1. Chapter 17 Promotional Concepts and Strategies
Section Promotion and Promotional Mix
Section Types of Promotion

2. Objectives Explain Role of Promotion in marketing
Identify Types of Promotion
Understand public relations vs publicity
Describe the promotional mix

3. Target market: group of people identified as most likely to become customers of a product
all marketing strategies directed at target market

4. Types of Markets
There are two different types of markets with different goals and objectives
Consumer
Industrial

5. 1. Consumer market: all consumers who purchase goods and services for personal use
Consumers want products and services that:
Save money
Make life easier
Improve appearance
Create status
Provide personal satisfaction

6. 2. industrial market: businesses that buy products, often in large quantities, to use in their operations;
Businesses want products and services that:
Improve productivity
Improve efficiency
Increase sales
Decrease expenses

7. Marketing Mix
The marketing mix X four basic marketing strategies, called the four Ps, that is used to influence buying decisions of a target market
product
place
price
promotion
Actions & decisions in these areas are based on the people marketers want to win over
Marketing Essentials Chapter 1, Section 1.3

8. The Concept of Promotion
Promotion is persuasive communication
Why do companies use Promotion:
Inform people about their products or services
Enhance their public image
Persuade people that their products are valuable
Educate the public on an issue, trend, or to change law (ideas)

9. Promotion
A company must decide how to advertise, promote, and publicize a product.
How potential customers will be told about products includes:
Message
Media selected
Special offers
Timing of promotional campaigns

10. The Concept of Promotion
The Goal of promotional activities are summarized by the phrase AIDA:
Attract Attention
Build Interest
Build Desire
Ask for Action
Goal: attract attention, build interest and desire, and ask for action
Marketing Essentials Chapter 17, Section 17.1

11. Two Pathways of Promotion
Product Promotion
Institutional Promotion

12. Product promotion is the act of advertising a good or service with the short/long term goal of increasing sales
used to convince prospects to select its products or services instead of a competitor’s

13. Product Promotion activities include:
Explain features and benefits of a product/service
Identify where it is sold and advertise sales
Answer customer questions
Introduce new offerings/products
Foster good relations with existing customers - enhance customer loyalty

14. Institutional promotion: marketing approach that improve its image through demonstrating the goodwill of a business
Institutional Promotion activities include:
Maintain Web Sites- provide news and product information
Help an organization advocate for change
Take a stand on trade or community issues

15. Five Types of Promotion in Promotional Mix
Personal selling
Advertising
Direct Marketing
Sales Promotion
Public Relations
Product Promotion Activities
Institutional Promotion Activities

16. 1. Personal Selling
Personal selling involves direct contact between salespeople and customers
The costliest form of promotion
Occurs because of other promotional efforts
This can take place in the forms of:
Personal meetings
Telemarketing
contact and other correspondence

17. 2. Advertising
Advertising is a form of non-personal promotion and one-way communication (not directed to specific customer but many customers)
It can be found in places that include:
Newspapers and magazines
Television and Web sites
Billboards and city buses

18. 3. Direct Marketing
Direct marketing is a type of advertising directed to a targeted group of prospects rather than to a mass audience and generates a response from the customer:
Generates a Response from the customer by:
Making a special offer like a coupon, discount, or special merchandise or delivery
Prompts to visit a store, web site, call, or returning a form or

19. 3. Direct Marketing
Forms of direct marketing are mailed or sent electronically:
Mail
E-Marketing
Social Media
Marketing Essentials Chapter 17, Section 17.1

20. Lasts a limited period of time – prompt short term action Ex.:
4. Sales Promotion
Sales promotion represents all marketing activities–other than personal selling, advertising, and public relations–that are used to stimulate purchasing and sales
Lasts a limited period of time – prompt short term action
Ex.:
sample packages,
sweepstakes contests or coupons that require you to buy a product by a certain date
tradeshows

21. 4. Sales Promotion
Sales promotion objectives are to:
Increase sales
inform customers of new products
Create a positive business or corporate image

22. 5. Public Relations
Public relations (PR) activities that create a favorable image for a company, its products, or its policies
Goals:
Create a favorable image
Influence a target audience
Cultivate media relations with reporters who cover a specific industry

23. Types of Public Relations
What do you think are Public Relations activities a company can engage in?
Publicity
Community Involvement
Customer Appreciation Events
Scholarships
Speaking Events
Sponsorship of Community Sports events
Charitable Donations
News release
Marketing Essentials Chapter 17, Section 17.1

24. Distribution channels Facilities Partners Revenues
New Release
A news release a free announcement that is sent to media outlets to announce newsworthy business developments
Examples:
News about products
Distribution channels
Facilities
Partners
Revenues
Employees, and events
Marketing Essentials Chapter 17, Section 17.1

25. Publicity
Publicity involves bringing news or newsworthy information about an organization to the public’s attention
Sharing company information via the media (TV, radio, internet, newspapers, etc)

26. Promotional Mix
Promotional Mix: The combination of personal selling, public relations, advertising, sales promotion, sponsorships, direct mail, and trade shows that are utilized in promoting a good or service

27. Promotional Mix Policies:
Manufacturers utilize two different methods of promotional mix:
Push policy
Pull policy
Marketing Essentials Chapter 17, Section 17.1

28. Promotional Mix Push Policies:
The push policy of promotion promotes to the retailer, pushing the product to the retailer
purpose is to convince a retailer to stock the promoted product
Use personal selling, advertising, and buying discounts directed toward retailer
Relies heavily on trade shows
Marketing Essentials Chapter 17, Section 17.1

29. Promotional Mix Pull Policies:
The pull policy directs promotion toward the consumer. High interest and demand from consumers convinces (pulls) the retailers to stock the promoted item
Uses local advertising, in-store displays, sales promotions and public relations to reach consumers
Consumer samples and demonstrations used

30. Examples of Each Different Type of Promotion
Five Types of Promotion in Promotional Mix
Examples of Each Different Type of Promotion
Public Relations
Company Web Site
Community Involvement
Charity Involvement
Personal selling
Advertising
Direct Marketing
Sales Promotion