Promotional Concepts & Strategies Chapter 17

What might happen if a business did not promote their products?

Promotion Decisions about advertising, personal selling, direct marketing, sales promotion, and public relations used to attract customers.

What is the different between these two videos? https://www.youtube.com/watch?v=h9toxAuXqb8 https://www.youtube.com/watch?v=rubcXpSV9pI https://www.youtube.com/watch?v=LvVsmOe4HUg

Promotion – one of the 4 P’s Product Promotion Institutional Promotion  Promotional method used to convince prospects to buy their goods or services.   Promotional method used to create a favorable image for a business, help it advocate for change, take a stand on community issues.

Promotional Mix The combination of advertising, personal selling, direct marketing, publicity, sales promotion, makes up the promotional mix.

Personal Selling One –on- one communication

Personal Selling Advantages Disadvantages Tailored to each individual “Flexible” Immediate Feedback Most Expensive on a per contact basis Can be perceived as too intrusive

Advertising Paid, non-personal

Advertising Advantages Disadvantages The actual cost of the ad is HIGH $5 million dollars for 30 seconds during Super Bowl 2017 You cannot customize the message to the customer Same message delivered to many people The per person or contact cost of an ad is generally very low

Super Bowl Ads Cost Chart

Direct Marketing Direct Mail (printed) Electronic Mail GOAL:   GOAL: generate a response from the customer by making some kind of a special offer (coupon, discount, special merchandise).

Direct Marketing Advantages Disadvantages Same message delivered to a targeted group of people The per person or contact cost of direct marketing is generally low (but not as low as advertising) The message can be customized, to a degree Can be considered very irritating email & telemarketing both have regulations to ensure customers rights are protected

Sales Promotion Short term promotional activity Encourage Immediate purchase

Sales Promotion Advantages Disadvantages Not personalized It can be very time consuming --demonstrations, trade shows The promotion may not result in ANY sales free pen given away Catches the interest of the impulse shopper Can be low cost (no ad costs, no additional sales staff costs)

Public Relations/PR Not controlled by company Build goodwill Control unfavorable event

Public Relations/PR Disadvantages Advantages Often seen as impartial “news” Very low cost PR may not persuade a customer to buy from the company

PUSH PULL PUSH/PULL Strategies manufacturers use of mix of advertising, personal selling & trade discounts with distribution channel partners to “push” the product through to the retailer. Manufacturers directs promotional activities toward CONSUMERS Videos: Push/Pull marketing

Push Strategies

Examples of Each Different Type of Promotion Section 17.1 The Promotional Mix Examples of Each Different Type of Promotion Chapter 17

The Promotional Mix The Promotional Mix Personal Selling Advertising Direct Marketing Sales Promotion Public Relations (PR) Direct contact Advertising is everywhere Mail Coupons News releases Expensive E-marketing Money-off promotions Social media Telemarketing Publicity Product samples Social media Displays public relations Activities that help an organization to influence a target audience. publicity Bringing news or newsworthy information about an organization to the public’s attention. news release An announcement sent to the appropriate media outlets. Chapter 17

Promotional Mix http://www.youtube.com/watch?v=rVQQ_M8t254&safe=active

Six Steps of the Promotional Mix

Examples of Different Types of Sales Promotions Section 17.2 Types of Promotion 17.2 Examples of Different Types of Sales Promotions - Chapter 17

Types of Promotion Trade Promotions Promotional Allowances Section 17.2 Types of Promotion Trade Promotions Promotional Allowances Cooperative Advertising Slotting Allowances Sales Force Promotions Trade Shows and Conventions trade promotions Sales promotions designed to get support for a product from manufacturers, wholesalers, and retailers. Chapter 17

Trade Promotions

Cooperative Advertising

Trade Promotions

Sales Force Promotions

Trade Shows/Conventions

Types of Promotion Consumer Promotions Coupons Premiums Section 17.2 Types of Promotion Consumer Promotions Coupons Premiums Deals or Price Packs coupon A certificate that entitles a customer to a cash discount on goods or services. premium low-cost item given to consumers at a discount or for free. Chapter 17

COUPONS

Premiums – low cost items Given to consumers at a discount or FREE Factory packs – free gifts placed in product packages

short-term price reduction marked directly on the label or package. Deals or Price Packs short-term price reduction marked directly on the label or package. Price Packs

Types of Promotion Consumer Promotions Incentives Product Samples Section 17.2 Types of Promotion Consumer Promotions Incentives Product Samples Sponsorship incentive A higher-priced product, award, or gift card that is earned and given away through contests, sweepstakes, special offers, and rebates. Chapter 17

Incentives – higher priced items earned through contests/sweepstakes

Product Samples

Sponsorship

Loyalty Marketing Programs Section 17.2 Types of Promotion Consumer Promotions Promotional Tie-Ins Product Placement Loyalty Marketing Programs promotional tie-in Activity that involves sales promotions between one or more retailers or manufacturers; also called cross-promotion or cross-selling. . loyalty marketing program A marketing program that rewards customers by offering incentives for repeat purchases, such as a frequent flyer. Chapter 17

Promotional Tie-ins (Cross Promotion/Cross Selling)

Product Placement Involves the verbal or appearance mention in TV series/ movies/ sporting events. Product Placement in Movies (not first clip, or White Castle) Sorry for the swear words

Online Loyalty Marketing Programs Point-of- Purchase Displays (Kiosks) Section 17.2 Types of Promotion Consumer Promotions Online Loyalty Marketing Programs Point-of- Purchase Displays (Kiosks) kiosk A point-of-purchase display that is a stand-alone structure. Chapter 17

Loyalty Programs

Online Loyalty Programs

Kiosks

Your Assignment! Carousel Review – first page

Three Different Types of Premiums and Descriptions Section 17.2 Types of Promotion Three Different Types of Premiums and Descriptions Chapter 17

Examples of Each Type of Consumer Promotion Section 17.2 Types of Promotion Examples of Each Type of Consumer Promotion Chapter 17

Three Different Types of Premiums and Descriptions Section 17.2 Types of Promotion Three Different Types of Premiums and Descriptions Chapter 17

Examples of Each Type of Consumer Promotion Section 17.2 Types of Promotion Examples of Each Type of Consumer Promotion Chapter 17