CHAPTER 16 – USING EFFECTIVE PROMOTIONS

LEARNING GOALS

After you have read and studied this chapter, you should be able to:

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.

3.Illustrate the steps of B2B and B2C selling processes.

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, email marketing, viral marketing, blogging, and podcasting and mobile marketing work.

LEARNING THE LANGUAGE

Listed below are important terms found in the chapter. Choose the correct term for each definition and write it in the space provided.

Advertising / Product placement / Push strategy
Blog / Promotion mix / Qualifying
Infomercial / Prospect / Sales promotion
Interactive promotion / Prospecting / Sampling
Integrated marketing communication (IMC) / Publicity / Trial close
Personal selling / Public relations (PR) / Viral marketing
Pick economy / Pull strategy / Word-of-mouth promotion
Podcasting

1.The promotional tool known as ______stimulates consumer purchasing and dealer interest by means of short-term activities.

2.Paid, nonpersonal communication, or ______, goes through various media by organizations and individuals who are in some way identified in the advertising message.

3.The management function of ______evaluates public attitudes, changes policies and procedures in response to the public’s requests, and executes a program of action and information to earn public understanding and acceptance.

4.A ______is a promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they will request the products from retailers.

5.The step in the selling process referred to as the ______consists of a question or statement that moves the selling process toward the actual close.

6. The ______is the combination of promotion tools that an organization uses.

7.A promotional tool that involves people talking about products they have purchased is

called ______.

8.In the selling process ______is making sure that people have a need for the product, the authority to buy and the willingness to listen to a sales message.

9.Researching potential buyers and choosing those most likely to buy is called ______.

10.A technique known as ______combines all the promotional tools into one comprehensive, unified promotional strategy.

11. An online diary is known as a ______; it looks like a web page but is easier to create and update by posting text, photos, or links to other sites.

12.The form of promotion known as ______is any information about an individual, product, or organization that’s distributed to the public through the media and that’s not paid for, or controlled by, the seller.

13.A ______is the promotional strategy in which the producer uses advertising, personal selling, sales promotion and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise.

14.A full-length TV program devoted exclusively to promoting goods and services is known as

a(n) ______.

15.The promotion tool of ______is the face-to-face presentation and promotion of products and services.

16.The term ______refers to those consumers who pick out their products from online outlets or who do online comparison shopping.

17.Putting products into TV shows and movies where they will be seen is called ______.

18.A tool named ______allows marketers to go beyond a monologue, where sellers tried to persuade buyers to buy things, to a dialogue where buyers and sellers can work together to create mutually beneficial exchange relationships.

19.The term ______is used to describe everything from paying people to say positive things on the Internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific Web sites.

20.A person with the means to buy a product, or ______also has the authority to buy, and the willingness to listen to a sales message.

21.A promotional tool in which a company lets consumers have a small sample of the product for no charge is called ______.

22.A means of distributing audio and video programs via the Internet is called ______and it lets users subscribe to a number of files, also known as feeds, and then hear or view the material at the time they choose.

ASSESSMENT CHECK

Learning Goal 1

Promotion and the Promotion Mix

1.What are the tools of the promotion mix?

a.______c.______

b.______d.______

2.What is the idea behind Integrated Marketing communication?

3.List the steps in a typical promotion campaign.

a. ______d. ______

b. ______e. ______

c. ______f. ______

Learning Goal 2

Advertising: Informing, Persuading, and Reminding

4.List the various categories of advertising:

  1. ______f.______
  1. ______g.______
  1. ______h.______
  1. ______i.______
  1. ______

5.How does the public benefit from advertising?

a. ______

b.______

c. ______

6.List some of the advantages and disadvantages of each form of advertising media:

AdvantagesDisadvantages

a. Newspapers______

______

______

______

b. Television______

______

______

______

c. Radio______

______

______

______

d. Magazines______

______

______

______

e. Outdoor______

______

______

______

f. Direct mail______

______

______

______

g. Yellow pages______

______

______

______

h. Internet ______

______

______

______

i. Mobile______

advertising

______

7.What is the newest form of product placement?

