1. Promotion
“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”
Peter Drucker
Unit 3

2. Promotional Mix

3. Promotional in Marketing
Promotion-one of the 4 P’s
Product promotion – promotional method used by businesses to convince prospects to select their goods or services instead of the competitor
Institutional promotion – promotional method used to create a favorable image for a business, help to advocate for change or take a stand on a community issue.

4. Types of Promotion in the Promotional Mix
Promotional Mix is the cost-effective combination of personal selling, advertising, direct marketing, sales promotion and public relations.

5. Promotional Mix
Personal Selling – requires a sales representative to generate and maintain direct contact with prospects and customers
Advertising – a form of non-personal promotion in which companies pay to promote ideas, good or services
Direct Marketing – type of promotion that companies use to address individuals directly and not through a third party.

6. Promotional Mix, cont.
Sales promotion – represents all marketing activities that are directed at business or retail customers to boost sales.
Public relations – activities help an organization to influence a target audience.

7. Types of Promotion

8. Sales Promotion
Incentives that encourage customers to buy products or services.

9. Types of Sales Promotions
Trade promotions
Consumer Promotions
Coupons – certificates that entitle customer to cash discounts
Premiums – giveaways are lost cost items given to consumer at a discount or for free.
Deal – price packs offer short-term price reductions that are marketed directly on the label or package.(For example: T-shirts are $10.50 each or for two or more $6)

10. Types of Promotions, cont.
Incentives – generally higher-priced products, awards or gift cards given away through contest, sweepstakes, special offers or rebates. (For example: McDonalds monopoly game)
Product samples – a free trial size of a product is given away
Sponsorship – Sponsors offer negotiate the right to use their logo and names on retail products to enhance their corporate image. (For example: Earnhardt Gnassi Racing Team – NASCAR)

11. Types of Promotions, cont.
Promotional Tie-Ins, Cross-Promotion, Cross Selling: sales promotions between or more retails or manufactures (For example: When a new animated feature is about to hit theaters, a movie studio will offer ticket discounts in cereal boxes.
Product Placement – consumer promotion that involves the verbal mention or appearance of a band name product in a TV series, move or sporting event. (For example: There is always a Diet Coke by each judge on American Idol).

12. Types of Promotions, cont.
Loyalty Marketing Program – also known as frequent buyer programs (For example: ShopRite customers sign up for a loyalty program for discounts)
Online Loyalty Program – Online version of a Loyalty Marketing Program
Point-of-Purchase – displays primarily by manufactures to hold and display their products and are usually in high traffic area to promote impulse purchases.

13. Advertising

14. Advertising Media

15. Purpose of Advertising
Advertising – non-personal promotion which promotes ideas, good or services by using a variety of media.

16. Promotional and Institutional Advertising:
Promotional Advertising – advertising designed to increase sales
Institutional Advertising – advertising designed to create a favorable image for a company and foster goodwill in the marketplace.
Mass Advertising
enables companies to reach large numbers of people with their message. TV and radio are often used.

17. Types of Media
Media – agencies, means, or instruments used to convey advertising to the public.
Four types of media:
Print
Broadcast
Internet
Specialty

18. Print Media
Advertising in newspapers, magazines, direct mail, signs, and billboards

19. Types of Print Media Newspaper Advantages: Disadvantages:
Daily and weekly newspapers
Shoppers and Alternative Newspapers – shoppers contain minimal editorial content, often delivered to specific areas.
National Newspapers
Advantages:
Can target to people living in a certain area
Ads and coupon sales are dated and easily tracked
Disadvantages:
Limited shelf live
Printed in Black and white, less visually appealing,
Circulation and daily readership is declining

20. Types of Print Media Magazine Advantages: Disadvantages:
Consumer Magazines – Car and Track, Sports Illustrated, Seventeen, Entertainment Weekly
Business-to-Business Magazines – (trade publications): interest professional in specific fields. Ex: Advertising Age
Advantages:
People tend to keep magazines longer
Digital color and photography
Create powerful more memorable images
Variety of presentation (full page, half page, etc.)
Disadvantages:
More expensive than newspapers
Deadline for submission is weeks or months before print
No flexibility if market changes

21. Types of Print Media Direct Mail Advantages: Disadvantages:
Printed direct mail
Electronic direct mail
Advantages:
Highly selective to who receives it
Tries to reach new customers
Most effective with current customers
Disadvantages:
Yields a low level of response
Redemption rate is 1% - 3%
Image problems- most people consider it junk mail
Printing and distributing can be costly

22. Types of Print Media Directory Advertising Advantages: Disadvantages:
White Pages
Yellow Pages
Advantages:
Inexpensive
Target all demographic groups
Disadvantages:
Printed only yearly

23. Types of Print Media Outdoor Advertising Advantages: Disadvantages:
Billboards
Digital billboards
Advantages:
Highly visible
Relatively inexpensive
24/7 message
Located to reach a specific area
Disadvantages:
Limited viewing time
Increasing government regulations

24. Types of Print Media Transit Advertising – on public transportation
Busses
Taxi
Bus stops
Public Benches
Advantages:
Reaches a wide and captive audience

25. Broadcast Media Radio TV Can be heard anywhere
Update and change ads daily or hourly
Ability to reach a wide audience TV
Ultimate advertising
Highly compelling: sight, sound, action and color
Highest production cost
Expensive

26. Internet Advertising Uses web or email Opt-in email
Banner and Search Engine Ads
Video Ads
Social-media advertising

27. Specialty Media Known as giveaways Inexpensive Imprinted with logo
Limited distribution,

28. Other Advertising In-store Ads New Media Ceiling and floor graphics
Electronic shelf ads
Supermarket cart displays
Instant coupon machine
New Media
Cell phones
Video games

29. Media Planning
Process of selecting the appropriate advertising media and deciding the time and space in which ads should appear to accomplish marketing objective.
Answer the three basic questions:
Can the medium present the product and the appropriate business image?
Can the descried customers be targeted with the medium?
Will the medium get the desired response rate?