Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

14. Promotion −
    Introduction to Integrated
    Marketing
    Communications

Text © The McGraw−Hill

Companies, 2002

392 Chapter 14

Promotionis communicating information between seller and potential buyer or

others in the channel to influence attitudes and behavior. The marketing manager’s

main promotion job is to tell target customers that the right Product is available at

the right Place at the right Price.

As the PT Cruiser example shows, a marketing manager can choose from several

promotion methods—personal selling, mass selling, and sales promotion (see

Exhibit 14-1). Further, because the different promotion methods have different

strengths and limitations, a marketing manager usually uses them in combination.

And, as with other marketing mix decisions, it is critical that the marketer manage

and coordinate the different promotion methods as an integrated whole, not as

separate and unrelated parts.

previews were trained on the

whole Chrysler line; they were

ready to answer questions,

refer consumers to local deal-

ers, and get visitors started

with interactive digital kiosks

that provided in-depth multi-

media promotion on every

Chrysler model.

Chrysler marketers also

worked on many other special

sales promotions to build

interest, prompt word of

mouth among consumers,

and encourage dealer visits.

For instance, they offered

consumers a $50 gift certifi-

cate to Macy’s department

store and promised to make

charity contributions for each

test drive.

By the time Cruisers were

shipped from the factory,

dealer sales reps had closed

sales on almost all of the

year’s production capacity.

Dealers couldn’t even keep

copies of promotional

brochures in stock. In light of

the overwhelming demand,

Chrysler cut back on some of

its planned spending for TV

ads. It also had its agency’s

creative people change ads to

put even more emphasis on

the whole Chrysler line. Simi-

larly, more ads targeted the

West Coast, where Chrysler

was having trouble selling

against imports.

When Cruiser demand con-

tinued to grow for the 2001

model, Chrysler expanded

production capacity and

added a plant in Austria to

serve the European market. It

also raised price_especially

on fancy options like heated

seats_to improve margins

and profits on units it was sell-

ing. And to take advantage of

the investments in Cruiser

development and promotion,

and to keep the buzz going,

Chrysler marketers added a

new convertible for 2003

(www.chrysler.com/pt-cruiser).

While the promotion blend

is selling Cruisers and pulling

customers into dealerships,

sales on the rest of the

Chrysler line have not picked

up. Alas, promotion can’t carry

the whole load of the market-

ing mix. So marketing man-

agers at Chrysler will have to

adjust other aspects of their

marketing program if they are

going to achieve similar suc-

cess with other products in its

line.^1

Several Promotion Methods Are Available