2. PROMOTION Any form of communication a business or organization uses to inform, persuade, or remind. Go over “Importance of Marketing and Memory” sheet.

3. PROMOTIONAL MIX A carefully planned combination of techniques designed to persuade customers to purchase and support a business’s products.

4. TYPES OF PROMOTIONAL MESSAGES PRODUCT PROMOTION INSTITUTIONAL PROMOTION

5. PRODUCT PROMOTION : Used to persuade consumers to buy a specific good or service.

6. USES OF PRODUCT PROMOTION Creates consumer awareness, interest, and inquiries about a product. Informs consumers about product features and where it can be purchased. Builds a product’s reputation Creates excitement and motivates retailers and salespeople.

7. TYPES OF PRODUCT PROMOTION Primary  Stimulates demand for an entire class by emphasizing the product and its uses, not a specific brand. “The incredible, edible egg.” “Orange Juice, it’s not just for breakfast anymore.” “Got Milk?”

8. TYPES OF PRODUCT PROMOTION Secondary  Used to stimulate demand for a specific brand by promoting a product’s features and benefits “ Kellogg’s Frosted Flakes: They’re Gr-r-r-reat!” Helps to compete against those who offer the same type of product Tropicana versus Citrus Hill Tropicana versus Citrus Hill

9. INSTITUTIONAL PROMOTION Used to create a certain image of the company in the eyes of consumers.

10. PURPOSE OF INSTITUTIONAL PROMOTION To improve company image, recruit new employees, enhance morale. To show the company’s commitment to quality, technology, or research and inform about company’s interest in social issues or it’s future. To promote the company name and its type of business

11. TYPES OF INSTITUTIONAL PROMOTION Public Service Public Relations Patronage

12. PUBLIC SERVICE Used to inform consumers about non-controversial issues in the public’s best interest. Used to inform consumers about non-controversial issues in the public’s best interest.

13. PUBLIC RELATIONS Created to deal with controversial issues that are related to the company.

14. PATRONAGE Promotes company prestige. –GE: “We bring good things to life”

15. ADVANTAGES OF PROMOTION To Society: 1. Contributes to economic growth 2. Creates Jobs 3. Supports Mass Media

16. ADVANTAGES OF PROMOTION To Consumers: 1. Helps consumers find products 2. Notifies consumers of new products 3. Helps to create competition that keeps prices low.

17. ADVANTAGES OF PROMOTION To Companies: 1. Helps to develop company image 2. Creates awareness of company and products 3. Creates interest in products

18. DISADVANTAGES Product Promotions :  Don’t add value, but increase price of the product. Institutional Promotions:  Are costly, take money from product promos.  It is difficult to measure the effectiveness of the promotion.  They may create controversy.

19. TYPES OF PROMOTIONS Personal Selling Advertising Sales Promotion Public Relations and Publicity

20. PERSONAL SELLING Only type of promotion involving direct personal contact with the customer. Largest form of promotion. Most expensive form of promotion. Designed to complete a sale. Used primarily in retail sales.

21. ADVERTISING Paid form of non-personal selling by an identified sponsor. Presents ideas, goods or services. All types of media can be used TV, Radio, Magazine, Web pages, billboards etc. One way communication.

22. SALES PROMOTION All of the activities, other than personal selling, advertising, and public relations. Used to stimulate demand and sales. Objectives are to: Increase sales. Inform about new products. Create positive store/company image.

23. PUBLIC RELATIONS Any activity designed to create a favorable image toward a business. Created to deal with controversial issues that are related to the company. Paid announcements designed to create a favorable image created and controlled by the company.

24. PUBLICITY A specific kind of public relations that involves placing positive and newsworthy information about a business, its products, or policies in the media. NOT controlled by the company. It is free. It is the information that others tell about the company. Business has least control over this type of promotion.

25. PUBLICITY News programs are viewed as more reliable People are more likely to pay attention to and believe a news story versus advertising. No control by the business No control as to when the story is aired.

26. PROMOTIONAL BUDGET Money allocated for promotion mix. Not an exact way to measure effectiveness of the money spent.

27. PUSH-PULL CONCEPT Push – using personal selling, advertising, trade publications, or buying discounts to sell to a company’s larger retailers. Trade show promotions to encourage retailer demand Direct selling to customers in showrooms or face to face Negotiation with retailers to stock your product Efficient supply chain allowing retailers an efficient supply Packaging design to encourage purchase Point of sale displays.

28. PUSH-PULL CONCEPT Pull– directs sales efforts towards customers using samples, premiums, demos, and advertising so that demand for the product is “pulled” through the retailer by the consumers Pull – directs sales efforts towards customers using samples, premiums, demos, and advertising so that demand for the product is “pulled” through the retailer by the consumers  Advertising and mass media promotion  Word of mouth referrals  Customer relationship management  Sales promotions and discounts

29. PART 2

30. SALES PROMOTION All activities other than personal selling, advertising, and public relations. A Short term incentive offered to stimulate purchases of goods or services.

