Intro to Business · Chapter 16

Effective Promotions

Explore how businesses use integrated marketing communication, advertising, personal selling, public relations, sales promotions, word of mouth, and digital media to reach customers.

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Overview

Chapter 16 examines the promotion element of the marketing mix. You will study the promotion mix and Integrated Marketing Communication (IMC), advertising categories and media, personal selling and the selling process, public relations and publicity, sales promotion, word of mouth, digital and mobile promotion, and push, pull, and pick promotional strategies.

What You Will Learn

  • Identify the traditional and emerging tools that make up the promotion mix.
  • Explain Integrated Marketing Communication and the major steps in a promotional campaign.
  • Define advertising and explain its informing, persuading, and reminding functions.
  • Distinguish major categories and forms of advertising, including online, mobile, product placement, and infomercials.
  • Explain interactive promotion and the importance of a positive online customer experience.
  • Describe personal selling and the major steps in the selling process.
  • Explain prospecting, qualifying, prospects, and trial closes.
  • Describe the role of public relations and distinguish PR from publicity.
  • Explain sales promotion and identify common consumer promotional techniques.
  • Describe word-of-mouth, viral, blog, podcast, email, and mobile promotion.
  • Compare push, pull, and pick promotional strategies.

Before You Begin

  • A basic understanding of the marketing mix from Chapters 13–15 is helpful.
  • No previous advertising or sales course is required.

Why This Matters

Even an excellent product can fail if customers do not know about it or understand its value. Promotion connects a business with its target market, builds awareness and relationships, supports sales, and helps create a consistent brand message.

Plan Your Study

  • Review the Chapter 16 objectives and the major elements of the promotion mix.
  • Read the complete written lesson in the Learn tab.
  • Watch the Chapter 16 Effective Promotions video.
  • Complete the advertising, selling, PR, and promotional-strategy questions in Practice.
  • Use the Chapter 16 Notes / Review in Resources to prepare for the quiz and other chapter assignments.

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Read the complete chapter.

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Learn Effective Promotions

Explore how businesses use integrated marketing communication, advertising, personal selling, public relations, sales promotions, word of mouth, and digital media to reach customers.

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Promotion and the Promotion Mix

Chapter 16 examines the promotion element of the marketing mix. Promotion is how organizations communicate with customers and other audiences to inform them, persuade them, remind them, build relationships, and encourage exchanges.

The promotion mix is the combination of promotional tools an organization uses. The traditional mix includes advertising, personal selling, public relations, and sales promotion. Modern promotion also makes extensive use of social media, online communication, word of mouth, mobile media, blogs, podcasts, and other interactive tools.

Integrated Marketing Communication

Integrated Marketing Communication (IMC) combines promotional tools into one comprehensive strategy. Rather than allowing advertising, public relations, sales promotion, personal selling, and digital media to send unrelated messages, IMC coordinates them so customers receive a consistent message and brand image.

IMC can help an organization create a positive brand image, meet consumer needs, and support the firm's strategic marketing and promotional goals. Modern IMC often combines traditional media with social media and other interactive channels.

Planning a Promotional Campaign

An effective promotional campaign requires more than simply creating an advertisement. A business should work through a logical planning process:

  1. Identify the target market. Determine exactly whom the campaign needs to reach.
  2. Define objectives. Decide what the promotion should accomplish.
  3. Determine a promotional budget. Establish how much the organization can invest.
  4. Develop a unifying message. Create a consistent message across promotional tools.
  5. Implement the plan. Put the selected promotional activities into action.
  6. Evaluate effectiveness. Determine whether the campaign achieved its objectives.

Advertising: Informing, Persuading, and Reminding

Advertising is paid, non-personal communication through various media by organizations or individuals identified in the message. Three major advertising goals are to inform, persuade, and remind.

Businesses choose advertising media based on the target market they want to reach. Traditional and digital media each have advantages and disadvantages involving audience, cost, targeting, flexibility, engagement, and the ability to measure results.

Major Categories of Advertising

Advertising can serve different audiences and purposes. Important categories include:

  • Retail advertising — communication from retail stores to consumers.
  • Trade advertising — communication from manufacturers to wholesalers and retailers.
  • Business-to-business (B2B) advertising — communication from one business to another.
  • Institutional advertising — designed to create a desirable image for an organization.
  • Product advertising — designed to create demand or a favorable image for a particular product or service.
  • Advocacy advertising — supports a particular view of an issue.
  • Comparative advertising — compares competing products.
  • Interactive advertising — lets customers choose information or interact with the message.
  • Online and mobile advertising — reaches customers through websites, apps, mobile devices, and other digital channels.

Television, Product Placement, and Infomercials

Television has traditionally been an important advertising medium, although viewers can now avoid many commercials through streaming services and recording technology. This has encouraged advertisers to look for additional ways to place messages in front of audiences.

Product placement occurs when advertisers pay to place products in television programs, movies, or other entertainment so the audience sees them as part of the content.

An infomercial is a full-length television program devoted to promoting a particular product. Online advertising serves a related purpose by attracting potential customers to websites or other digital locations where they can learn more and possibly make a purchase.

Interactive Promotion and the Online Experience

Interactive promotion opens a dialogue between buyers and sellers and allows them to work toward a mutually beneficial exchange. Unlike one-way mass communication, interactive promotion gives customers an opportunity to respond, ask questions, share opinions, or customize the information they receive.

A company's online presence is itself part of the promotional experience. Clear brand messaging, easy navigation, effective calls to action, fast and readable pages, and accessibility all contribute to a better customer experience.

Social Media and Advertising Effectiveness

Social media gives marketers opportunities for two-way communication and rapid feedback. Organizations can post messages, observe customer responses, answer questions, and evaluate how audiences react to campaigns.

Successful online campaigns generally need a recognizable personality, customer participation, relationships with relevant online communities, personalized experiences, and content that holds attention. Social media can also help marketers measure reactions much more quickly than many traditional media.

Global Advertising

Global advertising can create efficiency by using a coordinated product and promotional strategy in multiple countries. However, a message that works well in one nation may not work in another. Language, customs, cultural expectations, humor, symbols, and translations can all affect how a promotional message is interpreted. Effective international marketers therefore need to be culturally sensitive.

Personal Selling

Personal selling is the face-to-face presentation and promotion of a product, including searching for new prospects and providing follow-up service. Effective selling is not simply convincing someone to buy. Good salespeople listen to customer needs, identify appropriate solutions, and make the buying process as useful and straightforward as possible.

The Selling Process

A typical selling process includes the following steps:

  1. Prospect and qualify.
  2. Pre-approach.
  3. Approach the customer.
  4. Make a presentation.
  5. Answer objections.
  6. Close the sale.
  7. Follow up.

Prospecting means researching potential buyers and selecting those most likely to buy. Qualifying means determining whether a potential customer has a need for the product, the authority to buy, and the willingness to listen to a sales message. A customer who meets those criteria is a prospect.

A trial close is a statement or question designed to move the selling process toward a purchase. Throughout the process, successful salespeople understand the customer's business, know the competition, differentiate their offering, build relationships, and focus their effort on people who are likely to buy.

Public Relations

Public relations (PR) evaluates public attitudes, adjusts policies and procedures in response to the public, and carries out programs designed to earn public understanding and acceptance.

A sound PR program follows three basic ideas: listen to the public, make appropriate changes, and communicate that the organization is responsive to people's needs. Public relations therefore involves much more than simply sending information to the media.

Publicity

Publicity is information about an individual, product, or organization that is distributed through the media and is not paid for or controlled by the seller. Publicity can be valuable because it is free, can reach people who might ignore an advertisement, and may appear more believable than paid advertising.

Those advantages come with an important tradeoff: the organization has little control over whether a media outlet uses the story, when it appears, or whether the coverage is favorable. Publicity can be positive or negative.

Sales Promotion

Sales promotion stimulates consumer purchasing and dealer interest through short-term activities. Sales promotions can be directed toward business customers or final consumers.

Common consumer sales promotions include coupons, demonstrations, samples, sweepstakes, in-store displays, and contests. Other promotional incentives may include price reductions, premiums, bonuses, catalogs, special events, and similar short-term techniques. These activities should support the product's overall marketing strategy rather than operate independently.

Word-of-Mouth Promotion

Word-of-mouth promotion occurs when people tell others about products or services they have purchased or experienced. It can be especially influential when customers depend heavily on trust, reputation, and personal recommendations, such as when selecting restaurants, childcare, car repair, hairstylists, or hotels.

Viral Marketing and Digital Promotional Tools

Viral marketing encourages promotional messages to spread from person to person through online networks and social interaction. Some campaigns provide incentives, merchandise, commissions, or other benefits to people who help spread the message.

A blog is an easily updated online publication that can contain text, photographs, video, and links. Podcasting distributes audio or video programs through the Internet. Email, blogs, podcasts, social platforms, and other digital tools allow businesses to communicate directly with customers and commercial buyers.

