Because learning changes everything.

Chapter 8
Promotional Strategies

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 Learning Objectives
LO 8-1 Describe the elements of the promotion mix and how they
relate to an integrated marketing communications strategy.
LO 8-2 Compare the advantages and disadvantages of different
types of advertising.
LO 8-3 Summarize the various types of sales promotion.
LO 8-4 Explain the importance of personal selling.
LO 8-5 Describe the role of public relations within the promotion
mix.
LO 8-6 Describe the metrics that measure the effectiveness of an
organization’s promotional strategy.
LO 8-7 Summarize the promotion-mix budgeting strategies.

© McGraw Hill LLC 2

 Thought-Provoking Activity
READY?
• Do the activity. Answer the questions. Get points.
SET:
• You have four minutes.
GO!
• Random selection of two to three students.
1. What are the four major areas of the promotional mix? Using
your phone, tablet, or computer, pull up a recent example of one
of these initiatives. Be able to discuss the details.
2. In an advertising campaign, the message or strategy is either to
inform/educate, persuade or remind. Provide an example of a
campaign that does one of each.

© McGraw Hill LLC 3

 Executive Perspective
Anderson Childress
Treasury Manager
PayPal

• His success: Identifying what is most important to his company

and its senior leaders, and then aligning his goals and
objectives with theirs.
• His advice: Analyze each career decision thoroughly.
• Marketing: It is relevant to everything he does as they work with
consumers and clients each day.
• His brand: He places a strong emphasis on collaboration,
transparency, and execution in every task or project that he is
delegated or assigned.
© McGraw Hill LLC Anderson Childress 4
 LO8-1
Promotion Mix 1

underlined Promotion is an element in the marketing mix.

Elements of the Promotion Mix
underlined

• Advertising.
• Sales promotion.
• Personal selling.
• Public relations.
• Today, firms work to integrate the elements.

Access to the key term Promotion Access to the key term Promotion Mix

© McGraw Hill LLC 5

 Publicity for Red Bull

Athlete Felix Baumgartner’s free fall jump from 23 miles above the
Earth generated significant publicity and free media for Red Bull,
the company that sponsored the event, as it appeared on dozens
of news programs and websites.

© McGraw Hill LLC Abaca Press/Alamy Stock Photo 6

 Figure 8.1
Elements of
the Promotion
Mix

Access the text alternative for slide images.

© McGraw Hill LLC 7

 Promotion Mix 2

underlined Integrated Marketing Communications (IMC)

• Taco Bell’s “Live Más.”
• Each promotion-mix element can influence different
segments of target market.
Finding the Optimal Promotion Mix
• Challenging to marketers.
• Must understand unique advantages and disadvantages
of elements.

Access to the key term Integrated Marketing Communications (IMC)

© McGraw Hill LLC 8

 Integrated Marketing Communications

Taco Bell used an integrated marketing communications campaign

to coordinate the promotion-mix elements to provide its target
market with a clear and consistent message.
Access the text alternative for slide images.

© McGraw Hill LLC Jim R. Bounds/AP Images 9

 LO8-2
Advertising 1

underlined Advertising is a nonpersonal communication paid

for by an identified sponsor.
underlined Advertising campaigns have three objectives:
• Informative advertising.
underlined

• Persuasive advertising.
underlined

• Reminder advertising.
underlined

Access to the key term Advertising Access to the key term Advertising campaigns Access to the key term Informative advertising

Access to the key term Persuasive advertising Access to the key term Reminder advertising

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 Figure 8.2 Percentage Share of Global
Advertising Expenditure by Medium

Access the text alternative for slide images.

© McGraw Hill LLC Source: http://www.zenithmedia.com/social-media-ads-hit-us50bn-2019-catching-newspapers/ 11

 Advertising 2

Television Advertising
Advantages.
• Ability to combine sight, sound, and motion.
• Demonstrate a product in use.
• Narrowcasting.
underlined

Disadvantages.
• Cost.
• Rapid growth of DVRs.
• Consumers abandoning traditional television service.
underlined Product placement.
Access to the key term Narrowcasting Access to the key term Product placement

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 Television Advertising

The Paramount show Yellowstone was one of the most watched shows
of the 2021 television season, yet averaged a far smaller audience than
the number of viewers for a highly rated show a generation ago.

© McGraw Hill LLC TCD/Prod.DB/Alamy Stock Photo 13

 Advertising 3

Internet Advertising
Combines desktop and mobile.
Currently second largest global advertising medium.
Paid search advertising.
Paid display advertising.
underlined Direct marketing.
• Hulu.
Banner and pop-up ads often ignored or intrusive.

