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Study Guide in Advertising and Sales Promotion Module No. 6

STUDY GUIDE FOR MODULE NO. 6

Chapter 6: Promotion Planning

MODULE OVERVIEW

Job well done in completing your five modules! You are now half way to finish the course and this
time, we will be studying the last element in the marketing mix – the promotion planning - and find
out what its role in developing effective advertising campaign. This would be the last recap module,
the final half of the course will be more on application of this in creating an effective advertising
campaign and promotional strategies.

As you go along the module, try your best to read and answer the exercises and quizzes. You will
be given enough time to accomplish and submit your outputs. We will be having a virtual meeting
for clarification and virtual recitation to assess your learning once a week all throughout the
semester (Reading habit and asking for clarification is the key). Do not memorize every single word
but understand and familiarize them instead.

*Contents are drawn from the references at the end of the module for further reading. PDF file of
Ken Kaser 2013 Advertising and Sales Promotion. Cengage Learning Asia Pte Ltd. Philippines
will be provided.

MODULE LEARNING OBJECTIVES

At the end of the module, you should be able to:

1. Define promotional mix and explain its importance.

2. Identify the steps in developing the promotional plan.
3. Discuss the advantages and disadvantages of advertising.
4. Explain the need for public relations.
5. Explain the steps involved in the sales process.
6. Describe reasons why sales promotion is needed.
7. Identify and describe other types of promotion that businesses use.
8. Explain the purpose of visual merchandising.

LEARNING CONTENT 1: PROMOTION

Promotion involves all communications used by a business to create a favorable impression of its
products or services.

Promotional mix is a combination of advertising, public relations, personal selling, and sales
promotion, to reach their target market. An effective promotional mix can help a business introduce
products and services to the market, increase sales, raise public awareness, and even develop a
good-citizen reputation.

Why Is the Promotional Mix Needed?

Every day consumers are bombarded with thousands of messages trying to convince them to buy
products and services. Only a few of the messages actually make an impact with the target market,
and even a smaller percentage of the messages persuade consumers to take action and make a

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purchase. A well-planned promotional mix can deliver the message in the most effective manner.

The AIDA Concept and the Promotional Mix

1. Attention: To sell a product or service, a business must first capture the attention of
consumers and create awareness. This can be done in advertisements in many ways, such
as by using interesting visuals and powerful words. Salespeople can catch the attention of
consumers by using a friendly greeting. A public relations event, such as a concert
sponsored by a business, is a good way to create awareness.
2. Interest: Product awareness does not always lead to a sale. Marketers must gain the
consumers’ interest. Advertisements should communicate the benefits of the product to let
people know what’s in it for them if they purchase the product. Salespeople can give product
demonstrations to generate interest.
3. Desire: Interest and desire are closely related. As marketers build interest in their product or
service, they should try to appeal to consumers’ buying motives (emotional, rational, and
patronage). Salespeople can promote the safety features of a car to appeal to families with
children. Restaurant advertisements can show pictures of freshly prepared burgers with all
the toppings to entice TV viewers.
4. Action: Finally, promotions must motivate consumers to take action. A restaurant may invite
customers to use a coupon on certain menu items. A retailer may promote discounts on
selected merchandise. Salespeople can offer special financing to help consumers afford
purchases of high-priced items.

The Promotional Plan

To increase the effectiveness of its promotions, a business should create a promotional plan, which
outlines how all of the elements in the promotional mix will work together to reach the target market.
Creating an effective promotional plan takes time and involves a step-by-step process.
1. Determine the Target Market
Using market research, businesses must first identify their target market(s) before planning a
promotional mix. Understanding the attitudes and behaviors of the target market will help the
business design the best message and select the best form of promotion to reach the target
customers.
2. Identify Promotional Objectives
Businesses must determine the response that they want to elicit from the target market.
Promotional objectives identify what the business wants to achieve with its promotional mix.
The objectives should be realistic and measurable. Some common examples of company
objectives include introducing a new product to the market, correcting false impressions of a
brand, creating greater brand awareness, communicating new product features, generating
more buzz or word-of-mouth business, building a new image, or retaining the current
customer base.
3. Set the Promotional Budget
After the promotional objectives are set, marketers must determine what it will cost to meet
those objectives. Previous promotional budgets are a good starting point. Some businesses
simply set their promotional budgets based on a percentage of sales.
4. Determine the Promotional Mix
Based on the budget, marketers can determine the best methods to convey their message.
They need to choose the appropriate mix of advertising, public relations, sales promotion,
and personal selling. Advertising is good for introducing new products to target markets,
persuading potential customers to select one brand over another brand, and reminding
customers of the product’s benefits. Public relations can enhance a business’s image and
build goodwill. Sales promotions provide extra value or incentives for consumers. Personal
selling works well for expensive, technical, or highly specialized products.
5. Implement and Evaluate the Promotional Plan
After a promotional mix is determined, the budget will be spread among the promotional mix
activities. A schedule is created that shows when the various promotional activities will

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occur. Promotion activities may run simultaneously or be staggered throughout the year.

LEARNING ACTIVITY 1

Assessment/ Guide question:

1. Provide an example of when each of the promotional mix elements (advertising, sales
promotion, public relations, personal selling) might be used by a business.

LEARNING CONTENT 2: ADVERTISING AND PUBLIC RELATIONS

Public Relations and Publicity

All businesses and brands want to have a good reputation and positive image with consumers.
Activities and events that create goodwill for a business or other organization are referred to as
public relations (PR). Public relations involve writing press releases, organizing news conferences,
producing company newsletters, sponsoring events, and exhibiting at trade shows. Public relations
campaigns help the public develop a better understanding of a company, its products, and its
philosophies. A business may donate money to a local charity or sponsor the local baseball team. It
could donate resources including money and volunteers to help construct a local playground or
actively participate in local schools. Marketers plan public relations campaigns that enhance the
business’s image and focus on target markets.

Publicity is any nonpaid form of communication designed to arouse public interest about a product,
service, business, or event. Publicity occurs when a newspaper, television news show, or other
media outlet reports about donations made by a business or special events sponsored by a
business.

Press Release is a written statement to inform the media about a new product or special event.

Why Is There a Need for Public Relations?

A good PR campaign highlights company-sponsored events or community activities as a way to

build a positive image in the minds of consumers. New businesses count on public relations to
make the public aware of their existence.

Advertising vs. Public Relations

Advertising uses creative and edgy techniques to communicate a message. Because the
advertiser is paying for the advertisement, it has control over what the ad will say and when and
where it will be aired or published. The goal of public relations is to get free publicity for a business
and its products or services. This usually involves reporting just the facts without any hype. The
media has control over whether it will report on the event or publish the press release. Advertising
has a longer life span than a public relations event.

Advantages and Disadvantages of Public Relations

Most people perceive publicity as more credible than an advertisement. Consumers are more likely
to believe a third-party source, such as a reporter, because he or she can speak freely about a
company or product. Favorable product reviews on a newscast or by a celebrity are more enticing to
consumers than product claims made by an advertiser in a commercial. Publicity is often considered
to be free advertising. The cost of public relations is relatively inexpensive.

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The biggest disadvantage of public relations is the lack of control. Third-party media outlets, not the
company, have control over what is said about the company or product. Companies cannot
accurately predict or control the amount and kind of coverage a product will receive.

LEARNING ACTIVITY 2

Assessment/Guide Question:

1. Select a company that has successfully used advertising to build a well-known brand.
Describe some of the company’s most successful advertisements.

LEARNING CONTENT 3: PERSONAL SELLING AND SALES PROMOTION

Personal selling is face-to-face communication between the buyer and seller that attempts to
influence the buying decision.

Steps in the Sales Process

1. Generate Sales Leads

Sales leads can be obtained in many ways. A referral is a recommendation from a customer
or another business. Networking is another valuable way to obtain sales leads. Networking
involves establishing informal ties with a group of people, including friends, business
contacts, coworkers, acquaintances, and fellow members of professional and civic
organizations, who can provide valuable business advice.

2. Approach Customers
The first contact that the salesperson makes with the customer is called the approach.
During the approach, salespeople can introduce themselves, their company, and their
products. Salespeople can help customers who are in the early stages of the consumer
decision-making process by providing basic product information and directing them to
several product choices that could meet the customers’ needs. Effective salespeople will use
a preapproach process, which involves researching prospective customers before initially
contacting them.

3. Determine Customer Needs

During the approach, the salesperson’s top priority is to assess the customer’s needs. The
salesperson can do this by asking the customer questions. After learning about the
customer’s wants and needs, the salesperson must determine the best way to satisfy those
needs based on the company’s product options.

4. Present the Product

Salespeople should be very familiar with the products and services they are selling. They
often need to demonstrate a product to show customers how it can meet their needs. A
demonstration is a personalized presentation that shows how a product can benefit and
provide value to the customer.

5. Overcome Objections
After the sales presentation, most customers will have questions or raise objections.
Salespeople should view objections as an opportunity to supply more information. Questions
and objections help salespeople identify what is most meaningful to the customer.

6. Close the Sale

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The best sales presentations spark the customer’s interest and build a strong desire. The
close is the step in the sales process when the customer decides to buy a product or
service.

7. Follow Up
A salesperson’s responsibility does not end after the sale is closed. One of the most
important steps in the sales process is the follow-up, which involves contacting the customer
after the sale to ensure satisfaction.

