Presentation on theme: "Chapter 19 What Is Promotion?"— Presentation transcript:
1Chapter 19 What Is Promotion? Any form of communicationa business or organizationuses to inform, persuade,or remind people about it’sproducts and improve it’s public image.
2There Are Four Types of Promotion: Product PromotionAn act to convince potential customers to buy products from it instead of from the competitorInstitutional PromotionThe attempt to create afavorable image for itself (especiallyin relation to competitors).There Are Four Types of Promotion:Advertising, Publicity, Sales Promotion, Selling
3Advertising Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.How is advertisingdistinguished from other formsof promotion?What are the advantages to advertising?What are disadvantages to advertising?
4Publicity Involves placing newsworthy information about a company, product, or person in the media. The Principle Factor of Publicity: BUILD AN IMAGE!ImageThe way a business or organization is defined in people’s minds.It is an impression based on acombination of factors: physical surroundings, personal experiences,and things written or said in the media.
5Publicity, cont. What are the advantages of publicity? What are the disadvantages of publicity?
6Sales Promotion The use of marketing devices such as displays, premiums, and contests to stimulate purchases.Can either be consumer oriented or trade oriented.Trade PromotionsSales promotion activities designed to gain manufacturers, wholesalers, and retailers support for a product.Consumer Sales PromotionActivities designed to gain consumers support.What are the advantages of sales promotions?
7Trade Promotions (4) Slotting Allowances Cash premium paid by the manufacturer to a retail chain for the costs involved in placing products on the shelf.Buying AllowanceSpecial price discount given by manufacturers to wholesalers and retailers to encourage them to buy a product or a larger quantity.Sales IncentivesRewards given to employees who successfully meet or exceed their company’s sales quota fora particular product or line of products.Also: Trade Shows and Conventions
8Sales Promotions Licensing Business arrangement whereby organizations license for a fee their logo, trademark, trade characters, names and likeness, or personal endorsements.Promotional Tie-InsInvolve sales promotional arrangements between one or more retailers or manufacturers.
9(Vocabulary) Visual Merchandising and Displays Premiums and Incentives P- low-cost items given away freeto consumers as a condition of purchase.I- higher priced products earned andgiven through contests or a sweepstakes award.4 Types of PremiumsProduct SampleFree trial size of a product that is sent through the mail, door-to-door, or retail and trade shows.Mail-In Rebate$10
10Order Taking vs. Order Getting Personal Selling Oral sales presentation to one or more potential buyers.Order Taking vs. Order GettingWhat are the advantages?What are the disadvantages?
11Promotional MixA combination of different types of promotion that will be most effective in persuading customers or other businesses to purchase and support the business’s products.Business’s…..…..use more than one type of promotion to achievetheir goals.…..use promotional techniques that will complimenteach other.…..must coordinate all types of sales promotion.