Chapter 19 - What is Promotion? What is Promotion?

Chapter 19 - What is Promotion? What is promotion? n There are two forms of promotion –Product –Institutional n It is important to our economy n Billions of dollars are spent on promotion and promotion activities provide millions of people with jobs.

Chapter 19 - What is Promotion? Types of Promotion n Advertising n Publicity n Sales Promotion n Personal Selling

Chapter 19 - What is Promotion? Advertising n It is paid for. n One set format to carry a message, rather than a personal, one-on-one message. n Identifies the sponsor of the message.

Chapter 19 - What is Promotion? Publicity/Public Relations n Builds a business’ image. (Publicity and Public Relations) n Publicity is free. Public Relations costs money. n Not much control over the message being sent to the public. (Publicity) n Publicity is mostly word of mouth, internet reviews, news articles, tv stories, etc. Can be positive or negative. n Public Relations (PR) is press releases and appearances by the company to control image with a defined message.

Chapter 19 - What is Promotion? Sales Promotion n Usually involves short term activities. n Offers some type of incentive to make a purchase. n Can be successfully used in all channels of distribution.

Chapter 19 - What is Promotion? Sales Promotion (con’t) n Trade Promotions –Slotting Allowances –Buying Allowances –Trade Shows and Conventions –Sales Incentives n Consumer Sales Promotions –Licensing –Promotional Tie-Ins –Visual Merchandising and Displays –Premiums & Incentives –Product Samples Types of Promotions

Chapter 19 - What is Promotion? Personal Selling n The responsibility of sales personnel. –Order - taking personnel –Order - getting personnel n The most flexible and individualized type of promotion available.

Chapter 19 - What is Promotion? The Concept of the Promotional Mix n Important to achieve promotional goals. n Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products.