The Nature of Promotion Razzle Dazzle The Nature of Promotion Promotion LAP 2

Razzle Dazzle Objectives Explain the role of promotion in marketing. Describe types of promotional objectives.

Explain the role of promotion in marketing. Objective Explain the role of promotion in marketing.

You need promotion! You’ve created an exciting new iPhone application. You need potential customers to know: Your product exists What it will do for them Where they can purchase it How much it costs

Promotion Basics Promotion— marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome The element of the marketing mix that encourages customers to buy or to have certain views or opinions Can also be described as marketing communication because it involves sending a marketing message to a target audience

Who Uses Promotion? Examples Large and small businesses Any organization with something to sell Large and small businesses Examples

Who Uses Promotion? Producers Special interest groups Any organization with something to sell Producers Special interest groups Government agencies

Who Uses Promotion? Individuals, such as political candidates Any organization with something to sell Individuals, such as political candidates Intermediaries (middlemen)

Characteristics of Effective Promotion Persuasive—must convince customers that the product or company can satisfy specific needs Relevant—must be of interest to the target audience Appropriate—must “fit” the product

Characteristics of Effective Promotion Factual—must not be misleading Repetitive—must create sustained interest Coordinated—must be in sync with other promotional messages

Benefits of Promotion Increased product/company awareness Improved Healthcare! Increased product/company awareness Increased customer loyalty Strong position Increased sales Lower Taxes!

Benefits of Promotion Better informed, more satisfied customers Increased employment opportunities Jobs in promotion Jobs in production

Benefits of Promotion Increased media support—promotional dollars for: Television Radio Newspapers Magazines Internet

Promotion Costs Promotion costs can add up. Marketers plan ahead and create reasonable, appropriate budgets.

Describe types of promotional objectives.

Promotion Objectives New To inform Used to educate customers on how to use products How to be digital-ready: Used most often for new products Also used for older products with new uses

Promotion Objectives To persuade Used to stimulate action Used most often with highly competitive products Often includes incentives Sometimes used to boost company image

Promotion Objectives To remind Used most often to promote a company rather than an individual product A promotion may aim to achieve one, two, or all three of these objectives. Used to reinforce positive opinions that already exist

Choose one promotion you’ve seen in the past week. Was it for a company or for a specific product? Did you find it relevant and appropriate? Was the promotion meant to inform, to persuade, or to remind? Choose one promotion you’ve seen in the past week. How did it affect you as a consumer?

Individuals such as political candidates use promotion to convince the public to agree with them or to vote for them. Sometimes, along with positive promotions about themselves, political candidates or parties include negative advertisements about their opponents in their promotional campaigns. These promotions aren’t illegal, but are they ethical? What do you think?

Lelia Ventling and Sarah Bartlett Borich, MBAResearch Acknowledgments: Original Developers: Lelia Ventling and Sarah Bartlett Borich, MBAResearch Version 1.0 Copyright ã 2010 MBA Research and Curriculum Center

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