Chapter 17 Promotional Concepts and Strategies Section 17.1 Promotion and Promotional Mix Section 17.2 Types of Promotion

Objectives Explain Role of Promotion in marketing Identify Types of Promotion Understand public relations vs publicity Describe the promotional mix

Target market: group of people identified as most likely to become customers of a product all marketing strategies directed at target market

Types of Markets There are two different types of markets with different goals and objectives Consumer Industrial

1. Consumer market: all consumers who purchase goods and services for personal use Consumers want products and services that: Save money Make life easier Improve appearance Create status Provide personal satisfaction

2. industrial market: businesses that buy products, often in large quantities, to use in their operations; Businesses want products and services that: Improve productivity Improve efficiency Increase sales Decrease expenses

Marketing Mix The marketing mix X four basic marketing strategies, called the four Ps, that is used to influence buying decisions of a target market product place price promotion Actions & decisions in these areas are based on the people marketers want to win over Marketing Essentials Chapter 1, Section 1.3

The Concept of Promotion Promotion is persuasive communication Why do companies use Promotion: Inform people about their products or services Enhance their public image Persuade people that their products are valuable Educate the public on an issue, trend, or to change law (ideas)

Promotion A company must decide how to advertise, promote, and publicize a product. How potential customers will be told about products includes: Message Media selected Special offers Timing of promotional campaigns

The Concept of Promotion The Goal of promotional activities are summarized by the phrase AIDA: Attract Attention Build Interest Build Desire Ask for Action Goal: attract attention, build interest and desire, and ask for action Marketing Essentials Chapter 17, Section 17.1

Two Pathways of Promotion Product Promotion Institutional Promotion

Product promotion is the act of advertising a good or service with the short/long term goal of increasing sales used to convince prospects to select its products or services instead of a competitor’s

Product Promotion activities include: Explain features and benefits of a product/service Identify where it is sold and advertise sales Answer customer questions Introduce new offerings/products Foster good relations with existing customers - enhance customer loyalty

Institutional promotion: marketing approach that improve its image through demonstrating the goodwill of a business Institutional Promotion activities include: Maintain Web Sites- provide news and product information Help an organization advocate for change Take a stand on trade or community issues

Five Types of Promotion in Promotional Mix Personal selling Advertising Direct Marketing Sales Promotion Public Relations Product Promotion Activities Institutional Promotion Activities

1. Personal Selling Personal selling involves direct contact between salespeople and customers The costliest form of promotion Occurs because of other promotional efforts This can take place in the forms of: Personal meetings Telemarketing E-mail contact and other correspondence

2. Advertising Advertising is a form of non-personal promotion and one-way communication (not directed to specific customer but many customers) It can be found in places that include: Newspapers and magazines Television and Web sites Billboards and city buses

3. Direct Marketing Direct marketing is a type of advertising directed to a targeted group of prospects rather than to a mass audience and generates a response from the customer: Generates a Response from the customer by: Making a special offer like a coupon, discount, or special merchandise or delivery Prompts to visit a store, web site, call, or returning a form or e-mail

3. Direct Marketing Forms of direct marketing are mailed or sent electronically: Mail E-Marketing Social Media Marketing Essentials Chapter 17, Section 17.1

Lasts a limited period of time – prompt short term action Ex.: 4. Sales Promotion Sales promotion represents all marketing activities–other than personal selling, advertising, and public relations–that are used to stimulate purchasing and sales Lasts a limited period of time – prompt short term action Ex.: sample packages, sweepstakes contests or coupons that require you to buy a product by a certain date tradeshows

4. Sales Promotion Sales promotion objectives are to: Increase sales inform customers of new products Create a positive business or corporate image

5. Public Relations Public relations (PR) activities that create a favorable image for a company, its products, or its policies Goals: Create a favorable image Influence a target audience Cultivate media relations with reporters who cover a specific industry

Types of Public Relations What do you think are Public Relations activities a company can engage in? Publicity Community Involvement Customer Appreciation Events Scholarships Speaking Events Sponsorship of Community Sports events Charitable Donations News release Marketing Essentials Chapter 17, Section 17.1

Distribution channels Facilities Partners Revenues New Release A news release a free announcement that is sent to media outlets to announce newsworthy business developments Examples: News about products Distribution channels Facilities Partners Revenues Employees, and events Marketing Essentials Chapter 17, Section 17.1

Publicity Publicity involves bringing news or newsworthy information about an organization to the public’s attention Sharing company information via the media (TV, radio, internet, newspapers, etc)

Promotional Mix Promotional Mix: The combination of personal selling, public relations, advertising, sales promotion, sponsorships, direct mail, and trade shows that are utilized in promoting a good or service

Promotional Mix Policies: Manufacturers utilize two different methods of promotional mix: Push policy Pull policy Marketing Essentials Chapter 17, Section 17.1

Promotional Mix Push Policies: The push policy of promotion promotes to the retailer, pushing the product to the retailer purpose is to convince a retailer to stock the promoted product Use personal selling, advertising, and buying discounts directed toward retailer Relies heavily on trade shows Marketing Essentials Chapter 17, Section 17.1

Promotional Mix Pull Policies: The pull policy directs promotion toward the consumer. High interest and demand from consumers convinces (pulls) the retailers to stock the promoted item Uses local advertising, in-store displays, sales promotions and public relations to reach consumers Consumer samples and demonstrations used

Examples of Each Different Type of Promotion Five Types of Promotion in Promotional Mix Examples of Each Different Type of Promotion Public Relations Company Web Site Community Involvement Charity Involvement Personal selling Advertising Direct Marketing Sales Promotion