Sales promotion involves the use of marketing activities that provide extra value and buying
incentives for customers. Common types of sales promotions include price discounts, coupons,
rebates, giveaways, contests, sweepstakes, product displays, free product samples, and loyalty
marketing programs.

Reasons for Sales Promotions

Sales promotion accomplishes things that other components in the promotional mix cannot.
Advertising tries to influence consumers’ attitudes by building brand awareness and preference over
the long term. Sales promotion tries to influence consumers’ behavior by giving them an incentive to
make an immediate purchase. Sales promotions can be used to introduce a new product, increase
short-term consumer demand, strengthen brand loyalty, and influence consumer behavior.

Advantages and Disadvantages of Sales Promotion

Sales promotions offer many benefits to businesses. They result in short-term sales that can
increase a business’s revenue. These sales can lead to loyal customers.

Although generating short-term sales is an advantage of sales promotion, it is also a disadvantage.

Sales will decrease when the promotion ends, and there is no guarantee that customers will return.
Customers may shift their loyalty to products associated with other special promotions.

LEARNING ACTIVITY 3

Assessment/Guide Questions:

1. Select a product which is not well known in the market and describe what will be the best
approach to promote this product. Is it personal selling or sales promotion? Justify your
answer.

LEARNING CONTENT 4: OTHER TYPES OF PROMOTION

Promotional Tools

 Endorsement is a public expression of approval or support for a product or service.

Endorsements are also known as testimonials. Although ordinary citizens, doctors, and other
professionals can endorse products, most endorsements are associated with celebrities.
 Word-of-mouth promotion is one of the most effective ways of spreading the news about
products and services. Many new, small businesses rely completely on word-of-mouth
promotion because they do not have the funds available for other expensive forms of
promotion. Consumers consider information from friends and family members to be very

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credible. Recommendations and referrals from happy customers can help boost a
business’s sales.
 Direct marketing uses techniques to get consumers to buy products or services from a
nonretail setting. A nonretail setting could include the consumer’s home or office. Direct
marketing techniques include direct mail, catalogs, telemarketing, and e-mail.
 Visual merchandising is the process of displaying products in a way that makes them
appealing and enticing to customers. It is used to catch the attention of shoppers and
persuade them to buy the product. Consumers who can see, taste, or feel the merchandise
are more likely to make a purchase.

LEARNING ACTIVITY 4

Assessment/Guide Question:

1. Select a product or service that you use frequently. Then choose a celebrity who you think
would make a good endorser of the product or service. Explain what characteristics the
endorser has that would make him or her a good fit for the product or service.

Quiz No. 7:

We will have a quiz (objective type) covering Learning Contents 1-4.

*Reminder: Do not memorize every single word but understand and familiarize them instead.

SUMMARY

The promotional mix is a combination of advertising, public relations, personal selling, and
sales promotion.
The AIDA concept represents the four stages of promotion—attention, interest, desire, and
action. Marketers must determine which stage applies to the target market to develop an
appropriate promotional mix.
The promotional plan outlines how the elements in the promotional mix will work together to
reach the target market. There are five steps in developing the promotional plan: (1)
determine the target market, (2) identify promotional objectives, (3) set the promotional
budget, (4) determine the promotional mix, (5) implement and evaluate the promotional plan.
Advertising is used more commonly than any other form of promotion to introduce new
products to the market. For mature products, advertising is used to remind customers about
them and to maintain market share.
Public relations campaigns build goodwill and help the public develop a better understanding
of a company, its products, and its philosophies.
Publicity goes hand-in-hand with public relations. Businesses often receive publicity because
of their public relations activities.
Steps in the sales process include (1) generating sales leads, (2) approaching the customer,
(3) determining customer needs, (4) presenting the product, (5) overcoming objections, (6)
closing the sale, and (7) following up with the customer.
Typical kinds of sales promotions include price discounts, coupons, rebates, giveaways,
contests, sweepstakes, product displays, samples, and loyalty programs.
Endorsements are testimonials from a spokesperson who has used a product or service.
Word-of-mouth promotion is one of the most effective ways of spreading the news about
products and services.
Direct marketing techniques include direct mail, catalogs, telemarketing, and e-mail.
Visual merchandising should make the product easily accessible, interesting, and special to
attract the most customers.

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REFERENCES

Chapter 6
Kaser, Ken. 2013. Advertising and Sales Promotion. Cengage Learning Asia Pte Ltd.
Philippines

markiv_asp.pdf at http://www.pondiuni.edu.in/storage/dde/downloads/markiv_asp.pdf

(17E00317) ADVERTISING AND SALES PROMOTION MANAGEMENT.pdf at

http://www.bimkadapa.in/materials/ASPM%20TOTAL%205%20UNITS%20MATERIAL.pdf

https://slideplayer.com/slide/8243124/

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