What is Promotion? Any form of communication a business uses to inform, persuade, or remind people about its products and improve its public image and attract potential customers

Role of Promotion Product promotion (convince customers to buy their product vs. competitor) explain major features and benefits tell where products are sold advertise sales answer customer questions introduce new products Institutional Promotion (create favorable company image) Help advocate change Take a stand on trade on community issues

Concept of Promotional Mix Personal Selling Advertising Direct Mailing Sales Promotion Public Relations 1.Use more than one type of promotion to reach goals 2.Each type is designed to compliment the others 3.All must be coordinated 4.Creation of a promotional budget

Types of Promotion Advertising-any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor Three features 1.The time or space devoted to it is paid for 2.It uses a set format to carry the message rather than one-to-one selling 3.It identifies the sponsor of the message

Advertising Advantages large number of people see message cost per potential customer are low can choose appropriate media for target audience can control content and adapt it to the media used Subject to repeat viewing Presell product (make-up consumers mind before they shop

Advertising Disadvantages Cannot focus well on individual needs Some forms are too expensive (TV) Sometimes it is wasteful and ineffective Often advertisements must be brief due to cost and the need to attract and hold customer attention

2. Direct Mailing Advertising directed to targeted group of prospects and customers rather than to a mass audience. Two forms: Printed direct mail E-direct mail

Direct Mail Objective is to generate sales or leads for sales representatives to pursue. Target customer to generate a response through coupon, special offer or discount An incentive to respond by visiting store or website, call number or send Advantage is one-communication with customer on promotion Disadvantage is consumer complaints on junk

2. Publicity Involves placing newsworthy info about a company, product, or person in the media Principle function is to build an image Right kind of publicity can create a positive image and maintain or improve that image in the community Publicity is free & the audience for news is huge and news is well respected source No control over message, or when & how presented, sometimes it is negative

4. Sales Promotion all marketing activities other than personal selling, advertising, and publicity used to stimulate consumer purchasing and sales effectiveness

Sales Promotion Three characteristics It usually involves short term activities It usually offers some type of incentive to make a purchase It can be used successfully in all channels of distribution Objectives: increase sales, inform customers about new products, create a positive store or corporate image

A. Trade Promotions Slotting allowance- cash premium paid to a retailer for the costs involved in placing a new product on the shelf Buying allowance-special price discount Trade shows and conventions Sales incentives-awards given to employees who meet or exceed a set sales quota

B. Consumer Sales Promotions Promotional Tie-Ins-promotion involving two or more companies Online loyal marketing programs Premiums and incentives Premiums-Low cost items given away for free to consumers as a condition of purchase Incentives-sweepstakes, contests, rebates, & coupons

Consumer Sales Promotions Visual Merchandising & Displays Sponsorship Product samples-free trial size Licensing-agreement to pay a fee to use a company’s logo, trademark, etc to promote products Product Placement

5. Personal Selling Advertising, publicity, and sales promotion are nonpersonal selling Two type of personal selling Order-taking personnel (cashiers, counter clerks, & sales associates) Order-getting personnel (professional salespeople

Personal Selling Designed to complete a sale once a customer has been attracted to a business Most flexible of all promotion

Personal Selling Disadvantages can only help one person at a time employees must completely understand the selling process and be well trained High cost