2. Promotion The function of informing, persuading, and influencing a purchase decision. INTEGRATED MARKETING COMMUNICATIONS Coordination of promotional activities to produce a unified customer-focused message. Must take a broad view and plan for all form of customer contact. Elements include personal selling, advertising, sales promotion, publicity, and public relations.

3. THE PROMOTIONAL MIX Combination of personal and nonpersonal selling techniques designed to achieve promotional objectives. Personal selling Nonpersonal selling

4. Objectives of Promotional Strategy Differentiate product Provide information Stabilize sales Increase sales Accentuate product value Promotional Planning Product placement Guerilla marketing

5. ADVERTISING Paid nonpersonal communication delivered through various media and designed to inform, persuade, or remind members of a particular audience. Types of Advertising Product advertising, institutional advertising, cause advertising Advertising and the Product Life Cycle Informative advertising, persuasive advertising, and reminder-oriented advertising. Advertising Media All media offer advantages and disadvantages

6. SALES PROMOTION Consumer-Oriented Promotions Premiums, coupons, rebates, samples Games, contest, and sweepstakes Specialty advertising Trade-Oriented Promotions Sales promotion geared to marketing intermediaries rather than to consumers. Point-of-purchase (POP) advertising. Promote goods and services at trade shows.

7. PERSONAL SELLING A person-to-person promotional presentation to a potential buyer. Sales Tasks Order processing, creative selling, missionary selling, telemarketing The Sales Process Public Relations Public organization’s communications and relationships with its various audience. Publicity Stimulation of demand by disseminating news or obtaining favorable unpaid media presentations.

8. PROMOTIONAL STRATEGY Pushing and Pulling Strategies Pushing relies on personal selling to market an item within a company’s distribution channels. Pulling promotes a product by generating demand. Most marketing situations require combinations of pushing and pulling strategies.

9. ETHICS IN PROMOTION Puffery and Deception Exaggeration about the benefits or superiority of a product. Deliberately making promises that are untrue. Promotion to Children and Teens Children and teens have enormous purchasing power but cannot analyze advertising messages. Promotion in Public Schools and on College Campuses Schools earn income from in-school advertising, but it is generating backlash.

10. PRICING OBJECTIVES IN THE MARKETING MIX Price Exchange value of a good or service. Pricing Objectives: Profitability Volume Meeting Competition Prestige

11. PRICING STRATEGIES Price Determination in Practice Cost-based pricing Breakeven Analysis Pricing technique used to determine the minimum sales volume a product must generate at a certain price level to cover all costs. Alternative Pricing Strategies Skimming pricing Penetration pricing Everyday low pricing Discount pricing Competitive pricing

12. CONSUMER PERCEPTIONS OF PRICE Price-Quality Relationships Consumers’ perceptions of quality closely tied to price. Odd Pricing Setting prices in uneven amounts or amounts that sound less than they really are. Also used as a signal a product is on sale.