1. Promotional Concepts and Strategies
Chapter 17

2. Section 17.1
The Promotional Mix

3. Promotion in Marketing
Promotion is persuasive communication.
Promotional techniques to enhance their public image and reputation, and to persuade people to value their products.
Goals of promotional activities is AIDA
A – first Attract
I – then build Interest
D – Desire
A – finally ask for Action

4. Promotion in Marketing
A business uses product promotion to convince prospects (potential customers) to select their goods or services instead of a competitors brand.
Promotional activities include:
Explain major features and benefits
Identify where it is sold
Advertise sales
Answer customer questions
Introduce new offerings

5. Promotion in Marketing
Institutional promotion is a promotional method used to create a favorable image for a business, help it advocate change, or take a stand on trade or community issues
Promotional activities include
Website maintenance
Does not directly sell a certain product

6. Examples of Each Different Type of Promotion
The Promotional Mix
Examples of Each Different Type of Promotion

7. Companies and nonprofit organizations rely on promotion.
The Promotional Mix
Promotion in Marketing
Companies and nonprofit organizations rely on promotion.

8. Personal selling Advertising Direct marketing Sales promotion
Types of Promotion in the Promotional Mix (A combination of 5 basic types of promotion)
Personal selling
Advertising
Direct marketing
Sales promotion
Public relations

9. 1. Personal Selling
Generate direct contact with prospects and customers
Examples include: personal meetings, in- home demonstrations, and telephone correspondence
Most expensive forms of promotion

10. The Promotional Mix Types of Promotion in the Promotional Mix
Personal Selling
Direct contact
Expensive

11. 2. Advertising A form of non-personal promotion
To promote ideas, goods, or services in a variety of media outlets
Examples include billboards, business cards, brochures, Internet, magazines, newspapers, phone directories, grocery store receipts, radio, TV, sports arenas, cars and buses, restaurant menus and web sites.

12. The Promotional Mix Types of Promotion in the Promotional Mix
Personal Selling
Advertising
Direct contact
Advertising is everywhere
Expensive

13. 3. Direct Marketing
A type of promotion that companies use to address individuals directly and not through a third party medium (such as TV, radio, or the internet)

14. Direct Marketing Direct Mail Telemarketing E-marketing
Sent via standard mail to a home or business
Telemarketing
Customers are called on the phone and asked directly for goods or services
E-marketing
Any promotion delivered via the Internet ( , mobile apps, social media, search engine marketing (paid search), web site optimization

15. Social Media
Electronic media that allows people with similar interests to participate in a social network
Facebook
MySpace
YouTube
LinkedIn
Twitter
Helps businesses reach prospective customers

16. Direct Marketing
Goals of direct marketing are to generate sales or leads for sales representatives to pursue
Gives recipients an incentive to respond by visiting a store or Web site, calling a toll-free number, returning a form, or sending an
Targeted customers receive special offers or incentives, such as money-off coupon

17. Direct Marketing Allows businesses to engage in one-way communication
Congress passed the CAN-SPAM Act of 2003
Act requires senders of unsolicited commercial e- mail to give recipients a way to opt out of s
Prohibits the use of deceptive subject lines and headers
Requires businesses to provide valid return addresses on s.

18. The Promotional Mix Types of Promotion in the Promotional Mix
Personal Selling
Advertising
Direct Marketing
Direct contact
Advertising is everywhere
Mail
Expensive
E-marketing
Telemarketing
Social media

19. 4. Sales Promotion
According to AMA, sales promotion represents all marketing activities – other than personal selling, advertising and public relations – that are directed at business or retail customers to boost sales.
Objectives are to:
Increase sales
Inform potential customers about new products
Create positive business or corporate image

20. Sales Promotion Examples include Coupons Money-off Promotions
Competitions
Product Samples
Point-of-Sale Displays

21. The Promotional Mix Types of Promotion in the Promotional Mix
Personal Selling
Advertising
Direct Marketing
Sales Promotion
Direct contact
Advertising is everywhere
Mail
Coupons
Expensive
E-marketing
Money-off promotions
Telemarketing
Product samples
Social media
Displays

22. 5. Public Relations and Publicity
PR activities enable an organization to influence a target audience
PR campaigns try to create influence general opinions and create a favorable image for a person, organization or a company, its products, or its policies
Goal is to encourage media relations with reporters

23. Public Relations: New Releases
Most important media tool
An announcement that is sent to the appropriate media outlets
Publicity is one tactic that public relations professionals use
Publicity is free
Not controlled by the business

24. Public Relations: Using Social Media
Businesses interact with customers
Get feedback on the company and its products and services
Provide businesses with a way to obtain opinions and speak directly with potential and existing customers
Potential to reach prospective customers is tremendous

25. Publicity
Involves bringing news or newsworthy information about an organization to the public’s attention.
Known as placement
Can be used to make public aware of certain people, specific products or services, efforts by nonprofit agencies, political issue
Publicity is free

26. The Promotional Mix Types of Promotion in 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

27. The Concept of Promotional Mix
What is Promotional Mix?
Combination of strategies and cost- effective allocation of resources
Identify target market to measuring the results
Strategies complement one another
Elements of the mix must be coordinated

28. The Promotional Mix Types of Promotion in the Promotional Mix
Types of Ads

29. Promotional Budget Roles of marketing dept Determines promotional mix
Establishes the budget
Allocates resources
Coordinates the campaign
Supervises outside resources
Measures the results
Determining the budget can be difficult
It is the % of sales

30. The Push-Pull Concept Push Policy
Manufacturer pushes product to the retailer
Involves personal selling and sales promotion – trade shows
Pull Policy
Directs promotion towards consumers
Create consumer interest and demand
Involves advertising to consumers – premiums & samples

31. The Promotional Mix Types of Promotion in the Promotional Mix
Put the number of users and nonusers in the appropriate spaces on the graphic organizer. Why or why not do you use these sites?

