What is Promotion? Chapter 17 LAP – Know your Options! 4.1 Examine the types of promotion 4.2 Distinguish between institutional and promotional advertising

Recognize This! There’s an App for That On your side Once you Pop you can’t Stop Just do it I’m Lovin it Where dreams come true Expect More, Pay Less

Were you right? Apple Nationwide Pringles Nike McDonald’s Disney Target

Two Categories of Promotion Product Promotion: tries to sell a product –Verizon and THE DROID, Red Bull Energy Drink, Extra Desserts Extra Gum Institutional Promotion: creates an image –New Balance sponsors Susan G Komen Race against Breast Cancer

Product Promotion Primary – aims to stimulate demand or desire for an entire class of product; emphasis on product category and not brand –GOT MILK, Beef, It’s What’s for Dinner, Pork, The other white meat Secondary/Selective – used to stimulate demand for a specific brand –Borden Milk, Laura’s Lean Beef,

Know the Options Lap and Product/Institutional Worksheet Activity

4 Basic Types of Promotion Personal Selling Advertising –Direct Marketing Sales Promotion Public Relations (Publicity) OTHER and emerging areas – Internet, Social Networks,

The Promotional Mix Any combination of the different types of promotion a business chooses to use. Most businesses use more than one type of promotion Each type complements the other; some success is dependent on the other Must be carefully coordinated

Personal Selling Making an oral presentation to one or more potential buyers

Advertising ANY paid, nonpersonal form of communication of ideas, goods and services by an identified sponsor Distinguishing factors: –Paid –Set format –Identifies sponsor Be familiar with the Pro’s and Con’s of Advertising!!

AIDA Formula Sequence of stages a marketer leads the target audience through ATTENTION INTEREST DESIRE ACTION

Direct Marketing A form of Advertising directed to a targeted group of prospects vs. the mass audience Two Forms: –Printed Direct Mail –Electronic Direct Mail – HUGE GROWTH!! Goal – to generate sales or lead for reps to pursue CAN-SPAM Act of 2003

Sales Promotion All marketing activities other than personal selling, advertising and publicity that is used to stimulate consumers purchases Two Orientations: –Trade: Business to Business (Industrial Mkt) –Consumer: (Consumer Mkt.)

Public Relations PR activities enable an organization to influence an audience with a positive impact – cultivate media relations Publicity – (Placement) Placing newsworthy information about a company, product or person in the media (radio, tv, and stage) Pro’s and Con’s (Free but no control!)

Concept of the Promotional Mix Establishment of a BUDGET!! Push-Pull Concept: creating a promotional plan for each segment of distribution channel (M-W-R-C) –Push Policy: used only with the next partner Heavy on selling and sales promotion –Pull Policy: Directs promotion toward consumer interest and demand Heavy on advertising and premiums, etc.

Assignment Finish Lap Test for Knowing the Options Complete Ch. 17 Fact and Idea worksheet