3 Promotion in Marketing Promotion is persuasive communication.Promotional techniques to enhance their public image and reputation, and to persuade people to value their products.Goals of promotional activities is AIDAA – first AttractI – then build InterestD – DesireA – finally ask for Action
4 Promotion in Marketing A business uses product promotion to convince prospects (potential customers) to select their goods or services instead of a competitors brand.Promotional activities include:Explain major features and benefitsIdentify where it is soldAdvertise salesAnswer customer questionsIntroduce new offerings
5 Promotion in Marketing Institutional promotion is a promotional method used to create a favorable image for a business, help it advocate change, or take a stand on trade or community issuesPromotional activities includeWebsite maintenanceDoes not directly sell a certain product
6 Examples of Each Different Type of Promotion The Promotional MixExamples of Each Different Type of Promotion
7 Companies and nonprofit organizations rely on promotion. The Promotional MixPromotion in MarketingCompanies and nonprofit organizations rely on promotion.
8 Personal selling Advertising Direct marketing Sales promotion Types of Promotion in the Promotional Mix (A combination of 5 basic types of promotion)Personal sellingAdvertisingDirect marketingSales promotionPublic relations
9 1. Personal SellingGenerate direct contact with prospects and customersExamples include: personal meetings, in- home demonstrations, and telephone correspondenceMost expensive forms of promotion
10 The Promotional Mix Types of Promotion in the Promotional Mix Personal SellingDirect contactExpensive
11 2. Advertising A form of non-personal promotion To promote ideas, goods, or services in a variety of media outletsExamples include billboards, business cards, brochures, Internet, magazines, newspapers, phone directories, grocery store receipts, radio, TV, sports arenas, cars and buses, restaurant menus and web sites.
12 The Promotional Mix Types of Promotion in the Promotional Mix Personal SellingAdvertisingDirect contactAdvertising is everywhereExpensive
13 3. Direct MarketingA type of promotion that companies use to address individuals directly and not through a third party medium (such as TV, radio, or the internet)
14 Direct Marketing Direct Mail Telemarketing E-marketing Sent via standard mail to a home or businessTelemarketingCustomers are called on the phone and asked directly for goods or servicesE-marketingAny promotion delivered via the Internet ( , mobile apps, social media, search engine marketing (paid search), web site optimization
15 Social MediaElectronic media that allows people with similar interests to participate in a social networkFacebookMySpaceYouTubeLinkedInTwitterHelps businesses reach prospective customers
16 Direct MarketingGoals of direct marketing are to generate sales or leads for sales representatives to pursueGives recipients an incentive to respond by visiting a store or Web site, calling a toll-free number, returning a form, or sending anTargeted customers receive special offers or incentives, such as money-off coupon
17 Direct Marketing Allows businesses to engage in one-way communication Congress passed the CAN-SPAM Act of 2003Act requires senders of unsolicited commercial e- mail to give recipients a way to opt out of sProhibits the use of deceptive subject lines and headersRequires businesses to provide valid return addresses on s.
18 The Promotional Mix Types of Promotion in the Promotional Mix Personal SellingAdvertisingDirect MarketingDirect contactAdvertising is everywhereMailExpensiveE-marketingTelemarketingSocial media
19 4. Sales PromotionAccording to AMA, sales promotion represents all marketing activities – other than personal selling, advertising and public relations – that are directed at business or retail customers to boost sales.Objectives are to:Increase salesInform potential customers about new productsCreate positive business or corporate image
21 The Promotional Mix Types of Promotion in the Promotional Mix Personal SellingAdvertisingDirect MarketingSales PromotionDirect contactAdvertising is everywhereMailCouponsExpensiveE-marketingMoney-off promotionsTelemarketingProduct samplesSocial mediaDisplays
22 5. Public Relations and Publicity PR activities enable an organization to influence a target audiencePR campaigns try to create influence general opinions and create a favorable image for a person, organization or a company, its products, or its policiesGoal is to encourage media relations with reporters
23 Public Relations: New Releases Most important media toolAn announcement that is sent to the appropriate media outletsPublicity is one tactic that public relations professionals usePublicity is freeNot controlled by the business
24 Public Relations: Using Social Media Businesses interact with customersGet feedback on the company and its products and servicesProvide businesses with a way to obtain opinions and speak directly with potential and existing customersPotential to reach prospective customers is tremendous
25 PublicityInvolves bringing news or newsworthy information about an organization to the public’s attention.Known as placementCan be used to make public aware of certain people, specific products or services, efforts by nonprofit agencies, political issuePublicity is free
26 The Promotional Mix Types of Promotion in the Promotional Mix Personal SellingAdvertisingDirect MarketingSales PromotionPublic Relations (PR)Direct contactAdvertising is everywhereMailCouponsNews releasesExpensiveE-marketingMoney-off promotionsSocial mediaTelemarketingPublicityProduct samplesSocial mediaDisplays
27 The Concept of Promotional Mix What is Promotional Mix?Combination of strategies and cost- effective allocation of resourcesIdentify target market to measuring the resultsStrategies complement one anotherElements of the mix must be coordinated
28 The Promotional Mix Types of Promotion in the Promotional Mix Types of Ads
29 Promotional Budget Roles of marketing dept Determines promotional mix Establishes the budgetAllocates resourcesCoordinates the campaignSupervises outside resourcesMeasures the resultsDetermining the budget can be difficultIt is the % of sales
30 The Push-Pull Concept Push Policy Manufacturer pushes product to the retailerInvolves personal selling and sales promotion – trade showsPull PolicyDirects promotion towards consumersCreate consumer interest and demandInvolves advertising to consumers – premiums & samples
31 The Promotional Mix Types of Promotion in the Promotional Mix Put the number of users and nonusers in the appropriate spaces on the graphic organizer. Why or why not do you use these sites?
