2Ch. 36, Promotion Is Communication ObjectivesDescribe the role of promotion.List three goals of promotion.Describe how the communication process works in promotion.Explain the difference between institutional and product promotion.Explain the difference between personal and nonpersonal promotion.
3ObjectivesDescribe and give an example of each of the four elements of promotion.Explain why the marketing concept is important in promotion.
5What Is Promotion? Promotion is one of the Four Ps of marketing Promotion is the process of telling people abouta product orthe company that offers it
6Promotion Is Marketing Communication Promotion is communicationfrom an organization toits customersits potential customersthe publicMarketing communication is another term for promotion1. Give an example that shows how promotion is communication.
8Inform Businesses want to keep customers informed about new products new features on existing productshow to use productssafety issuescharities and cultural organizations that the business supportscommunity events that the business supports
9Express Promotional messages express emotion and entertain to attract customer attention to productscreate demand for productsMessages with emotionare more likely to be remembered2. Describe an ad or commercial that you remember. What makes it vivid?
10Persuade Persuasion The ultimate goal of promotion is use of logic, argument, or pleading to get another person to agree with you or act in a certain wayThe ultimate goal of promotion isto persuade people to buy the product3. Describe a promotion that successfully persuaded you to buy a product. How did it persuade you?
11Promotion uses the same communication process as does all communication the marketer is the senderthe target market is the receiver
12Noise Promotional messages encounter physical noise, technical problems, external distractions, and internal distractionsTwo methods to counteract distractionsrepeat the same message many timesmake the message stand out from all others4. Describe an example of each method to counteract distractions for promotional messages.
135. If promotion is effective, what will happen to sales? FeedbackEffective promotionpromotion that achieves its goalsHow do marketers determine whether a promotion message was effective?through customer feedback obtained bymonitoring salesperforming market research5. If promotion is effective, what will happen to sales?
146. Describe different types of promotion. Photo by Amy J. Berk6. Describe different types of promotion.
15Types of Promotion Promotion can be categorized based on the target marketbusinesses or consumerswhat is being promoted: a product or institutionproduct promotion: focuses on selling the productinstitutional promotion: focuses on creating an image of the organization
16Types of Promotion Personal or nonpersonal personal promotion customer and marketer communicate in personthe only type of personal promotion is personal sellingnonpersonal promotioncommunicates the same message to all potential customersexamples: advertising, sales promotion, and public relations
17Four Elements of Promotion Promotion can also be categorized based on the four elements of promotionpersonal sellingadvertisingsales promotionpublic relations
18Personal Selling Personal selling seller communicates in person with buyera selling message can be customized for each buyerbased on immediate feedback from the customer
19Advertising Advertising includes print adscommercialsInternet adsoutdoor advertisingtransit advertisingdirect marketingPhoto courtesy of IGA, Inc.7. Describe an ad that you have seen. Who is the target market for this ad?
20Sales Promotion Sales promotion B2B sales promotion marketing activities designed to entice customers to buy a company’s productsB2B sales promotiontrade showstrade allowancespoint-of-purchase advertisingsales incentives
21Sales Promotion B2C sales promotion coupons and rebates free samples premiumscontests and sweepstakespromotional tie-insproduct placementvisual merchandising
22Public Relations Public relations Proactive public relations promotional activities designed to create goodwill between a company and the publicProactive public relationscommunications initiated within the company for the purpose of image buildingReactive public relationscommunications in response to negative events or damaging information
23Public Relations Main functions of public relations Publicity getting positive publicitydeveloping philanthropic activitiescounteracting negative publicityPublicityinformation about a company and its products that appears in the mediacompany does not pay for the articlesthe articles are part of the news-gathering function of the media
24Public Relations Philanthropic activities the public relations department usuallydevelops charitable and community activitiesgets publicity for these activities
25Review What is the goal of promotion? What is the difference between B2B promotion and B2C promotion?product promotion and institutional promotion?personal promotion and nonpersonal promotion?List the four elements of promotion.
26GlossaryBackadvertising. Nonpersonal promotion paid for by an identified sponsor.coupon. Printed piece of paper that indicates the product and the amount of price reduction when the coupon is used.effective promotion. Promotion that achieves its goals.
27GlossaryBackinstitutional promotion. Communication that focuses on the image of the organization.marketing communication. Communication from an organization to its customers, potential customers, and the public; promotion.
28GlossaryBacknonpersonal promotion. Promotion that communicates the same message to all potential customers.personal promotion. Promotion in which the marketer and the customer communicate in person, and the marketer can immediately customize the message; personal selling.
29GlossaryBackpremium. Item given to the customer for free or at a reduced price along with the purchase of a product.product promotion. Marketing communication that focuses on the product and selling the product, in contrast to institutional promotion.
30GlossaryBackpromotion. All communications from an organization to its customers, potential customers, and the public; marketing communication.publicity. Information about a company and its products that appears in the media; however, the company does not pay the media to carry the message and therefore has no control over the story.
31GlossaryBackpublic relations. Promotional activities designed to create goodwill between a company and the public.rebate. Return of a portion of the money paid for a purchase.
32GlossaryBacksales promotion. Marketing activities designed to entice customers to buy a company’s products. Examples include coupons, contests, free samples, and gift-inside.trade allowance. Discount or money paid to the intermediary who buys the product.
33GlossaryBacktrade show. Exhibit of products of interest to a specific industry.