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Chapter 6:

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

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 the Promotional Mix Needed?
Every day consumers are bombarded with thousand of messages trying
to convince them to buy products and services. A well-planned
promotional mix can deliver the message in the most effective manner.

Each type of promotion has its strengths when used appropriately. When
more than one type of promotion is used they must complement each
other and deliver consistent message about the product.
The AIDA Concept and the Promotional Mix
Many marketers use the AIDA Concept to accomplish this
goal. AIDA is an acronym that stands for Attention,
Interest, Desire and Action, which are the four stages of
promotion.Promotion must attract the attention of the
consumer, create an interest, turn the interest into a desire,
and then persuade the consumer to take action.
AIDA Concept
- To sell a product or service, a business must first capture the attention of
consumers and create awareness.
- Product awareness does not always lead to a sale. Marketers must gain the
consumer’s interest.
- Interest and desire are closely related. As marketers build interest in their
product or service, they should try to appeal to consumers buying motives
- Finally, promotions must motivate consumers to take action.
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.
Determine the Target Market
- Using market research, a business must first identify their target markets
before planning a promotional mix.
Identify Promotional Objectives
- Business 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.
The Promotional Plan
Set the Promotional Budget
- After the promotional objectives are set, marketers must determine what it will
cost to meet those objectives. Some businesses simply set their promotional
budget based on a percentage of sales.
Determine the Promotional MIx
- Based on the budget, marketers can determine the best methods to convey
their message.
Implement and Evaluate the Promotional Plan
- After the promotional mix is determined, the budget will spread among the
promotional mix activities.
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.
Advantages of Advertising
- When business advertise, they bring sense of credibility to their products.
Consumers opinion about a product’s legitimacy and quality are more
favorable when the product is advertised.
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 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 newsletter, sponsoring events, and exhibiting trade shows.

Publicity often goes hand in hand with public relations. Publicity is any paid form
of communication designed to arouse public interest about a service, product,
business, or event.

Businesses may write a press release, which are 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 positive image in the
minds of consumers.

Responding to unfavorable publicity or a negative event is

also part of the public relations functions.
Advertising VS. Public Relations
Many people do not know the difference between advertising
and public relations. Advertising uses creative and edgy
techniques to communicate a message while the public
relations goal is to get free publicity for a business and its
products or services.
Advantages and Disadvantages of Public Relations
Most people perceive publicity as more credible than an advertisement.
Consumer are likely to believe a third party source, such as reporter,
because he or she can speak freely about a company or a product.
Publicity is often considered to be free advertising. The cost of public
relations is relatively inexpensive.
The biggest disadvantage of public relations is the lack of control. Third-
party media outlets, not the company, have the control over what is said
about the company or product.
If a negative reviews of a product are exposed. It could be disastrous.
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
decisions. In certain situations, personal selling may work
better than other forms of promotions in obtaining the
sale. Personal Selling is often used for products that are
complex or relatively expensive.
Steps in the Sale Process
Generate Sales Leads
- In some cases, customers seek out salespeople when they want to buy a
product. This commonly occurs in retail settings.
A referral is a recommendation from a customer or another business
Networking involves establishing informal ties with group of people, including
friends, business contacts, coworkers, acquaintances, and fellow members of
the profession.
Approach Customers
- The first contact that the salesperson makes with the customer is called
approach. During the approach, salespeople introduce themselves, their
compny, and their products.
Sales Promotion
Sales promotion involves the use of marketing activities that provide
extra value and buying incentives for customers.
Reasons for Sales Promotions
- Sales promotions accomplishes things that the other components in
the promotional mix cannot. Advertising tries to influence consumers
attitudes by building a strong brand awareness and preference over
the long term. Sales promotions tries to influence consumers’
behavior by giving them an incentive to make an immediate purchase.
Sales Promotion
Advantages and Disadvantages of Sales Promotion

- Sales promotions offers many benefits to businesses. They result in

shot-term sales that can increase a business 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. Another disadvantage of sales promotion is that
customers may grow dependent on them.
Other Types of Promotion
Promotional Tools
- In addition to the types of promotion already
discussed, there are severalother promotional
tools that businesses can use to reach
customers. Three types include endorsement,
word of mouth promotion and direct marketing.
Other Types of Promotion
- An endorsement is a public expression of approval or support for a product or
service. Endorsements are also known as testimonials.
Celebrity Endorsement and Endorsement Considerations
Word-of-Mouth Promotion
- Word-of-mouth is one of the most effective ways of spreading the news about
products and services.
Direct marketing
- Direct Marketing uses techniques to get consumers to buy products or
services from a non retail setting.
Visual Merchandising
Visual Merchandising is the process of displaying products in a way that makes
them appealing and enticing to consumers.

Components of Visual Merchandising

- Visual Merchandising includes window display, interior displays, and signs.

Store Layout

- Visual Merchandising also involves the layout of the store. Music, product
displays, lightings, and even climate control can affect the shopping
experience. Stores should be clean and well lit. Stores that are brightly lit will
result in higher sales.