1. 1 The Role of Promotion Promotion- any form of communication a business or organization uses to inform, persuade, or remind people about its products and improve its public image. Product promotion - used to convince potential customers to buy products from it instead of from a competitor. –Explains major features and benefits of its products –Tells where those products are sold –Advertises sales on those products –Answers customer questions –Introduces new products Example?

2. The Role of Promotion In which stage of a product’s life cycle do promotional activities focus on differences between competing products? –Growth 2

3. The Role of Promotion What is an example of an external factor that affects promotion? –Government regulation of ads Zoning laws determine billboard locations Can’t lie about product – fraud Restrict advertising to children –Children are impressionable, and the wrong kinds of advertising can affect their development Stereotype - A generalization, usually exaggerated or oversimplified and often offensive, that is used to describe or distinguish a group. Example: a television commercial depicts a woman mopping the kitchen with a new floor cleaner. 3

4. The Role of Promotion Materialism is interest in and desire for money, possessions, etc, rather than spiritual or ethical values –Example: You can increase your social status by purchasing this product. 4

5. 5 The Role of Promotion Institutional Promotion- used to create a favorable image for the business. Does not directly sell a certain product. However, may ultimately result in increased sales of a company’s products. An objective of institutional promotion is to demonstrate the organization’s role in community affairs.

6. 6 Four Types of Promotion 1.Advertising - any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Example?

7. 7 Four Types of Promotion 2.Publicity - placing newsworthy information about a company, product, or person in the media. –Can be used to promote particular events and promote particular products. –The main purpose of publicity is to build an image. Image - the way a business or organization is defined in people’s minds. Example?

8. 8 Four Types of Promotion 3. Sales Promotion - All marketing activities, other than personal selling, advertising, and publicity, that are used to stimulate consumer purchasing and sales effectiveness. Objectives of Sales Promotion –Increase sales –Inform customers about new products –Create a positive store or corporate image 3 Characteristics of Sales Promotion –Short term activities –Offers some type of incentive –Can be successfully used in all channels of distribution

9. 9 Four Types of Promotion 4. Personal Selling - making an oral sales presentation to one or more potential buyers. On a per contact basis, personal selling is the most expensive form of promotion. –Order-taking personnel –Order-getting personnel –Personal selling is generally emphasized for complex, technical products sold to industrial users.

10. 10 Four Types of Promotion Promotional Mix - a combination of different types of promotion. A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the business’s products. –Competition- Competing businesses within the same industry usually react to each other’s promotional mixes by playing follow the leader.

11. 11 Public Relations Public Relations - any activity designed to create goodwill toward a business. Benefits of PR –Increasing sales –Increasing firm’s good reputation –Increasing customers reception of advertising messages –Spreading accurate information to the public –Conditioning customers to expect quality products from the company –Reducing the impact of problems –Helping to obtain better treatment from government

12. 12 Public Relations News Release - a pre-written story about the company that is sent to various media for publication. –Hard News - information that should be announced right away because the public will want to know about it immediately –Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now

13. 13 Public Relations Press Kit - a folder containing articles, news releases, feature stories, and photographs about a company, product, or person. Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event.

14. Technology in Promotion New technology enables businesses to create individualized messages that impact their promotional mix. Information can be communicated by more venues and messages can be customized. –Example? 14

15. International promotional activities A business must understand that the laws governing promotional activities vary by country. 15