Promotion and Promotional Mix

Lesson Objectives Explain the role of promotion in business and marketing Identify the types of promotion Describe the concept of the promotional mix

Any form of communication a business or company uses to inform, persuade, or remind people about products and to improve its image PROMOTION

Institutional Promotion Used to create a favorable image of the company, rather than to directly sell products See the next slide for an example....

Example of Institutional Promotion

Product Promotion Directly sells products Explains product features/benefits Identifies where product sold Announces sales Answers customer questions Introduces new products See the next slide for an example....

Example of Product Promotion

ADVERTISING The non-personal presentation of ideas and products by an identified sponsor. **PAID FOR**

Direct Marketing Advertising directed to a targeted group –Printed –Electronic Purpose –Generate sales or leads for sales reps CAN-SPAM Act of 2003 –Opt-outs –Prohibits deceptive subject lines –Valid return addresses

Types of Promotion Advertising Direct marketing Sales Promotion Public Relations Personal Selling

SALES PROMOTION stimulate sales increase store traffic

PUBLIC RELATIONS Activities that create a favorable image for a company, its products or its policies.

Publicity Bringing newsworthy information to the public’s attention News release Advantages –FREE –Objective –Credible Disadvantages –Not controlled –Can be negative See next slide for examples of positive and negative publicity

Examples: Coca-Cola Positive PublicityNegative Publicity

PERSONAL SELLING The PERSONAL presentation of a product or company to one or more potential buyers

The combination of promotion types represents a product’s PROMOTIONAL MIX

What types of promotion do you think the following businesses use? Hennessy Honda Ruby Tuesday Cigarette manufacturers Avon Corporation E-bay

Can you name a type of business that… Uses lots of advertising and sales promotion, but very little personal selling? Uses very little advertising, but lots of personal selling?

Promotion and Promotional Mix