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CHAPTER
PROMOTION
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23
OBJECTIVES
Discuss the purpose of promotion in meeting business and
consumer needs.
Identify the common promotional methods.
Explain the parts of the selling process and how each is
used to help customers make effective buying decisions.
Identify important laws and regulations that apply to
advertising and promotion.
Advertising Purposes - pg 608
All forms of PAID promotional messages
To inform and educate.
 To introduce product or
business.
 To announce
improvement or
product change.
 To reinforce features
and benefits.
 To increase frequency
of use.
 To increase variety of
uses.
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To convince people to
enter a store.
 To develop a list of
prospects.
 To make a brand,
trademark, or slogan
familiar.
 To improve the image of a
company of product.
 To gain support for ideas or
causes.
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Media Choices - pg 609
 Publication - newspapers, magazines,
prof. journals
 Mass media - radio, TV
 Outdoor - billboards, signs,
 Direct - sales letters, catalogs,
telemarketing, computer databases
 Display - window, counter, aisle, trade
show
 Internet - static banner, buttons,
sponsored sites, email
PLANNING AND
MANAGING ADVERTISING
 The advertising budget
 companies allow an amount for advertising
when they develop their overall company
budget
 most businesses plan the advertising
program for one year or less
 emergencies may arise that require a quick
decision, but planning helps avoid budget
misuse
 the amount a business spends on advertising
depends more on the characteristics of the
product and target market than on the
competition
PLANNING AND
MANAGING ADVERTISING
 Timing of advertising
 advertising is more effective at sometimes than
others
 companies spend more advertising dollars
seasonally during the time the consumer is willing
and able the buy the products or services advertised
 occasionally companies advertise to increase
purchases at times customers do not traditionally
consider buying the product
 a single advertisement may produce temporary
results, but regular advertising is important in building
a steady stream of customers
 businesses often spend their advertising over the
entire year to keep their name and brand fresh in the
customers mind
PERSONAL SELLING
 Promotion through direct, personal
contact with a customer
 Studying the wants of customers
 Presenting and demonstrating the
product
 Answering customer questions
 Closing the sale
 Follow-up
Studying the wants of
customers
Buying motives- the reason
why people buy.
Examples: status, appetite,
comfort, desire for bargains,
recognition, ease of use.
Presenting and demonstrating
the product
Customers are interested in
what the product will do for
them and how they can use it.
 Customers will ask specific Qs about product
 Sales people must know be able to demo the
product
Answering customer questions
 Objections- concerns or complaints
expressed by the customer.
 Sales people should not be
concerned by the questions, but
should view them as an
opportunity to better understand
the customer’s needs and help the
customer make the best decision.
Closing the sale
 Sales people should continue
to work with customers until it
is clear that they do not want
the product or until the sale is
made.
 This may take several
meetings before the decision is
made.
Follow-up
 The selling process is not complete
just because a customer agrees to
purchase the product.
 It’s not complete until the sales
person makes sure that the customer
is satisfied—successful selling.
 Check with customer to make sure
order is correct
 May send thank-you note to
customer after purchase
SALES
PROMOTIONS
Sales promotions — any promotional
activities other than advertising and
personal selling intended to motivate
customers to buy
Regulated by the Federal Trade
Commission
SALES PROMOTIONS
 Designed to encourage customers to buy
immediately
 Others are designed to display the products in
an attention getting or attractive way to
encourage customers to examine the product
 Coupons - effective method of increasing sales
for a short time
 Manufacturers often cooperate with wholesalers
and retailers by providing promotional materials
TRUTH IN ADVERTISING
AND SELLING
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False advertising
Full disclosure
Substantiation
Cease and desist order
Corrective advertising
TRUTH IN ADVERTISING
AND SELLING
 False advertising
 Defined by federal law as misleading or
in any way that could influence the
customers purchase or use of the
product
 Full disclosure
 Providing all information necessary for
consumers to make a informed
decision
 Advertisers are required to use it
TRUTH IN ADVERTISING
AND SELLING
 Substantiation
 Must prove all claims they make about
their products and services in
promotions
 Cease and desist order
 Requires the company to stop using
specific advertisements
TRUTH IN ADVERTISING
AND SELLING
 Corrective advertising
 New advertising designed to change the
false
 Impression left by the misleading
information
 Review Facts
 13, 14, 15
 Discussion Ideas
 9, 10
 Case 23-2, pg 622
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 Own Business –
 Develop an introductory promotional plan
for your business—include methods,
media to be used, time schedule, budget,
and sample of the promotion.