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Promotional Concepts & Strategies

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Presentation on theme: "Promotional Concepts & Strategies"— Presentation transcript:

1 Promotional Concepts & Strategies
Answer the following three questions: What unique promotional activities have you observed recently? Identify at least three! How do promotional activities influence your purchases? In your opinion, what is the most effective form of promotion? Why?

2 Promotion in Marketing
Promotion is any activity that helps in the exposure or sale of a product Examples? The goals of promotional activities are AIDA Attention – first attract attention Interest – then build interest Desire – then build desire Action – ask for action!

3 Promotion in Marketing
Product promotion is a promotional method used by businesses to convince prospects to select their goods/services instead of a competitor’s brands Promotional activities attempt to: Explain major features and benefits of the product Identify where it is sold Advertise sales Answer customer questions Introduce new offerings Foster good relations with existing customers

4 Promotion in Marketing
Institutional promotion is a promotional method used to create a favorable image for a business, help it advocate for change, or take a stand on trade or community issues Institutional promotion includes: Company websites Activities to build goodwill or enhance reputation Foster a favorable image for the company

5 Promotional Mix Promotional mix is the combination of personal selling, advertising, direct marketing, sales promotion, and public relations strategies to reach company goals

6 Promotional Mix Personal Selling
Requires sales representatives to generate and maintain direct contact with prospects and customers Direct contact can include: Personal meetings In-home demonstrations Telephone conversations Is one of the most expensive forms of promotion

7 Promotional Mix Advertising
Billboards Business cards A form of non personal promotion in which companies pay to promote ideas, goods, and services Brochures Internet Magazines Where is advertising found? Newspapers Phone directories Everywhere! Grocery store receipts Radio Television Sports arenas Cars and buses Restaurant menus Websites

8 Promotional Mix Direct Marketing
A type of promotion that companies use to address individuals directly and not through a third party medium (TV, radio, internet) Examples or direct marketing include: Direct mail Telemarketing E-marketing The goals of direct marketing are to generate sales or leads for sales representatives to pursue

9 Promotional Mix 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 Sales promotions include: Coupons Money-off promotions Competitions Product samples Point-of-purchase displays The objectives of sales promotions are to increase sales, inform potential customers about new products, and create a positive business or corporate image

10 Promotional Mix Public Relations
PR activities help an organization to influence a target audience PR campaigns try to influence general opinion and create a favorable public image Examples? Publicity involves bringing positive news or newsworthy information about an organization to the public’s attention Advantages/Disadvantages?

11 OEHS Image Activity In a small group (no more than 3 per group):
Step 1: Brainstorm and discuss ideas for creating a better institutional image for OEHS Step 2: Create a public relations campaign centered around one (or more) of the items generated You may want to consider or include A news release (see page 398 for an example) The use of social media Types of publicity or placement All materials created, including brainstorm list, should be submitted for assessment

12 Developing a Promotional Mix
Figure 17.2 Page 400 Develop a Promotional Mix

13 Types of Promotion Activity
Team Activity (5 members per team) Create a business that sells products to high school students Assign each member to one of the types of promotion Each member should develop ideas for a promotional mix Report your “plan” using a post-it note Note: Be sure to identify your business and product!

14 The Push-Pull Concept Push Policy is a type of promotion in which manufacturers use a mix of advertising, personal selling, and trade discounts with partners in the distribution channel to “push” the product through to the retailer Pull Policy a type of promotion by manufacturers that directs promotional activities toward consumers Examples are advertising, in-store displays, demonstrations, etc.

15 Sales Promotion Sales promotions are incentives that encourage customers to buy products or services Build brand awareness Encourage customers to try a new product Increase purchases by current customers Reward customer loyalty Include trade and consumer promotions

16 Trade Promotions Trade promotions are sales promotions designed to get support for a product from manufactures, wholesalers, and retailers Major trade promotions include: Promotional allowance Cooperative advertising Slotting allowances Sales force promotions Trade shows and conventions

17 Consumer Promotions Consumer Promotions are sales strategies that encourage customers and prospects to buy a product or service Examples? Coupons Promotional Tie-Ins Premiums Product Placement Deals Incentives Product Samples Sponsorships Point-of-Purchase Displays Loyalty Marketing Programs Online Loyalty Marketing Programs

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