1. Promotional Concepts & Strategies
Chapter 17

2. What might happen if a business did not promote their products?

3. Promotion
Decisions about advertising, personal selling, direct marketing, sales promotion, and public relations used to attract customers.

4. What is the different between these two videos?

5. Promotion – one of the 4 P’s
Product Promotion
Institutional Promotion
 Promotional method used to convince prospects to buy their goods or services.
Promotional method used to create a favorable image for a business, help it advocate for change, take a stand on community issues.

6. Promotional Mix
The combination of advertising, personal selling, direct marketing, publicity, sales promotion, makes up the promotional mix.

7. Personal Selling
One –on- one communication

8. Personal Selling Advantages Disadvantages
Tailored to each individual “Flexible”
Immediate Feedback
Most Expensive on a per contact basis
Can be perceived as too intrusive

9. Advertising
Paid, non-personal

10. Advertising Advantages Disadvantages The actual cost of the ad is HIGH
$5 million dollars for 30 seconds during Super Bowl 2017
You cannot customize the message to the customer
Same message delivered to many people
The per person or contact cost of an ad is generally very low

11. Super Bowl Ads Cost Chart

12. Direct Marketing Direct Mail (printed) Electronic Mail GOAL:
GOAL:
generate a response from the customer by making some kind of a special offer
(coupon, discount, special merchandise).

13. Direct Marketing Advantages Disadvantages
Same message delivered to a targeted group of people
The per person or contact cost of direct marketing is generally low (but not as low as advertising)
The message can be customized, to a degree
Can be considered very irritating
& telemarketing both have regulations to ensure customers rights are protected

14. Sales Promotion Short term promotional activity
Encourage Immediate purchase

15. Sales Promotion Advantages Disadvantages
Not personalized
It can be very time consuming --demonstrations, trade shows
The promotion may not result in ANY sales
free pen given away
Catches the interest of the impulse shopper
Can be low cost (no ad costs, no additional sales staff costs)

16. Public Relations/PR Not controlled by company Build goodwill
Control unfavorable event

17. Public Relations/PR Disadvantages Advantages
Often seen as impartial “news”
Very low cost
PR may not persuade a customer to buy from the company

18. PUSH PULL PUSH/PULL Strategies
manufacturers use of mix of advertising, personal selling & trade discounts with distribution channel partners to “push” the product through to the retailer.
Manufacturers directs promotional activities toward CONSUMERS
Videos:
Push/Pull marketing

19. Push Strategies

20. Examples of Each Different Type of Promotion
Section 17.1
The Promotional Mix
Examples of Each Different Type of Promotion
Chapter 17

21. The Promotional Mix The Promotional Mix Personal Selling Advertising
Direct Marketing
Sales Promotion
Public Relations (PR)
Direct contact
Advertising is everywhere
Mail
Coupons
News releases
Expensive
E-marketing
Money-off promotions
Social media
Telemarketing
Publicity
Product samples
Social media
Displays
public relations
Activities that help an organization to influence a target audience.
publicity
Bringing news or newsworthy information about an organization to the public’s attention.
news release
An announcement sent to the appropriate media outlets.
Chapter 17

22. Promotional Mix

23. Six Steps of the Promotional Mix

24. Examples of Different Types of Sales Promotions
Section 17.2
Types of Promotion 17.2
Examples of Different Types of Sales Promotions -
Chapter 17

25. Types of Promotion Trade Promotions Promotional Allowances
Section 17.2
Types of Promotion
Trade Promotions
Promotional Allowances
Cooperative Advertising
Slotting Allowances
Sales Force Promotions
Trade Shows and Conventions
trade promotions
Sales promotions designed to get support for a product from manufacturers, wholesalers, and retailers.
Chapter 17

26. Trade Promotions

27. Cooperative Advertising

28. Trade Promotions

29. Sales Force Promotions

30. Trade Shows/Conventions

31. Types of Promotion Consumer Promotions Coupons Premiums
Section 17.2
Types of Promotion
Consumer Promotions
Coupons
Premiums
Deals or Price Packs
coupon
A certificate that entitles a customer to a cash discount on goods or services.
premium
low-cost item given to consumers at a discount or for free.
Chapter 17

32. COUPONS

33. Premiums – low cost items
Given to consumers at a discount or FREE
Factory packs – free gifts placed in product packages

34. short-term price reduction marked directly on the label or package.
Deals or Price Packs
short-term price reduction marked directly on the label or package.
Price Packs

35. Types of Promotion Consumer Promotions Incentives Product Samples
Section 17.2
Types of Promotion
Consumer Promotions
Incentives
Product Samples
Sponsorship
incentive
A higher-priced product, award, or gift card that is earned and given away through contests, sweepstakes, special offers, and rebates.
Chapter 17

36. Incentives – higher priced items earned through contests/sweepstakes

37. Product Samples

38. Sponsorship

39. Loyalty Marketing Programs
Section 17.2
Types of Promotion
Consumer Promotions
Promotional Tie-Ins
Product Placement
Loyalty Marketing Programs
promotional tie-in
Activity that involves sales promotions between one or more retailers or manufacturers; also called cross-promotion or cross-selling. .
loyalty marketing program
A marketing program that rewards customers by offering incentives for repeat purchases, such as a frequent flyer.
Chapter 17

40. Promotional Tie-ins (Cross Promotion/Cross Selling)

41. Product Placement
Involves the verbal or appearance mention in TV series/ movies/ sporting events.
Product Placement in Movies
(not first clip, or White Castle)
Sorry for the swear words

42. Online Loyalty Marketing Programs Point-of- Purchase Displays (Kiosks)
Section 17.2
Types of Promotion
Consumer Promotions
Online Loyalty Marketing Programs
Point-of- Purchase Displays (Kiosks)
kiosk
A point-of-purchase display that is a stand-alone structure.
Chapter 17

43. Loyalty Programs

44. Online Loyalty Programs

45. Kiosks

46. Your Assignment!
Carousel Review – first page

47. Three Different Types of Premiums and Descriptions
Section 17.2
Types of Promotion
Three Different Types of Premiums and Descriptions
Chapter 17

48. Examples of Each Type of Consumer Promotion
Section 17.2
Types of Promotion
Examples of Each Type of Consumer Promotion
Chapter 17

49. Three Different Types of Premiums and Descriptions
Section 17.2
Types of Promotion
Three Different Types of Premiums and Descriptions
Chapter 17

50. Examples of Each Type of Consumer Promotion
Section 17.2
Types of Promotion
Examples of Each Type of Consumer Promotion
Chapter 17