8.Why are infomercials so successful in selling products?

9.Describe the benefits to corporations of Internet advertising.

10.How has technology improved customer communications?

11.What are the two approaches to advertising in the global market?

  1. ______

b.______

12. Distinguish between “globalism” and “regionalism” in advertising.

Learning Goal 3

Personal Selling: Providing Personal Attention

13.Describe “effective selling.” How does technology help the salesperson to be effective?

14.What are the seven steps in the personal selling process?

a.______e. ______

b.______f. ______

c.______g. ______

d. ______

15.In personal selling, what is the difference between prospecting and qualifying?

16.Where do sales people find prospects?

17.What is involved in the preapproach?

18.What is the objective during the first sales call during the approach stage?

19.What is the main idea when making the presentation?

20.What should the salesperson do in answering objections?

21.What activities are involved in closing a sale?

22.Identify the activities involved in the follow up.

a. ______

b. ______

c. ______

23.According to the text, what are the two goals of a salesperson?

a. ______

b. ______

24.How does the role of the salesperson in the B2C (Business to Consumer) sales process differ from that in the B2B (Business to Business) sales process?

25.What does the salesperson do during the presentation in the B2C sales process?

26.During the trial close in B2C selling, a trial close is important, but the sales person must ______

______.

27.Why is follow-up important in B2C selling?

Learning Goal 4

Public Relations: Building Relationships

28.Identify the three steps in creating a good public relations campaign.

a.______

b.______

c.______

29.A public relations department maintains close ties with: ______

______

30.What are the advantages of publicity over other promotional tools?

a. ______

b. ______

c. ______

31.What are three disadvantages of publicity?

a. ______

b. ______

c. ______

32.One way to see that publicity is handled well by the media is to: ______

______.

Learning Goal 5

Sales Promotion: Giving Buyers Incentives

33.List 5 types of B2B sales promotions.

a. ______d. ______

b. ______e. ______

c.______

34.List the various consumer sales promotion techniques.

  1. ______g.______
  1. ______h.______
  1. ______i.______
  1. ______j.______
  1. ______k.______
  1. ______l.______

35.Sales promotion programs are designed to: ______

______.

36.The most important internal sales promotion efforts are directed at: ______

______.

37.List the internal sales promotion efforts:

a.______

  1. ______

c.______

38.What is a virtual trade show, and what is the benefit for dealers and distributors?

39.What is the benefit of sampling as a sales promotion tool?

Learning Goal 6

Word of Mouth and Other Promotional Tools

40.What are 6 additional forms of promotion in addition to the traditional methods?

a. ______d. ______

b. ______e. ______

c. ______f. ______

41.Any activity that encourages people to talk favorably about an organization could be what form of promotion?

42.What are some ways that companies are using viral marketing to create word of mouth promotion?

43.What is one of the best ways to reduce negative word of mouth?

44.What does podcasting allow for?

45.Describe how mobile media is used as a promotion technique.

46.The best way for reaching large groups of consumers with similar traits is______.

The best way to sell to large organizations is______.

To motivate people to buy now rather than later marketers use______.

The most powerful tool is often ______.

47.What is the idea behind a push strategy?

48.What should happen when a pull strategy is successful?

49.Describe a total systems approach to marketing.

CRITICAL THINKING EXERCISES

Learning Goal 1

1.Sun-2-Shade is a company that makes self-darkening windshields for automobiles. (We have worked on this company in previous chapters.) While we haven’t yet decided on a promotion mix for Sun-2-Shade, discuss the steps we will we take to create our promotion campaign, as specifically as possible to this point.

