1. Promotion Promotional Concepts and Strategies
Visual Merchandising and Display
Advertising
Print Advertisements

2. Promotion and Promotional Mix –Section 1
Key Terms
promotion
product promotion
institutional promotion
advertising
direct marketing
sales promotion
public relations
news release
publicity
promotional mix
push policy
pull policy
Objectives
Explain the role of promotion in business and marketing
Identify the various types of promotion
Distinguish between public relations and publicity
Write a news release
Describe the concept of the promotional mix
A LOT OF INFORMATION IN THIS CHAPTER
Marketing Essentials Chapter 17, Section 17.1

3. Promotion and Promotional Mix
Study Organizer
In a chart like this one, take notes about the five elements of the promotional mix and give examples for each.
We will complete this after we go over the slides
Marketing Essentials Chapter 17, Section 17.1

4. The Concept of Promotion
Promotion X is persuasive communication. The goals of promotional activities are summarized by the phrase AIDA:
Attract Attention
Build Interest and Desire
Ask for Action
A business uses product promotion X to convince prospects to select its products or services instead of a competitor’s.
Companies rely on promotion to inform people about their product and services. Companies also use promotional techniques to enhance their public image
And reputation and to persuade people that their products are valuable.
Promotional activities take many forms, not just to sell a product, but also to educate the public about an issue or trend or advocate change in a law or policy.
Marketing Essentials Chapter 17, Section 17.1

5. The Concept of Promotion
Promotional activities:
Explain the major features and benefits of a product/service
Identify where it is sold
Advertise sales
Answer customer questions
Introduce new offerings
Marketing Essentials Chapter 17, Section 17.1

6. The Concept of Promotion
Institutional promotion X is used to:
Create a favorable image for a business
Help an organization advocate for change
Take a stand on trade or community issues
Although institutional promotion does not directly sell a product or service, it fosters a favorable image for the company.
Create Loyalty- Maintain websites to provide news, product and general information to answer questions
Marketing Essentials Chapter 17, Section 17.1

7. Types of Promotion in the Promotional Mix
There are five basic categories in the promotional mix:
Personal selling
Advertising
Direct marketing
Sales promotion
Public relations
Marketing Essentials Chapter 17, Section 17.1

8. Types of Promotion in the Promotional Mix
Personal selling involves direct contact between salespeople and customers. This can take place in the forms of:
Personal meetings
Telemarketing
contact
Correspondence
THIS IS ONE OF THE COSTLIEST FORMS OF PROMOTION
TYPICALLY TAKES PLACE AFTER OR AS A RESULT OF OTHER PROMOTIONAL ACTIVITIES
Marketing Essentials Chapter 17, Section 17.1

9. Types of Promotion in the Promotional Mix
Advertising X is a form of nonpersonal promotion and one-way communication. It can be found in places including:
Newspapers
Magazines
Television
Web sites
Billboards
City buses
Companies pay to promote ideas, good or services in a variety of media outlets
Marketing Essentials Chapter 17, Section 17.1

10. Types of Promotion in the Promotional Mix
Direct marketing X is a type of advertising directed to a targeted group of prospects rather than to a mass audience. Two forms are:
Printed direct mail
Electronic direct mail
The goals of direct marketing are to generate sales and leads for salespeople to pursue.
Generally direct marketing generates a response from a targeted customer by making a special offer, such as a coupon, discount or special delivery terms
It gives the recipient an incentive to respond by visiting a store or website, calling a toll free number, returning a form or sending an
-CONSUMER COMPLAINTS about unwanted electronic mailings prompted the passing of the CAN-SPAM Act of 2003 by Congress. This act requires that senders of unsolicited s give recipients a way to opt out of s, prohibits the use of deceptive subject lines and requires businesses to provide
A valid return address on their s
Marketing Essentials Chapter 17, Section 17.1

11. Types of Promotion in the Promotional Mix
Sales promotion X represents all marketing activities–other than personal selling, advertising, and public relations–that are used to stimulate purchasing and sales. Its objectives are to:
Increase sales
Inform potential customers about new products
Create a positive business or corporate image
According to the AMA – American Marketing Association
Marketing Essentials Chapter 17, Section 17.1

12. Types of Promotion in the Promotional Mix
Public relations X (PR) activities try to create a favorable image for a company, its products, or its policies. They can enable an organization to influence a target audience. One of the other goals of public relations is to cultivate media relations with reporters who cover a specific industry.
Marketing Essentials Chapter 17, Section 17.1

13. Types of Promotion in the Promotional Mix
A news release X is an announcement that is sent to media outlets. It can be used to announce newsworthy developments, such as news about products, distribution channels, facilities, partners, revenues, employees, and events.
Marketing Essentials Chapter 17, Section 17.1

14. Types of Promotion in the Promotional Mix
Publicity X involves bringing news or newsworthy information about an organization to the public’s attention. This process is also known as placement.
The main function of publicity is to develop a positive perception or awareness of the organization in the marketplace. The placement of publicity is free because it often appears as a media story.
Publicity’s risk is that its content is not easily controlled by the business that issues it.
Positive vs. negative – people like to do business with a positive image, publicizes sponsoring cultural events, awarding scholarships donating land, supplies, equipment for public use.
People are more likely to believe a news story than an advertisement (advertisements cost money, publicity is free)
Marketing Essentials Chapter 17, Section 17.1

15. The Concept of Promotional Mix
A promotional mix X is a combination of strategies and a cost-effective allocation of resources a company uses to reach its promotional goals. The strategies in the mix are designed to complement one another:
Advertising and direct marketing create public awareness.
Public relations helps cultivate a favorable image and brand recognition.
Sales promotional activities stimulate sales and reinforce advertising.
Personal selling builds on all of these efforts by completing the sale.
All elements must be coordinated, there must be communication right down to the sales personnel, everyone involved should be informed. If you promote something and the sales personnel do not know about it you get a frustrated customer.
Marketing Essentials Chapter 17, Section 17.1

16. The Concept of Promotional Mix
It is important to consider all aspects of the promotional mix when developing the promotional budget. There is no precise way to measure the exact results of spending promotional dollars.
The push policy X of promotion pushes the product to the retailer. Its main purpose is to convince a retailer to stock the promoted product.
The pull policy X creates consumer interest and demand, thereby convincing retailers to stock the promoted item.
PUSH – relies heavily on personal selling and sales promotion – trade shows – helpful for manufacturers who do not have a strong brand identity
PULL – relies heavily on advertising geared towards consumers – samples & demonstrations – creates demand which puts pressure on the retailer to
Stock the product.
Marketing Essentials Chapter 17, Section 17.1

17. Types of Promotion-Section 2
Key Terms
sales promotions
trade promotions
consumer promotions
coupons
premiums
incentives
promotional tie-ins
Objectives
Define sales promotion
Explain the use of promotional tie-ins, trade sales promotions, and loyalty marketing programs
Marketing Essentials Chapter 17, Section 17.2

18. Types of Promotion Study Organizer
Draw a two-column chart like this one to list examples for each type of sales promotion.
Marketing Essentials Chapter 17, Section 17.2

19. Encourage customers to try a new product
Sales Promotion
Sales promotions X are incentives that encourage customers to buy products or services. They can be used to:
Encourage customers to try a new product
Build awareness
Increase purchases by current customers
Reward loyalty
Supported by advertising activities – B2B or B2C ( Who remembers what that is?)
Marketing Essentials Chapter 17, Section 17.2

20. Trade Promotions
Trade promotions X are sales promotion activities designed to get support for a product from:
Manufacturers
Wholesalers
Retailers
More money is spent promoting to businesses than is to consumers – REQUIRES GOOD BUSINESS ETHICS – MUST BE UNIFORM
Marketing Essentials Chapter 17, Section 17.2

21. Trade Promotions
Promotional allowances represent cash payments or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales.
Cooperative advertising happens when a manufacturer supports a retailer by helping to pay for the cost of local advertising.
A slotting allowance is a cash premium paid by a manufacturer to a retailer to help cover the costs of placing the product on the shelves.
Marketing Essentials Chapter 17, Section 17.2

22. Trade Promotions
Sales force promotions are awards given to dealers and employees who successfully meet or exceed a sales quota.
Trade shows and conventions showcase a particular line of products. They provide businesses with opportunities to:
Introduce new products
Encourage increased sales of existing products
Meet customers and partners in the distribution chain
Gain continued company and product support
Sales force promotion can include cash bonuses, trips etc.
Largest trade show is the Annual Consumer Electronics Show in Las Vegas which attracts more than 190,000 manufacturers and retailers, product engineers and developers.
Participating companies invest millions in their display booths (Have you ever heard of a trade show)
Marketing Essentials Chapter 17, Section 17.2

23. Consumer Promotions
Consumer promotions X are sales strategies that encourage customers and prospects to buy a product or service. Major consumer sales promotion devices include:
Coupons
Premium deals
Incentives
Product samples
Sponsorships
Marketing Essentials Chapter 17, Section 17.2

24. Consumer Promotions Promotional tie-ins Product placement
Loyalty marketing programs
Point-of-purchase displays
Promotions such as this department store “preview” sale are intended to boost sales.
Marketing Essentials Chapter 17, Section 17.2

25. Consumer Promotions
Coupons X are certificates that entitle customers to cash discounts on goods or services. They help to introduce new products, enhance sales of existing products, and encourage retailers to stock the advertised item.
Does anyone know how coupons are used – Consumer uses at store – Store sends them to the clearing house to be sorted and then passed to a redemption center. The center reimburses the store for the face value of the coupon plus a handling charge of about 8 cents per coupon. Then they bill the manufacturers.
What is the new trend? On line coupons
Marketing Essentials Chapter 17, Section 17.2

26. Consumer Promotions
Premiums X are low-cost items given to consumers at a discount or for free. They increase sales by building product loyalty and attracting new customers. They also offer consumers an added-value gift in exchange for their purchase.
Free gifts placed in product packages – by mail also, ex. Cereal
Pens, key chains as give aways – mugs also
Sending in labels in exchange for something
Marketing Essentials Chapter 17, Section 17.2

27. Consumer Promotions
Giveaways such as the one advertised here encourage customers to visit a store or service provider.
Marketing Essentials Chapter 17, Section 17.2

28. Incentives X are higher-priced products earned and given away through:
Consumer Promotions
Deals or price packs offer short-term price reductions that are marked directly on the label or package.
Incentives X are higher-priced products earned and given away through:
Contests: Competitions based on a demonstrated skill
Sweepstakes: Games of chance
Rebates: Discounts offered if the item is purchased during a certain time period
Create excitement in customers – when you create excitement you have an increase in sales
Marketing Essentials Chapter 17, Section 17.2

29. Consumer Promotions
Sponsorship is an integral part of promotion. A sponsoring company pays a fee for the right to promote itself and its products at or on a set location, such as:
A physical site (such as a stadium)
An event (such as a concert)
A group (such as a team)
A person (such as a golfer)
Sponsorship is a high-profile promotional medium. Therefore, deals must be able to withstand public and media scrutiny.
Marketing Essentials Chapter 17, Section 17.2

30. Consumer Promotions
Promotional tie-ins X are also known as cross-promotion and cross-selling campaigns. These activities involve sales promotional arrangements between one or more retailers or manufacturers, producing mutually beneficial results.
Product placement is a consumer promotion that involves using a brand-name product in a movie, TV show, sporting event, or in a commercial for another product.
Ex. Survivor – Doritos & mountain dew as treats
Best known ex. “You’ve Got Mail’ Cost AOL between 3 to 6 million for exposure- AOL recv’d international exposure to off set costs
James Bond – Rolex
Marketing Essentials Chapter 17, Section 17.2

31. Consumer Promotions
Loyalty marketing programs, also called frequent buyer programs, reward customers for patronizing a company. They offer consumers incentives to continue to buy their products.
Point-of-purchase displays are usually placed in high-traffic areas and promote impulse purchases.
Airlines instituted the first loyalty program with frequent flier miles – now many companies use this type of program – examples? Amex, dept. stores, food stores etc.
In store displays and point of purchase will be discusses in Ch. 18
Marketing Essentials Chapter 17, Section 17.2

32. Section One
Promotion is any form of communication a business uses to inform, persuade, or remind people about its products and its image. Promotion includes personal selling, advertising, direct marketing, sales promotion, and public relations.
Public relations fosters a favorable image about a business, its products, or its policies. Publicity tries to place positive information in the media.
continued

33. Section 2
Sales promotion is a short-term incentive given to encourage consumers to buy a product or service. Sales promotions can be classified as either trade promotions or consumer sales promotions.