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

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

Describe the types of promotion.

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

Promotion: Communicates Information Goods Services Images Ideas

Promotional Objectives  Build awareness  Increase demand  Differentiate a product from its competitors  Highlight a product’s value  Change or reinforce customer attitudes

Who Says … “There’s an app for that” “Imagination at work” “A diamond is forever” “Just do it” “I’m lovin’ it” “Where dreams come true” “Expect more. Pay less.”

Who Says …  “There’s an app for that”  “Imagination at work”  “A diamond is forever”  “Just do it”  “I’m lovin’ it”  “Where dreams come true”  “Expect more. Pay less.” Apple General Electric (GE) De Beers Nike McDonald’s Disney Resorts and Parks Target

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

Reasons for Using Promotional Messages  Encourage customers to buy its products  Encourage customers to think positively of business

Types of Promotional Messages  Product promotion  Institutional (or corporate) promotion

Product Promotion Goal = to persuade customers to buy a particular good or service Advertisements Coupons Personal selling TV interviews Examples:

What Product Promotion Can Do Creates awareness of a good or service Informs customers about product features Encourages interest in and inquiries about a good or service Stimulate customer purchases

What Product Promotion Can Do Informs customers where a product can be purchased Builds a reputation for a product Creates excitement and motivates retailers and salespeople Stimulate customer purchases

Aims to stimulate demand, or 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 Primary Product Promotion

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 customer 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 customers of the company’s interest in social or environmental issues Inform the public about the company’s future Inform customers 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 customers 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 imagination at work

Discuss advantages and disadvantages of promotional activities.

Advantages of Promotion Contributes to eco- nomic growth and business activity Encourages customers 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. “Autos manufactured today are virtually emission-free. And that’s a dramatic improvement over models from just thirty years ago…”

Disadvantages of Promotion 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

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.

MBA Research Acknowledgments Original Developers Lelia Ventling, Sarah Bartlett Borich, MBA Research Version 2.0 Copyright © 2010 MBA Research and Curriculum Center®

DIGITAL JUICE #018, 056, 042, 312, 460 Photos  1998 Corbis Corp. 750 Second Street Encinitas, CA USA LIQUID LIBRARY Various images used in this presentation are © 2004 Liquid Library. All rights reserved Digital-based photography sources: MICROSOFT CLIP GALLERY LIVE Various clipart used in conjunction with  PowerPoint 2000 ®,  Microsoft ® All rights reserved One Microsoft Way Redmond, WA USA Misc. Ad: from slide 24 from National Journal Congress Daily

Copyright: All photographic digital images on this CD are owned by the aforementioned photographic resources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws.