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Text 1: COMMUNICATION VERSUS PROMOTION

How do different organizations communicate with their various publics? Why Is information so important? The answer is that the market system, the business system, and the world trade system all need an efficient two-way flow of information among producers, middlemen (for example, wholesalers and retailers), and consumers. That need has led to an explosive growth of computers to handle the information flow. Let's pause and discuss the difference between marketing communication and promotion.

Marketing communication is a two-way exchange of information between buyers and sellers. Organizations communicate with various publics. Listening is the key to marketing communications.

Promotion is a one-way attempt of marketers (buyers and sellers) or persuade others to participate in an exchange relationship with them. Promoters talk to others.

Marketing communication is a dialogue, and involves talking with. Promotion is talking to. Both are necessary in successful marketing relationship, but the more talking with that occurs, the less talking to is necessary.

Successful marketers have learned that organizations have many "publics¹¹ that must be considered in a marketing program. The first "public" is the firm's employees. An internal marketing program is one designed to commit employees to the objectives of the firm. Like all marketing efforts, internal marketing begins with listening and being responsive to employees.

 

Text 2: MARKETING COMMUNICATION SYSTEM (MCS)

 

A marketing communication system consists of these three steps:

1. Listening to the various publics of an organization. This is. called "marketing intelligence" and "marketing research".

1. Responding to that information by designing products and services that those publics want. This is called "corporate responsiveness".

2. Promoting the organization and its product to those publics to let them know that the firm is listening, is responding, and does have the desired products and services.

Text 3: MARKETING INTELLIGENCE VERSUS MARKETING RESEARCH

Marketing intelligence is a constant stream of information from many sources, many of them unplanned. It consists of compliments and complaints from customers, letters, comments by employees, conversations overheard in airports and millions of other bits and pieces of information packed up by the corporate executives, employees, and friends.

Marketing research, on the other hand, is the formal gathering of data and information to learn about specific problems and issues. Marketing research data become part of marketing intelligence. The problem with marketing research as the source for marketing decision making is that research is done infrequently.

Text 4: PROMOTION

After an organizations has listened to its publics, studied its internal records, and its policies and procedures to meet the desires of others, it is ready to promote. Pre-testing of promotional message helps assure the organization that the message will be effective. The elements a promotion manager uses to reach the public is called the promotion mix (see Figure 1-11).

The promotional mix. This figure shows that the pro-duct offer is the central focus of the promotional mix. The offer is based on consumer wants and needs. All of the communication elements are designed to promote the exchange of the product offer for something of value.

A promotion mix is some combination of promotional tools (for example advertising, personal selling, public relations, publicity, sales promotion, a good product or service, word of-mouth) that can be used to communicate to various publics.

Most companies develop a fixed attitude towards promotional expenditure which is often unrelated to its effectiveness.

Research indicates that the distinction between media or above-the-line expenditure (newspapers, magazines, radio, posters, television) and non-media or below-the-line methods (leaflets, point of sale catalogues, brochures, exhibitions, trade gift) tends to be reflected in long and short term effects on sales; above-the-line expenditure resulting in long - term sales development and below-the-line in short - term changes.

Each public calls for a separate mix. For example, consumers are usually most efficiently reached through advertising. Large organisations are best reached through personal selling. To motivate people to buy now rather than later, sales promotion efforts such as coupons, discounts, special displays, premiums and so on may be used. Publicity adds support to the other efforts and can create a good impression among all publics.

Text 5: ADVERTISING

Most people do not understand the difference among promotional tool such as advertising, personal selling, publicity, and word-of-mouth. Advertising is limited to paid, non-personal communication through various media by organisations and 'individuals who are in some way identified in the advertising message. Word of mouth is not a form of advertising because it does not go through a medium, it is not paid for. Personal selling is face to-face communication and does not go through a medium; thus it is not advertising. Note also that advertising may be used by anyone, including non-profit organizations. Furthermore, advertising is different from propaganda in that the promoter is identified.