32. Develop a Promotional Mix
The Promotional Mix
The Concept of Promotional Mix
Discuss the Six Steps of the Promotional Mix
Develop a Promotional Mix

33. Section 17.2
Types of promotion

34. Sales Promotion definition
Incentives that encourage customers to buy products or services
Build brand awareness
Encourage customers to try new products
Increase purchases by current customers
Reward customer loyalty

35. Types of Promotion Sales Promotions
Sales promotions are usually supported by advertising activities that include trade promotions and consumer promotions.

36. Trade promotions
Sales promotion activities designed to get support for a product from manufacturers, wholesalers, and retailers
More money is actually spent on promoting to businesses than to consumers
Good business ethics require that trade promotional payments and awards be offered in uniform manner.

37. Types of Promotion Sales Promotions Trade Promotions
Promotional Allowances
Cooperative Advertising
Slotting Allowances
Sales Force Promotions
Trade Shows and Conventions

38. Types of Trade Promotions 1. Promotional Allowances
Represent cash payments or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales

39. 2. Cooperative Advertising
Manufacturer supports the retailer by helping to pay for the cost of advertising it product locally
Known as cooperative advertising

40. 3. Slotting Allowances
A cash premium paid by a manufacturer to a retailer to help the retailer cover the costs of placing the manufacturer’s product on the shelves
Range from a few thousand dollars to several million dollars per product
Also pay retailer’s discount specials, charge for store shelves, penalties for poor sales, store advertising and display costs

41. 4. Sales Force Promotions
Awards given to dealers and employees who successfully meet or exceed a sales quota
Sales force promotions vary, but can include bonuses or prizes such as merchandise awards or travel awards.

42. 5. Trade Shows and Conventions
Showcase a particular line of products
Introduce new products, encourage increased sales of existing products & meet customers and partners in distribution

43. Consumer Promotions
Sales strategies that encourage customers and prospects to buy a product or service
Consumer promotions support advertising, personal selling and public relations efforts

44. Types of Consumer Promotions 1. Coupons
Certificates that entitle customers to cash discounts on goods or services
Placed inside product packages or in newspapers / magazines

45. 2. Premiums
Low-cost items given to consumers at a discount or for free
Designed to increase sales by building product loyalty & attract new customers

46. 2. Premiums
Fundamental concept behind premium marketing is that people will be more motivated to buy a product when they are offered an added value gift in exchange
Three types of premiums
Factory Packs
Traffic Builders
Coupon Plans
Drawback – customers think premiums are disposable

47. Three Different Types of Premiums and Descriptions
Types of Promotion
Sales Promotions
Three Different Types of Premiums and Descriptions

48. 2. Premiums
Factory Packs, or in-packs, are free gifts placed in product packages or as a container premium
Popular with cereal manufactures
Traffic Builders – low cost premiums such as pens, key chains, pocket calendars, and coffee mugs
New store or special event
Coupon Plans – ongoing programs offering a variety of premiums in exchange for labels or coupons obtained from a product
Ex – Send 3 soup labels in to manufacturer to receive a cookbook

49. 3. Deals
Deals or price packs offer short-term price reductions that are marked directly on the label or package
Deal might “bundle” two-related products together, such as free wing chair with purchase of sofa

50. 4. Incentives
Are higher-priced products, awards, or gift cards that are earned and given away through contests- games of skill; sweepstakes-games of chance; and rebates.
Create customer excitement & increase sales

51. 5. Product Samples
A free trial size of a product sent through the mail, distributed door-to-door, or given away at retail stores and trade shows

52. 6. Sponsorship
Company pays a fee for the right to promote itself and its products or services at or on a set location
Negotiate the right to use logos and names on retail products

53. 7. Promotional Tie-Ins, Cross-Promotion, Cross-Selling
Cross-promotion and cross-selling campaigns
Activities include sales promotional arrangements between one or more retailers or manufacturers
They product mutually
beneficially results

54. 8. Product Placement
A consumer promotion that involves using a brand-name product in a movie, television show, sporting event, or even in a commercial for another product +

55. 9. Loyalty Marketing Programs
Also called frequent buyer programs, reward, or frequent shopper programs reward customers by offering incentives for repeat purchases
Frequent flyer promotions
Customer loyalty means that customers are so satisfied with a brand or retailer that they continue to buy that brand or patronize that retailer

56. 10. Online Loyalty Marketing
Online versions of loyalty marketing programs
Internet search engine award points

57. 11. Point-of-purchase displays
Displays designed primarily by manufacturers to hold and display their products
High traffic area and promote impulse purchases
Kiosks – web based or display screens that customers can use to interact with sales staff

58. Examples of Each Type of Consumer Promotion
Types of Promotion
Sales Promotions
Examples of Each Type of Consumer Promotion

59. Examples of Different Types of Sales Promotions
Types of Promotion
Examples of Different Types of Sales Promotions