1. Section 17.1 The Promotional Mix
Marketing Essentials
n Chapter 17 Promotional Concepts and Strategies
Section The Promotional Mix

2. The Promotional Mix SECTION 17.1 The Concept of the Promotional Mix
Promotion is any form of communication a business or organization uses to inform, persuade, or remind people about its products.
Promotional mix is a combination of the different types of promotion. A business decides on the promotional mix that will be most effective in persuading potential customers to purchase its products.
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3. The Promotional Mix SECTION 17.1 The Concept of the Promotional Mix
A business uses product promotion to convince potential customers to buy its products instead of buying from a competitor.
Institutional promotion is used by businesses to create a favorable image for themselves, as opposed to promoting specific products or services.
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4. The Promotional Mix SECTION 17.1 Types of Promotion
There are four basic types of promotion:
personal selling
advertising
sales promotion
public relations
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5. The Promotional Mix SECTION 17.1 Types of Promotion
Personal Selling is one of the largest forms of promotion. It is any form of direct contact occurring between a salesperson and a customer.
The advantages:
There is two way communications between the seller and buyer
There is immediate feedback.
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6. The Promotional Mix SECTION 17.1 Examples of Personal Selling
A salesperson at Foot Locker helping you with shoes
A car salesman/woman
Telemarketing- selling over the telephone (not too common now)
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7. The Promotional Mix SECTION 17.1 Features of Personal Selling
Designed to influence purchase decisions
Very expensive
Should not be a “strong arm” tactic
Salespeople HAVE to be knowledgeable about what they are selling
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8. The Promotional Mix SECTION 17.1
Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
American businesses spend about $200 billion each year on advertising.
FYI: This will be a brief overview on advertising. The next chapter consists entirely of advertising
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9. The Promotional Mix SECTION 17.1 Examples of advertising: TV ads
Radio ads
Magazine ads
Direct mail
Outdoor advertising (billboards, etc)
Transit advertising (on a bus, etc.)
Online pop ups
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10. The Promotional Mix SECTION 17.1 Features of advertising:
Not limited to products
Has to be paid for
Same message for everyone
Actual cost is high
Advantages:
Can be seen/heard by many customers
Per person cost is typically low
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11. The Promotional Mix SECTION 17.1
Sales promotion is a short-term incentive offered to encourage buying a good or service. Sales promotions can be directed toward manufacturers, wholesalers, retailers, and consumers, as well as a company's employees. Sales promotions are usually supported by advertising activities.
(All marketing activities other than personal selling, advertising and public relations that are used to stimulate customer purchases)
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12. SECTION 17.2
Sales Promotion
Trade Promotions
Trade promotions are sales promotion activities designed to gain manufacturers', wholesalers', and retailers' support for a product. More money is actually spent on promoting to businesses than to consumers. Major trade promotions include:
slotting allowances
buying allowances
trade shows and conventions
sales incentives
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13. Sales Promotion Examples displays Buy one, get one free Fashion shows
SECTION 17.2
Sales Promotion
Examples
displays
Buy one, get one free
Fashion shows
product samples
Competitions/prizes
loyalty marketing programs
Financing
visual merchandising and displays
promotional tie-ins
product placement
Trade shows
Free gifts (key chain)
Conventions
Free samples
Buying allowances
Coupons
Slotting allowances

14. Sales Promotion Advantages There are 100’s of items to choose from
SECTION 17.2
Sales Promotion
Advantages
There are 100’s of items to choose from
Companies can mix and match
It can be very inexpensive

15. The Promotional Mix SECTION 17.1 Types of Promotion
Publicity is a specific kind of public relations that involves placing positive newsworthy information about a business in the media.
Note: Publicity can also be very negative!
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16. The Promotional Mix SECTION 17.1 Publicity Examples Press conferences
News Releases
Appearance of an author/movie star
Article written up in newspaper/magazine
Mention of a companies charitable activities
Segment on the news
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17. The Promotional Mix SECTION 17.1 Publicity Features
Consumers pay close attention to publicity
View publicity as news
Publicity is non personal
Publicity advantages
It’s free
Has more credibility b/c it is not a commercial message and no one is being paid to say whatever it is they are saying
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18. The Promotional Mix SECTION 17.1 Coordination of the Promotional Mix
Most businesses use more than one type of promotion to achieve their promotional goals. Each type of promotion is designed to complement one another, and all must be coordinated.

19. The Promotional Mix SECTION 17.1 Promotional Budget
In large companies, the marketing department establishes a promotion budget, allocates resources, coordinates the campaign, and determines the right promotional mix for the company.
In smaller businesses, these responsibilities often rest with the owner-operator, are divided among employees, or contracted to outside agencies.

20. Reviewing Key Terms and Concepts
ASSESSMENT
17.1
Reviewing Key Terms and Concepts
1. What is promotion?
2. Describe the concept of promotional mix.
3. What is the difference between product and institutional promotion?
4. Why is personal selling the most expensive form of promotion?
5. What is the difference between publicity and advertising?

21. ASSESSMENT Thinking Critically 17.1
Some people think that advertising is a waste of money that needlessly raises the prices of goods and services. What do you think? Is the money spent on advertising justified? Provide an argument to support your position.

22. Graphic Organizer 17.1 Elements of the Promotional Mix
Personal Selling
Advertising
Sales Promotion
Public Relations

23. SECTION 17.2
Sales Promotion
Sales Promotion
Public Relations refers to any activity designed to create a favorable image of a business, its products, or its policies