31. TRADE PROMOTIONS Promotion activities that target manufacturers, wholesalers, and retailers. Business to Business. More $$ money is spent promoting to business than to consumers.

32. TYPES OF TRADE PROMOTIONS SLOTTING ALLOWANCE BUYING ALLOWANCES TRADE SHOW AND CONVENTION SALES INCENTIVES

33. SLOTTING ALLOWANCE A Cash Premium paid by the manufacturer to a retail chain for the costs involved in placing a new product on its shelves.

34. BUYING ALLOWANCE A Price Discount given by manufacturers to wholesalers and retailers to encourage the purchase of a product, usually a larger quantity.

35. TRADE SHOW / CONVENTIONS Targets Wholesalers and Retailers  Introduces new products.  Increases sales of existing products.  Gains continued support for company and products.

36. SALES INCENTIVES Awards given to managers and employees who meet or exceed a sales quota during a specific period of time for a particular product or line of products.

37. CONSUMER SALES PROMOTIONS 1. PREMIUMS 2. INCENTIVES 3. PRODUCT SAMPLES 4. PROMOTIONAL TIE-INS 5. PRODUCT PLACEMENT 6. VISUAL MERCHANDISING AND DISPLAYS 7. LOYALTY MARKETING PROGRAMS

38. 1. PREMIUMS Low Cost items given to consumers at a discount or for free.  To build product loyalty.  To attract new customers. a. Coupons b. Factory packs c. Traffic builders d. Coupon plans

39. Coupons Certificates entitling the bearer to cash discounts. Most popular type of premium.

40. FACTORY PACKS OR IN-PACKS Free gifts placed in product packages:  Prizes in cereal boxes.  Lip gloss with mascara.  Toys in Cracker Jacks.

41. TRAFFIC BUILDERS Low cost premiums given free for visiting a new store or attending an event.  Pens  Key chains  Calendars

42. COUPON PLANS On going programs offering premiums in exchange for labels, coupons, or other tokens from a purchase.  Soup can labels  Box tops  UPC labels

43. 2. INCENTIVES A higher-priced product earned and given through contests, sweepstakes and rebates. a. Contests – games or activities that require the participant to write an essay, or name a new product for awards like trips, money, or scholarships. b. Sweepstakes – games of chance. Fill out an entry. Match game cards to win. Laws prohibit requiring a purchase to play. c. Rebates – discounts offered by a manufacturer to customers who purchase an item during a given time.

44. 3. PRODUCT SAMPLES A free trial size or sample of a product. Who is best know for this?

45. 4. PROMOTIONAL TIE-INS Where two or more companies combine to offer a premium – –Ex: Disney, McDonalds, and Fisher-Price offering toys in happy meals to advertise an upcoming show or movie.

46. 5. PRODUCT PLACEMENT Developing product recognition by placing the product in movies and TV shows. Example: Wayne’s World Transformers Transformers Product Placement

47. 6. VISUAL MERCHANDISING AND DISPLAYS Visual and artistic aspects of presenting a product to the target group in store ads.

48. 7. LOYALTY MARKETING PROGRAMS Frequent buyer programs:  Airlines  Gas Stations  Convenience Stores  Retailers

49. PART 3 PART 3

50. PUBLIC RELATIONS To Present a positive image to customers, employees and the general public. The goodwill generated can increase sales and reinforce a good reputation.

51. CUSTOMER RELATIONS CourtesyHelpfulnessFriendlinessToleranceInterest  All attributes employees should demonstrate to the customer. Customer Advisory boards are panels of consumers that make suggestions to businesses. Consumer Affairs Specialists design programs of interest:  Nutrition  Health  Safety

52. EMPLOYEE RELATIONS Tuition Reimbursement Newsletters Recreational Programs Employee recognition programs. Warning!! If employees don’t think you are a good company, the word will spread by word of mouth. WOM is a powerful tool.

53. COMMUNITY RELATIONS Refers to all of the activities that a business uses to acquire or maintain the respect of the community.  Wal-Mart’s community service

54. NEWS RELEASES A prewritten story about a company that is sent to various media containing information about the company’s employees, stores, operation, products, corporate philosophy, or participation in an event or program.

55. NEWS RELEASE FORMAT Must answer five basic questions  Who  What  Where  When  Why

56. PRESS KIT A folder containing articles, news releases, feature stories, and photographs about a company, product, or person. Given to media to assist them in reporting.

57. PRESS CONFERENCE A meeting in which a business or organization invites media members to hear an announcement about a newsworthy event.

58. THE END