“Promotion” Roles of Promotion Communication Process Promotional Mix Promotional Planning Unit 6

1. Inform – Tell the consumer more about the product. – – Complex products require more details – 3 Reasons to Use Promotion

2. Persuade – – – Incentives - Coupons, Rebates, Free Samples – – More appealing label or packaging – Use more Power Words!!!

3. Remind – “Great taste”, “More consumers choose us” – – Give out promotional items with company or product name, logo, or slogan.

Promotion is a Communication Process

Feedback – receiver’s reaction or response to the sender’s message directive (buy product, use coupon, go to website, etc). Feedback helps the sender know if the message got through and is understood. Interference – causes receivers to miss the message or misunderstand it (changed channel, left room, TiVo, etc).

Promotional Mix Varies from business to business Always has same goal - communicate effectively with customers Elements:  Advertising  Publicity  Sales Promotion  Personal Selling

8 What is Advertising? Any paid form of nonpersonal communication sent through the media. Most common type of promotion Examples: TV and Radio commercials Print ads Out-of-home advertisements Catalogs Direct mail Product placement Online ads

Advantages of Advertising Reaches millions at relatively low cost per person Uses color, print, sound, and motion; can affect consumers’ emotions. Disadvantages of Advertising Target audience may not receive message

What is Publicity? Free communication about a company or its product. Advantages & Disadvantages of Publicity Advantages – – Creates Goodwill for company/product Disadvantages – – Can’t cancel or change information

Sales Promotion Visual merchandising Coupons In-store demonstrations Discounts and incentives Sales Promotions – activities or materials within a place of purchase that offer consumers incentive to act now. Product samples Contests Introductory offers Free accessories Advantages & Disadvantages of Sales Promotion Advantages – – Supports other parts of promo campaign Disadvantages – – May not result in continued sales

12 What is Personal Selling? Person-to-person communication with customers. Advantages: – Disadvantages: –