Promotion LAP 4 Need screen-cap when cover is approved Types of Promotion

Describe types of promotion. Discuss advantages and disadvantages of promotional activities.

Describe types of promotion.

Promotion Buy! Allie’s Morning Bombarded by promotional messages  Communicates information  Builds awareness  Increases demand  Differentiates from the competition  Highlights value  Changes/Reinforces attitudes

Promotional Messages Serve many purposes Come in many shapes and forms Can be delivered in a variety of ways

Promotional Messages  Advertising  Publicity  Personal selling  Sales promotion  Advertising  Publicity  Personal selling  Sales promotion Encourage consumers to think favorably about the company or to buy its products

Product Promotion Goal = to persuade consumers to buy a particular good or service

Product Promotion Creates consumer awareness of a good or service Informs consumers about product features Encourages interest in and inquiries about a good or service Creates consumer awareness of a good or service Informs consumers about product features Encourages interest in and inquiries about a good or service Informs consumers where a product can be purchased Builds a reputation for a product Creates excitement and motivates retailers and salespeople Informs consumers where a product can be purchased Builds a reputation for a product Creates excitement and motivates retailers and salespeople

Primary Product Promotion Aims to stimulate demand, or consumer desire, for an entire class of goods or services Emphasis is on the product and its uses, rather than on a particular brand. Competition is between the two different industries. Especially useful and necessary for introducing a new concept or a totally new product

Secondary Product Promotion Also called selective product promotion Used to stimulate demand for a specific brand of a product Used to compete against other makers of the same type of product

Institutional Promotion Also called corporate promotion Goal = to create a certain image of the company in the eyes of the consumer Does not attempt to sell a good or service

Institutional Promotion Can be used to: Change a particular attitude toward a firm or its products Inform consumers of the company’s interest in social or environmental issues Inform the public about the company’s future Inform consumers of the company’s name and type of business

Institutional Promotion Can be used to: Show the company’s commitment to quality, technology, or research Enhance company morale and recruit new employees Build or reinforce a favorable company image

Deal with issues that are in the public’s interest but are also related to the company or its products Inform consumers about noncontroversial issues that are in the public’s best interest Public-service promotions Public-relations promotions

Designed to promote a firm’s prestige or its features Patronage promotions

Discuss advantages and disadvantages of promotional activities.

Advantages of Promotion Contributes to eco- nomic growth and business activity Encourages con- sumers to purchase and use new and improved products Creates jobs Supports the mass communication media Creates awareness of companies and their products Helps develop or enhance companies’ images Encourages a higher standard of living

Disadvantages of Promotion Some are deceptive. Some are manipulative. Some are offensive. Some may create/ reinforce stereotypes. Some play on people’s fears. Promotion has limited abilities. Cannot make up for the poor quality of a good/service Cannot immediately achieve major success Cannot substitute for well-trained salespeople “Autos manufactured today are virtually emission-free. And that’s a dramatic improvement over models from just thirty years ago…”

Be aware of the promotional messages you receive. Write them all down for one day. Identify as: Product promotion or institutional promotion Primary product promotion or secondary product promotion How did each message affect you?

 Alcohol companies say:  Promotions for alcohol companies  What do you think? Controversial May influence children Portray drinking as “cool” There are legal ages for purchasing alcohol. There are warnings on product packaging. They offer resources to help parents talk to children.

Acknowledgments Original Developers: Lelia Ventling and Sarah Bartlett Borich, MarkED Version 1.0 Copyright  2007 MarkED Resource Center

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