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

Market: refers to all the people who might buy a product : Share similar needs and wants Have the ability to purchase a product Target market: group of people identified as most likely to become customers all marketing strategies directed at target market

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

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 Marketing Essentials Chapter 1, Section 1.3

What is Promotion Promotion entire set of activities, which communicates the brand and/or product (good, service, idea, or point of view) through publicity and/or advertising The idea is to make people aware, attract and induce then to buy the product from your business over the competition. It is persuasive communication

Watch the video and complete the Think about it in your notes:

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. Basically, how will potential customers be told about your products Four Key Elements of Promotion Includes: Message – communication or piece of information - what are you sharing/telling about Media selected – print, commercial, news, mail, email, posting, tweet, bulletin, Special offers – discount price, bonus offers etc Timing of promotional campaigns – when you will launch it, how long, and how often

Goal 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 Categories of Promotion Product Promotion Institutional Promotion

1. Product promotion is the act of advertising a good or service with the short/long term goal of increasing sales Product Promotion activities include: Used to convince customers to select its products instead of a competitor’s Explain features and benefits of a product Identify where it is sold Introduce new offerings/products Foster good relations with existing customers - enhance customer loyalty

2. Institutional promotion: marketing approach that demonstrates the goodwill of a business to improve its image Institutional Promotion activities include: Maintain Web Sites- provide news and product information Advocate for change Take a stand on trade or community issues Be involved in and support community

Promotional Mix Promotional Mix: The combination of personal selling, advertising, sales promotion, direct marketing techniques and public relations that are utilized by a business to promote goods, services or their image

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

Complete the Promotional Mix Web Activity 2 Complete the Promotional Mix Web Activity 2. Bring in one Direct Marketing Example by Thursday