Promotion & The Promotional Mix

 Promotion is persuasive communication.  Informs people of products & services.  Enhances public image and reputation.  Educates the public about issues.  AIDA - attract Attention, build Interest & Desire, and ask for Action.  2 types of promotion:  Product promotion explains features & benefits, identifies where product is sold, advertises sales, answers customer questions.  Institutional promotion is used to create a favorable image for a business.

 There are 5 basic categories:  Personal selling  Advertising  Direct marketing  Sales promotion  Public relations

 Requires that a company employ sales reps who maintain contact with customers and prospects.  One of the costliest forms of promotion.  Can take form of personal meetings, telemarketing, contact, and correspondence.  Typically takes place after, or a result of, other promotional activities.

 Advertising is a form of nonpersonal promotion.  Companies pay to promote ideas with a variety of media outlets.  With advertising, a company engages in a one-way communication to the customer or prospect.  Direct Marketing is a type of advertising directed to a targeted group of customers & prospects, rather than a mass audience.  The 2 forms are printed direct mail & electronic direct mail. ▪ Usually generates a response from the targeted customer by making a special offer. ▪ Gives recipients an incentive to respond by visiting a store or Web site. ▪ Allows one-way communication with customer; however, CAN-SPAM Act was passed in 2003.

 Sales promotion represents all marketing activities- other than personal selling, advertising, and public relations-that are used to stimulate purchasing and sales.  Its objectives are to increase sales, inform potential customers about new products, and create a positive company image.  Include coupons, product samples, and point-of-purchase displays.  Public relations (PR) activities enable an organization to influence a target audience.  Campaigns try to create favorable image for company.  News releases, publicity: placement is free, more believable than advertising.

1. As a class, decide on a business we would like to create! 2. Then, get into groups of 2-3 students. 3. Once in your groups, you will be given one of the 5 types of promotion. 4. You and your group MUST create an actual promotion, which you will present to the class at the end of the period!!!