PROMOTIONAL CONCEPTS AND STRATEGIES Ch. 17 Promotion and Promotional Mix

The concept of promotion  Promotion is persuasive communication. Companies rely on promotion to inform people about their products and services.  The goals of promotion (AIDA): First attract Attention, then build Interest, and Desire, and finally ask for Action

A business uses…  To convince prospects to select its products ore services instead of a competitor's brands. Promotional activities explain the major features and benefits of the product or service.  Used to create a favorable image for a business, help it advocate for change, or take a stand on trade or community issues. Ex. Maintain web sites to provide information, and to answer questions. Product PromotionInstitutional Promotion

The concept of Promotional Mix  To reach its promotional goals, an organization develops an effective promotional mix.  Promotional Mix = a combination of strategies and cost effective allocation of resources. Most businesses use ore than one type of promotion to achieve their promotional goals.  Businesses establish a promotional mix by following a series of steps that range from identifying the target market to measuring the results.

Types of Promotion in the Promotional Mix Sales representatives who generate and maintain direct contact with prospects and customers. Personal Selling Form of nonpersonal promotion. Companies pay for promotional ideas, goods, or services in a variety of media outlets. Advertsing Type of marketing directed at a targeted group of prospects and customers trather than a mass audience. 2 types: direct mail and electronic mail Direct Marketing All marketing activities other than personal selling, advertising and public relations. Objective is to increase sales, inform potential customers about new products and create a positive business or corporate image. Sales Promotions (PR) Activities enable an organization to influence a target audience. Campaigns that create a favorable image for the company, its products, or its policies. Public Relations

News releases  An important promotional tool.  A news release is an announcement that is sent to the appropriate media outlets. They are sent to news papers and news stations to release important information about a company decision, event, etc.

Sales, Trade and Consumer…. Types of Promotion

Trade Promotions  Sales promotion activities designed to get support for a product from manufacturers, wholesalers, and retailers.  More $$ is actually spent promoting to businesses than to consumers.  Trade promotions include promotional allowances, cooperative advertising, slotting allowances, sales force promotions, and trade shows and conventions.

Consumer Promotions  Sales strategies that encourage customers and prospects to buy a product or service.  Consumer promotions support advertising, personal selling, and public relations efforts.  Coupons  Premiums- low-cost items given to consumers at a discount or free.  Deals  Incentives  Product Samples  Sponsorship

Promotional tie-ins  Cross-promotion and cross-selling campaigns  Sales promotional activities between 2 or more retailers or manufacturers. They produce mutually beneficially results.  Popular online- fill out this survey and receive a 20% discount on your purchase.

Product Placement  Using a brand name product in a movie, TV show, video games, sporting event, or even in a commercial for another product.  Ex. Survivor, American Idol, Mt. Dew & Doritos Etc..