MODULE 7

PROMOTION
Advertising and promotions constitute the overt forms of communication for a product that involve
the use of various media to deliver messages to the market in order to achieve business objectives.
Because different kinds of media may be employed in order to push a message to consumers, the
portfolio of media is referred to as the promotions mix.
The purpose of promotions is to elicit a change in behavior. Of course, getting people to buy your
product, when previously they did not, constitutes a change in behavior. But he behavioral
objective need not be this abrupt. Often, consumers first need to be primed in order to allow them
to collect positive feelings toward the product, before finally getting them to actually purchase it.

Promotion- it is an activities or a series of activities that are intended to boost the sales of a product
or service, usually short-term.

Two types of Promotions

1. Trade promotions- are intended for marketing intermediaries such as retailers. The
purpose of trade promotions is to encourage the intermediaries to increase purchases, to
stock a particular product, to accelerate purchases or payments for purchases, or to extend
preference towards a particular brand.
Examples of trade promotions are 10+1 ( if a retailer orders ten cases of a product, the
manufacturer delivers 11 case but does not charge for the extra case), giving retailers free
store signages to carry a specific product brand, and contests among participating retailers.
Trade promotions “push” products to the retailers or trade outlet.

2. Consumer promotions- are intended for consumers. The purpose of consumer

promotions is to induce product trial, encourage brand switching, or reward consumer
patronage.

ADVERTISING
Advertising- may be defined as any paid form of non-personal presentation and promotion of
ideas, goods, or services, by an identified sponsor.
Brand awareness- is the extent to which consumers are familiar with the distinctive qualities or
image of a particular brand of goods or services.

Types of Media and Techniques Used in Advertising

1. Radio- a viable advertising vehicle in the Philippines since 1922, radio is the most
accessible media. Philippines radio stations broadcast in either the AM or FM brands, with
AM stations broadcasting mostly talk, news, or opinion programs On the other hand, FM
stations primarily broadcast music, with each radio station specializing on a particular type,
such as classical, hip-hop, rock, or pop.

2. Newspapers- newspapers circulating in the Philippines constitute one of the most viable
media for advertising, if the advertiser would like to reach a great number of urban dwellers
and a wide variety of audience. Unlike the other types of media, a lot of advertising
information can be accommodated in a small newspaper advertising space.

3. Consumer Magazines- are purchased by certain types of buyers depending on the

nature of the magazine. Metro magazine, for instance, are read by young professionals and
those with sufficient income to be able to afford its high-end price.
Among the advantages of magazines are:
a. It can be passed on to other readers
b. Its low cost of advertising per thousand of prospects reached
c. It reaches a specialized audience.
4. Television- provides a powerful combination of visual and audio effects to the audience.
Just imagine the difference between a live radio broadcast and a live telecast of a boxing
spectacle like that of Manny Pacquiao.
Television’s main disadvantages, however, are the high costs involved, and the limited
information format (a TV ad, like the radio ad must not be longer than 60 seconds).

5. Outdoor Advertising- consists of posters, painted bulletins, and spectaculars. Posters

are the least costly, while spectaculars are the most expensive. A very important aspect of
outdoor advertising is the choice of location where visibility is a must.

6. Direct Mail- is the most selective of all media forms. It reaches only the individuals and
organizations the advertiser wishes to contact. Direct mail contains information which may
be in the form of postcards, letters, leaflets, folders, booklets or catalogs. The disadvantage
of direct mail is that costs are high per prospect reached.

7. Yellow Pages- The yellow pages of directories (like the telephone directory) are widely
used by national and local advertisers. This medium is especially useful to buyers who have
already made a decision to buy products or services but do not know where to buy them.
The cost per advertisement page is low compared to other media Its main disadvantage,
however, is that it is a passive form of advertising and the message is dormant until the
prospect lifts the pages of the directory.

8. Transit advertising- consists of those that appear inside and outside of buses. It is less
costly but it is also less discriminating. It can be read by just any other person, prospects
and non-prospects.

9. Point-of-Purchase- refers to those appearing in outlets where goods are sold. They are
most often used by national advertisers for the purpose of selling their goods through retail
outlet. Point-of-purchase advertising is varied in terms of material, size, construction, and
design.

10. Internet- is a global network of networks linking millions of users and as such, offers
many possibilities for the advertiser. Many companies have already put up their own home
pages which serve as a form of advertising that the audience seeks.