Access to the key term Direct marketing

© McGraw Hill LLC 14

 Advertising 4

Print Advertising
Advantages:
• Newspapers are effective for small businesses to advertise to
local community.
• Firms can run ads in specific sections of a newspaper.
• Magazines can target very specific audiences.
• Magazines have longer shelf life.

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 Advertising 5

Print Advertising (continued)

Disadvantages:
• Fewer Americans using print as primary information source.
• Newspaper ads compete with editorial content.
• Magazines have long lead time.
• Marketers can’t control ad placement in magazines.

© McGraw Hill LLC 16

 Advertising 6

Radio Advertising
Advantages:
• Often most cost-effective choice.
• Allows market segmentation based on geography and format.

Disadvantages:
• Audio only.
• Digital presets in cars make it easier to switch away from ads.
• MP3 players and smartphones.
• Podcasts provide new avenue.

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 Podcasts
The Serial Podcast has been downloaded more than 250 million
times and provides an example of the widespread use of podcasts
which some consumers choose over traditional radio content.

© McGraw Hill LLC Hennell/Alamy Stock Photo 18

 Advertising 7

Outdoor Advertising
Advantages:
• Flexible.
• Cost-efficient.
• Facebook and Google spend part of their own marketing dollars
on billboards and other forms of outdoor signage.
Disadvantages:
• Short exposure time.
• Wasted coverage.

© McGraw Hill LLC 19

 Advertising 8

Nontraditional Advertising
underlined Mobile advertising can easily reach consumers at virtually
any time.
Advertising in video games.
• FIFA International Soccer prominently displays an Adidas ad.

Access to the key term Mobile advertising

© McGraw Hill LLC 20

 Nontraditional Advertising

A tea and biscuit food truck in New York City is used to

promote a new season of the popular series Downton Abbey.

© McGraw Hill LLC Ben Hider/Getty Images 21

 LO8-3
Sales Promotion 1

Common Types of Sales Promotions underlined

underlined Coupons.
• Traditionally printed, but websites like RetailMeNot distribute digitally.
• Coupon fraud is a serious problem.
underlined Rebates.
• Customers often fail to redeem them.
Samples.
• Costco.
underlined Contests and sweepstakes.
underlined

Access to the key term Sales Promotions Access to the key term Coupons Access to the key term Rebates Access to the key term Contests

Access to the key term sweepstakes

© McGraw Hill LLC 22

 Coupons Continue to Be in Demand

Coupons, whether in
traditional or electronic
form, for products such
as cosmetics, hair care,
and diapers continue to
be in demand.

© McGraw Hill LLC iPhone/Alamy Stock Photo 23

 Sales Promotion 2

Common Types of Sales Promotions (continued)

underlined Premiums.
• A prize in a children’s meal.
underlined Loyalty programs.
• Used to strengthen customer relationships.
underlined Trade sales promotions.
• Trade shows.
• Allowances.
underlined

• Training.

Access to the key term Premiums Access to the key term Loyalty programs Access to the key term Trade sales promotions

Access to the key term Allowances

© McGraw Hill LLC 24

 Loyalty Programs
IHG Rewards Club and other loyalty programs help companies retain
customers even in the face of fierce competition and a decrease in the
natural loyalty customers feel toward firms and products.

© McGraw Hill LLC Stephen Barnes/Travel/Alamy Stock Photo 25

 LO8-4
Personal Selling
underlined Personal selling involves direct communication
between the salesperson and the customer.
• Expensive element of promotion mix.
• Consistent message among salespeople.
• Results in immediate feedback.
• Importance of relationship selling.
underlined

Access to the key term Personal selling Access to the key term relationship selling

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 LO8-5
Public Relations 1

underlined Public Relations Tools

• Annual reports.
• Speeches.
• Blogs.
• Brochures.
• Media kits.
• Sponsorships.
• Event marketing.
• Publicity.
underlined

Access to the key term Public Relations Access to the key term Publicity

© McGraw Hill LLC 27

 Positive Publicity

The sports-entertainment company WWE has received positive publicity for its
charitable work, including its partnership with the Make-A-Wish foundation. During
the foundation’s World Wish Day initiative, WWE superstar John Cena agreed to
personally match every frequent flier mile donated to help reduce travel expenses
for the organization so that it can grant more wishes.

© McGraw Hill LLC John Carucci/AP Images 28

 Public Relations 2

Impact of Social Media on Public Relations

• Revolutionized how companies present themselves to the
public.
• Quick and cost-effective way to provide engaging content
about impact of a product or service.
• Essential to monitor social media for negative feedback.

