Written Report

in
Prof. 5 Advertising

Submitted To: Mrs. Loryly G. Dalogdog,LPT

Submitted By: Guhelito B. Daclan

Jan Benjy Ken Balbas
Edjanmar Bauyan

October 12, 2024

 CHAPTER 6
Promotion Planning
6.1 Promotion
Promotion involves all communications used by a business to create a favorable
impression of its products or services. It is used by businesses to inform, persuade, and
remind consumers about products and services.
Promotional Products
Promotional products containing a company’s name and logo have been red
successfully for many years to increase business and maintain relationship with customers.
Displaying a company or brand name and logo on a product is a good way to advertise. The
types of promotional prod acts and their costs are wide ranging.
The Promotional Mix
Consumers do not automatically buy products. They must obtain information about a
product or service before they make a purchase. Businesses use a promotional mix, which is
a combination of advertising, public relations, personal selling, and sales promotion, to reach
their target market.
WHY IS PROMOTIONAL MIX NEEDED?
The promotional mix is needed because it helps businesses effectively communicate with
their target audience, build brand awareness, and achieve their marketing and sales
objectives.
The AIDA Concept and the Promotional Mix
Attention: To sell a product or service, a business A-attention
must first capture the attention of consumers and I- Interest
create awareness. This can be done in advertisements
in many ways, such as by using interesting visuals D- desire
and powerful words. A-action
Interest: Product awareness does not always lead to a
sale. Marketers must gain the consumers’ interest.
Desire: Interest and desire are closely related. As marketers build interest in their product or
service, they should try to appeal to consumer’s buying motives (emotional, rational, and
patronage).
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.
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.
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.
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
occur. Promotion activities may run simultaneously or be staggered throughout the year.
6.2 Advertising and Public Relations
Advertising for Results
Advertising is a paid form of communication intended to inform and persuade an audience to
take some kind of action. Advertising is used more commonly than any other form of
promotion to introduce new products to the market. Advertisements give new products the
high level of exposure needed to create product awareness and to influence purchasing
decisions.
An advertising campaign may include print ads in magazines and news- papers, audio
campaigns for radio, commercials on television, streaming messages on the Internet, or ads
or outdoor billboards.
Advantage of Advertising
One of the biggest advantages of advertising, particularly television advertising, is the
ability to make an emotional connection with the target market through the use of actors,
music, images, and other production factors. Emotional connections help build strong brands.
Disadvantages of Advertising
Even though advertisements seem like a cost-effective way to reach a large audience,
the overall cost to produce and run advertisements in various types of media can be very
expensive.
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.
Publicity often goes hand-in-hand with public relations. 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.
Why Is There a Need for Public Relations?
New businesses count on public relations to make the public aware of their existence.
A mature business may use public relations to gain greater visibility, publicize its growth, or
promote recent product innovations or product launches.
ADVERTISING VS. PUBLIC RELATION
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. Advertising has a longer life span than a public
relations event. An advertisement can run over and over again.
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.
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
Publicity is often considered to be free advertising. The cost of public relations is
relatively inexpensive. When
the release of a new product becomes the topic of big news stories, it can be worth millions of
dollars in free publicity
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.
6.3 Personal Selling and Sales Promotion
Making the sale
Personal selling is face-to-face communication between the buyer and seller that attempts to
influence the buying decision. Personal selling may work better than other forms of
promotion in obtaining the sale.
It is often used for products that are complex or relatively expensive, such as automobiles,
homes, insurance, furniture, and computers.
Steps in the Sales Process

The sales process will vary for different types of products, depending on the product features
and customer needs.
1. Generate sales leads. In some cases, customers seek out salespeople when they want
to buy a product. This commonly occurs in retail settings. 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.
In business-to-business selling, sales associates can intro- duce themselves through telephone
calls, letters of introduction, and other promotional materials.
Effective salespeople will use a pre approach 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.
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. The demonstration should be tailored to the customer’s needs.
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
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.
Customers may provide signals during the presentation that indicate they are ready to buy. A
negotiation is an attempt to arrive at a sales agreement by making trade-offs. Auto- mobile
sales often involve negotiations.
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, Follow-up may be in the form of a tele phone call, a visit,
an e-mail, or a survey.
Improving Sales Performance
Increasing sales is always a top goal for businesses. A business sets sales goals for
itself as well as for each of its salespeople. To meet these goals, businesses will use a
combination of methods.
Sales Promotions
Businesses frequently use short-term incentives to increase consumer sales, with the
expectation that consumers will continue to make the purchase later without the incentive.
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 component in the pro- motional mix
cannot. Sales promotion tries to influence consumers’ behavior by giving them an incentive
to make an immediate purchase.
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 pro- motion ends, and there is no guarantee that
customers will return.
Reaching Customers with Sales Promotions
Historically consumers became aware of sales promotions when they received
coupons and other promotions randomly in the mail. To- day, businesses realize that effective
sales promotions are based on an understanding of what motivates prospective customers.
6.4 Other Types of Promotion
Promotional Tools
In addition to the types of promotion already discussed, there are several other
promotional motional tools that businesses can use to reach customers. Three types include
endorsements, word-of-mouth promotion, and direct marketing. These elements are
often used in conjunction with some of the more traditional promotional methods.
Endorsements
An 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. A
celebrity is paid handsomely to be the spokesperson or endorser for a product or business.
Celebrity endorsements or testimonials
are defined by the Federal Trade Commission as an advertising message that
consumers are likely to believe reflects the opinions, beliefs, findings, or experience of a
party other than the sponsoring advertiser.
Celebrity Endorsement Network
an agency that assists advertisers in getting celebrity endorsers, believes that the
effectiveness of endorsements depends on proper celebrity casting. Celebrity endorsements
transfer the traits of the celebrity to the product.
Endorsement Considerations
Teenagers look up to celebrities because they want to be like them. When teenagers
see their favorite celebrity endorsing a product, they often develop a strong desire for that
product.
Celebrity endorsements may not be as effective generations because they are more
concerned about the quality and for older affordability of a product or service, characteristics
most celebrities do not promote.
Word-of-Mouth Promotion
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
credible.
Direct Marketing

Direct marketing uses techniques to get consumers to buy products or services from a non-
retail setting. A nonretail setting could include the consumer’s home or office. Direct
marketing techniques include direct mail, catalogs, telemarketing, and e-mail.
Direct mail can be a very efficient way of targeting customers.
Be a very efficient way of ta Mailing lists group prospective customers based on
demographic, geographic, and psychographic characteristics.
Unsolicited e-mail advertisements are referred to as spam. Spam is usually treated as junk e-
mail and ignored by the consumer.
Visual Merchandising
For a retail business, visual merchandising is an important part of promoting the sale
of products. 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.
Components of Visual Merchandising
Visual merchandising includes window displays, interior displays, and signs.
One of the top reasons for display windows in a store is to attract the attention of people
walking by and draw them into the store. Customers give only three to five seconds of their
attention to window displays.
In-store displays must make an impact. Effective displays often turn the “just looking”
customer into one who makes a purchase. The main focus of the display should be the
product. Displays for products that require touch and feel should be easily accessible.
Signs
can be used to publicize promotions throughout the store. They may contain the
store’s logo or specific brand names and logos. Signs also help shoppers locate products.
Store Layout
Visual merchandising also involves the layout of the store. Music, product dis- plays,
lighting, and even cli mate control can affect the shopping experience. Stores should be clean
and well lit. Stores that are brightly lit result in higher sales.