2 PromotionAny form of communication a business or organization uses to inform, persuade, or remind.
3 Why is Promotion Important? 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 thePromotional Mix
4 What is the Promotional Mix? The promotional mix is a combination of the different types of promotion.Four basic types of promotion:AdvertisingPublic Relations/PublicityPersonal SalesSales Promotion
5 1. AdvertisingAdvertising is any paid form of non-personal promotion of ideas, goods, or services. Advertising can be found anywhere from magazines, TV, internet, or 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 - 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 SalesPersonal sales are when individuals make contact with potential buyers face-to-face to promote their business, products, or policies.
8 4. Sales PromotionSales promotion represents all marketing activities other than the three already mentioned, like:ContestsFashion showsCouponsUsed to stimulate consumer purchase immediately
9 Factors affecting the promotional mix: TechnologyEconomyMarketDistribution
10 Match the examples below to one of the 4 strategies in the promotional mix: (advertising, publicity, personal sales, sales promotion)2. Insurance sales4. Coupon1. TV Commercial3. News release6. Fashion Show5. contest7. Home Tupperware Party7. Magazine Ad
11 Answers to Matching 1. Advertising (one-way paid communication) 2. Personal sales3. Publicity4. Sales Promotion5. Sales Promotion6. Sales Promotion7. Advertising8. Personal Sales
12 Advertising Advantages Disadvantages Allows large number of people to see the advertised messageCan’t focus on individual needsCan be controlledCan be too expensive for many businessesCan have repeat viewersCan be inefficient (short coverage of billboards & magazines)Can pre-sale products before customers go shopping
13 Public Relations/Publicity AdvantagesDisadvantagessave a business money by extending it’s advertising budgetMay not be accurate or presented in the way or time that will reach the right audienceCan increase a business’ profit and exposureCan be negative or harmful to the businessLack of control of content
14 Personal Sales Advantages Disadvantages Personalized to individual customersMost expensive form/per saleLargest form of promotionHas slower distribution/coverage compared to advertisingEasier for personal sales to focus on target market and complete the sale
15 Sales Promotion Advantages Disadvantages Variety of activities Short term incentivesIncludes many different marketing activities to stimulate consumer interest including business to business promotionsCan 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 Premiums – low cost items given to customers Incentives – generally products earned through contest, sweepstakes, and rebatesProduct Samples –in store or by mailProduct tie-in’s or co-operative advertising- cost sharing arrangement whereby both a supplier and advertiser pay for advertising & promo
19 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. Display refers to the artistic and visual aspects used to present a product.Loyalty Programs –frequent buyer rewards
20 Coupons - a ticket or document that can be exchanged for a financial discount or rebate when purchasing a productPoint of Purchase - may be a physical location, such as a store, booth, or other retail outlet; or it may consist of an electronic sales environment such as a telephone-based ordering service or a website.
21 How can using multiple strategies together reinforce each other and the product in a promotional mix?