Chapter 17 Promotion

What is Promotion? ANY type of persuasive communication

The Concept of Promotion: 1.Product: pushing a product/service, explain features, benefits, sales, answer questions, promote product loyalty 2.Institutional: create favorable image for a company/brand

Types of Promotion in the Promotional Mix? 1.Personal Selling: one-to-one communication, direct human contact 2.Advertising: non-personal communicaiton (ex. mags, news, tv, transit, etc.) 3.Direct Marketing: targets a specific group through /printed mail – gives customer a special offer to respond to 4.Sales Promotion 4.Sales Promotion: all OTHER forms of promoting, includes coupons, contests, etc. (Section 2) 5.Public Relations: create favorable image, media relations (ex. PRESS RELEASE) Publicity: bringing newsworthy information to the publics attention

The Concept of the Promo. Mix Promotional Budget: use of funds with mixture of strategies Push-Pull concept

Push/Pull Concept PUSH: when the manufacturer pushes the product to the retailer, convincing the retailer to stock the product PULL: directs attention toward the consumer, create interest/demand from the consumer

17.2 Types of Promotion Sales Promotion: incentives to create sales/awareness Sales Promotion Trade Promotion Consumer Promotion

Trade Promotions: (b2b promotions) 1.Promotional Allowances: 2.Cooperative Advertising: 3.Slotting Allowances: 4.Sales Force Promotions: 5.Trade Shows/Conventions:

Trade Promotions: (b2b promotions) 1.Promotional Allowances: discounts given to wholesalers/retailers to push products 2.Cooperative Advertising: manufacturer helps with local advertising costs 3.Slotting Allowances: cash given to retailer to pay for “shelf placement” 4.Sales Force Promotions: bonuses for meeting quotas for sales personnel 5.Trade Shows/Conventions: a showcase of products-”hands on” displays and samples

CUSTOMER Consumer Promotions… (b2c-focuses on the CUSTOMER) 1.Coupons: 2.Premiums: 3.Deals: 4.Incentives: 5.Product Samples: 6.Sponsorship: 7.Tie-Ins/Cross-Promo.: 8.Product Placement: 9.Loyalty Marketing 10.Online Loyalty 11.POP Displays