Principles of Marketing Q2 Module 10 PDF

Senior High School Principles of Marketing Quarter 2 – Module 10: Promotion and Different Promotional Tools Writer: MARK JOSEPH V. SANGIL, DBA MT-I SHS IN APALIT (Stand Alone I), Cluster VI Editors: JANE P. VALENCIA, EdD – Ma...

Senior High School Principles of Marketing Quarter 2 – Module 10: Promotion and Different Promotional Tools Writer: MARK JOSEPH V. SANGIL, DBA MT-I SHS IN APALIT (Stand Alone I), Cluster VI Editors: JANE P. VALENCIA, EdD – Math/ABM Supervisor CHAIRMAN MARK JOSEPH V. SANGIL, DBA – MT- I GRACELA R. LABOS- MT-I  What I Need to Know This module was designed and written with you in mind. It is here to help you master the subject Principles of Marketing. The scope of this module permits it to be used in many different learning situations. The language used recognizes the diverse vocabulary level of students. The lessons are arranged to follow the standard sequence of the course. But the order in which you read them can be changed to correspond with the textbook you are now using. The module is focus on:  Define and identify relevant promotional tools, namely, advertising, sales promotion, personal selling, public relations, and direct marketing to create awareness and persuade the target market to buy the product or patronize the service. After going through this module, you are expected to:  Understand the meaning of promotion, and the different promotional tools.  Discuss the difference between promotion and advertising. What I Know Direction: Test I. Choose the letter of the correct answer. Write the letter that corresponds to your answer on a separate sheet of paper. 1. It is an activities or a series of activities that are intended to boost the sales of a product or service, usually short-term. a. Place b. Product c. Price d. Promotion 2. It is defined as any paid and public presentation of products, services, or ideas by an identified sponsor through a medium. a. Advertising 1  b. Personal selling c. Publicity d. Public relations 3. Is the extent to which consumers are familiar with the distinctive qualities or image of a particular brand or goods or services. a. Advertising b. Brand awareness c. Branding d. Promotion 4. It is a viable advertising vehicle in the Philippines since 1922, and it is the most accessible media. a. Billboard b. Cinema c. Print d. Radio 5. It provides a powerful combination of visual and audio effects to the audience. a. Direct mail b. Magazine c. Newspaper d. Television 6. It consists of those that appear inside and outside of buses. It is less costly but it is also less discriminating. a. Directory advertising b. E-mail advertising c. Social networking sites d. Transit advertising 7. It consists of posters, painted bulletins, and spectaculars and they are least costly. a. Directory advertising b. Outdoor advertising c. Social networking sites d. Transit advertising 8. It is the most selective of all media forms and it reaches only the individuals and organizations the advertisers wishes to contact. a. Cable TV b. Direct mail c. Radio d. Television 9. It is a global network of networks linking millions of users and as such, offers many possibilities for the advertisers. a. Cellphones b. Internet c. Point-of-Purchase d. Yellow pages 10. It is the most selective of all media forms and it reaches only the individuals and organizations the advertisers wishes to contact. 2  a. Cable TV b. Direct mail c. Radio d. Television 11. Is a form of promotion designed to favorably influence attitudes toward an organization, its products, and its policies. a. Public affairs b. Publicity c. Public relations d. Sales promotion 12. Is a short-term inducement of value offered to arouse interest in buying a good or service, and it is offered to the middleman or to the final consumer. a. Public affairs b. Publicity c. Public relations d. Sales promotion 13. It is the generation of news about a person, product, or organization that appears in broadcast or electronic media. a. Public affairs b. Publicity c. Public relations d. Sales promotion 14. It is a brief memo or report containing news information, such as the announcement of a new product, or change in management. a. Lobbying b. News release c. Public affairs d. Press agentry 15. One of the methods used in sales promotion, where it is stimulates wholesalers and retailers to carry a firm’s product and to sell it aggressively. a. Consumer sales b. Lobbying c. Press agentry d. Trade sales 3  Lesson Promotion and the Different Promotional 1 Tools As you proceed to this module, we will discuss the definitions of promotion and the different promotional tools. What’s In Notes to the Teacher This module is good for one week and it will discuss the about promotion, promotional tools and the difference between promotion and advertising. Direction: Look at the following jumbled words. Rearrange the letters to form the correct and proper word by looking and analyzing the questions below the jumbled words. 