Sales

Promo+on

Notes

The Communica-on Process

This model points out several key factors in good communica-on:

1) Senders need to know what audiences they want to reach, and what response they want.
2) Senders must be good at encoding messages that take into account how the target audience
decodes them.
3) Senders must send messages through media that reach target audiences
4) Senders must develop feedback channels so that they can easily assess an audiences response to
the message.
Sender : The party sending the message to another party.
Encoding : The process of puIng thought into symbolic form.
Message : The set of symbols that the sender transmits.
Media : The communica-on channels through which the message moves
from the sender to the receiver.
Decoding : The process by which the receiver assigns meaning to the symbols
encoded by the sender.
Receiver : The party receiving the message sent by another party.
Response : The reac-ons of receiver aMer being exposed to the message.
Feedback : The part of the receivers response communicated back to the
sender.

Noise : The unplanned sta-c or distor-on during the communica-on

process, which results in the receiver geIng a dierent message
than the one the sender sent.

NOTE: For a message to be eec+ve, the senders encoding process must mesh with the receivers decoding
process. The best messages consist of words and other symbols that are familiar to the receiver.

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Sales Promo+on

Notes

The Promo-ons Mix

Promo%on Mix - (a.k.a. Marke+ng Communica+ons Mix) consists of the specic blend of adver-sing, public
rela-ons, personal selling, sales promo-on and direct-marke-ng tools that the company uses to
persuasively communicate customer value and build customer rela-onships.

Adver-sing : Any paid form of non-personal presenta-on and promo-on of ideas,

goods or services by an iden-ed sponsor. (E.G. broadcast, print,
Internet, outdoor, etc.)
Sales Promo-on : Short-term incen-ves to encourage the purchase or sale of a product
or service. (E.G. discounts, coupons, displays, and demonstra-ons)
Personal Selling : Personal presenta-on by the rms sales force for the purpose of
making sales and building customer rela-onships. (E.G. sales
presenta-ons, trade shows, and incen-ve programs)
Public Rela-ons : Building good rela-ons with the companys various publics by
obtaining favorable publicity, building up a good corporate image,
and handling or heading o unfavorable rumors, stories, and events.
(E.G. press releases, sponsorships, special events, and Web pages)

Direct Marke-ng : Direct connec-ons with carefully targeted individual consumers to

both obtain an immediate response and cul-vate las-ng customer
rela-onships. (E.G. catalogs, telephone marke-ng, kiosks, the
Internet, mobile marke-ng, etc.)

NOTE: It is worth no-ng that although the promo-on mix is the companys primary communica-ons
ac-vity, the en-re marke-ng mix (Product, Price, Place, Promo-ons), must be coordinated for the greatest
impact.

Integrated Marke-ng Communica-ons: The New Marke+ng Communica+ons Model

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Contribu-ng Factors for the Need for the New Marke-ng Communica-ons Model:
(1) Consumers are changing.

- They are beYer informed and more communica-ons

empowered.

- They can use the Internet and other technologies to

nd informa-on on their own.

- They can connect more easily with other consumers
to exchange brand-related informa-on or even
create their own marke-ng strategies.

Sales Promo+on

Notes

(2) Marke-ng strategies are changing.

- Mass markets have fragmented, marketers are

(3) Advances in communica-ons

technology.

- The digital age has spawned a host of new

shiMing away from mass marke-ng.

- Marketers are developing focused marke-ng
programs designed to build closer rela-onships with
customers in more narrowly dened micromarkets.
informa-on and communica-on tools.

- Companies are doing less broadcas-ng and more

narrowcas-ng.

- New media formats let marketers reach smaller

groups of consumers in more interac-ve, engaging

ways.

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Integrated Marke%ng Communica%ons (IMC) - the company carefully integrates its many communica-ons
channels to deliver a clear, consistent, and compelling message about the organisa-on and its brands. It
calls for recognising all touch points where the customer may encounter the company and its brands. It -es
together all of the companys messages and images. It leads to a total marke-ng communica-ons strategy
aimed at building strong customer rela-onships by showing how the company and its products can help
customers solve their problems.

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Steps in Developing Eec-ve Marke-ng Communica-on
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(1) Iden-fying the Target
Audience

- Audiences may be current users or poten-al buyers

- Audiences may either be those who make the buying decision or those
who inuence it.

- Audiences may be individuals, groups, special publics, or the general

public.

- The target audience will heavily aect the communicators decision on:
- WHAT will be said
- HOW it will be said
- WHEN it will be said
- WHERE it will be said
- WHO will say it.
(2) Determining the
Marketers must rst determine where the target audience may be at any of
Communica-on Objec-ves the 6 Buyer-Readiness Stagesthe stages consumers normally pass through
on their way to making a purchase.

