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

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 promotion efforts like commercials, ads etc. This can take place in the forms of: Personal one-on-one meetings Telemarketing Direct emails or calls from a sales person Door to Door Sales

2. Advertising Advertising is a form of non-personal promotion and one-way communication directed at large audiences (not directed to specific customers 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 physical mail from a business you frequent 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. Usually customer requested/signed up for these Generates a Response from the customer and prompts to visit a store, web site, call, or returning a form or e-mail physical mail from a business you frequent e-mails you have signed up for Telemarketing short message service (texting you signed up for) couponing Social media you follow/like

4. Sales Promotion Sales promotion: process of persuading potential customers to buy a product through a short term tactic used to boost sales Examples: Discounted Prices. ... Free Gifts. Fairly self-explanatory. ... Free Samples. Costco and Sam’s use this method with great success. Joint Promotions Vouchers and Coupons Social Media Contests and Giveaways **Lasts a limited period of time

4. Sales Promotion Sales promotion objectives are to: Increase sales Inform customers of new products Clear out old inventories Attract traffic Lift sales temporarily *Not used to build customer loyalty but can lead to that as a result

5. Public Relations Public relations (PR) activities that create a favorable image for a company, its products, or its policies Community Involvement Charitable events/cause marketing Scholarships Speaking Events Sponsorship of Community Sporting events Charitable Donations

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)

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

Promotional Mix Policies: Manufacturers utilize two different methods of promotional mix: Push policy Pull policy

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

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