1. ECPRI __________________________ 2. RINGCIP __________________________ 3. IECRP GNLIIN __________________________ 4. LEAS __________________________ 5. ASCH ESREATB __________________________ 6. YTLCAIPSE EADERSL __________________________ 7. ERIATNIGL __________________________ 8. YSLPUP HNACI __________________________ 9. NWGSALIOLHE __________________________ 10. SOSL ERLEDA __________________________ 4  1. It is the money, good, or service exchanged for the ownership or use of a good or service. 2. They are activities involved in the determination of the price at which products that will be offered for sale considering the various objectives of the firm. 3. A pricing strategy which involves reducing the number of price points on merchandise to as little as possible, in extreme cases to only one price point. 4. It is the form of price reductions where the prices of the products of the firm are reduced for a limited time. 5. These are offered to customers to encourage them to make purchases within a specified time period. 6. These are distributors that specialize in either particular products categories or in the specialized needs of very distinct target markets. 7. It is defined as the sale of goods and services to the final customer for his personal consumption. 8. It is the network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product. 9. It is the sale of goods for resale and it is an important product distributions functions. 10. This pricing strategy refers to the practice of setting low prices on selected products which will result in the generation of less profits, but with the objective of increasing the sales volume of other products sold by the company. What’s New NAME THE TAGLINE Direction: Given the different companies below, think and name what companies tagline belongs to by just reading the items below. Example: Metrobank Your in Good Hands 1. Mercury Drug ________________________________ 2. Globe ________________________________ 3. Sprite ________________________________ 4. Banco de Oro (BDO) ________________________________ 5. Mega Sardines ________________________________ 6. M-Lhuillier ________________________________ 7. Jollibee ________________________________ 8. Nike ________________________________ 9. SM Store ________________________________ 10. Philippine Airlines ________________________________ 5  What is It Marketing is often equated with advertising. But as you hopefully know by now, advertising and promotions in general are just part of the marketing mix In fact, promotions is the fourth P’s of marketing mix, and covers matters such as advertising, sales promotions, personal selling, public relations strategies. In short, these are the most direct communication elements available to a marketer. Advertising and promotions constitute the overt forms of communication for a product that involve the use of various media to deliver messages to the market in order to achieve business objectives. Because different kinds of media may be employed in order to push a message to consumers, the portfolio of media is referred to as the promotions mix. Traditionally, the promotions mix was composed of advertising, sales promotions, public relations, and personal selling. Today, however, the promotions mix, has been updated in order to reflect new realities in the communications environment. Today’s promotions mix consists of above-the-line communications, which refer to the traditional mass media vehicles of print, radio and television, and below- the-line communications, which refer to more targeted, smaller scale executions including the use of social media. Increasingly, many campaigns now combine the two in what is called through-the-line communications, often involving the use of mass media to encourage consumers to visit below-the-line channels. The purpose of promotions is to elicit a change in behavior. Of course, getting people to buy your product, when previously they did not, constitutes a change in behavior. But he behavioral objective need not be this abrupt. Often, consumers first need to be primed in order to allow them to collect positive feelings toward the product, before finally getting them to actually purchase it. Promotion- it is an activities or a series of activities that are intended to boost the sales of a product or service, usually short-term. Two types of Promotions 1. Trade promotions- are intended for marketing intermediaries such as retailers. The purpose of trade promotions is to encourage the intermediaries to increase purchases, to stock a particular product, to accelerate purchases 6  or payments for purchases, or to extend preference towards a particular brand. Examples of trade promotions are 10+1 ( if a retailer orders ten cases of a product, the manufacturer delivers 11 case but does not charge for the extra case), giving retailers free store signages to carry a specific product brand, and contests among participating retailers. Trade promotions “push” products to the retailers or trade outlet. 