Learning Goal 2

2.There is a variety of media available to use for advertising. Using the chart in your text, determine what might be the most appropriate form of advertising media for: (there may be more than one answer for each)

a. ______A rock concert at an outdoor theater

b. ______Sales at the local mall

c. ______Products aimed specifically at women

d. ______A local news television show

e. ______New type of cell phone

f. ______Credit cards

g. ______Computer software

h. ______A self-darkening windshield for a car/truck

3.No matter what the specific promotion mix will be for Sun-2-Shade, a company that manufactures self darkening windshields for vehicles, there is no doubt that technology will play an important role. How would you incorporate the use of the interactive promotion into the promotion mix for Sun-2-Shade?

Learning Goal 3

4.We’re continuing to work on a promotion mix for Sun-2-Shade (see question 1). We know it will include some form of personal selling. Using the seven steps in your text, prepare an outline for a sales presentation to your automotive manufacturing customers.

Learning Goal 4

5.The Fox affiliate in large midwestern city added a news broadcast to its lineup. In order to compete with the larger affiliates, the Fox affiliate (Channel 30) decided to air their program at 9:00 p.m. Before the news broadcast went on the air, the station surveyed viewers regarding their likes and dislikes about the current local news broadcasts. Shortly before the new show was to premiere, the station began promoting the show, the news anchors, and how this show was going to be different from current shows.

One of the changes the new show made was to avoid, as much as possible, the real "bad news" stories as leads to the broadcast, leaving them until later in the show. They made a point of finding "good news" stories about the city and its inhabitants. They did this because that’s what viewers said they wanted. During the broadcast, just before a commercial break, a screen will show with the exact show times of each of the upcoming stories, in response to customer complaints that other stations will use upcoming stories as "hooks" but actually not air the story until much later in the broadcast. In promoting the show, and during the news broadcast, mention is made of the way the station is responding to viewer requests. Further, during the broadcast, the station's telephone number was flashed, and viewers were encouraged to call with complaints, requests, or suggestions.

How do these actions by the television station demonstrate a "good" public relations program?

Learning Goal 5

6.Identify three main groups that are the main focus of sales promotion efforts, and a technique used to reach each group.

GroupTechnique

a. ______

b. ______

c. ______

7.Continuing with developing the promotion mix for Sun-2-Shade, identify some sales promotion techniques you would use for employees, the B2B market and the B2C market.

Learning Goal 6

8.How do the other elements of the promotion mix affect word of mouth promotion?

Product ______

Sales promotion ______

Advertising ______

Publicity ______

Personal selling ______

Learning Goals 1-6

9.Now that we have covered the promotion mix variables, you are an expert in designing an effective promotion campaign. What do you think would be the most effective promotion mix for Sun-2-Shade to use? Will it be more important to use a push or a pull strategy, a combination, or a "total systems" approach? How will you use new tools such as podcasting, blogging and viral marketing?

PRACTICE TEST

MULTIPLE CHOICE – Circle the best answer

Learning Goal 1

1.Non-traditional forms of promotion include:

a. personal selling and advertising.

b. social networking and podcasting.

c. sales promotion and public relations.

d. public relations and advertising.

2.Sun-2-Shade is a company that makes self-darkening windshields for cars and trucks. Which of the following would not be included as part of Sun-2-Shade’s promotion mix?

a.Designing an interactive Web site for customers to ask questions and order products.

b.Sponsoring a NASCAR race.

c.Hiring a sales force to call on automotive customers.

d.Expanding the product line to include sunglasses custom made to match the customer’s windshield colors.

3.The first step in developing a typical promotion campaign is:

a.define the objectives for each element of the promotion mix.

b.determine a promotional budget.

c.identify a target market.

d.develop a unifying message.

Learning Goal 2

4.Which of the following is a benefitof Internet newspaper advertising, according to the text?

  1. Inexpensive global coverage.
  2. Can target specific audiences.
  3. High visibility and repeat exposures.
  4. Good coverage of local markets.

5.Product placement refers to:

  1. paying to put products into TV shows and movies where they will be seen.
  2. the location of products on a grocery store shelf.
  3. the image the product has in the mind of the consumer.
  4. the location of the product at any given point in the channel of distribution.

