Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

UNIT 6

PROMOTING

TEXT A PROMOTION MIX

Modern marketing calls for more than just developing a good product, pricing it attractively, and making it available to target customers. Com­panies also must communicate with their customers, and what they com­municate should not be left to chance. For most companies, the question is not whether to communicate, but how much to spend, and in what ways.

A modern company manages a complex marketing communi­cations system (see Figure 1). The company communicates with its middlemen, consumers, and various publics. In turn, middlemen communicate with their consumers and publics. Consumers have word-of-mouth communication with each other and with other publics. Meanwhile, each group provides feedback to every other group.

A company's total marketing communications program—-called its promotion mix—consists of the specific blend of advertising, personal selling, sales promotion, and public relations tools that the company uses to pursue its advertising and marketing objectives. Definitions of the four major promotion tools follow:

Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Personal selling: Personal presentation by the firm's sales force for the purpose of making sales and building customer rela­tionships.

Sales promotion: Short-term incentives to encourage the pur­chase or sale of a product or service.

Public relations: Building good relations with the company's various publics by obtaining favorable publicity, building up a good «corporate image» and handling or heading off unfavorable rumors, stories, and events.

Each category consists of specific tools. For example, advertis­ing includes print, broadcast, outdoor, and other forms. Personal selling includes sales presentations, trade shows, and incentive programs. Sales promotion includes point-of-purchase displays, premiums, discounts, coupons, specialty advertising, and demon­strations. At the same time, communication goes beyond these spe­cific promotion tools. The product's design, its price, the shape and color of its package, and the stores that sell it—all communicate something to buyers.

Figure 1. The marketing communication system

Thus, although the promotion mix is the company's primary com­munication activity, the entire marketing mix—promotion and prod­uct, price, and place—must be coordinated for greatest communica­tion impact.

In this chapter, we begin by examining two questions: First, what are the major steps In developing effective marketing commu­nication? Second, how should the promotion budget and mix be determined? We then look at recent dramatic changes in marketing communications that have resulted from shifting marketing strate­gies and advances in computers and information technologies. Next, we review the fast-growing field of direct marketing commu­nications. Finally, we summarize the legal, ethical, and social re­sponsibility issues in marketing communications. We'll look at mass-communication tools—advertising, sales promotion, and pub­lic relations and examine the sales force as a communication and promotion tool.

I. Key terms:

Promotion mix — комплекс стимулювання збуту — the specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

Sales promotion — стимулювання збуту — short-term incentives to encourage purchase or sales of a product or service.

Advertising — реклама, рекламування — any paid form of nonpersonal presentation and promotion of ideas, goods or services by an iden­tified sponsor.

Personal selling — особистий продаж — personal presentation by the firm's sales for the рифове of making sales and building customer relationships.

II. Vocabulary notes:

Communicate, v.

1) повідомляти (когось — to);

2) передавати;

3) спілкуватися, підтримувати зв'язок;

4) make sth. known, convey sth;

5) pass on sth.; transmit sth.;

6) exchange information, news, ideas, etc.;

communication, n.

1) передавання, повідомлення;

2) поширення, розповсюдження;

3) спілкування, зв'язок;

4) звістка, повідомлення, інформація;

5) сполучення, комунікація, зв'язок;

6) act of communicating;

7) thing that is communicated; message; to be in communication with sb.; exchange information regularly with sb.;

call for, v.

вимагати, зобов'язувати — require, demand or need sth.;

provide, v.

1) постачати (щось — with); забезпечувати (чимось — with);

to promote sb. with money — забезпечувати когось грошима;

to pro­mote sb. with a good education — давати комусь добру освіту;

2) заготовляти, запасати (на схов);

3) давати, надавати, подавати; to provide military aid — надава­ти військову допомогу;

4) require, demand or need sth.;

discount, n.

1) знижка, знижка номінальної ціни;

at a discount — зі зниж­кою, знецінений;

discount house — крамниця товарів за знижени­ми цінами;

2) Фін. дисконт, облік векселів; відсоток обліку — amount
deducted for paying a bill of exchange; amount of money taken off the cost of sth.; at a discount — at a reduced price;

discount, v.