2. Consumer promotions- are intended for consumers. The purpose of consumer promotions is to induce product trial, encourage brand switching, or reward consumer patronage. Advertising- may be defined as any paid form of non-personal presentation and promotion of ideas, goods, or services, by an identified sponsor. Brand awareness- is the extent to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services. Types of Media and Techniques Used in Advertising 1. Radio- a viable advertising vehicle in the Philippines since 1922, radio is the most accessible media. Philippines radio stations broadcast in either the AM or FM brands, with AM stations broadcasting mostly talk, news, or opinion programs On the other hand, FM stations primarily broadcast music, with each radio station specializing on a particular type, such as classical, hip-hop, rock, or pop. 2. Newspapers- newspapers circulating in the Philippines constitute one of the most viable media for advertising, if the advertiser would like to reach a great number of urban dwellers and a wide variety of audience. Unlike the other types of media, a lot of advertising information can be accommodated in a small newspaper advertising space. 3. Consumer Magazines- are purchased by certain types of buyers depending on the nature of the magazine. Metro magazine, for instance, are read by young professionals and those with sufficient income to be able to afford its high-end price. Among the advantages of magazines are: a. It can be passed on to other readers b. Its low cost of advertising per thousand of prospects reached c. It reaches a specialized audience. 7 4. Television- provides a powerful combination of visual and audio effects to the audience. Just imagine the difference between a live radio broadcast and a live telecast of a boxing spectacle like that of Manny Pacquiao. Television’s main disadvantages, however, are the high costs involved, and the limited information format (a TV ad, like the radio ad must not be longer than 60 seconds). 5. Outdoor Advertising- consists of posters, painted bulletins, and spectaculars. Posters are the least costly, while spectaculars are the most expensive. A very important aspect of outdoor advertising is the choice of location where visibility is a must. 6. Direct Mail- is the most selective of all media forms. It reaches only the individuals and organizations the advertiser wishes to contact. Direct mail contains information which may be in the form of postcards, letters, leaflets, folders, booklets or catalogs. The disadvantage of direct mail is that costs are high per prospect reached. 7. Cable TV- are those which are attached to subscribers homes to the exclusion of all others. As subscribers belong to a specialized group, cable TV can be useful in advertising special products. The main drawback of Cable TV, however, is its limited coverage. 8. Yellow Pages- The yellow pages of directories (like the telephone directory) are widely used by national and local advertisers. This medium is especially useful to buyers who have already made a decision to buy products or services but do not know where to buy them. The cost per advertisement page is low compared to other media Its main disadvantage, however, is that it is a passive form of advertising and the message is dormant until the prospect lifts the pages of the directory. 9. Transit advertising- consists of those that appear inside and outside of buses. It is less costly but it is also less discriminating. It can be read by just any other person, prospects and non-prospects. 10. Point-of-Purchase- refers to those appearing in outlets where goods are sold. They are most often used by national advertisers for the purpose of selling their goods through retail outlet. Point-of-purchase advertising is varied in terms of material, size, construction, and design. 11. Internet- is a global network of networks linking millions of users and as such, offers many possibilities for the advertiser. Many companies have already put up their own home pages which serve as a form of advertising that the audience seeks. 12. Cellphones- are tools of electronic communication using two forms: the spoken word and the text (or Short Messaging Service). The SMS is currently used by some firms to advertise their products such as movies and entertainment. The cellphone is an inexpensive medium for advertising, but it cannot select its audience. 8 Public Relations - Is a form of promotion designed to favorably influence attitudes toward an organization, its products, and its policies. The purpose of public relations is to build or maintain a favorable image for an organization with its customers, prospects, stockholders, employees, labor unions, the local community, and the government. Public relations consist of two components: publicity and public affairs. Publicity- is the generation of news about a person, product, or organization that appears in broadcast or electronic media. It is usually achieved by planting commercially significant news about the product or service in a published medium or obtaining favorable presentation of the product or service upon radio, television, or stage. Publicity is most often used in promoting a film and its star, or a new record release and its singer. Forms of Publicity 1. News release- is a brief memo or report containing news information, such as the announcement of a new product, or change in management. The purpose of news release is to inform a newspaper, radio station, or other medium, of an idea for a story. 