Ch. 36, Promotion Is Communication Objectives Describe the role of promotion. List three goals of promotion. Describe how the communication process works in promotion. Explain the difference between institutional and product promotion. Explain the difference between personal and nonpersonal promotion.

Objectives Describe and give an example of each of the four elements of promotion. Explain why the marketing concept is important in promotion.

Marketing Terms marketing communication effective promotion product promotion institutional promotion personal promotion nonpersonal promotion advertising sales promotion trade show trade allowance coupon rebate premium public relations publicity

What Is Promotion? Promotion is one of the Four Ps of marketing Promotion is the process of telling people about a product or the company that offers it

Promotion Is Marketing Communication Promotion is communication from an organization to its customers its potential customers the public Marketing communication is another term for promotion 1. Give an example that shows how promotion is communication.

Goals of Promotion Goal of promotion: to help a business achieve its goals by communicating with customers and the public Promotion informs expresses persuades ©2007 JupiterImages Corporation

Inform Businesses want to keep customers informed about new products new features on existing products how to use products safety issues charities and cultural organizations that the business supports community events that the business supports

Express Promotional messages express emotion and entertain to attract customer attention to products create demand for products Messages with emotion are more likely to be remembered 2. Describe an ad or commercial that you remember. What makes it vivid?

Persuade Persuasion The ultimate goal of promotion is use of logic, argument, or pleading to get another person to agree with you or act in a certain way The ultimate goal of promotion is to persuade people to buy the product 3. Describe a promotion that successfully persuaded you to buy a product. How did it persuade you?

Promotion uses the same communication process as does all communication the marketer is the sender the target market is the receiver

Noise Promotional messages encounter physical noise, technical problems, external distractions, and internal distractions Two methods to counteract distractions repeat the same message many times make the message stand out from all others 4. Describe an example of each method to counteract distractions for promotional messages.

5. If promotion is effective, what will happen to sales? Feedback Effective promotion promotion that achieves its goals How do marketers determine whether a promotion message was effective? through customer feedback obtained by monitoring sales performing market research 5. If promotion is effective, what will happen to sales?

6. Describe different types of promotion. Photo by Amy J. Berk 6. Describe different types of promotion.

Types of Promotion Promotion can be categorized based on the target market businesses or consumers what is being promoted: a product or institution product promotion: focuses on selling the product institutional promotion: focuses on creating an image of the organization

Types of Promotion Personal or nonpersonal personal promotion customer and marketer communicate in person the only type of personal promotion is personal selling nonpersonal promotion communicates the same message to all potential customers examples: advertising, sales promotion, and public relations

Four Elements of Promotion Promotion can also be categorized based on the four elements of promotion personal selling advertising sales promotion public relations

Personal Selling Personal selling seller communicates in person with buyer a selling message can be customized for each buyer based on immediate feedback from the customer

Advertising Advertising includes print ads commercials Internet ads outdoor advertising transit advertising direct marketing Photo courtesy of IGA, Inc. 7. Describe an ad that you have seen. Who is the target market for this ad?

Sales Promotion Sales promotion B2B sales promotion marketing activities designed to entice customers to buy a company’s products B2B sales promotion trade shows trade allowances point-of-purchase advertising sales incentives

Sales Promotion B2C sales promotion coupons and rebates free samples premiums contests and sweepstakes promotional tie-ins product placement visual merchandising

Public Relations Public relations Proactive public relations promotional activities designed to create goodwill between a company and the public Proactive public relations communications initiated within the company for the purpose of image building Reactive public relations communications in response to negative events or damaging information

Public Relations Main functions of public relations Publicity getting positive publicity developing philanthropic activities counteracting negative publicity Publicity information about a company and its products that appears in the media company does not pay for the articles the articles are part of the news-gathering function of the media

Public Relations Philanthropic activities the public relations department usually develops charitable and community activities gets publicity for these activities

Review What is the goal of promotion? What is the difference between B2B promotion and B2C promotion? product promotion and institutional promotion? personal promotion and nonpersonal promotion? List the four elements of promotion.

Glossary Back advertising. Nonpersonal promotion paid for by an identified sponsor. coupon. Printed piece of paper that indicates the product and the amount of price reduction when the coupon is used. effective promotion. Promotion that achieves its goals.

Glossary Back institutional promotion. Communication that focuses on the image of the organization. marketing communication. Communication from an organization to its customers, potential customers, and the public; promotion.

Glossary Back nonpersonal promotion. Promotion that communicates the same message to all potential customers. personal promotion. Promotion in which the marketer and the customer communicate in person, and the marketer can immediately customize the message; personal selling.

Glossary Back premium. Item given to the customer for free or at a reduced price along with the purchase of a product. product promotion. Marketing communication that focuses on the product and selling the product, in contrast to institutional promotion.

Glossary Back promotion. All communications from an organization to its customers, potential customers, and the public; marketing communication. publicity. Information about a company and its products that appears in the media; however, the company does not pay the media to carry the message and therefore has no control over the story.

Glossary Back public relations. Promotional activities designed to create goodwill between a company and the public. rebate. Return of a portion of the money paid for a purchase.

Glossary Back sales promotion. Marketing activities designed to entice customers to buy a company’s products. Examples include coupons, contests, free samples, and gift-inside. trade allowance. Discount or money paid to the intermediary who buys the product.

Glossary Back trade show. Exhibit of products of interest to a specific industry.