AWARENESS KNOWLEDGE LIKING PREFERENCE CONVICTION

PURCHASE

Sales Promo+on

Notes

(3) Designing a Message

- Ideally, the message should get the aYen-on, hold interest, arouse

(4) Choosing Media

- There are two broad types of communica-on channels:

- Personal Communica-on Channels: two or more people

desire, and obtain ac-on. When puIng the message together, the
marke-ng communicator must decide what to say (Message Content)
and how to say it (Message Structure and Format).
- Message Content: the marketer has to gure out an appeal or theme that
will produce the desired response. There are three types of appeals:
- Ra-onal appeals relate to the audiences self interest. They show
that the product will produce the desired benets.
- Emo-onal appeals aYempt to s-r up either nega-ve or posi-ve
emo-ons that can mo-vate purchase. Communicators may use
emo-onal appeals ranging from love, joy, and humor to fear and
guilt.
- Moral appeals are directed to an audiences sense of what is
right and proper. They are oMen used to urge people to
support social causes.
- Message Structure: the marketer has to decide how to handle 3 issues:
- (1) Whether to draw a conclusion or leave it to the audience.
- (2) Whether to present the strongest arguments rst or last.
- (3) Whether to present a one-sided argument (men-oning only
the products strengths) or a two-sided argument (tou-ng the
products strengths while also admiIng its shortcomings).
- Message Format: the marketer needs to take into considera-on the
characteris-cs of the channel/medium that will be used.

communicate directly with each other. They can communicate face-

to-face, on the phone, via mail or email, or through chat. Personal
communica-on channels are eec-ve because they allow for
personal addressing and feedback.
- Nonpersonal Communica-on Channels: media that carry messages
without personal contact or feedback.

(5) Selec-ng the Message

Source

- The messages impact depend on how the target audience views the

(6) Collec-ng Feedback

- This involves asking the target audience members whether they

communicator, messages delivered by highly credible sources are more

persuasive.

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The Nature of Sales Promo-on
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remember the message, how many -mes they saw it, what points they
recall, how they felt about the message, and their past and present
aItudes toward the product and company. Also, marketers need to
measure the resul-ng behavior from the messagehow many people
bought the product, talked to others about it, or visited the store.

Sales Promo-on - Includes a wide assortment of toolscoupons, contests, cents-o

deals, premiums, and othersall of which have many unique quali-es.
- AYracts consumer aYen-on, oer strong incen-ves to purchase, and
can be used to drama-ze product oers and boost sagging sales.
- It oers consumers reasons to buy now (adver-sing gives you reasons
to buy a product or service).
- Its eects are oMen short lived and are not as eec-ve as adver-sing or
personal selling in building long-run brand preference and customer
rela-onships.

Sales Promo+on

Notes

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The Rapid Growth of Sales Promo-on
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Factors that contributed to the rapid growth of sales promo-on:

(1) Internally, product managers face greater pressures to increase current sales, and they view
promo-on as an eec-ve short-run sales tool.
(2) Externally, the company faces more compe--on, and compe-ng brands are less dieren-ated.
(3) Adver-sing eciency has declined because of rising costs, media cluYer, and legal restraints.

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Sales Promo-on
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Types/Target Audience

Objec-ves

Consumer Promo-ons To urge short-term customer

(targeted towards nal buying or enhance customer
buyers)
brand involvement.

Tools

- Samples are oers of a trial amount of a

product.

- Coupons are cer-cates that give buyers

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-

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a saving when they purchase specied

products.
Cash refunds (or rebates) are like
coupons except that the price reduc-on
oers aMer the purchase rather than at
the retail outlet.
Price packs (also called cents-o deals)
oer consumers savings o the regular
price of a product.
Premiums are goods oered either free
or at low cost as an incen-ve to buy a
product, ranging from toys included with
kids products to phone cards.
Adver-sing special-es (also called
promo-onal products) are useful ar-cles
imprinted with an adver-sers name,
logo, or message that are given as giMs
to consumers.
Point-of-purchase (POP) promo-ons
include displays and demonstra-ons that
take place at the point of the sale.
Contests, sweepstakes ad games give
consumers the chance to win something
by luck or through extra eort.
Event marke-ng (or sponsorhips) where
marketers can create a brand-marke-ng
event or serve as a sole or par-cipa-ng
sponsor of events created by others.

Sales Promo+on
Trade Promo-ons
(targeted to retailers
and wholesaler)

Notes
To get retailers to carry new items - Contests, premiums, displays can also be
and more inventory, buy ahead,
used.
- Discount o the list price on each case
or promote the companys
products and give them more
purchase during a stated period of -me
shelf space.
(also called a price-o, o-invoice, or o-
list).
- Allowance in return for the retailers
agreement to feature the manufacturers
products in some way.
- Free goods are extra cases of
merchandise for retailers who buy a
certain quan-ty or who feature a certain
avour or size.
- Push money are cash or giMs to dealers
or their sales forces to push the
manufacturers goods.
- Specialty adver-sing items that carry the
companys name (e.g. pens, pencils,
calendars, paperweights, etc.)

Business Promo-ons To generate business leads,

(targeted to business s-mulate purchases, reward
customers)
customers, and mo-vate
salespeople

- Also includes consumer and trade

promo-on tools

- Conven-on or Trade shows to promote

their products.

- Sales contests is a contest for

salespeople or dealers to mo-vate them

to increase their sales performance over
a given period.

Sales Force Promo-ons To get more sales force support

(targeted to members for current or new products or
of the sales force)
geIng salespeople to sign up
new accounts

NOTE: Every sales promo-on tool has the poten-al to build both short-term excitement and long-term
consumer rela-onships.