Advanced Marketing What are we doing? Promotion Designing your Company Name

Inform Remind Persuade WHAT IS PROMOTION? Inform Communication by marketers that informs, reminds, and persuades potential buyers of a product in order to influence an opinion or elicit a response. Remind Persuade Notes: For goods and services to survive in the marketplace, effective promotion is needed to inform, persuade, and remind potential buyers of a product.

PROMOTIONAL MIX Elements of the Promotional Mix Advertising Personal Selling Public Relations On Line Nabisco Nabisco lists its promotions on its Web site. What do you think the advantages and disadvantages of this are? Visit the site to get more information. Notes: The promotional mix is the combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Sales Promotion Direct Marketing

ADVERTISING Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

PUBLICITY Public information about a company, good, or service appearing in the mass media as a news item. It is NOT paid for by the marketer, and the company is not identified as the source of the information. Notes: Although an organization does not pay for publicity, it should not be viewed as free. Preparing news releases, staging events, persuading media personnel to print or broadcast them costs money. Discussion/Team Activity: Discuss current examples of publicity regarding organizations.

TRADITIONAL ADVERTISING MEDIA Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards E-media On Line The Olympics How is the International Olympic Committee using its Web site to communicate its marketing message to a youthful audience? Is the site geared to the demographic of young, extreme sports fans that seemed to be the hallmark of the 2002 Winter Games in Salt Lake City?

PERSONAL SELLING the two-way flow of communication between a buyer and seller, often in face-to-face encounter, designed to influence a person’s or group’s purchase decision. Notes: Traditional methods of personal selling include a planned presentation to one or more prospective buyers. Relationship selling emphasizes a win-win outcome and the accomplishment of mutual objectives that benefit both buyer and salesperson in the long-term. The goal is a long-term, committed relationship based on trust and customer loyalty.

PUBLIC RELATIONS The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance. Notes: Many organizations spend large amounts of money to build a positive public image. Public relations helps an organization communicate with stockholders, customers, suppliers, government, employees, and the community.

GOAL is to enhance and speed up the effectiveness of the other three. SALES PROMOTION Marketing activities-other than personal selling, advertising and public relations-that stimulate consumer buying and dealer effectiveness. Notes: 1. Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness. 2. Sales promotion is generally a short-run tool used to stimulate immediate increases in demand. 3.Sales promotion is used to improve the effectiveness of other ingredients in the promotion mix, especially advertising and personal selling. GOAL is to enhance and speed up the effectiveness of the other three.

SALES PROMOTION TOOLS Popular Tools for Consumer Sales Promotion Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons Popular Tools for Consumer Sales Promotion

to generate a response in the form of an order, DIRECT MARKETING direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. Notes: Many organizations spend large amounts of money to build a positive public image. Public relations helps an organization communicate with stockholders, customers, suppliers, government, employees, and the community.

IMC INTEGRATED MARKETING COMMUNICATIONS A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused. I can send it out, but how do I know what was received ?

THE COMMUNICATION PROCESS The process by which we exchange or share meanings through a common set of symbols. Noise Source Encoding Message Feedback Channel Message Decoding Receiver Notes: Marketing communication is a two-way process, as shown in Exhibit 12.3.

Criteria for Selecting Media Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility

The promotional mix

FACTORS EFFECTING MEDIA CHOICE Type of Buying Decision Nature of the Product These are much like the factors that affect your distribution choice Promotional Funds Target Market Factors Notes: Promotional mixes vary a great deal from one product and one industry to the next. Advertising and personal selling are used to promote goods and services, supplemented by sales promotion. Public relations helps develop a positive image for the product and the organization. A firm may choose not to use all four promotional elements, or it may choose to use them in varying degrees. This slide shows the factors affecting the promotion mix chosen by a firm. Type of Buying Decision Stage in PLC Push or Pull Strategy

Promotional tools used over the product life cycle of Purina Dog Chow

A comparison of push vs pull promotional strategies

Push Strategy A push strategy consists of directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.

Pull Strategy A pull strategy consists of directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product.