1. PROMOTION The communication of information about goods, services, images, and/or ideas to influence purchase behavior.

2. Without promotion, buyers would not know product exists Requires someone to send a message to someone who receives the message and gives feedback to the sender of the message. Message is letting the buyer know the product exists Feedback is the buyer making a purchase

3. Communicate with Customers Feedback or Purchase Receiver or Customer Message or Promotion Sender or Seller

4. Characteristics of Promotion  Can be face to face, or personal –Salesman working with customer  Can be non-personal –Cents-off coupons, displays, billboards 25% OFF TODAY ONLY

5. Characteristics of Promotion  Should be persuasive  Should be relevant –To the intended audience  Should be suited to the product  Should be factual  Should be repetitious –To be effective, promotional messages need to be repeated.

6. Promotion links Buyers and Sellers Promotional communications is designed to inform, persuade and remind.

7. Sellers are anyone with something to sell Producers Middleman or Agents Individuals Large and Small Business Government Agencies

8. Everyone is a buyer at some point in time Buy for personal or business use Anyone willing and able to buy –Producers –Middlemen or Agents –Individuals –Large and Small Business –Government Agencies

9. Sellers communicate information to buyers The type of product they offer Benefits or advantages of the product The location where it can be purchased How much the product will cost

10. Promotion influences purchase behavior  Companies know that there are many who need their product.  They use promotion to influence customers to buy their product over another company’s product.  A variety of tools are used to communicate with buyers

11. Promotional Mix The combination, or blend, of marketing communication channels that a business uses to send its messages to consumers.

12. Elements of the Promotional Mix  Advertising  Publicity  Sales Promotion  Personal Selling

13. Advertising  Any paid form of non personal communications.  Most visible element  The same message is delivered to many customers at one time  Per contact cost of advertising is low

14. Advertising Media  Television  Radio  Print – magazines, newspapers  Transportation – bus, taxi, trucks  Outdoor – Billboards, signs  Direct Mail  Directories

15. Personal Selling  Planned, personalized form of communications to influence purchase decisions and ensure satisfaction.  Advantage over Advertising is immediate feedback from clients.  Most expensive promotional tool

16. Publicity  Non-personal form of promotion that is not paid for by the company or individual that benefits.  Can be seen as more credible because it is not a paid commercial.  Can be positive or negative  Newspaper article, celebrity on a TV talk show discussing latest movie

17. Sales Promotion  Promotional activities other than publicity, advertising, and personal selling that are designed to stimulate buying.  Visual merchandising, fashion shows, coupons, free samples, contests, novelty items, trade shows, demonstrations and exhibits are examples of sales promotion

18. Importance of Promotional Mix A good mix enables business to communicate effectively with customers

19. Promotional Mix and Life Cycle of the Product Promotional mix should vary as the product moves through its life cycle. More promotion at introduction to increase consumer awareness Less promotion at decline as product is phased out of production

20. Promotion is one of the 4 P’s Marketing is a blend of Product, Place (distribution), Price and Promotion known as the Marketing Mix

21. All Elements of Marketing Mix Must work together before a business can achieve its goals It would be useless to promote a product to create demand and not produce and distribute it. Product, Price and Place decisions must be made before promotion decisions can be made.

22. Factors Affecting Promotion Internal environmental factors –The Product –Its Price –It’s Place – Distribution Internal factors are easier to control by the business

23. External Environmental Factors affecting Promotion Competition –use promotion to gain an edge or respond Technology –Can provide promotional opportunities Demand –Constantly changing –Promotion must change to impact demand

24. More External Factors Cultural and Social Trends –Changes in attitudes, lifestyles and tastes Legal and Political Factors –Government regulations can restrict some types of promotional messages

25. Benefits of Promotion to Business  Increased sales  Enhanced Company Image  Strengthened loyalties –To product –To Business

26. Benefits of promotion to consumers  Informed that products exist and are available  Help deciding between products –Make better buying decisions –Satisfy their needs  Learn new product uses

27. Benefits of promotion to Society  Helps provide jobs –Increased sales = increased production = increased employment = increased disposable income = increased sales  Encourages demand  Helps to pay for mass media –Your favorite TV show or magazine use promotional dollars

28. Where would we be without it? PROMOTION