Chapter-8

Promoting Products
Introduction
 Modern marketing calls for more
than developing a good product,
pricing it attractively, and make it
available to target customers.
 Companies must also
communicate continuously with
their present and potential
customers.
 What is communicated must not be left
for chance.
 To communicate effectively
companies often hire advertising
agencies to develop effective ads,
sales promotion specialists to design
sales-incentives programs, and public
relations firms to develop corporate
images.
 Sales people are trained to be
friendly, helpful, and persuasive.
 For any company the question is
not whether to communicate, but
how much to spend and in what
ways.
The Communication
Process
 Today there is a new view of
communications as an interactive
dialogue between the company and its
customers that takes place during the
pre-selling, selling, consuming, and post
consuming stages.
 Companies must ask not only “how can
we reach our customer?” but also “how
can our customers reach us?”
 Because of technological
breakthroughs, people can now
communicate through traditional
media (newspapers, radio, telephone,
television) and through newer media
forms (computers, fax machines,
cellular phones and pagers).
 By reducing communication costs,
the new technologies have
encouraged more companies to
move from mass communications
to more targeted communication
and one-to-one dialogue.
The world of communication
Is bigger than the world of
ADVERTISING
Promotional mix
 A company’s total marketing
communication programs
(promotional mix) consists of a
specific blend of advertising, sales
promotion, public relations, and
personal selling to achieve
advertising and marketing
objectives.
 The four major promotion tools
are: advertising, sales promotion,
public relation, and personal
selling.
 Sales promotion- short-term incentives
to encourage the purchase or sales of a
product or services.
 Pubic relations- building good relations
with the company’s various publics by
obtaining favorable publicity,
developing a good corporate image, and
handling or heading off unfavorable
rumors, stories, and events.
 Personal selling- oral presentation
in a conversation with one or more
prospective purchasers for the
purpose of making sales.
Advertising
 Advertising is any paid form of non-
personal presentation and promotion of
ideas, goods or services by an identified
sponsor.
 The hospitality and travel industry
spend billions of dollars on advertising.
 Advertising is a good way to inform and
persuade, whether the purpose is to sell
the product.
Major decisions in
advertising
 Setting the objectives- the first step
in designing an advertising program
is to set advertising objectives.
 Objectives should be based on
information about the target market,
positioning and marketing mix.
 Advertising objectives can be: to
inform, persuade, or remind.
Informative advertising
 Informative advertising is used
when introducing a new product
category and when the objective is
to build primary demand.
 When an airline opens a new route,
its management often runs full-
page advertisements informing the
market about the new service
Persuasive advertising
 It becomes more important as competition
increases and a company’s objective
becomes building selective demand.
 Some persuasive advertising has become
comparison advertising,
advertising which compares
one brand directly or indirectly with one or
more other brands.
 Example-burger King used direct-
comparison advertising against
Mcdonald’s.
Reminder Advertising
 Reminder Advertising is important
for mature products because it
keeps consumers thinking about
the product.
 Expensive McDonald's ads on TV
are designed to remind people
about McDonald's, not to inform or
persuade them.
Setting the advertising
budget
 After determining advertising
objectives, a company can establish
and advertising budget for each
product.
 The role of advertising is to affect
demand for a product.
 The company spend wants to spend
the amount needed to achieve the
sales.
 The advertising budget has some
specific factor that should be
considered when setting a budget.
1. Stage in the product life cycle-
new products typically need large
advertising budgets to build
awareness and gain consumers
trial.
 Mature brands usually require
lower budgets as a ratio to sales.
2. Competition and clutter- in a
market with many competitors and
heavy advertising support, a brand
must be advertised more
frequently to be heard above the
noise of the market.
3. Market share
 High market share brands usually
require greater advertising
expenditure as a percentage of
sales than do low share brands.
 Building a market or taking share
from competitors require larger
advertising budgets than
maintaining current share.
4. Advertising frequency
 Larger advertising budgets are
essential when many repetitions
are needed to present the brand’s
message.
5. Product differentiation- a brand
that closely resembles others in its
product class requires heavy
advertising to set it apart.
Message decisions
 The third decision in advertising
management process is message
decisions.
 A large advertising budget does not
guarantee a successful advertising
campaign.
 Studies have shown that creative
advertising messages can be more
important than the number of dollars
spent.
 No matter how big the budget,
advertising can succeed only if its
message gains attention and
communicates well.
 Good advertising messages are
especially important in today’s
costly and cluttered advertising
environmnet.
Message Generation
 Hotels, resorts, bed and
breakfasts, and cruise lines face an
inherent barrier to effective
communication with the customer.
 This is the intangibility nature of
the product.
 A hotel’s product is experienced
only at or after the time.
 This characteristics of services in
general poses genuine challenges
for message creation.
 Creative people have different
ways of developing advertising
messages.
Message Evaluation and
Selection
 The advertisement must evaluate
possible appeals on the three
characteristics.
1. The message must be meaningful.
2. Appeals should be distinctive.
3. The messages must be believable.
Message Execution
 The impact of the message depends on
what is said and how it is said- message
execution.
 The advertising agency’s creative staff
must find a style, tone, words, and
format for executing the message.
 Any message can be presented in
different execution styles, such as the
following.
1. Slice of life- shows one or more
people using the product in a
normal setting.
2. Life style- shows how a product
fits with a life style .
3. Fantasy- creates a wonder world
around the product or its use.
 4.Mood or image- builds a mood or image around the
product,
such as beauty, love, or serenity.
5.Musical- shows one or more people or cartoon
singing a
song about the product.
6. Personality symbol- creates a character that
represents the
product.
7. Technical experts- shows the
company’s expertise with the
product.
8. Scientific evidences- presents
survey or scientific evidence that
the brand is better or better liked
than one or more other brands.
9. Testimonial evidence- features a
highly believable or likable source
endorsing the product.
Media decisions
 The forth step is to choose the
media carrying the message.
 The major steps in media
selection are:
1. Deciding on reach, frequency,
and impact.
 reach is the measure of the percentage
of people in the target market who are
exposed to the ad campaign during a
given period of time.
 Frequency is a measure of how many
times the average person in the target
market is exposed to the message
 Impact-
Impact the qualitative value of message
exposure through a given medium.
Choosing among major
media types
 The media planner has to know the
reach, frequency, and impact of
each major media types.
 The major media types are
newspaper, TV, direct mail, radio,
magazine, and outdoor.
Thank You Very Much

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