1. Promotion is Communication
Principles of Marketing
Chapter 36

2. Introduction
Promotion is the process of telling people about a product and the company that offers it.
Let’s brainstorm the ways that companies promote their products.

3. Did you think of all of these?
Sales associate helping customers
TV commercials
Billboards
Direct mail
Advertisements in newspapers and magazines
Public service announcements
Corporate sponsorship of sporting events

4. Marketing Communication
Another term commonly used for promotion
Promotion is part of the marketing mix
Communication from an organization to its customers, potential customers, and the public

5. Goals of Promotion
Brainstorm a list of the goals of promotion

6. Goals of Promotion Basic marketing goals Sell products Make profit
Informs
Expresses
Persuades

7. Inform customers about:
Existing products
New products
New features on existing products
Use or assembly of products
Safety issues that may affect the use of a product
Charities and cultural organizations the business supports
Events the business sponsors in the community
Remind customers of their product

8. Express Words Color Motion Music
Describe a promotional message that was memorable. What made this message memorable? What feelings did the message evoke in you? What product did it promote? Did the message make you want to buy the product? Did you buy the product?

9. Persuade
Persuasion is the use of logic, argument, or pleading to get another person to agree with you or to act in a certain way.
Promotional messages persuade people to buy through the use of
Information
Reminders
Expressions
Entertainment

10. Group Activity
Use one of the promotional goals to write your own promotion for your office product.
Present your promotion to the class
Print ads
Speaking radio ads
Acting TV commercials

11. Types of Promotion
Target market might be business (B2B) or consumer (B2C)
What is being promoted: product or institution
Product promotion is marketing communication that focuses on the product and selling the product
Institutional promotion focuses on the image of the organization

12. Four Elements of Promotional Mix
Promotion mix is the combination of promotional elements used in a promotion
Personal selling
Advertising
Sales promotion
Public relations
These fall into two categories
Personal promotion
Nonpersonal promotion

13. Personal Promotion The marketer and the customer communicate in person
Personal selling is the only promotion in this category
The seller can customize the message, based on the immediate response from the customer

14. Nonpersonal Promotion
Promotion that communicates the same message to all potential customers
No interaction between the marketer and the target market
Elements of nonpersonal promotion
Advertising
Sales promotion
Public relations

15. Advertising Nonpersonal promotion paid for by an identified sponsor
Print advertisements in newspapers and magazines
Commercials broadcast over radio and TV
Internet ads
Billboards
Transit advertising on buses and subway cars
Direct marketing channels—the same message is sent to all receivers
U.S. Postal service--catalogs
Telemarketing
Internet

16. Sales Promotion
Marketing activities designed to entice customers to buy a company’s products
Coupons
Contests
Free samples
Gift-inside
Short-term activities
Used with other forms of promotion to support overall goals
B2C and B2B sales promotions

17. Public Relations
Promotional activities designed to create goodwill between a company and the public
Used mostly for institutional promotion
Proactive public relations consists of communications initiated within the company for the purpose of image building
Reactive public relations consists of communications in response to negative events or damaging information that appears in the media

18. Publicity
Information about a company and its products that appears in the media
The company does not pay the media to carry the message
Public relations specialists send information to the media, hoping that the media will print or broadcast the story
Tools of publicity
Press release
Press kit—includes press release, brochures, and photographs
Press conference

19. Publicity Activity
Find a recent article that contains newsworthy information about a well-known company.
Summarize the article in your own words and site your source.
Answer the following questions about your article:
Is the information in the article positive, negative, or neutral? Why do you think so?
What impact will this article have on the reputation of the company? Why do you think so?
What impact will this article have on sales and profits? Why do you think so?

20. Promotional Strategies
Pull strategy is promotional effort focused on the consumer
Primarily advertising
B2C
Customer demand often causes the retailer to contact the wholesaler or manufacturer to increase the product order
The consumer demand pulls the product through the distribution channel

21. Push Strategy
Promotional efforts are focused on the wholesalers, distributors, and retailers
Manufacturers promote their products to wholesalers and distributors and encourage them to add the products to their inventory
Wholesalers and distributors, in turn, promote these products to retailers and encourage them to stock their stores with the products
This is a B2B strategy, and personal selling is used

22. Positioning
Actions marketers take to create a certain image of a product in the minds of customers
The actual position of a product is in the mind of the consumer
Marketers decide what position they would like their product to have, then build a promotional strategy to achieve that position

23. Two more Promotional Strategies
Buzz Marketing
Sponsorship
Buzz marketing is promotion designed to look as though it is coming from an unbiased stranger or a friend, instead of from a corporation
The sponsor pays for an activity such as a sporting event, a cultural performance, or a charity event
Many corporations want to sponsor the Olympics so that they can use the Olympic logo in their advertising

24. Promotional Campaigns
A series of coordinated promotional activities desgined to achieve a specific goal
Image building
The mental picture of what a customer believes about a product
Emphasizes a particular aspect of a product by focusing on creating an impression of the product
Product differentiation
Convenience, customization, and greater customer satisfaction
Direct response
The seller communicates directly with the buyer and asks for an immediate response