Marketing Chapter 17 Section 1

 Promotion is one of the four Ps of the Marketing Mix (product, place, price, and promotion).  Promotion is persuasive communication.  Goals of promotion – AIDA – attention, interest, desire, and action.

 Product promotion – method used by businesses to convince prospects to select their goods or services instead of a competitor’s brands.  Companies use promotion to build awareness and inform people about their products.

 Institutional promotion – method used to create a favorable image for a business, help it advocate for change, or take a stand on trade or community issues.

 Promotional mix – cost-effective combination of personal selling, advertising, direct marketing, sales promotion, and public relations strategies used to reach company goals.

 Personal selling is the most expensive form of promotion.  Advertising is a form of nonpersonal promotion in which companies pay to promote ideas, goods, or services.

 Direct marketing is a type of promotion that companies use to addresses individuals directly and not through a third party medium.  One form is direct mail, and another form is telemarketing.

 Social media is electronic media that allows people with similar interests to participate in a social network.  The goals of direct marketing are to generate sales or leads for sales representatives to pursue.

 CAN-SPAM Act of 2003 – requires senders of unsolicited commercial to give recipients a way to opt out of unwanted s.  Do Not Call Registry – businesses may not call these people on this list.

 Sales promotion – all marketing activities except – personal selling, advertising, and public relations.  Public relations – activities help an organization to influence a target audience.

 News release – announcement sent to the appropriate media outlets.  Social networks enable businesses to have communication with their customers  Publicity – brings news about an organization to the public’s attention.

 Publicity is free.  People tend to believe publicity because the company cannot control the information, which is both an advantage and a disadvantage.  Most businesses use more than one type of promotion.

 Once a product is recognized it is easier to sell.  Identifying the target market is the first step to establishing a promotional mix.  Elements of the promotional mix must be coordinated.  The total promotional mix is constantly being evaluated and adjusted as necessary.  There is no precise way to measure exact results of spending promotional dollars.

 Push policy – manufacturer pushes the product through the distribution channel to the retailer.  Pull policy – directs promotional activities toward consumers. Designed to create consumer demand and interest.