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

Purposes of Promotion Convince potential customers to buy Explain features/benefits of products Tell where products are sold Advertise sales on products Answer customers’ questions Introduce new products Create a favorable image of the company or product

Institutional vs. Product Promotion I: Used to create a favorable image of the company, rather than to directly sell products P: Used to create a favorable image of the product, rather than to promote company

Types of Promotion Advertising Sales Promotion Personal Selling Publicity/ Public Relations Visual Merchandising

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

Advertising Advantages –1. A large number of people usually see the advertiser’s message –2. Costs per potential customer are usually lower than other forms of promotion –3. Can choose the most appropriate media to reach target market –4. Can control the content of an advertisement –5. Ads are subject to repeat viewing –6. Ads can “presale” products Disadvantages –1. Cannot focus well on individual needs –2. Some forms of advertising can be too expensive for many businesses –3. Sometimes advertising is wasteful and inefficient - message may be spent on non-potential customers –4. Advertising must be brief

SALES PROMOTION stimulate purchases increase store traffic 2 for 1 Sale Buy One, Get One Free $2 off after 8PM on Tuesday

Sales Promotion Advantages –Unique and has special appeal to a potential customer –Helps build customer loyalty Disadvantages –Difficult to end without the customers becoming dissatisfied –Store image and sales can suffer if the promotion is not properly planned and managed –Only designed to supplement other promotional efforts and cannot make up for poor products

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

Personal Selling Advantages –Person contact with customer –Can track success Disadvantages –On a per contact basis, personal selling is the most expensive form of promotion

PUBLICITY PUBLIC RELATIONS Creating demand for a business or product by placing news about it in the media

Publicity Advantages –Publicity is free; advertising is not –Can be used to create a positive image within the community –Viewed as being more credible or believable than advertising –Viewed as news, people more attention to publicity Disadvantages –Give up much of your control of your message –Not all publicity is positive

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