Promotion

Word of Mouth

To promote and manage word-of-mouth communications, marketers use publicity techniques to achieve desired behavioral response.

Learning Objectives

Explain how marketers effectively use word-of-mouth

Key Takeaways

Key Points

  • Word of mouth, or viva voce, is the passing of information from person to person by oral communication.
  • Word-of-mouth marketing including buzz, blog, viral, grassroots, brand advocates, cause influencers, and social media marketing, as well as ambassador programs, work with consumer -generated media and more, can be highly valued by product, social media and performance marketers.
  • To promote and manage word-of-mouth communications, marketers use publicity techniques as well as viral marketing methods to achieve desired behavioral response.

Key Terms

  • marketing: The promotion, distribution and selling of a product or service; includes market research and advertising.
  • viral marketing: the use pre-existing social networks and other technologies to produce increases in brand awareness or to achieve other objectives (such as product sales) through self-replicating processes

Word of mouth, or viva voce, is the passing of information from person to person by oral communication. Storytelling is the oldest form of word-of-mouth communication where one person tells others of something, whether a real event or something made up. Another important form of word of mouth is oral history—the recording, preservation, and interpretation of historical information, based on the personal experiences and opinions of the speaker. Oral history preservation is the field that deals with the care and upkeep of oral history materials collected by word of mouth, whatever format they may be in. An important area of marketing is called word-of-mouth marketing, which relies on the added credibility of person-to-person communication.

Word-of-mouth marketing, which encompasses a variety of subcategories, including buzz, blog, viral, grassroots, brand advocates, cause influencers, and social media marketing, as well as ambassador programs, work with consumer-generated media. Because of the personal nature of the communications between individuals, it is believed that product information communicated in this way has an added layer of credibility. Research points to individuals being more inclined to believe word-of-mouth marketing more than formal forms of promotion methods; the receiver of word-of-mouth referrals tends to believe that the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e. they are not receiving an incentive for their referrals). Word-of-mouth depends on the extent of customer satisfaction with the product or service and on the degree of its perceived value.

To promote and manage word-of-mouth communications, marketers use publicity techniques as well as viral marketing methods to achieve desired behavioral response. Companies can focus on brand advocates, the people who proactively recommend their favorite brands and products online and offline without being paid to do so. Influencer marketing is also increasingly used to seed WOMM by targeting key individuals that have authority and a high number of personal connections.

Marketers place significant value on positive word-of-mouth, which is traditionally achieved by creating products, services, and customer experiences that generate conversation-worthy “buzz” naturally. The relatively new practice of word-of-mouth marketing attempts to inject positive “buzz” into conversations directly. While marketers have always hoped to achieve positive word-of-mouth, intentional marketing relying on such techniques is legislated in some jurisdictions. For example, in the United States, deliberate efforts to generate beneficial consumer conversations must be transparent and honestly conducted in order to meet the requirements of Section 5 of the Federal Trade Commission Act that prohibits ” unfair or deceptive acts or practices. ” To help marketers understand the difference between legitimate and unfair practices, a number of professional organizations have put forward recommendations for ethical conduct.

Digital Marketing

Digital marketing is the use of internet connected devices to engage a customer with online advertising to promote products and services.

Learning Objectives

Break down digital marketing into push and pull strategies

Key Takeaways

Key Points

  • Internet marketing, also known as web marketing, online marketing, webvertising, or e-marketing, is referred to as the marketing (generally promotion) of products or services over the Internet.
  • Internet marketing ties together the creative and technical aspects of the Internet, including design, development, advertising and sales.
  • Websites, blogs and streaming media (audio and video) are also examples of pull digital marketing. Articles with specific target / topic are a great source to pull interested viewers.

Key Terms

  • customer relationship management: Customer relationship management (CRM) is a widely implemented model for managing a company’s interactions with customers, clients and sales prospects.

Internet marketing, also known as web marketing, online marketing, webvertising, or e-marketing, is referred to as the marketing (generally promotion) of products or services over the Internet. Internet marketing is considered to be broad in scope because it not only refers to marketing on the Internet but also includes marketing done via e-mail and wireless media. Digital customer data and electronic customer relationship management (ECRM) systems are also often grouped together under internet marketing.

