1. Promotion

2. What is Promotion? ANY form of communication
(paper, billboard, radio, TV, uniforms, etc.)
used to:
INFORM
PERSUADE
REMIND
the public about a product or an image.

3. Promotion INFORM Give the public information of product or service.
This is typically done to establish demand.
Ex: Newspaper advertisement for a university or college program that tells about features, availability, time, and location of different courses.
Walsh Newspaper Walsh Billboard

4. Promotion
Persuade
Convince the public to buy a specific product or service. This is typically done to increase demand.
Ex. “Eat mor chikin” ad campaign

5. Promotion
REMIND
“Remind” public of your product or service. Typically used for established products to MAINTAIN sales
Ex. “I’d like to buy the world a Coke”

6. Promotion There are two main categories of promotion:
Product Promotion
Institutional Promotion

7. Promotion Product Promotion - Promotes Product (duh)
Convince customers to buy a Product
Explain Features and Benefits
Tell Where Product is Sold
Advertise Sales on Product
Answer Customer Questions
Introduce New Products

8. Promotion Institutional Promotion - Promotes Image
By Increasing Image, Sales May Increase
EX: Wal-Mart trying to improve image with ads reminding people of their small town roots.

9. Promotion Describe ad/promotion in detail. Assignment:
Identify 3 promotions for each role:
Inform - Persuade - Remind
Can be real or you can develop them yourself.
Describe ad/promotion in detail.

10. Promotion There are four basic types of promotion: Advertising
Publicity
Sales Promotion
Personal Selling

11. ADVERTISING What is ADVERTISING?
Any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor.
Includes newspaper, magazine, billboard, radio, TV, etc.

12. ADVERTISING cont. THREE DISTIGUISHING FEATURES:
Time or space is paid for
Set format to carry message (not personal selling)
Identifies sponsor of message

13. ADVERTISING cont. ADVANTAGES Large Number of People See Ad
Advertising cost per customer is low
Businesses can choose most appropriate media
Businesses control content of ad
Subject to repeat viewing
“Presell” Influence people BEFORE shopping

14. ADVERTISING cont. DISADVANTAGES
Cannot focus on individual needs Message is same for all.
Can be too expensive for some businesses
Wasteful and inefficient. Many may not see or may not be potential customers.
Ads must be brief (space and cost).
Unlike presentations

15. Publicity What is PUBLICITY?
Newsworthy information about a company, product, or person that is placed in the media FOR FREE.
Includes: News Reports, Sponsorships, Scholarships, Donations, etc.
Can create positive image OR negative image.

16. PUBLICITY cont. ADVANTAGES FREE Audience for news is huge
News media is credible…people likely to believe
Positive stories can be powerful

17. PUBLICITY cont DISADVANTAGES Cannot control information
Do not have control over when it is released
Negative publicity can be more damaging that positive publicity is beneficial

18. Promotion Use complete sentences / paragraphs Assignment:
Case Study: Page 247
Read and Answer questions 1 – 4
Use complete sentences / paragraphs

19. Promotion There are four basic types of promotion: Advertising
Publicity
Sales Promotion
Personal Selling

20. Sales Promotion What is SALES PROMOTION?
Anything…all activities…other that Advertising, Publicity and Personal Selling used to stimulate sales or increase a corporate image.

21. Sales Promotion Sales Promotion is either:
business oriented (selling goods to wholesalers, retailers or other businesses) Trade Promotions
customer oriented (promote sales from the retail market) Consumer Sales Promotions
Trade Promotions (business-to-business)
Consumer Sales Promotion (retail customers)

22. Trade Promotion (Business)
Activities designed to gain support (resell) from businesses (other manufacturers, wholesalers, retailers)
Slotting Allowances
Buying Allowances
Trade Shows / Conventions
Sales Incentives

23. Trade Promotions (Business)
SLOTTING ALLOWANCES
Manufacturers pay retailers to get their products on the shelves.
Ex. Kit-Kat comes out with a new Mocha flavored candy. It pays Meijer $5000 to place the candy on end-caps in all their Michigan Stores.

24. Trade Promotion (Business)
BUYING ALLOWANCES
A quantity discount given to businesses to get them to buy more goods. (If the business gets a discount, they make more profit per piece sold)
Kraft takes 2% off the price of Macaroni and Cheese if Kroger purchases 500 boxes per store.

25. Trade Promotions (Business)
TRADE SHOWS / CONVETIONS
An event where manufacturers get together to display their goods for wholesalers, retailers, and consumers to see new and existing products.
Ex. Doctors fly to Paradise Island in the Bahamas for a week to see new drugs and medicines on display from various pharmaceutical companies

26. Trade Promotion (Business)
SALES INCENTIVES
Prizes and money given to managers and employees for selling a certain amount of goods.
Ex. If Chuck, from Heidebrecht Chevrolet sells 60 cars this quarter, he will win a trip to Cawker City, Kansas, the home of the world’s largest ball of twine.

27. Consumer Sales Promotion
Activities designed to generate sales (end user) from retail customers and businesses.
Licensing
Promotional Tie-Ins
Visual Merchandising and Displays
Premiums and Incentives
Product Samples

28. Consumer Sales Promotions
LICENSING
Companies will sell the rights to use a logo, character, name, etc., to other businesses.
Led Zepplin sold the rights to “Rock And Roll” to Cadillac for use in their “Breakthrough” ad campaign in 2002.

29. Consumer Sales Promotions
PROMOTIONAL TIE-INS
Multiple companies pool their resources to do promotions together.
Taco Bell and 20th Century Fox teamed together to promote the movie Star Wars.

30. Consumer Sales Promotions
VISUAL MERCHANDISING / DISPLAYS
In store promotion with physical merchandise and exhibits
Window mannequins show off clothing and apparel.

31. Consumer Sales Promotions
Premiums and Incentives
Give-aways to customers. (MOST POPULAR PROMOTION)
Coupons - Cash Discounts
Factory Packs - Prize in Cracker Jack
Traffic Builders - Toaster for opening bank acct.
Coupon Plans - Send in 3 soup labels for a gift.

32. Promotion There are four basic types of promotion: Advertising
Publicity
Sales Promotion
Personal Selling

33. Personal Selling
Making oral presentation to one or more potential buyers.
Order-taking
Order-getting

34. Personal Selling ORDER-TAKING
Routine process of making a transaction with an interested buyer.
Cashiers, sales associates, phone solicitors, etc.

35. Personal Selling ORDER-GETTING
Involved in determining wants and needs to match with features and benefits of products. Generally bigger ticket items.
Ex. Professional Salespeople, industrial goods and services, presentations.

36. PROMOTIONAL MIX
Using a combination of promotions to achieve business sales goals.
Each promotion should relate and compliment each other.