6.Which media would be best if you are interested in targeting a specific audience, need flexibility, have a local market and don’t have a lot of money to spend?

  1. The Internet
  2. Television
  3. Outdoor
  4. Radio

7.Garden.com’s website includes a forum where people can chat with each other to ask questions about gardening problems and interests. This is known as:

a.the company’s marketing mix.

b.interactive promotion.

c.blogging.

d.mobile marketing.

Learning Goal 3

8.In personal selling, the relationship must continue for a long time, as the salesperson responds to new requests for information from current customers. This is an important part of the ______step in personal selling.

a. prospecting

b. closing

c. follow-up

d. presentation

9.What is the first step in the B2B personal selling process?

  1. Approach
  2. Make presentation
  3. Prospect and Qualify
  4. Preapproach

10.Which of the following is true regarding personal selling today?

a.Automation has had a big impact on personal selling with the use of high-tech hardware and software.

b.The objective of an initial sales call is to make a sale immediately.

c.Big customers should always be treated with more care than small ones.

d.It is more difficult to find customers in the business-to-business market than in the consumer market.

11.The first formal step in the B2C personal selling process is:

  1. Approach.
  2. Make presentation.
  3. Prospect and qualify.
  4. Preapprach.

Learning Goal 4

12.Which of the following is the first step in developing a good public relations program?

a.Listen to the public

b.Inform people of the fact you’re being responsive

c.Develop policies and procedures in the public interest

d.Advertise in a way that promotes positive word of mouth.

13.It is the responsibility of the public relations department to:

  1. work closely with marketing to develop an appropriate advertising campaign.
  2. have a presence at trade shows and conventions.
  3. maintain close ties with the media, community leaders, government officials and other corporate stakeholders.
  4. develop an effective sales presentation format.

14.Gary Fordham works for a major firm, writing news releases about new products the company intends to introduce. He has just finished writing an article about their latest innovation, and has released this to his contacts at the major newspapers across the company, hoping they will carry the story in their business sections. Gary is working in the area of:

a.sales promotion.

b.institutional advertising.

c.publicity.

d.blogging.

Learning Goal 5

15.When Mary Lynn went to the grocery store last week, she took with her several coupons she had received in the mail that week. While at the store, Mary Lynn was offered samples of several food items and she actually bought a few of those, using the in-store coupons. She also bought a particular brand of toothpaste, because the tube came with a free toothbrush. Mary Lynn is taking advantage of:

a.viral marketing.

b.sales promotion.

c.advertising.

d.publicity.

16.Which of the following is most accurate regarding sales promotion efforts?

a.Sales promotion efforts are aimed first at employees, then dealers, then at the end consumer.

b.Sales promotion is generally aimed only at the final consumer.

c.Sales promotion programs are designed to take the place other, more expensive promotion efforts.

d.Sales promotion efforts are designed to create long-term relationships.

Learning Goal 6

17.One of the best ways to reduce negative word of mouth is to:

  1. mount an aggressive publicity campaign to refute any bad events surrounding your product.
  2. take care of consumer complaints quickly and effectively.
  3. run continuous positive advertising campaigns.
  4. motivate your sales force and give them information to overcome bad publicity.

18.Viral marketing is

  1. An Internet based form of notification of a potential computer virus.

b.A term used to describe promotional efforts such as paying people to say positive things about your product on the Internet.

c.A system in which consumer can access company information on their own and supply

information about themselves in an ongoing dialogue.

d.A function that evaluates public attitudes and executes a program of action and information to earn public understanding.

19.Podcasting refers to:

a.a means of distributing audio and video programs via the Internet that lets users subscribe to a number of files and then hear or view the material at the time they choose.

b.an online diary that looks like a web page.

c.a promotional tool that involves people telling other people about products they have purchased.

d.putting products into television shows and movies where they will be seen.