1. Business & Marketing
Unit 6: Promotion

2. Promotional Concepts and Strategies
Chapter 17

3. Sec. 17.1 – Promotion and the Promotion Mix
What you’ll learn
The role of promotion in marketing
The concept of promotional mix
The characteristics of personal selling and advertising
The nature and scope of publicity

4. Promotional Concepts & Strategies

5. Promotion
Any form of communication a business or organization uses to inform, persuade, or remind people about its products

6. Product Promotion
Used to convince customers to buy your products instead of those of the competition

7. Institutional Promotion
Used by a business to create a favorable image for itself

8. Promotional Mix – a combination of the different types of promotion
Personal Selling
Advertising
Direct marketing
Sales promotion
Public relations

9. Personal Selling
Any form of direct contact occurring between a salesperson and a customer

10. Advertising
Any paid form of non- personal presentation and promotion of ideas, goods, or services by an identified sponsor
Nationally, businesses spend about $200 billion annually on various types of advertising

11. Direct Marketing
A type of advertising directed to a targeted group of prospects and customers rather than to a mass audience.
Printed direct mail, sent via regular mail to a home or business
Electronic direct mail
It’s goal is to generate sales or leads for sales representatives to pursue

12. Sales Promotion
All marketing activities, other than personal selling, advertising, and public relations, that are used to stimulate consumer purchasing and sales effectiveness

13. Public Relations and Publicity
Public Relations – any activity designed to create a favorable image toward a business, its products, or its policies

14. PR Specialists
Write News Releases -- a prewritten story about a company that is sent to the various media

15. Writing News Releases
First paragraph should answer Who, What, When, Where, and Why questions.
Develop important facts in next few paragraphs.
Less important information can follow but should be edited.
Include the full name and position of any people mentioned.
Include the name, address, and phone number of the contact person.
Be brief – only one or two pages. “###” at the bottom of the last page signifies the end.

16. Public Relations and Publicity
Publicity – a specific kind of public relations that involves placing positive and newsworthy information about a business, its products, or its policies in the media.

17. Because it is free, business often has the least control over publicity
To see negative publicity abut Hogle Zoo, click on the elephant
To see positive publicity about Hogle Zoo, click on the baby Orangutan.

18. Coordination of Promotional Mix
Most businesses use more than one type
All types of promotion must be coordinated
Must consider the promotional budget

19. Promotion
Chapter 17

20. Transition 17-2 Discounts, coupons, gifts, free offers, etc.
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Transition 17-2
With groups of 2 – 4:
Brainstorm and list some of the types of promotions you encounter:
Discounts, coupons, gifts, free offers, etc.
How do these affect your buying decision?
How does the promotion affect your feelings toward the business?
Would you be likely to buy from that business without a promotion?
Save as: Marketing-promotions 17-2-filastname

21. Premiums (Free offers) Limited price discounts Rebates Product Samples
Types of Promotions:
Coupons
Premiums (Free offers)
Limited price discounts
Rebates
Product Samples

23. Sec. 17.2 – Types of Promotion
What you’ll learn
The characteristics of sales promotion
The concept of trade promotions
The different kinds of consumer sales promotions

24. Incentives that encourage customers to buy products or services
Sales Promotion
Incentives that encourage customers to buy products or services

25. Trade Promotions – Designed to gain manufacturers’, wholesalers’, and retailers’ support for a product

26. Types of Trade Promotions
Promotional Allowances – a cash payment or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales.

27. Types of Trade Promotions
Cooperative Advertising – A manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.

28. Types of Trade Promotions
Slotting Allowances – a cash premium paid for placing a product on a retailer’s shelves

29. Types of Trade Promotions
Sales Force Promotions – awards given to managers and employees who successfully meet or exceed a sales quota.

30. Types of Trade Promotions
Trade Shows and Conventions
The Consumer Electronics Show is held annually in Las Vegas. Check it out by clicking on the image.

31. Consumer Sales Promotions – designed to encourage customers to buy a product

32. Types of Consumer Promotion
Coupons – certificates that entitle customers to cash discounts on goods or services.

33. Types of Consumer Promotion
Premiums – low-cost items given to consumers at a discount or for free – Should:
be low-cost
provide added value
negate the target audience’s price issue
effectively differentiate the product from the competition
create an immediate need to buy

34. Types of Premiums
Factory packs (in-packs) – free gifts placed in product packages

35. Types of Premiums
Traffic builders – pen, calendar, key- chain given free for visiting or attending event

36. Types of Premiums
Coupon plans – ongoing program offering a premium in exchange for labels, coupons or other tokens from one or more purchases.

37. Incentives – generally higher-priced products earned and given through contests, sweepstakes, and rebates
Contests – activities that require demonstration of a skill
Sweepstakes – game of chance

38. Incentives
Rebates – discounts offered to customers who purchase

39. Product Samples Free, trial-size sample
Distributed through mail, door- to-door, or at a retail or trade show
Especially important with new products

40. Sponsorship
The sponsoring company pays a fee for the right to promote itself and its products or services at or on a set location
May negotiate the right to use logos and names on retail products

41. Promotional Tie-In
Involves arrangements between one or more retailers or manufacturers.
Ex: McDonald’s and Fisher-Price Toys

42. Product Placement
Featuring a product at a special event, on television, or in the movies
Click on the “Pieces Icon” to learn about the history of product placement.

43. Loyalty Marketing Programs
Frequent buyer programs
Reward customers for making multiple purchases

44. Point-of-Purchase Displays
Placed in high- traffic areas and promote impulse purchases.