Internet marketing ties together the creative and technical aspects of the Internet, including design, development, advertising, and sales. Internet marketing also refers to the placement of media along many different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, email marketing, mobile advertising, and Web 2.0 strategies.

In 2008, The New York Times, working with comScore, published an initial estimate to quantify the user data collected by large Internet-based companies. Counting four types of interactions with company websites in addition to the hits from advertisements served from advertising networks, the authors found that the potential for collecting data was up to 2,500 times per user per month.

Digital marketing is the use of internet-connected devices to engage a customer with online advertising in order to promote products and services. Internet-connected devices are those such as web browsers, smart phones, and game consoles. As technology develops, more devices become capable of internet browsing and the digital marketing potential that comes with it.

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Automated online assistant: An example of E-leadership

Pull digital marketing is marketing in which the consumer must actively seek content—often via web searches or arrangements in which the recipient has been given permission to receive content that is sent to the consumer by email, text message, or web feed. Websites, blogs, and streaming media (audio and video) are also examples of pull digital marketing. Articles with specific target / topic are a great source to pull interested viewers. In each of these, users have to link to the website to view the content. Only current web browser technology is required to maintain static content. However, additional internet marketing technologies (search engine optimization) may be required to attract the desired consumer demographic. Research by Martin et al. (2003) found what permission email marketing content consumers find useful, such as special sales and new product information, whereas suggesting interesting hyperlinks was not seen as useful.

Push digital marketing involves a marketer sending a message without the consent of the recipients, such as display advertising on websites and news blogs. Email, text messaging, and web feeds can also be classed as push digital marketing when the recipient has not given permission for the marketer to send the marketing message. (This is also known as spam. ) Push technologies can deliver content as soon as it becomes available and are better targeted to their consumer demographics, although audiences are often smaller, and the costs of creation and distribution are higher. Push digital marketing technologies are more proper when done with prior permission—a concept called permission marketing. This is also more ethical. Permission can be obtained through subscriptions, consent to send email, etc.

Push and pull message technologies can be used in conjunction with each other. For example, an email campaign can include a banner ad or link to a content download. This enables a marketer to benefit from both types of digital marketing.

Sampling

Sampling involves providing a sample of a consumer product to consumers so that they may try said product before committing to a purchase.

Learning Objectives

Explain how sampling turns individuals into customers

Key Takeaways

Key Points

  • The purpose of a free sample is to acquaint the consumer with a new product, and is similar to the concept of a test drive, in that a customer is able to try out a product before purchasing it.
  • While placement and word of mouth impact future purchases, sampling can create an almost immediate impulse purchase.
  • The success of a sampling program for a new product introduction is dependent on sound planning of overall project objectives and selection of the best distribution technique, sample design, and packager.

Key Terms

  • sample: A part of anything taken or presented for inspection, or shown as evidence of the quality of the whole; a specimen.
  • freebie: Something which is free; a giveaway or handout.

Sampling Defined

During the product promotion process, sampling involves providing a sample of a consumer product to consumers so that they may try said product before committing to a purchase. A free sample, or freebie, is a portion of a product (i.e., food or makeup) given to consumers in retail stores or other outlets. Sometimes samples of non-perishable items are included in direct marketing mailings. The purpose of a free sample is to acquaint the consumer with a new product, and is similar to the concept of a test drive, in that a customer is able to try out a product before purchasing it.

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Product Samples: Samples are either free handouts, trial sizes, or coupons for consumer products provided to consumers in the hope that they will eventually purchase the product.

Many consumer product companies now offer free samples through their websites, to encourage consumers to regularly use the products and to gather data for mailing lists of potentially interested customers. The expansion of online marketing with regards to promotional giveaways has facilitated the rise of “freebie websites” that seek to aggregate all promotional free sample offers in one place. These sites will often compile free product samples from all over the web and categorize them by type. Some product sample offers may require consumers to complete a survey or refer a friend in order to qualify for the freebies. Additionally, the advent of the “social graph” and the realization that consumers more and more take cues from each other’s reviews, has opened up a new branch of sampling called Social Sampling.

It is also possible to purchase products in small “trial size” containers. This is common with toiletries such as shampoo. Samples may also be loaned to the customer if they are too valuable to be given for free, such as samples of a countertop or of carpet to be used for remodeling.

