Presentation on theme: "What is Promotion? There are four basic types of promotion: 1) Advertising 2) Sales Promotion 3) Personal Selling 4) Publicity."— Presentation transcript:
What is Promotion? There are four basic types of promotion: 1) Advertising 2) Sales Promotion 3) Personal Selling 4) Publicity
Promotion is any form of communication a business or organization uses to inform, persuade, or remind people about its products and improve its public image. Product Promotion: 1) Explains the major features and benefits of its products (especially in relation to competitors), 2) tells where the products are sold, 3) advertises sales on those products, 4) answers customer questions, and 5) introduces new products.
Institutional promotion is used to create a favorable image for itself. It does not directly sell a product. What do you think is the intended result of institutional promotion?
Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Its three distinguishing features are that the time or space devoted to it is paid for it uses a set format to carry the message rather than personal one-on-one selling it identifies the sponsor of the message
Publicity involves placing newsworthy information about a company, product, or person in the media. *The principal function of publicity is to build an image.
Sales Promotion: All other marketing activities other than personal selling, advertising, and publicity. It has three unique characteristics: 1) It usually involves short term activities (as opposed to advertising and publicity which ten to be longer in length). 2) It usually offers some type of incentive to make a purchase. 3) It can be successfully used in all channels of distribution with manufacturers, wholesalers, retailers, and consumers.
Sales Promotions can be either consumer or trade oriented. Types of Trade Promotions: Slotting Allowances: A cash premium paid by the manufacturer to the retailer for the costs involved in placing a new product on its shelves. The allowance covers the space, retailer’s cents-off specials, charges for store shelves, penalties if the product does not sell, and store advertising and display costs.
Types of Trade Promotions….. Buying allowances: Price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity of a product. Trade Shows and Conventions: Designed to reach wholesalers and retailers.
Types of Trade Promotions….. Sales Incentives: Awards given to managers and employees who successfully meet or exceed their company’s set sales quota for a particular product or line of products.
Consumer Sales Promotions Licensing: Organizations, such as manufacturers, movie makers, sports teams, and celebrities, may license for a fee their logo, trademark, trade characters, names and licenses, or personal endorsements to a business to be used in promoting the business’s products. http://www.walmart.com/tp/licensed
Consumer Sales Promotions… Promotional Tie-ins: Involve sales promotional arrangements between one or more retailers or manufacturers. They combine their resources to do a promotion that creates additional sales for each partner. http://articles.latimes.com/2006/may/08/entertainment/et-mcdonalds8 http://www.redbookmag.com/kids-family/blogs/mom-blog/the-lorax-promotional-tie-ins-mazda
Consumer Sales Promotions… Visual Merchandising and Displays: The coordination of all physical elements in a place of business so that it projects the right image to its customers. The visual and artistic aspects of presenting a product to a target group of customers. (window, floor, counter display)
Consumer Sales Promotions… Premiums and Incentives: Designed to increase sales by builing product loyalty and attracting new customers. There are four types of popular premiums: coupons factor packs, or in-packs (cereal boxes) traffic builders (pens, calendars) coupon plans (proof of purchase, soup labels)
Consumer Sales Promotions… Product Samples: A free trial size of a product that is sent through the mail, distributed door-to-door, or through retail stores and trade shows.
Personal Selling: Is the most flexible and individualized of the promotion devices available to business. What are some obvious disadvantages? Promotional Mix: A combination of different types of promotion.