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

394 Chapter 14

Publicity generated by Scholastic, Inc., the distributor of Harry Potter and the

Goblet of Fire,is a classic example. Scholastic knew that there was already interest

in the book; each previous book in the Potter series had increased sales. But Scholas-

tic got a bigger bang, and worldwide media coverage, by notifying bookstores

and the media that no store could sell the book before July 8. Deliveries were sched-

uled to make that stick. And Scholastic kept the title, cover, and plot shrouded in

secrecy. As word of the secrecy spread, national media picked up on the story and

devoted a huge amount of attention to it. For example, Harry was on the cover of

Newsweekand a feature article explained all of the reasons why it was going to be

one of the fastest-selling books in history. With publicity like that, even people who

had never heard of the series wanted to find out what they were missing.^2

If a firm has a really new message, publicity may be more effective than advertising.

Trade magazines, for example, may carry articles featuring the newsworthy products of

regular advertisers—in part because they areregular advertisers. The firm’s publicity

people write the basic copy and then try to convince magazine editors to print it. Each

year, magazines print photos and stories about new cars—and often the source of the

information is the auto producers. A consumer might not pay any attention to an ad

but might carefully read a long magazine story with the same information.

Some companies prepare videotapes designed to get free publicity for their prod-

ucts on TV news shows. For example, after learning that Seattle Mariner Jay Buhner

loves Cheerios, a General Mills marketing manager had 162 boxes of the cereal

stuffed into his spring-training locker. Then he made a videotape of Buhner’s sur-

prise on opening his locker. When the videotape was offered to TV stations, it was

shown on news programs in 12 major markets around the country. It cost little to

produce the video, but it would have cost hundreds of thousands of dollars to get

as much attention with advertising on the evening news.^3

Sales promotionrefers to promotion activities—other than advertising, public-

ity, and personal selling—that stimulate interest, trial, or purchase by final

customers or others in the channel. Sales promotion may be aimed at consumers,

at middlemen, or at a firm’s own employees. Examples are listed in Exhibit 14-2.

Relative to other promotion methods, sales promotion can usually be implemented

quickly and get results sooner. In fact, most sales promotion efforts are designed to

produce immediate results.

Many people think that promotion money gets spent primarily on advertising—

because advertising is all around them. The many ads you see on the Web, in

magazines and newspapers, and on TV are impressive—and costly. But all the spe-

cial sales promotions—coupons, sweepstakes, trade shows, sporting events sponsored

by firms, and the like—add up to even more money. Similarly, salesclerks complete

Sales promotion tries
to spark immediate
interest

Less is spent on
advertising than
personal selling or
sales promotion

Aimed at final

consumers or users

Contests

Coupons

Aisle displays

Samples

Trade shows

Point-of-purchase

materials

Banners and

streamers

Frequent buyer

programs

Sponsored events

Aimed at middlemen

Price deals

Promotion

allowances

Sales contests

Calendars

Gifts

Trade shows

Meetings

Catalogs

Merchandising aids

Aimed at company’s

own sales force

Contests

Bonuses

Meetings

Portfolios

Displays

Sales aids

Training materials

Exhibit 14-2
Example of Sales Promotion
Activities