Section 17.1 The Promotional Mix Marketing Essentials n Chapter 17 Promotional Concepts and Strategies Section 17.1 The Promotional Mix

The Promotional Mix SECTION 17.1 The Concept of the Promotional Mix Promotion is any form of communication a business or organization uses to inform, persuade, or remind people about its products. Promotional mix is a combination of the different types of promotion. A business decides on the promotional mix that will be most effective in persuading potential customers to purchase its products. Slide 1 of 2

The Promotional Mix SECTION 17.1 The Concept of the Promotional Mix A business uses product promotion to convince potential customers to buy its products instead of buying from a competitor. Institutional promotion is used by businesses to create a favorable image for themselves, as opposed to promoting specific products or services. Slide 2 of 2

The Promotional Mix SECTION 17.1 Types of Promotion There are four basic types of promotion: personal selling advertising sales promotion public relations Slide 1 of 4

The Promotional Mix SECTION 17.1 Types of Promotion Personal Selling is one of the largest forms of promotion. It is any form of direct contact occurring between a salesperson and a customer. The advantages: There is two way communications between the seller and buyer There is immediate feedback. Slide 2 of 4

The Promotional Mix SECTION 17.1 Examples of Personal Selling A salesperson at Foot Locker helping you with shoes A car salesman/woman Telemarketing- selling over the telephone (not too common now) Slide 2 of 4

The Promotional Mix SECTION 17.1 Features of Personal Selling Designed to influence purchase decisions Very expensive Should not be a “strong arm” tactic Salespeople HAVE to be knowledgeable about what they are selling Slide 2 of 4

The Promotional Mix SECTION 17.1 Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor American businesses spend about $200 billion each year on advertising. FYI: This will be a brief overview on advertising. The next chapter consists entirely of advertising Slide 2 of 4

The Promotional Mix SECTION 17.1 Examples of advertising: TV ads Radio ads Magazine ads Direct mail Outdoor advertising (billboards, etc) Transit advertising (on a bus, etc.) Online pop ups Slide 2 of 4

The Promotional Mix SECTION 17.1 Features of advertising: Not limited to products Has to be paid for Same message for everyone Actual cost is high Advantages: Can be seen/heard by many customers Per person cost is typically low Slide 2 of 4

The Promotional Mix SECTION 17.1 Sales promotion is a short-term incentive offered to encourage buying a good or service. Sales promotions can be directed toward manufacturers, wholesalers, retailers, and consumers, as well as a company's employees. Sales promotions are usually supported by advertising activities. (All marketing activities other than personal selling, advertising and public relations that are used to stimulate customer purchases) Slide 3 of 4

SECTION 17.2 Sales Promotion Trade Promotions Trade promotions are sales promotion activities designed to gain manufacturers', wholesalers', and retailers' support for a product. More money is actually spent on promoting to businesses than to consumers. Major trade promotions include: slotting allowances buying allowances trade shows and conventions sales incentives Slide 1 of 3

Sales Promotion Examples displays Buy one, get one free Fashion shows SECTION 17.2 Sales Promotion Examples displays Buy one, get one free Fashion shows product samples Competitions/prizes loyalty marketing programs Financing visual merchandising and displays promotional tie-ins product placement Trade shows Free gifts (key chain) Conventions Free samples Buying allowances Coupons Slotting allowances

Sales Promotion Advantages There are 100’s of items to choose from SECTION 17.2 Sales Promotion Advantages There are 100’s of items to choose from Companies can mix and match It can be very inexpensive

The Promotional Mix SECTION 17.1 Types of Promotion Publicity is a specific kind of public relations that involves placing positive newsworthy information about a business in the media. Note: Publicity can also be very negative! Slide4 of 4

The Promotional Mix SECTION 17.1 Publicity Examples Press conferences News Releases Appearance of an author/movie star Article written up in newspaper/magazine Mention of a companies charitable activities Segment on the news Slide4 of 4

The Promotional Mix SECTION 17.1 Publicity Features Consumers pay close attention to publicity View publicity as news Publicity is non personal Publicity advantages It’s free Has more credibility b/c it is not a commercial message and no one is being paid to say whatever it is they are saying Slide4 of 4

The Promotional Mix SECTION 17.1 Coordination of the Promotional Mix Most businesses use more than one type of promotion to achieve their promotional goals. Each type of promotion is designed to complement one another, and all must be coordinated.

The Promotional Mix SECTION 17.1 Promotional Budget In large companies, the marketing department establishes a promotion budget, allocates resources, coordinates the campaign, and determines the right promotional mix for the company. In smaller businesses, these responsibilities often rest with the owner-operator, are divided among employees, or contracted to outside agencies.

Reviewing Key Terms and Concepts ASSESSMENT 17.1 Reviewing Key Terms and Concepts 1. What is promotion? 2. Describe the concept of promotional mix. 3. What is the difference between product and institutional promotion? 4. Why is personal selling the most expensive form of promotion? 5. What is the difference between publicity and advertising?

ASSESSMENT Thinking Critically 17.1 Some people think that advertising is a waste of money that needlessly raises the prices of goods and services. What do you think? Is the money spent on advertising justified? Provide an argument to support your position.

Graphic Organizer 17.1 Elements of the Promotional Mix Personal Selling Advertising Sales Promotion Public Relations

SECTION 17.2 Sales Promotion Sales Promotion Public Relations refers to any activity designed to create a favorable image of a business, its products, or its policies