32 Develop a Promotional Mix The Promotional MixThe Concept of Promotional MixDiscuss the Six Steps of the Promotional MixDevelop a Promotional Mix
34 Sales Promotion definition Incentives that encourage customers to buy products or servicesBuild brand awarenessEncourage customers to try new productsIncrease purchases by current customersReward customer loyalty
35 Types of Promotion Sales Promotions Sales promotions are usually supported by advertising activities that include trade promotions and consumer promotions.
36 Trade promotionsSales promotion activities designed to get support for a product from manufacturers, wholesalers, and retailersMore money is actually spent on promoting to businesses than to consumersGood business ethics require that trade promotional payments and awards be offered in uniform manner.
37 Types of Promotion Sales Promotions Trade Promotions Promotional AllowancesCooperative AdvertisingSlotting AllowancesSales Force PromotionsTrade Shows and Conventions
38 Types of Trade Promotions 1. Promotional Allowances Represent cash payments or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales
39 2. Cooperative Advertising Manufacturer supports the retailer by helping to pay for the cost of advertising it product locallyKnown as cooperative advertising
40 3. Slotting AllowancesA cash premium paid by a manufacturer to a retailer to help the retailer cover the costs of placing the manufacturer’s product on the shelvesRange from a few thousand dollars to several million dollars per productAlso pay retailer’s discount specials, charge for store shelves, penalties for poor sales, store advertising and display costs
41 4. Sales Force Promotions Awards given to dealers and employees who successfully meet or exceed a sales quotaSales force promotions vary, but can include bonuses or prizes such as merchandise awards or travel awards.
42 5. Trade Shows and Conventions Showcase a particular line of productsIntroduce new products, encourage increased sales of existing products & meet customers and partners in distribution
43 Consumer PromotionsSales strategies that encourage customers and prospects to buy a product or serviceConsumer promotions support advertising, personal selling and public relations efforts
44 Types of Consumer Promotions 1. Coupons Certificates that entitle customers to cash discounts on goods or servicesPlaced inside product packages or in newspapers / magazines
45 2. PremiumsLow-cost items given to consumers at a discount or for freeDesigned to increase sales by building product loyalty & attract new customers
46 2. PremiumsFundamental concept behind premium marketing is that people will be more motivated to buy a product when they are offered an added value gift in exchangeThree types of premiumsFactory PacksTraffic BuildersCoupon PlansDrawback – customers think premiums are disposable
47 Three Different Types of Premiums and Descriptions Types of PromotionSales PromotionsThree Different Types of Premiums and Descriptions
48 2. PremiumsFactory Packs, or in-packs, are free gifts placed in product packages or as a container premiumPopular with cereal manufacturesTraffic Builders – low cost premiums such as pens, key chains, pocket calendars, and coffee mugsNew store or special eventCoupon Plans – ongoing programs offering a variety of premiums in exchange for labels or coupons obtained from a productEx – Send 3 soup labels in to manufacturer to receive a cookbook
49 3. DealsDeals or price packs offer short-term price reductions that are marked directly on the label or packageDeal might “bundle” two-related products together, such as free wing chair with purchase of sofa
50 4. IncentivesAre higher-priced products, awards, or gift cards that are earned and given away through contests- games of skill; sweepstakes-games of chance; and rebates.Create customer excitement & increase sales
51 5. Product SamplesA free trial size of a product sent through the mail, distributed door-to-door, or given away at retail stores and trade shows
52 6. SponsorshipCompany pays a fee for the right to promote itself and its products or services at or on a set locationNegotiate the right to use logos and names on retail products
53 7. Promotional Tie-Ins, Cross-Promotion, Cross-Selling Cross-promotion and cross-selling campaignsActivities include sales promotional arrangements between one or more retailers or manufacturersThey product mutuallybeneficially results
54 8. Product PlacementA consumer promotion that involves using a brand-name product in a movie, television show, sporting event, or even in a commercial for another product+
55 9. Loyalty Marketing Programs Also called frequent buyer programs, reward, or frequent shopper programs reward customers by offering incentives for repeat purchasesFrequent flyer promotionsCustomer loyalty means that customers are so satisfied with a brand or retailer that they continue to buy that brand or patronize that retailer
56 10. Online Loyalty Marketing Online versions of loyalty marketing programsInternet search engine award points
57 11. Point-of-purchase displays Displays designed primarily by manufacturers to hold and display their productsHigh traffic area and promote impulse purchasesKiosks – web based or display screens that customers can use to interact with sales staff
58 Examples of Each Type of Consumer Promotion Types of PromotionSales PromotionsExamples of Each Type of Consumer Promotion
59 Examples of Different Types of Sales Promotions Types of PromotionExamples of Different Types of Sales Promotions