People have the false impression that advertising is not very informative. But the number one medium, newspapers, is full of information about products, prices, features, and more Does it surprise you to find you that businesses spend more on direct mail

than on radio and, magazines? Direct mail (the use of mailing lists to reach an organisation's most likely customers) is also very informative and a tremendous shopping aid for consumers. Each day consumers receive mini-catalogues in their newspapers or in the mail that tell them what is on sale, where, at what price, for how long, and more. Thus advertising is informative.

The public benefits greatly from advertising expenditures. First, we learn about new products, new features, sale items, and more. But we also benefit from free radio and TV and subsidized newspapers and magazines. In short, advertising not only informs us about products but pays for us to watch TV and get the news from magazines and newspapers. Figure 1-12 describes the advantages and disadvantages of various advertising media to the advertiser.

Figure 1-12.

 

Above	- the - line advertising
Technique or	Cost                Advantages			Disadvantages
Medium	effectiveness
TV	100        Uses sight, sound.			High cost; short
	and motion; reaches			exposure time;
	all audiences; high			takes time to
	attention with no			prepare ads.
	competition from j			Difficult to give
	other material.			technical
	Widest coverage,			information,
	maximum control,			evaluation.
	rapid impact.			Difficult to plan
Magazines	75     Can target specific audiences; very flexible, good for local marketing, good use of colour, long life of ad; ads can be clipped and saved.			Inflexible; ads often must be placed weeks before publication; cost is relatively high
Press national	65              Good coverage of local markets; ads can be placed quickly; high consumer acceptance; ads can be clipped and saved; easy to plan			Ads compete with other features in paper; poor colour ads get throw away with paper (short life span); limited impact
Press local	80               Easy to plan, good coverage poor for giving technical information, relatively cheap Low cost; can target specific audiences; very flexible; good for			Slow build up.
Radio	60             Low cost; can target specific audiences; very flexible; good for local marketing			People may not depend listen to ads; on one sense. Limited coverage
				coverage
Cinema		55	Colour and	Poor coverage;
			Movement	expensive
Posters			Wide coverage;	Expensive,
			specific target	difficult to show
				benefits; slow
				to plan

Below-the-line advertising

 

Direct mail	Specific target; can explain	Difficult to control, high
	benefits; very flexible; ad	cost; slow build up.
	can be saved
Exhibitions	High visibility; and repeat	Expensive;
	expensive exposures;	difficult to ensure target
	needs	group
	careful planning?

Text 6: CLASSES OF ADVERTISING

Different kinds of advertising are used by various organisations to reach different "publics". Some major classes include:

Retail advertising - advertising to consumers by various retail stores such as supermarkets and shoe stores.

Trade advertising - advertising to wholesalers and retailers by manufacturers to encourage them to carry their products.

Industrial advertising - advertising from manufacturers to other

manufacturers. A firm selling motors to automobile companies would use industrial advertising.

Institutional advertising - designed to create an attractive image for an organization. "We Care About You" at Giant Food is an example. "Virginia Is For Lovers" and "I v New York" are two institutional campaigns by government agencies.

Text 7: SALES PROMOTION

Sales promotion consists of those marketing activities that stimulate consumer purchasing and dealer interest by means of such things as displays, shows and exhibitions, and contests (see Figure 1-13).

Those free samples of products that people get in the mail; the cents-off coupons that they clip out of the newspapers; the contests that various retail stores sponsor; and those rebates that have been so popular in recent years all are examples of sales promotion activities. Sales promotion programs supplement personal selling, advertising and public relations efforts by creating enthusiasm for the overall promotional program. Sales promotion activities also are directed at company employees (especially salespersons), wholesalers, retailers, and institutions such as schools and hospitals.

