s t u
chapter
13
Promotional Tools
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MEDIA
2004
2007
Internet
13.0
17.0
TV
12.1
10.7
Radio
9.3
9.0
Newspaper
4.0
4.4
Source: Charles Zamaria and Fred Fletcher, Canada Online! The Internet,
Media and Emerging Technologies: Uses, Attitudes, Trends and International
Comparisons, Canadian Internet Project, September 2008, www.cipic.ca/
en/docs/2008/CIP07%20CANADA%20ONLINE-HIGHLIGHTS.pdf.
Understand the role of
advertising, sales promotion,
public relations, direct response
marketing, and personal selling
as tools in the communications
mix.
Figure 13–2
The IMC promotional process
follows sequential steps
The Promotional Process
1. Specify the IMC Objectives
Promotional tools include advertising,
sales promotion, public relations, direct
response marketing, and personal selling.
2. Identify the Target Market
Recognize the different types of
advertising and the application
of each.
l
Advertising can be classified as either
product or institutional.
l Advertising messages can be placed on
TV, on the Internet, in newspapers, in
magazines, on the radio, and using outdoor forms of media.
Radio
11%
11%
Consumer
magazines
5%
Phone
directories
10%
Catalogues/
direct mail
13%
Internet
9%
Outdoor/transit
3%
Source: Canadian Media Directors' Council Media Digest 2008/2009, p. 14,
accessed at www.cmdc.ca/pdf/2008_09_media_digest.pdf
l
Media decisions are based on the target audience, the type of product, the
nature of the message, the campaign objectives, and budget. ad networks Specialist agencies that provide assistance in the research and
the development of Internet campaigns in areas such as search-word advertising,
e-mail campaigns, and the placement of ads through cooperating sites
banner ads Online ads that can stretch across the top of a web page or be formatted as rectangles, big boxes, and skyscrapers
leaderboards Banner ads that stretch across the top of a web page
microsites Short-term promotional websites that focus on promotional offers or
campaigns
pay-per-click A fee paid to the hosting website each time a listing or ad is
clicked
permission-based e-mail When a recipient chooses to receive e-mail from an
advertiser
4. Select the Promotional Tools
skyscrapers Banner ads that are tall, slim, and vertical and appear along the
side of a web page
spam Unsolicited e-mail that clutters the advertising landscape for legitimate
campaigns
viral marketing Creative advertising campaigns posted on websites for viewers
to forward to their contacts so that the message spreads like a virus
7. Execute and Evaluate the IMC Program
Daily newspaper
13%
(religions, school, farm,
trade publication,
community newspaper,
weekend supplement)
Identify the various forms of media that can be used for
advertising and explain the advantages and disadvantages of
each.
4
search-word advertising Sponsored links that appear to the right, or to the top,
of a search engine screen after a search has been placed
6. Schedule the IMC Elements
Relative importance of media in Canada (2007)
Other print
product advertisements Advertisements that focus on selling a good, a service,
or an idea
3. Set the Promotional Budget
5. Design the IMC Promotion
Figure 13–3
TV
25%
advertising Any paid form of non-personal communication about an organization, good, service, or idea by an identified sponsor
institutional advertisements Advertisements focused on building goodwill or a
positive image of an organization
WEEKLY HOURS SPENT WITH THE MEDIA
3
d
WHAT DOES YOUR SIGNATURE SAY ABOUT YOU?
Canadians’ media usage
l
r
children – mostly girls – don’t get to go to school.
Figure 13–1
2
c a
hardships but it breaks your heart that 80 million
Consider recent changes to the promotions industry.
1
d y
You are an emotional rock, impervious to life’s
5
Explain the different types of consumer-oriented and tradeoriented sales promotions.
l
A sales promotion can be either a consumer promotion or a trade promotion.
Consumer promotional tools include coupons, premiums, contests, sweepstakes, samples, continuity programs, point-of-purchase displays, and
rebates.
l Trade promotions include trade allowances, discounts, and cooperative
advertising.
l
consumer-oriented sales promotions Short-term marketing tools used to
encourage immediate consumer purchase
cooperative advertising Advertising programs where a manufacturer pays a
percentage of the retailer’s advertising expenses for advertising the manufacturer’s products in their promotional materials
premiums Consumer offers that provide consumers with merchandise in
exchange for proof-of-purchase
sweepstakes Consumer promotions that require participants to complete an
entry form to enter into a promotion to win an item
trade allowances and discounts Price discounts offered in return for increasing inventories and/or temporarily reducing the retail price to consumers in the
form of a “sale price”
trade-oriented sales promotions Promotional tools used to elicit support from
wholesalers, distributors, or retailers
6
l
Understand the concept of public relations and the various
public relations tools.
Public relations initiatives include press releases, press conferences, special
events, and company reports.
press conference A planned event where representatives of the media are
invited to an informational meeting with the company
press release An announcement written by an organization and sent to the
media
7
l
Explain the types of direct response marketing tools available
to marketers.
Direct response marketing tools are direct mail, catalogues, direct response
TV, telemarketing, e-marketing, and direct selling.
direct orders The result of direct response marketing offers that contain all the
information necessary for a potential buyer to make a decision to purchase and
complete the transaction
8
l
Recognize the developments in personal selling and the
different approaches that can be taken.
The personal selling process consists of six stages; prospecting, pre-approach, approach, presentation, close, and follow-up.
order getter Salesperson who sells in a conventional sense by identifying prospective customers, providing customers with information, persuading customers
to buy, closing sales, and following up on customers’ use of a product or service
order taker Salesperson who processes routine orders or reorders
personal selling The two-way flow of communication between a buyer and
seller, often in a face-to-face encounter, designed to influence a person’s or
group’s purchase decision
personal selling process Sales activities occurring before and after the sale
itself, consisting of six stages: prospecting, pre-approach, approach, presentation,
close, and follow-up
relationship selling The practice of building ties to customers based on a
salesperson’s attention and commitment to customer needs over time
Figure 13–5
How outside order-getting salespeople spend their time each week
How salespeople spend their time each week
25.1%
Selling over the phone
(12.1 hours)
lead generation The result of direct response marketing offers designed to create interest in a product or a service and a request for additional information
traffic generation The outcome of direct response marketing offers designed to
motivate people to visit a business
28.8%
Selling face-to-face
(13.9 hours)
16.7%
Administrative tasks
(7.7 hours)
17.4%
Waiting/traveling
(8.4 hours)
12.7%
Service calls
(6.1 hours)