Presentation on theme: "Promotional Concepts & