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4.00 Acquire a foundational knowledge of promotion to understand its nature and scope 4.01A Explain the role of promotion as a marketing function.

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Presentation on theme: "4.00 Acquire a foundational knowledge of promotion to understand its nature and scope 4.01A Explain the role of promotion as a marketing function."— Presentation transcript:

1 4.00 Acquire a foundational knowledge of promotion to understand its nature and scope 4.01A Explain the role of promotion as a marketing function

2 Define the term promotion  Promotion is a marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome.  It is the element of the marketing mix that encourages customers to buy or have certain views or opinions

3 Apple is promoting numerous types of applications that appeal to the teen market  For the under-20’s crowd, cool is all about the technology

4 Who uses promotion?  Any organization that has something to sell uses promotion at one time or another.  Large and small businesses  Government agencies  Special interest groups  Producers  Intermediaries  individuals

5 Who uses promotion?  Businesses that sell gaming systems, MP3 players, shoes, cars, and soft drinks rely heavily on promotion.  They develop creative promotions to reach a wide audience and sell their products  This results in the familiarity of the product.

6 What companies are these?

7 Characteristics of effective promotion  Persuasive  Relevant  Appropriate  Factual  Repetitive  Coordinated

8 Benefits of using promotion  Increased Sales: the most obvious way businesses benefit from promotion  Promotion is used to spread the word to customers and to convince them to buy  Strong position: used to position the company the way they want customers to see them  Increased customer loyalty: want customers to identify with images projected through promotion.  AEO and Hollister project an image of style and fashion.

9 Benefits of using promotion  Increased product/company awareness: helps customers learn that products exist and where they are available  Better informed, more satisfied customers: happens when businesses promote product benefits, features and prices  Increased employment opportunities: benefits the economy by providing job opportunities  Increased media support: helps to pay for mass media – TV, radio, newspapers, magazines, Internet, etc

10 Costs associated with the use of promotion  Some are free or nearly free – issuing a press release about a new or improved product  Advertising fees  Costs for sales promotions  Contests, salaries  Considering the costs ahead of time helps marketers to create reasonable promotional budgets

11 Types of promotional objectives  Inform  Communicate important information about new or improved products  Persuade  Competitive products  Company image  Remind  Established products  Established companies

12 Relationship of promotion and marketing  Promotion can be described as marketing communication  It sends a marketing message to a target audience  A business communicates a message to the customer – inform customer about goods, services or ideas – persuade them to buy – customer gives feedback by buying or not buying

13 Promotion & Competition  How does Promotion affect Competition  A company introduces a product  Other businesses wait to see how the product does  If the product does well, they will follow them into the market with a similar product  Competition through promotional activities occur during the growth stage

14 The Promotional Mix  Personal selling  Planned, personalized communication designed to satisfy a customer’s needs and wants  Used when things have to be explained in detail for large purchases or industry For example: A car salesman  Public relations  Activities used to build and maintain positive image about a company For example: FBLA volunteers at Downtown Winterfest and it’s published in the school newspaper

15 The Promotional Mix  Advertising Any non-personal form of communication designed to inform, persuade, or remind.  Usually shows the best images and messages Materialism - Be the first to have it, stay ahead of others  Avoid stereotyping Example: A woman drinking a diet soda  Children - Communicate the right message Example: Video games have age ratings

16 What’s in the promotional mix?  Sales promotions  Communications or activities used to stimulate sales, create awareness of a new product For example: Restaurants at the food court in the mall offers free samples

17 Promotion & Technology  How does Technology affect Promotion  Businesses can create messages that are specific to groups or individuals  Many different ways to communicate and customize messages  Social Media  Texts  Emails  Pop-ups  Tags


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