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Chapter 8


1. What is Promotion?
Activities that communicate the merits of
the product & persuade one to buy it

Promotion mix, include

Personal Selling;
Sales Promotion; and
Public Relations

1.0 Advertising:
Non-personal presentation & promotion of ideas, goods
Dissemination of mkg info thru the various media (TV, radio,
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
Educate the public on the special feature, characteristic &
importance of products
Create or enhance company goodwill & maintain or
increase public acceptance

1.0 Advertising:
Characteristics of Advertising

Public Presentation
Confers legitimacy of the product

Scale of advertisement reflects the sellers size &

Amplified expressiveness
Opportunity to dramatise the company &its products

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

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

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

Characteristics of Personal Selling

Personal Confrontation - Allows immediate adjustment

Cultivation - Allow cultivation of long term

Response - Potential customer under some obligation
to respond
Cost - Most expensive contact tool
Able to build up buyers preference, conviction &

2. Personal Selling:
Personal selling is effective when a
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
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

3.0 Sales Promotion


Selecting Sales-Promotion Tools

Consumer-Promotion Tools

A small amount of products for trial

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

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

3.0 Sales Promotion

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

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

Contests, Sweeptakes, & games

Give consumers chance to win prizes, cash,...
Eg. Sweepstakes & game - missing letters...

3.0 Sales Promotion (cont):

Trade-Promotion Tools

Persuade one to carry & promote a brand, give shelf

A straight reduction in price on purchase
during a stated period of time

Money paid for an agreement to feature the
manufacturers product.

Eg. Free goods, push money, & specialty

advertising items..

4.0 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
Product Publicity
Publicising specific products
Public Affairs
Build & maintain national or local
community relations

4.0 Public Relations:

Build relations with govrnmt officials to influence
Investor Relations
Keep relations with shareholders in financial

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