1) дисконтувати, обчислювати векселі;

2) знижувати обліковий відсоток за дострокової оплати век­селя;

3) знижувати, зменшувати — buy or sell a bill of exchange for
less than it will be worth when due;

tool, n.

інструмент — instrument.

III. Answer the following question:

1. What does modern marketing call for?

2. Who must companies communicate with?

3. What does a modern company manage?

4. What does the company communicate with?

5. Who do middlemen communicate with?

6. What is promotion mix?

7. What is advertising?

8. What is personal selling?

9. What is sales promotion?

10. What is public relations?

11. What does each category consist of?

12. What does advertising include?

13. What does personal selling include?

14. What does promotion include?

IV. Find English equivalents to the words and word combinations given below and use them in your own sentences:

Вимагати значно більшого; добрий товар; призначати приваб­ливу ціну; забезпечувати доступність; цільовий покупець; здійс­нювати комунікацію; питання не в тім, а в тім...; керувати склад­ною системою маркетингу; посередники; усна комунікація; зво­ротний зв'язок; платна форма; неособисте подання; пропагування; стимулювання збуту; особливий захід; торговельні презента­ції; експозиції в місцях продажу товарів; оформлення товару; ко­лір та форма упаковки; стимулювальні програми; премії; знижки; купони; реклама за допомоги сувенірів.

V. Match the English and Ukrainian equivalents:

1) усна комунікація	a) target customer
2) цільовий покупець	b) to call for more than just
3) платна форма	c) to manage a complex marketing communication system
4) колір та форма упаковки	d) sales presentations
5) стимулювання збуту	e) discounts
6) оформлення товару	f) special tools
7) вимагати значно більшого	g) good product
8) посередники	h) feedback
9) торговельні презентації	i) nonpersonal presentation
10) добрий товар	j) public relations
11) керувати складною системою маркетингу	k) paid form
12) призначати привабливу ціну	1) product's design
13) особистий захід	m) personal selling
14) реклама за допомоги сувенірів	n) trade shows
15) забезпечувати доступність	o) incentive programs
16) зворотний зв'язок	p) the shape and colour of its package
17) здійснювати комунікацію	q) premiums
18) неособисте подання	r) coupons
19) торговельні презентації	s) to price sth. attractively
20) стимулювальні програми	t) to communicate
21) знижки	u) middlemen
22) експозиції в місцях продажу товарів	v) word of mouth communication
23) премії	w) to make sth. available
24) пропагування	x) point-of-purchase displays
25)купони	y) specialty advertising

VI. Memorize the following terms and use them in your own sen­tences:

Promotion, n.	1) сприяння в продажу (товару); ство­рення сприятливих умов для продажу; 2) стимулювання;
promotion of trade	сприяння розвитку торгівлі; стимулю­вання торгівлі;
advertising promotion	стимулювання за допомоги реклами; масове інтенсивне просування товарів;
saturation promotion	масове інтенсивне стимулювання збуту;
sales force promotion	стимулювання торговельного персоналу;
seasonal promotion	сезонний захід зі стимулювання збуту;
special promotion	соціальний захід зі стимулювання збуту;
special price promotion	пропонування пільгової ціни;
tie-in promotion	супровідне стимулювання;
trade promotion	стимулювання («розкручування») сфери торгівлі; заходи зі стимулювання, на­цілені на сферу торгівлі; «зонтичне» стимулювання;
umbrella promotion	зонтичне «розкручування» (яке здійснює фірма-принципал для підтримки своїх торговельних посередників);
Promoter, n.	1) той, що сприяє (допомагає, заохочує, підтримує); 2) заступник, патрон, захис­ник; 3) засновник, фундатор (акціонер­ного товариства); 4) антрепренер; 5) ім­пресаріо; агент (артиста тощо); 6) підбу­рювач.

VII. Translate the following sentences into Ukrainian:

1. One of the hardest marketing decisions facing a company is how much to spend on promotion.

2. Promotion spending may be 20 to 30 percent of sales in the cosmetics industry and only 2 or 3 percent in the industrial machinery industry.

3. The company now must divide the total promotion budget among the major promotional tools — advertising, personal selling, sales promotion, and public relations.