11. Cellphones- are tools of electronic communication using two forms: the spoken word
and the text (or Short Messaging Service). The SMS is currently used by some firms to
advertise their products such as movies and entertainment. The cellphone is an inexpensive
medium for advertising, but it cannot select its audience.
PUBLIC RELATIONS
- Is a form of promotion designed to favorably influence attitudes toward an organization, its
products, and its policies. The purpose of public relations is to build or maintain a favorable image
for an organization with its customers, prospects, stockholders, employees, labor unions, the local
community, and the government.

Public relations consist of two components: publicity and public affairs.

Publicity- is the generation of news about a person, product, or organization that appears in
broadcast or electronic media. It is usually achieved by planting commercially significant news
about the product or service in a published medium or obtaining favorable presentation of the
product or service upon radio, television, or stage. Publicity is most often used in promoting a film
and its star, or a new record release and its singer.
Forms of Publicity
1. News release- is a brief memo or report containing news information, such as the
announcement of a new product, or change in management. The purpose of news release
is to inform a newspaper, radio station, or other medium, of an idea for a story.

2. Press agentry- is the planning and staging of an event in order to generate publicity The
tools of press agentry are:
a. Press kits- which contains information about the event and key information for
publication in news stories. These may include product samples, background
information and product brochures, and other information that will help the
newswriter in writing an article about the event or the organization.
b. Speaker’s bureaus- which are actually listing of company officials who will
speak at civic and industry events.

Public Affairs- is that part of public relations that deals with community groups.
Two types of Public Affairs
a. Lobbying- is the attempt to persuade a government official or governing body to adopt
policies, procedures, or legislation in favor of the lobbying group or organization.
b. Community involvement- is that type of public affairs which undertakes company
participation in community activities like sponsoring a sports event, a musical show, or
scholarship programs.

SALES PROMOTION
Sales Promotion- is a short-term inducement of value offered to arouse interest in buying a good
or service. It is offered to the middleman or to the final consumer.
Sales Promotion Methods
1. Consumer sales promotion- techniques encourage or stimulate consumers to patronize
a specific retailer or to try a new product.

2. Trade sales promotion- stimulates wholesalers and retailers to carry a firm’s product
and to sell it aggressively.

Importance of Sales Promotion

Sales promotional expenditure can easily be collected and analyzed. The amount spent on sales
promotion has been increasing over the past 15 years, which underlines its importance as a tool of
marketing communication.
Advantages
• Easily measured response.
• Quick achievement of objectives.
• Flexible application.
• Can be relatively cheap.
• Direct support of sales force.
Disadvantages
• Price-discounting can cheapen brand image.
 • Short-term advantages only.
• Retailers might not want to cooperate.
• Difficulty in communicating brand message.

PERSONAL SELLING
Sales personnel are frequently (and quite properly) requested to perform marketing tasks in
addition to those of selling. These may include gathering marketing information or carrying out
public relations activity. These are valuable duties, but they should never detract from their
primary role of selling the company's products or services.
Selling is a process of communication. Companies promote a particular image. This may be one
of a small family firm whose strong point is personal service. Others may wish to emphasize their
size and ability to provide expert service. A company's philosophy of business and its particular
merits combine to form a company message. It is the job of the salesperson to communicate this
message to customers. Buyers usually require more than the physical product when they consider
potential suppliers. As well as selling skills, it is important that companies take into account how
well a potential salesperson ‘fits in’ with the desired company image and how well the company
image will be transmitted.

The Personal Selling Process: The 5 P’s

1. Presale/Preparation – this means that the sales person must be well acquainted with
the product, the market, the competition, the techniques of selling- everything that
conceivably could pertain to the sale.

2. Prospecting (Locating potential buyers) - consists of first identifying potential

customers and then qualifying them – that is determining whether they have the necessary
purchasing power, authority, and willingness to buy.

3. Preapproach to Individual Prospects - may include finding out what products the
prospects are now using and their reactions to these products. Sales people should learn all
they can about the persons or companies they hope to sell.

4. Presentation– the actual sales presentation will start with an attempt to attract the
prospect’s attention. The sales person will try to hold the customer’s interest while building
a desire for the product. Then the sales person will try to close the deal.
AIDA Approach - a sequence of steps in various forms of promotion consisting of
attracting Attention, holding Interest, arousing Desire, and generating buyer Action

5. Postsale Activities - the final stage of the selling process is a series of postsale services
that can build customer goodwill and lay the groundwork for future business. All activities
by the sales person serve to reduce the customer’s post decision anxiety- or cognitive
dissonance.