Sales promotions can be both internal and external. That is just as important to get employees enthusiastic about a sale as it is potential customers. The most important internal sales promotion efforts are directed at salespeople and other customer-contact persons such as complaint handlers and clerks. Sales promotion keeps sales people enthusiastic about the company through sales

 

training; the development of sales aids such as flip charts, portable audio-visual displays, and movies; and participation in trade shows where salespeople can get leads. Other employees who deal with the public may also be given special training to make them more aware of company programs and integral part of the total promotional effort.

After enthusiasm is generated internally, it is important to get distributors and dealers involved so that they too are enthusiastic and will co-operate by putting up signs and helping to promote product.

After the company's employees and salespeople have been motivated with sales promotion efforts and middlemen are involved, the next step is to promote to final consumers using samples, coupons, cents - off deals, displays, store demonstrators, premiums, and other incentives such as contents, trading stamps and rebates. Sales promotion is an ongoing effort to maintain enthusiasm, so different strategies are used over time to keep ideas fresh.

Figure 1-13.

Sales promotion techniques

Displays (store displays)	Lotteries
Contests (“You may have won 1 million”)	Audio – visual aids Catalogues
Samples (toothpaste, soap)	Demonstrations
Coupons (10 per. off)	Special events
Premiums (free glass when you buy a meal)	Trading stamps
Shows (fashion shows)	Portfolios for sales persons
Deals (price reductions)	Rebates (refunds from producers)
Trade shows
Bonuses (buy one, get one free)

Text 8: PUSH STRATEGIES VERSUS PULL STRATEGIES

There are two ways to promote the movement of products from producers to the customers. The first is called a pushed strategy. In push strategy, the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise. If it works, consumers will then walk into the store, see the product and by it. The idea is to push the product down the distribution system to the stores. One example of the push strategy is to offer dealers one free case of beer or soda for every dozen cases they purchase.

A second strategy is called a pull strategy. In a pull strategy heavy advertising and sales promotion is directed toward consumers, if it works, consumer will go to the store and order the products. The store owner will order them from the wholesaler, who will order from the producer. Products are thus pulled down through the distribution system.

 

Text 9: WORD OF MOUTH

Word-of-mouth promotion encourages people to tell other people about products they have enjoyed. Word-of-mouth is one of the most effective marketers do not use to full effectiveness.

Anything that encourages people to talk favourably about an organization is effective word of mouth. Notice, for example, how stores use clowns, banners, music, fairs and other attention getting devices to create word of mouth. You can ask people to tell others about your product or even pay them to do so. Samples are another way to generate word of mouth. But the best way to generate word of mouth is to have a good product, provide good services, and keep customers happy.

Text 10: PUBLIC RELATIONS

Public relations (PR) is defined as a management function that evaluates public attitudes, identifies the policies and procedures of an individual or an organization with a public interest, and executes a program of action to earn public understanding and acceptance.

Public relations is one department in an organization that has explicit responsibility for listening to the public. The second step in a good PR program, after listening, is the development of policies and procedures that are in the public interest. Public relations should not be just a promotional tool or a communications device; it should be an action-oriented department with the responsibility to adapt the organization to the public's wants and needs. The final step in a PR program is to take action to earn public understanding and acceptance. One does not earn understanding by bombarding the public with propaganda; one earns understanding by having programs and practices in the public interest and letting people know that you have them. It is not enough to act in the public interest; you must also inform people of that fact.

Text 11: PUBLICITY

Publicity is one function of the public relations department. Publicity is any information about an individual, a product, or an organization that is distributed to the public through the media, and that is not paid for, or controlled by, the sponsor. You might prepare a publicity release describing the new product and how it works and send it to the various media. Release of the news about the new product will reach many potential buyers (and investors, distributors, and dealers), and you will be on your way to becoming a wealthy marketer.

Publicity is an effective complement to other tools of marketing promotion such as advertising, personnel selling, and sales promotion. Publicity often has several 'advantages over other marketing promotions, such as advertising. For example, publicity may reach people who would not read an advertising message. Publicity may be placed on the front page of the newspaper or in some other very prominent position. Perhaps the greatest advantage of publicity is its believability. When a newspaper or magazine publishes a story as news, the reader treats the story as news, and news is more believable than advertising. Of course, publicity is also much cheaper than advertising, because it is published free.

