1. Students will understand and demonstrate knowledge of Promotion
Standard 2

2. Objective 2.1 Understand the role of Promotion Define Promotion:
Any form of communication a business or organizations uses to inform, persuade or remind.

3. Why is Promotion Important?
Since businesses must continually promote their organizations, products and policies to gain customer acceptance, you will need to learn successful promotional strategies.
These strategies make up the
Promotional Mix

4. Objective 2.2 – What is the Promotional Mix?
The promotional mix is a combination of the different types of promotion. There are four basic types of promotion:
Advertising
Publicity/Public Relations
Personal Sales
Sales Promotion

5. 1. Advertising
Advertising is any paid form of non-personal promotion of ideas, goods or services. Advertising can be found anywhere from magazines, TV and internet to anything that is ONE-WAY communication.

6. 2. Public Relations/Publicity
Public relations - The method or activities of establishing and promoting a favorable relationship with the public.
Publicity is part of public relations and involves placing newsworthy information about a business, product or policy in the media.
It’s mostly free.

7. 3. Personal Sales
Personal sales are when individuals make contact with potential buyers face-to-face to promote their business, products or policies.

8. 4. Sales Promotion
Sales promotion represents all marketing activities other than the three already mentioned, like:
Contests
Fashion shows
Coupons
Used to stimulate consumer purchase immediately

9. Factors affecting the promotional mix:
Technology
Economy
Market
Distribution

10. Match the examples below to one of the 4 strategies in the promotional mix: (advertising, publicity, personal sales, sales promotion)
2. Insurance sales
4. Coupon
1. TV Commercial
3. News release
6. Fashion Show
5. contest
7. Home Tupperware Party
7. Magazine Ad

11. Answers to Matching 1. Advertising (one-way paid communication)
2. Personal sales
3. Publicity
4. Sales Promotion
5. Sales Promotion
6. Sales Promotion
7. Advertising
8. Personal Sales

12. Advertising Advantages Disadvantages
Allows large number of people to see the advertised message
Can’t focus on individual needs
Can be controlled
Can be too expensive for many businesses
Can have repeat viewers
Can be inefficient (short coverage of billboards & magazines)
Can pre-sale products before customers go shopping

13. Public Relations/Publicity
Advantages
Disadvantages
save a business money by extending it’s advertising budget
May not be accurate or presented in the way or time that will reach the right audience
Can increase a business’ profit and exposure
Can be negative or harmful to the business
Lack of control of content

14. Personal Sales Advantages Disadvantages
Personalized to individual customers
Most expensive form/per sale
Largest form of promotion
Has slower distribution/coverage compared to advertising
Easier for personal sales to focus on target market and complete the sale

15. Sales Promotion Advantages Disadvantages Variety of activities
Short term incentives
Includes many different marketing activities to stimulate consumer interest including business to business promotions
Can be controlled

16. Different Types of Sales Promotions
Trade Promotions –sales promotion activities are designed to gain manufacturers’, wholesalers’ and retailers’ support for a product. More money is actually spent on promoting to businesses than to consumers.
Major trade promotions include:
Slotting –
Buying Allowances –
Trade shows & conventions -

17. Slotting – paid by the manufacturer to the retailer for placing their new products on the shelves, store advertising and display costs.
Buying Allowances – a price discount given by manufactures to retailers to encourage them to buy more.
Trade shows & Conventions – designed to reach wholesalers and retailers to display new products and/or increase sale of previous products.

18. Different Types of Consumer Sales Promotions
Premiums – low cost items given to customers
Incentives – generally products earned through contest, sweepstakes and rebates
Product Samples –
in store or by mail
Product tie-in’s or co-operative advertising- cost sharing arrangement whereby both a supplier and advertiser pay for advertising & promo

19. Different Types of Consumer Sales Promotions- cont.
Product placement – product recognition developed by featuring products in special events, TV, movies, etc.
Visual Merchandising & Display– coordination of all physical elements to project the right image to its consumers. Displays refers to the artistic and visual aspects used to present a product.
Loyalty Programs –
frequent buyer rewards