Mobile Media

Mobile devices give marketers another direct connection with customers. Businesses can use mobile communication to share offers, product information, reminders, and other promotional messages. Because customers carry mobile devices with them, mobile promotion can be timely and highly targeted, but businesses must also respect customer expectations about relevance and frequency.

Push, Pull, and Pick Strategies

Businesses can organize their promotional efforts around several broad strategies:

  • Push strategy — producers use advertising, personal selling, sales promotion, and other tools to persuade intermediaries to stock and promote their products.
  • Pull strategy — producers direct substantial advertising and sales promotion toward consumers so customers request the products from retailers.
  • Pick economy — consumers select products from online outlets, giving customers extensive control over what they view and purchase.

Putting Chapter 16 Together

Effective promotion requires coordination. Advertising, personal selling, public relations, publicity, sales promotion, word of mouth, digital media, and mobile communication should work together rather than send conflicting messages. Integrated Marketing Communication helps a business create a consistent message, reach the right target market, build customer relationships, and evaluate whether its promotional efforts are accomplishing their goals.

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Guided Practice

  • What is the promotion mix, and why is Integrated Marketing Communication important?
  • List the six major steps in planning a promotional campaign.
  • What are the three major goals of advertising? Give an example of each.
  • Distinguish retail, trade, B2B, institutional, product, advocacy, comparative, interactive, online, and mobile advertising.
  • How do product placement, infomercials, and interactive promotion differ?
  • List the major steps in the selling process and explain prospecting and qualifying.
  • How does public relations differ from publicity? What are the advantages and disadvantages of publicity?
  • Give examples of consumer sales promotions and explain why they are usually short-term tools.
  • How do word-of-mouth, viral marketing, blogs, podcasts, email, and mobile media support promotion?
  • Compare push, pull, and pick promotional strategies and give an example of when each might be used.

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Instructor Resources

Classroom-ready objectives, teaching ideas, questions, and assessment materials for this chapter.

Learning Objectives

  • Identify the traditional and emerging tools in the promotion mix.
  • Explain Integrated Marketing Communication and promotional campaign planning.
  • Compare advertising categories, media, and digital promotional approaches.
  • Illustrate the B2B and B2C selling process.
  • Explain the role of public relations and publicity.
  • Assess common consumer sales-promotion techniques.
  • Explain word-of-mouth, viral, blog, podcast, email, and mobile promotion.
  • Compare push, pull, and pick promotional strategies.

Prerequisite Knowledge

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Teaching Outline

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Key Concepts

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Classroom Demonstration

  • Choose a familiar brand and identify each element of its promotion mix.
  • Have students design the six steps of a promotional campaign for a new local business.
  • Collect examples of different advertising categories and have students classify them.
  • Role-play the selling process from prospecting through follow-up.
  • Compare a paid advertisement with a publicity story and discuss control and credibility.
  • Give several products and ask students to recommend push, pull, or combined promotional strategies.

Questions to Ask

  • Why is a consistent message important when a company uses many promotional channels?
  • Which advertising media are most effective for reaching college students, and why?
  • When can product placement be more effective than a traditional advertisement?
  • What makes personal selling different from advertising?
  • Why might publicity be more believable than advertising even though the company has less control over it?
  • Which sales promotions are most likely to influence your own purchasing?
  • How has social media changed word-of-mouth promotion?
  • When should a manufacturer emphasize a push strategy rather than a pull strategy?

Teaching Notes

  • The Chapter 16 PowerPoint with speaker notes is the primary instructional source; the Chapter 16 Notes / Review reinforces the chapter terminology.
  • Some statistics, company follower counts, advertising expenditure figures, and technology examples in the presentation are dated. Use them as historical illustrations rather than current market measurements.
  • Emphasize the distinction between advertising (paid and controlled), publicity (not paid and not controlled), and the broader public-relations function.
  • Use the selling process as an applied sequence rather than a vocabulary list; role-play works particularly well.
  • The promotion chapter is a useful place to reconnect the four Ps and show that promotion should support the target market, product, price, and distribution decisions already made.

Assessment Ideas

  • Vocabulary quiz covering promotion, advertising, selling, PR, and digital promotion terminology.
  • Promotional-mix analysis of a familiar company or brand.
  • Advertising classification exercise using real or instructor-provided examples.
  • Personal-selling role-play scored with a short rubric.
  • Push-versus-pull strategy case.
  • Integrated promotional campaign proposal for a new product.

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