There are several disadvantages of publicity as well. The media do not have to publish a publicity release, and most are thrown away. Furthermore the story may be altered so that it is not so positive. There is a good publicity and bad publicity. Once a story has run, it is not likely to be repeated. Advertising, on the other hand, can be repeated as often as needed.

TEXT 12 PERSONAL SELLING

Personal selling  is the face – to – face presentation and promotion of products and services plus the searching out of prospects and follow up service. Effective selling is not simply a matter of persuading others to buy. In fact, it is more accurately described as helping others to satisfy their wants and needs. Selling can be an exciting, rewarding, challenging, professional, and enjoyable career.

                                                              Follow up

                                                     Close all

                                           Answer objections

                                 Make presentation

                        Approach

              Pre -approach

     Prospect

What the steps mean

Prospect   Pre approach     Approach   Make presentation Answer objections   Close sale   Follow - up

This step involves researching potential buyers and choosing those most likely to buy. These people are called prospects. You may learn the names of prospects from customers, from surveys, from public records and so forth.  Before making sales call, the sales representative must do further research. As much as possible should be learned about the customer and his or her wants and needs. What products are they using now? Are they satisfied? Why or why not? Before a call, a salesperson should know the customer well and have a specific objective for the call. This is probably the most important step in “selling. "You don't have a second chance to make a good first impression". That is why the approach is so important. It involves learning] all about the prospect and his or her needs (including hobbies and so forth).  This is the actual demonstration or presentation of the product and its benefits to the prospect. This may involve audio-visual aids. Sometimes a prospect may question facts and figures and ask for more information. Often a sales representative must come back several times. The goal is to make sure that the customer is informed and committed to the purchase. You have to "ask for the sale" to finalize the sales process. "Would you like the red one or the green one?" "And when would you want delivery?" are examples of questions used to close the sale. The selling process isn't over until the product is delivered, installed, and working satisfactorily. The selling relationship often continues for years as the sales-person responds to customer requests and introduces new products over time. Selling is a matter of establishing relationships; not just selling goods and services.

5. C omprehension questions. Завдання 5. Підготуйте письмові відповіді на питання:

1. What is the difference between marketing communication and promotion?

6. Who are the publics of an organization?

7. What does a marketing communication look like?

4. What is the difference between marketing intelligence and marketing research?

5. What do I need to know about advertising?

1.What makes promotion effective?

2.Why is publicity more effective then advertising?

3.What is publicity?

4.What is the secret of word of mouth promotion?

2. What are the sales promotion tools?

3. Is sales promotion the same as promotion?

4. What are the seven steps in the selling process?

6. Discussion questions. Завдання 6. Підготуйте коротку інформаціюб використовуючи запитання як план:

• Why should a firm's marketing department be concerned about marketing to its own employees?

• Can you name five different publics of a restaurant?

• What would you do if you were the marketing director of a firm that had major brands of regular coffee and decaffeinated coffee? How would you position your coffees?

• Would you develop different strategies for regular decaffeinated coffee? Why or why not?

7. G roup activities. Завдання 7. Підготуйтесь до бесіди, використайте задану ситуацію:

1. If your school (college) were to adopt a marketing^; communication system, where would it begin? To whom should it" listen? How would it measure responsiveness? How would the students benefit? Discuss how schools (colleges) that are failing because of decreasing enrolment could benefit from an MCS.

1. Bring in samples of advertising to show how informative consumer advertising can be. Bring in other ads that are not so informative. Discuss both sets of ads with the class to see which are more effective in attracting consumer interest.

2. How would you go about generating word of mouth promotion for the following?

a.    An upcoming dance at school (college);

b.    A new restaurant in the area;

c. A great vacation spot;

d.    A microwave oven.