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 Public Relations 3

Crisis Management
• Marketers must communicate to stakeholders as quickly
as possible.
• More criticism on social media for communication delays
than for actual incidents.
The Changing Face of Public Relations
• Has become a 24-hours-a-day, 7-days-a-week job.
• Information spreads faster than ever.

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 Public Relations for Crisis Management

As part of its crisis management strategy following the oil spill in the Gulf
of Mexico, BP posted to its website videos and briefings about cleanup
and response efforts to help mitigate the effects of the negative publicity
it received.
© McGraw Hill LLC Maurice Savage/Alamy Stock Photo 31
 LO8-6
Promotional Metrics 1

Measuring Advertising Effectiveness

Conduct a pretest before the campaign.
underlined

Conduct a posttest after the campaign.

underlined

• Recognition test.
underlined

• Unaided recall test.

underlined

• Aided recall test.

underlined

• Reach.
underlined

• Frequency.
underlined

• Revenue per ad dollar.

underlined

Access to the key term

Access to the key term posttest Access to the key term Recognition test
pretest

Access to the key term Unaided recall test Access to the key term Aided recall test Access to the key term Reach

Access to the key term Frequency Access to the key term Revenue per ad dollar

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 Promotional Metrics 2

Measuring Social Media Effectiveness

• Google Analytics tracks user activity in real time.
• Kred measures both social influence and outreach,
providing a score for each on a user's profile.
• Buzzsumo is an excellent way to analyze and monitor
Facebook pages.

© McGraw Hill LLC 33

 LO8-7
Promotion-Mix Budgeting Strategies
underlined Affordable Method
• A top-down approach common in small businesses.
underlined Percentage-of-Sales Method
• One of most widely used.
• Disadvantage when firm’s sales decline.
underlined Objective-and-Task Method
• Considered the best method.
• Bottom-up approach to promotional budgeting.

Access to the key term Affordable Method Access to the key term Percentage-of-Sales Method Access to the key term Objective-and-Task Method

© McGraw Hill LLC 34

 Today’s Professional
Hope Sparks
VIP Owner Concierge
Vistana Signature Experiences

• Her job: She works directly with vacation villa owners pre-arrival and during
their stay, accommodating requests when possible and ensuring they feel “at
home.”
• Landing the job: A guest speaker in her marketing class helped her get a job
where she could gain experience. She then transitioned to her current
company and role.
• Her success: Positive mindset!
• Her advice: Work hard, love what you do, and do it well. Don’t rush into a
position because it’s expected of you. Make sure to take vacations.
• Her brand: People are her passion.

© McGraw Hill LLC Photo provided by Hope Sparks 35

 Discussion Questions 1

1. What advertising medium is most effective for reaching you as

a consumer? What do you think the most effective method for
advertising to you will be five years from now?
2. If you had to advertise a new product to your marketing
classmates, what media would you choose and why?
3. Describe a company that you think does a poor job
advertising. Why is the advertising ineffective? Anyone can
criticize something that is not working, but those who offer
creative solutions to fix advertising strategies that are broken
have a very bright future ahead. With this in mind, make two
specific suggestions about how the company could improve its
advertising.

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 Discussion Questions 2

4. Imagine you are in charge of getting students at your school to

attend a lecture on campus. Would you choose a contest or a
sweepstakes as a tool for promoting the event and increasing
attendance? Explain your answer.
5. List two organizations that you think do a good job handling
public relations and explain why you think so. List two
organizations that you think do a poor job handling public
relations and make specific suggestions as to how they might
improve.
6. Based on your understanding of reach and frequency, would
you recommend a company advertise during the Super Bowl?
Why or why not? Would your answer vary depending on the
type of business running the ad?

© McGraw Hill LLC 37

 Social Media Application
Select two firms that offer sales promotions through social media. These
could include any of the strategies discussed in this chapter—coupons,
rebates, contests, or sweepstakes. Describe which sales promotions
each firm offers through which social media platforms. Then analyze
those promotions using the following questions and activities as a guide:
1. In your opinion, which firm is doing a better job using social media to
enhance its sales promotions? Explain your answer.
2. Who are the target markets for these social media sales
promotions? Are the sales promotions an effective way to generate
additional sales and profits from these target markets? Explain your
answer.
3. Provide at least two specific recommendations for sales promotion
strategies that each of these firms can implement through social
media. Be sure to discuss why you think your recommendations
would succeed in generating additional sales and profits from the
firm’s target markets.

© McGraw Hill LLC 38

 End of Main Content

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