PROMOTION Any form of communication a business or company uses to inform, persuade, or remind people about products and to improve its image Ask students what they think promotion is. Share responses. Show definition.

Discussion How are promotion and communication similar?

Lesson Objectives Define promotion Identify purposes of promotion Define institutional promotion Identify 5 types of promotion Define promotional mix Review Objectives

Purposes of Promotion Convince potential customers to buy Explain features/benefits of products Tell where products are sold Advertise sales on products Answer customers’ questions Introduce new products Create a favorable image of the company or product Ask students for examples of why they think promotion is used. Share responses. Put on board. Review list

Institutional Promotion Used to create a favorable image of the company, rather than to directly sell products There are actually 2 ways that businesses can promote their products or create a positive image. One is by product/company promotion. This is when the product or company is specifically promoted in order to directly sell its products. The other way is call institutional promotion. Show slide. Show ad example of product promotion and institutional promotion.

Discussion Why would an organization promote itself and not its products?

Types of Promotion Advertising Sales Promotion Personal Selling Publicity/ Public Relations Visual Merchandising There are 5 types of promotion. They are…show bullets. Let’s look at each on individually.

ADVERTISING **PAID FOR** The non-personal presentation of ideas and products by an identified sponsor. There are 2 key elements that make a promotion advertising. For one thing, it’s NON-PERSONAL. This means that it is not directed at any one person. When you turn on the TV or radio and hear and ad, the ad does not address a specific person. It’s there for anyone to see and/or hear. With a magazine, billboard or newspaper, the same thing. Whoever opens the magazine or newspaper or drives by the billboard can read it. The other element is that it has an IDENTIFIED SPONSOR. In other words, IT’S PAID FOR (show next bullet). The company must pay a TV or radio station for its time, or they must pay a magazine, newspaper or billboard for the space. We will learn more about advertising in other lessons. Let’s move on to sales promotion. **PAID FOR**

SALES PROMOTION 2 for 1 Sale $2 off after 8PM Buy One, on Tuesday Get One Free $2 off after 8PM on Tuesday Sales promotion is a specific type of promotion that is used to INCREASE TRAFFIC in a store and to stimulate purchases. Examples of sales promotions are coupons, percent off sales, sweepstakes and contests. Ask: What is the only way you can use a coupon for a product? BUY THE PRODUCT. What is the only way to get 30% off a pair of jean? BUY THE JEANS What is the only way to get a free item for the 1st 100 customers? GO TO THE STORE See – sales promotions work to get the customers in the store and to make purchases. stimulate purchases increase store traffic

PERSONAL SELLING The PERSONAL presentation of a product or company to one or more potential buyers The 3rd type of promotion is personal selling. Ask: why do you think this is considered promotion? Share responses. Answer: remember the definition of promotion. the sales person is used as a vehicle to remind, inform and persuade customers about the products available to them. We will learn much more about personal selling next semester when we do an entire unit on it.

PUBLICITY PUBLIC RELATIONS Creating demand for a business or product by placing news about it in the media Publicity is similar to institutional advertising in that its main purpose is to create a favorable image about the company, hoping to increase sales. The difference is that information about the company is placed in the media in the form of a news release, instead of an advertisement. Therefore, publicity is FREE! Share examples of DECA’s publicity. Public relations involves the activities that businesses do to create publicity for the company. We will learn much more about publicity and public relations in a later unit, and we will have a person who works in public relations come and speak to our class.

Visual Merchandising The coordination of all physical elements in a place of business so that it projects the right image to its customers Visual merchandising is a form of promotion that is used to entice customers to buy the products. The way the products are displayed in the store is one way this is done. Like the other type of promotion, we will learn more about this in a later unit.

Discussion List one situation or product for which each type of advertisement would be appropriate.

Can you name a type of business that… Uses a lot of advertising and sales promotion, but very little personal selling? Uses very little advertising, but lots of personal selling? Fast food, grocery store, discount stores like Wal-Mart and Target Small boutiques, specialty stores

What types of promotion do you think the following businesses use? Hayes Chrysler/Jeep Ruby Tuesday Cigarette manufacturers Avon Corporation ebay Car dealerships: advertising, sales promotion, personal selling, visual merchandising Ruby Tuesday: advertising, personal selling, sales promotion, visual merchandising Cigarette manufacturers: advertising (print only), sales promotion, public relations Avon: advertising, sales promotion, public relations/publicity, personal selling E-bay: advertising

The combination of promotion types represents a product’s PROMOTIONAL MIX Most businesses use one or more of the elements of promotion that we have just learned. As you can see, not every businesses uses all of them. Whatever combination of promotion elements a business chooses to use is called the promotional mix. SHOW SLIDE.

Quiz Describe the promotional mix that would be appropriate for a business and product(s) that you choose. Explain how you would use each type of promotion. Tell why you would or would not use each type of promotion.