2. Any form of communication a business or company uses to inform, persuade, or remind people about products and to improve its image PROMOTION

3. Lesson Objectives Define promotion Identify purposes of promotion Define institutional promotion Identify 6 types of promotion Define promotional mix

4. Purposes of Promotion REMIND; INFORM; PURSUADE –Convince potential customers to buy –Explain features/benefits of products –Tell where products are sold –Advertise sales on products –Answer customers’ questions –Introduce new products –Create a favorable image of the company or product

5. Two Basic Kinds of Promotion Product P Institutional Promotion

6. Used to create a favorable image of the company, rather than to directly sell products

7. Institutional Promotion

8. Discussion Why would an organization promote itself and not its products?

9. Types of Promotion Advertising Sales Promotion Personal Selling Publicity/ Public Relations Visual Merchandising Direct Marketing

10. ADVERTISING The non-personal presentation of ideas and products by an identified sponsor. **PAID FOR**

11. SALES PROMOTION stimulate purchases increase store traffic 2 for 1 Sale Buy One, Get One Free $2 off after 8PM on Tuesday

12. PERSONAL SELLING The PERSONAL presentation of a product or company to one or more potential buyers

13. PUBLICITY PUBLIC RELATIONS Creating demand for a business or product by placing news about it in the media

14. Visual Merchandising The coordination of all physical elements in a place of business so that it projects the right image to its customers

15. Direct Marketing Directed towards a targeted group of prospects. Types of Direct Marketing –Printed Direct Mail –Electronic Direct Mail

16. Can you name a type of business that… Uses a lot of advertising and sales promotion, but very little personal selling? Uses very little advertising, but lots of personal selling?

17. What types of promotion do you think the following businesses use? Hayes Chrysler/Jeep Ruby Tuesday Avon Corporation ebay

18. The combination of promotion types represents a product’s PROMOTIONAL MIX