Promotion in Marketing Product Promotion Promotional method business use to convince potential customers to buy their goods or services instead of a competitors. Institutional Promotion Promotional methods used to create a favorable image for a business. Helps to build goodwill and reputation. Promotion: Pro.mo.tion, noun,: One of the 4 Ps of Marketing. Any activity that helps in the exposure or sale of a product. Goals of Promotion are summed up by AIDA acronym – Attract Attention, Build Interest & Desire, Ask for Action
Types of Promotion Personal Selling Requires Sales Representatives to generate and maintain direct contact with prospects and customers. Most expensive form of promotion, typically takes place after other methods have been tried. Promotional Mix: Pro.mo.tion Mix, noun,: Cost Effective combination of personal selling, advertising, direct marketing, sales promotion & public relations strategies used to reach company goals.
Types of Promotion Advertising Advertising is found everywhere! Billboards, brochures, internet, magazines, receipts, radio, TV, busses, menus, receipts, everything now a days is used for advertising! Advertising: Ad.ver.tis.ing, noun,: Form of non personal promotion in which companies pay to promote ideas goods, or services.
Types of Promotion Direct Marketing Examples: Direct mail & Telemarketing New Wave of Direct Marketing: E-Marketing! Any promotion that is delivered via the internet such as: search engine marketing, mobile apps, social media, etc. Direct Marketing: Dir.ect.mar.ket.ing, noun,: Form of promotion that addresses individuals directly, and not through a 3 rd party medium (TV, Radio, Internet).
Types of Promotion Sales Promotion Coupons, money-off promotions, competitions, product samples, and point-of-purchase displays Objective of Promotion: Increase sales, inform potential customers about new products, and create a positive image. Sales Promotion: noun,: All marketing activities that are directed at business or retail customers to boost sales
Types of Promotion Public Relations Influence general opinion and create favorable public image for a person, organization, or a company, its products and policies. Public Relations: noun,: Activities help an organization to influence a target audience.
Promotional Mix Promotional Mix & Budget Most businesses will use more than one type of promotion to achieve their goals. They will use a cost-effective mix of strategies that include, advertising, selling, sales promotions, direct marketing, and public relations strategies.
Push & Pull Concept Push Concept Manufacturers push the product through the distribution channel to the retailer. Particularly helpful with products that do not have a strong brand identity. Pull Concept Enticing or pulling consumers into the store to buy the product. Half-off deals or clearance sales bring people to the store. Designed to create interest and demand. For example, iPods, & iPhones always sell out! See the line to get in?
Types of Promotion Slotting Allowance Cash premium paid by a manufacturer to a retailer to help the retailer cover the costs of placing the product on the shelves.
Types of Promotion Coupons Used to introduce new products, enhance sales, and to encourage retailers to stock and display both. Also, dont forget about online coupon codes! Coupons: cou.pon, noun,: Certificates that entitle customers to cash discounts on goods or services.
Types of Promotion Premiums Designed to increase sales by building product loyalty and attracting new customers. Grouped into 3 categories: Factory packs, traffic builders, and coupon plans. Premiums: pre.mi.um, noun,: Giveaways are low-cost items given to consumers at a discount or for free
Types of Promotion Incentives Contests, Sweepstakes, Special offers, & Rebates Incentives: in.cen.tive, noun,: Generally higher-priced products, awards, or gift cards that are earned and given away through contests, sweepstakes, special offers, and rebates
Types of Promotion Promotional Tie-Ins, Cross-Promotion, Cross-Selling Partners combine their advertising and sales promotional activities to conduct a promotion that will create additional sales for each partner. Promotional tie-ins: noun,: Activities that involve sales promotions between one or more retailers or manufacturers
Types of Promotion Product Placement Consumer promotion that involves the verbal mention or appearance of a brand-name product in a tv series, movie, or event.
Sales Promotion Loyalty Marketing Programs Each purchase allows the customer to accumulate points for every purchase. They can be used for discounts, free items, etc. Loyalty Marketing Programs: noun,: Reward customers by offering incentives for repeat purchases