4. Each promotion tool — advertising, personal selling, sales promotion, and public relations — has unique characteristics and costs.

5. Sales promotion includes a wide assortment of tools — cou­pons, contests, cents-off deals, premiums, and other — all of which have many unique qualities.

6. Companies consider many factors when developing their promotion mixes, including type of product/market, the use of a push or pull strategy, the buyer readiness stage, and the product life-cycle stage.

7. The promotional mix is affected heavily by whether the com­pany chooses a push or pull strategy.

8. The producer promotes the product to wholesalers, the wholesalers promote to retailers, and the retailers promote to consumers.

9. A promotion strategy that calls for spending a lot on adver­tising and consumer promotion to build up consumer demand.

10. Many food companies are promoting to doctors, dentists, and other health-care providers to patients.

11. Personal selling is the interpersonal arm of the promotion mix.

12. To attract both customers and tourists, the Mall distributes hundreds of broshures, newspaper inserts, and maps in the Minneapo­lis — St.Paul region; runs joint promotions with local radio stations; runs ads in a local newspaper and commercials on local television; buys billboard space; and works with over 200 tour operators to de­velop travel packages and with Northwest Airlines to create tie-in packages.

13. Burger King's promotion problem also involved more than just its television commercials.

14. The young army officer was promoted (to the rank of) captain.

15. How can we promote the sales of this product?

16. The company are promoting their new sort of toothbrush on television.

17. Public relations is used to promote products, people, places, ideas, activities, organizations, and even nations.

18. Months in advance, each distribution center promoted the contest to area roofers using direct-mail promotional materials furnished by the G-P public relations department.

19. Each year American companies bombard consumers with thousands upon thousands of assorted sales promotions.

VIII. Give synonyms of:

Modern; to call for; target; customer; question; complex; various; word-of-mouth; to pursue; goods; building; to obtain; for example; activity; entire.

IX. Make up a few sentences with «might» following the model:

Model 1 There are a dozen ways in which this might be man­aged. Model 2 She might have named him after me.

X. Read and translate the text:

ADVERTISING

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. We define advertising as any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising can be traced back to the very beginnings of recorded history. Archaeologists working in the coun­tries around the Mediterranean Sea have dug up signs announcing various events and offers. The Romans painted walls to announce gladiator fights, and the Phoenicians painted pictures promoting their wares on large rocks along parade routes. A Pompeii wall painting praised a politician and asked for votes. During the Golden Age in Greece, town criers announced the sale of cattle, crafted items, and even cosmetics. An early «singing com­mercial» went as follows: «For eyes that are shining, for checks like the dawn / For beauty that lasts after girlhood is gone / For prices in reason, the woman who knows / Will buy her cosmetics from Aesclyptos».

Modem advertising, however, is a far cry from these early efforts. In 1993, advertisers ran up a bill of more than $ 138 billion. Although adver­tising is used mostly by business firms, it also is used by a wide range of nonprofit organizations, professionals, and social agencies that advertise their causes to various target publics. In fact, the thirty-fourth largest ad­vertising spender is a nonprofit organization—the U.S. government. Ad­vertising is a good way to inform and persuade, whether the purpose is to sell Coca-Cola worldwide or to get consumers in a developing nation to drink milk or use birth control.

The top 100 national advertisers account for about one-fourth of all ad­vertising. Table 1 lists the top ten advertisers in 1993. Procter 6c Gamble is the leader with more than $2.4 billion, or about 15.5 percent of its total U.S. sales. P&G is also the world's largest advertiser, spending a whop­ping $ 3.6 billion globally. The other major spenders are found in the re­tailing, auto, and food industries. Advertising as a percentage of sales var­ies greatly by industry. For example, percentage spending is low in the auto industry but high in food, drugs, toiletries, and cosmetics. The com­pany spending the largest percentage of its sales on advertising was War­ner-Lambert (27 percent).

Different organizations handle advertising in different ways. In small companies, advertising might be handled by someone in the sales depart­ment. Large companies set up advertising departments whose job it is to set the advertising budget; work with the ad agency; and handle direct-mail advertising, dealer displays, and other advertising not done by the agency. Most large companies use outside advertising agencies because they offer several advantages.

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