Effectiveness of Sampling

While placement and word of mouth impact future purchases, sampling can create an almost immediate impulse purchase. According to the Product Sampling Study by Arbitron, sampling successfully reaches 70 million consumers every quarter, and one-third of customers who try a sample will buy the sampled product in the same shopping trip, and 58 percent of those surveyed reported that they would buy the product again.

Improved Product Sampling

The success of a sampling program for a new product introduction is dependent on sound planning of overall project objectives and selection of the best distribution technique, sample design, and packager. Marketers who are considering sampling their next product introduction should define the objectives of the sampling program. Procedures and timetables should be established to correspond with the sampling program, with the overall promotion of the product in mind. There are a number of popular sampling techniques:

  1. Coupons in pages of newspapers or magazines
  2. Supermarket or department store distribution
  3. Direct mail
  4. Door-to-door
  5. Distributing samples in public places
  6. Co-op gift pack programs
  7. and attaching samples to retail packages

The distribution technique will not be totally effective unless it is accompanied by a proper sample design, which should have maximum visual impact and identification with the full-size package.

Promotion Strategies

Promotion strategies differ depending on the individual business or product, but all strive to increase product demand and awareness.

Learning Objectives

Identify key promotional strategies used

Key Takeaways

Key Points

  • Many times with the purchase of a product there is are incentives like discounts, free items, or contests. These methods are used to increase the sales of a given product.
  • Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable, competitive advantage.
  • Marketing strategies may differ depending on the unique situation of the individual business or product.

Key Terms

  • brand: A name, symbol, logo, or other item used to distinguish a product, service, or its provider.
  • corporate image: A corporate image refers to how a business is perceived. It is a generally accepted notion or image of what a company stands for.

Promotion is one of the marketing mix elements among a system of five in a promotional plan (often known as the five Ps). These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creating a corporate image. Fundamentally, however, there are three basic objectives of promotion:

  • To present information to consumers as well as others
  • To increase demand
  • To differentiate a product from others in the marketplace

There are different ways to promote a product in different areas of media. Promoters use Internet advertisement, special events, endorsements, and newspapers or magazines to advertise their product. Many times with the purchase of a product there are incentives like discounts, free items, or contests. These methods are used to increase the sales of a given product.

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable, competitive advantage. Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic situation of a company and the formulation, evaluation and selection of market -oriented strategies and therefore contribute to the goals of the company and its marketing objectives.

Marketing strategies may differ depending on the unique situation of the individual business or product. However, there are a number of ways to categorize some generic strategies.

Strategies Based on Market Dominance

In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:

  • Leader
  • Challenger
  • Follower
  • Nicher

Porter Generic Strategies

These strategies concentrate on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable, competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives, each with two alternative scopes: Differentiation and Low-Cost Leadership, each with a dimension of focus—which can be broad or narrow. Some of these are:

  • Product differentiation
  • Cost leadership
  • Market segmentation
  • Innovation strategies

A company or product can fall into one of three categories:

  • Pioneers
  • Close followers
  • Late followers

If the company is not a pioneer, then it must consider growth strategies. In this scheme we ask the question, “How should the firm grow? ” There are a number of different ways to answer that question, but the most common answers are:

  • Horizontal integration
  • Vertical integration
  • Diversification
  • Intensification
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Marketing Metrics Continuum: The Marketing Metrics Continuum provides a framework for how to categorize metrics from the tactical to strategic. By navigating this metrics continuum, from Activity-Based to Predictive, marketers can move towards more effective marketing measurement and align measurement and metrics with business outcomes.

The Promotion Mix

There are five (sometimes six) main aspects of a promotional mix: Advertising, Personal selling, Sales promotion, Public relations, and Direct marketing.

Learning Objectives

List the seven main aspects of the promotion mix

Key Takeaways

Key Points

  • Advertising – Presentation and promotion of ideas, goods, or services by an identified sponsor.
  • Personal selling – A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation.
  • Sales promotion – Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability.
  • Public relations – Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media.
  • Direct Marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer.

Key Terms

  • Public relations: Public relations (PR) is the practice of managing the flow of information between an individual or an organization and the public.

There are five (sometimes six) main aspects of a promotional mix. These are:

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The Promotion Mix: Overview of the elements of the promotion mix.

  • Advertising: Presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails. (Always in Paid Form non personal)
  • Personal selling: A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone.
  • Sales promotion: Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
  • Public relations: Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars.
  • Direct Marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.

