

    Media must judge publicity to be news worthy, timely, interesting and accurate.
    Cannot control the content or timing.
    May delete the most important part.
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