2. Press agentry- is the planning and staging of an event in order to generate publicity The tools of press agentry are: a. Press kits- which contains information about the event and key information for publication in news stories. These may include product samples, background information and product brochures, and other information that will help the newswriter in writing an article about the event or the organization. b. Speaker’s bureaus- which are actually listing of company officials who will speak at civic and industry events. Public Affairs- is that part of public relations that deals with community groups. Two types of Public Affairs a. Lobbying- is the attempt to persuade a government official or governing body to adopt policies, procedures, or legislation in favor of the lobbying group or organization. 9  b. Community involvement- is that type of public affairs which undertakes company participation in community activities like sponsoring a sports event, a musical show, or scholarship programs. Sales Promotion- is a short-term inducement of value offered to arouse interest in buying a good or service. It is offered to the middleman or to the final consumer. Sales Promotion Methods 1. Consumer sales promotion- techniques encourage or stimulate consumers to patronize a specific retailer or to try a new product. 2. Trade sales promotion- stimulates wholesalers and retailers to carry a firm’s product and to sell it aggressively. What’s More Independent Activity No. 1: Matching Type: Match the items in Column A to Column B. Write the letter of the correct answer on the space provided before the number. COLUMN A COLUMN B 1. Manila Bulletin a. Radio 2. MOR 101.9 b. Direct mail 3. ABS-CBN c. Publicity 4. Post-card and leaflets d. Yellow pages 5. Press conference of the new e. Television movie 6. Telephone directory f. Public affairs 7. Posters and painted bulletins g. Promotion 8. Lobbying and community h. Outdoor advertising involvement 9. Consumer sales and trade sales i. Sales promotion promotion 10. P’s of Marketing j. Newspaper ___________1. ____________6. ___________2. ____________7. ___________3. ____________8. 10 ___________4. ____________9. ___________5. ____________10. Independent Activity No. 2: Write PROMOTION if the statement is TRUE, and write ADVERTISING if it is FALSE. Write the correct answer on the blank provided at the left side of the paper. _____________1. Advertising is one of the means used to motivate people to patronize a certain product. _____________2. Direct-mail consists of those that appears inside and outside the buses. _____________3. Public relations consist of two components; publicity and public affairs. _____________4. Public affairs is most often used in promoting a film and its star, or a new record release and its singer. _____________5. Posters are the least costly, while spectaculars are the most expensive. What I Have Learned Advertising, public relations, and sales promotion, personal selling, are the other methods of promotion. Advertising is any paid form on non-personal presentation and promotion of ideas, goods, or services, by an identified sponsor. The advertising media consist of newspapers, consumer magazines, radio, television, outdoor advertising, direct mail, cable TV, yellow pages, transit, point-of- purchase, the internet, and cellphones. Public relations is another form of promotion and is designed to favorably influence attitudes toward an organization, its products, and its policies. Publicity and public affairs are the components of public relations. Sales promotion is also a form of promotion and it consists of short-term inducement of value offered to arouse interest in buying a good or service. There are various objectives of sales promotion. The methods of sales promotion are classified as either consumer sales promotion or trade sales promotion. Personal selling occurs when an individual salesperson sells a product, service, or solution to a client. Personal selling is necessary in the marketing mix when product and services are highly technical, fairly complex, durable, expensive, 11 or not actively sought out by customers, especially when its customers are companies and institutions instead of individual customers. What I Can Do Directions: Read the following questions carefully. Your answers will be evaluated using the rubrics shown below. 1. Give an example of an effective TV ad. From what you remember, what made it memorable for you? ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________ 2. What can print ads do that broadcast ads cannot? ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 12  Grading Rubric (25 points) Criteria 10 points 8 points 5 points 2 points POINTS Explanation A complete Good solid Explanation is Misses key response with response with unclear points a detailed clear explanation explanation Demonstrated Shows Shows Response Response Knowledge complete substantial shows some shows a understanding understanding understanding complete lack of the of the of the problem of questions, problem, understanding ideas and ideas, and for the processes processes problem Requirements Goes beyond Meets the Hardly meets Does not meet the requirements the the requirements of the problem requirements requirements of the problem of the problem of the problem TOTAL Assessment Direction: Choose the letter of the correct answer. Write the letter that corresponds to your answer on a separate sheet of paper. 1. It is the most selective of all media forms and it reaches only the individuals and organizations the advertisers wishes to contact. a. Cable TV b. Direct mail c. Radio d. Television 2. Is a form of promotion designed to favorably influence attitudes toward an organization, its products, and its policies. a. Public affairs 13  b. Publicity c. Public relations d. Sales promotion 3. Is a short-term inducement of value offered to arouse interest in buying a good or service, and it is offered to the middleman or to the final consumer. a. Public affairs b. Publicity c. Public relations d. Sales promotion 4. It is the generation of news about a person, product, or organization that appears in broadcast or electronic media. a. Public affairs b. Publicity c. Public relations d. Sales promotion 5. It is a brief memo or report containing news information, such as the announcement of a new product, or change in management. a. Lobbying b. News release c. Public affairs d. Press agentry 6. One of the methods used in sales promotion, where it is stimulates wholesalers and retailers to carry a firm’s product and to sell it aggressively. a. Consumer sales b. Lobbying c. Press agentry d. Trade sales 7. It is an activities or a series of activities that are intended to boost the sales of a product or service, usually short-term. a. Place b. Product c. Price d. Promotion 8. It is defined as any paid and public presentation of products, services, or ideas by an identified sponsor through a medium. a. Advertising b. Personal selling c. Publicity d. Public relations 9. Is the extent to which consumers are familiar with the distinctive qualities or image of a particular brand or goods or services. a. Advertising b. Brand awareness c. Branding d. Promotion 14 10. It is a viable advertising vehicle in the Philippines since 1922, and it is the most accessible media. a. Billboard b. Cinema c. Print d. Radio 11. It provides a powerful combination of visual and audio effects to the audience. a. Direct mail b. Magazine c. Newspaper d. Television 12. It consists of those that appear inside and outside of buses. It is less costly but it is also less discriminating. a. Directory advertising b. E-mail advertising c. Social networking sites d. Transit advertising 13. It consists of posters, painted bulletins, and spectaculars and they are least costly. a. Directory advertising b. Outdoor advertising c. Social networking sites d. Transit advertising 14. It is the most selective of all media forms and it reaches only the individuals and organizations the advertisers wishes to contact. a. Cable TV b. Direct mail c. Radio d. Television 15. It is a global network of networks linking millions of users and as such, offers many possibilities for the advertisers. a. Cellphones b. Internet c. Point-of-Purchase d. Yellow pages 15 Additional Activities Instruction: Using the Venn diagram below, please indicate and complete the boxes below based on the lessons that you learned in the lesson. PROMOTION 16 Assessment 17 What's More What I Know 1. B 2. C Activity No. 1 Test 1 3. D 1. J 1. D 4. B 2. A 2. A 5. B 3. E 3. B 6. D 4. B 4. D 7. D 5. D 5. C 8. A 6. D 6. D 7. B 9. B 7. H 10. D 8. B 8. F 9. B 11. D 9. I 10.B 12. D 10. G 11.C 13. B 12.D 14. B Activity No. 2 13.B 15. B 14.B 1. PROMOTION 15.D 2. ADVERTISING 3. PROMOTION 4. ADVERTISING 5. PROMOTION Answer Key References https://www.rexestore.com/management-marketing/500-principles-of- marketing-rev-ed-.html Real C. So & Oscar G. Torres (2016).Principles of Marketing, pp. 82-89 Roberto Medina (2008), Principles of Marketing, pp. 221-235 Kotler, P. and Armstrong, G. (2014) Principles of Marketing (15th edn). Harlow: Pearson Education https://www.marketingteacher.com/personal-selling/ 18  Development Team of the Module Writer: MARK JOSEPH V. SANGIL, DBA– MT-I SHS IN APALIT (Stand Alone I) Editor: JANE P. VALENCIA, EdD – EPS – Mathematics Reviewer: JANE P. VALENCIA, EdD – EPS – Mathematics MARK JOSEPH V. SANGIL, DBA– MT-I SHS IN APALIT (Stand Alone I) GRACELA R. LABOS- MT-I Potrero National High School Illustrator: Layout Artist: Language Reviewer: Management Team ZENIA G. MOSTOLES, EdD, CESO V, Schools Division Superintendent LEONARDO C. CANLAS, EdD, CESE. Asst. Schools Division Superintendent ROWENA T. QUIAMBAO, CESE, Asst. Schools Division Superintendent CELIA R. LACANLALE, Ph.D, CID Chief JANE P. VALENCIA, Ed.D, Education Program Supervisor, Mathematics JUNE E. CUNANAN, Education Program Supervisor/ Language Editor RUBY M. JIMENEZ, Ph.D., Education Program Supervisor, LRMDS 19