Corporate image may be considered as a sixth aspect of promotion mix. The Image of an organization is a crucial point in marketing. If the reputation of a company is bad, consumers are less willing to buy a product from this company as they would have been, if the company had a good image. Sponsorship is sometimes added as an seventh aspect.

New Media is also sometimes considered an element of the promotion mix.

A Brief Description

Promotion is one of the marketing mix elements, including personal selling, advertising, sales promotion, direct marketing, and publicity.

Learning Objectives

Discuss how promotion is achieved in the 21st century

Key Takeaways

Key Points

  • There are three basic objectives of promotion: To present information to consumers as well as others; to increase demand; and to differentiate a product.
  • There are different ways to promote a product in different areas of media. Promoters use Internet advertising, special events, endorsements, and newspapers to advertise their products.
  • Product promotion is the act of advertising goods or services with the short or long-term goal of increasing sales.

Key Terms

  • demand: The desire to purchase goods or services, coupled with the power to do so, at a particular price.

There are five components to a promotional or marketing mix (sometimes known as the Five P’s). These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Let’s focus specifically on the promotion element of the marketing mix. There are three basic objectives of promotion and these are:

  • To present information to consumers as well as others;
  • To increase demand;
  • To differentiate a product from other similar or competing products;

There are different ways to promote a product in different areas of media. Promoters use Internet advertisement, special events, endorsements, and newspapers or magazines to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. These methods are used to increase the sales of a given product.

Product promotion is the act of advertising a good or service with the short or long-term goal of increasing sales. Many companies use different techniques to promote their products through a vast array of communication mediums. In this day and age, there is not necessarily one communication medium that is better than another simply because the most effective medium depends upon on what type of product you are promoting. There is the physical form (magazines and newspapers) of product promotion and the digital form (websites and e-books), both of which require clear and concise textual information about the product being advertised.

Since the turn of the twenty-first century, many companies have been trying to utilize online social media for product promotion. Some of the most popular forms of online social media are Facebook, Twitter, and Pinterest. Within an online social media network, companies have the ability to advertise and promote their products to anyone, at any time, anywhere in the world. Because of the vast popularity and expansion of social media, companies have had great success in marketing products to the younger generation who otherwise might not see an ad in a newspaper or on TV.

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Twitter: Some of the most popular forms of online social media are Facebook, Twitter, and Pinterest.

Promotion Objectives

Promotion is to present information to consumers to increase demand and to differentiate a product.

Learning Objectives

Outline the three main objectives of promotion

Key Takeaways

Key Points

  • Product promotion is the act of advertising a good or service with the short/long term goal of increasing sales.
  • Since the turn of the 21st century, many companies have been trying to utilize online social media for product promotion.
  • There are five market mix elements: personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional plan is a marketer’s specific mix of these elements.

Key Terms

  • endorsements: In promotion and of advertising, a testimonial or show consists of a person’s written or spoken statement extolling the virtue of some product. The term “testimonial” most commonly applies to the sales-pitches attributed to ordinary citizens, whereas the word “endorsement” usually applies to pitches by celebrities. Testimonials can be part of communal marketing.

Product promotion is the act of advertising a good or service with the goal of increasing sales. Many companies use different techniques to promote their products through a vast array of communication media. In this day and age, there is not necessarily one communication medium that is better than another simply because the most effective medium is based on what type of product you are promoting. There is the physical form of product promotion and the digital form, both of which require clear and concise textual information about the product being advertised.

Since the turn of the 21st century, many companies have been trying to utilize online social media for product promotion. Some of the most popular forms of online social media are Facebook, Twitter, and MySpace. Within an online social media network, companies have the ability to advertise and promote their products to anyone, at any time, anywhere in the world. Because of the vast popularity of social media, companies have had great success on marketing products to the younger generation who otherwise might not have seen an ad in a newspaper or on TV.

Promotion is one of the five market mix elements: personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional plan specifies how much attention to pay to each of the five subcategories and how much money to budget for each. A promotional plan can have a wide range of objectives, including sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or the creation of a corporate image. Fundamentally, however there are three basic objectives of promotion. These are to present information to consumers as well as others, to increase demand, and to differentiate a product.

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Promotion: Promotion is one of the market mix elements.

There are different ways to promote a product in different media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product.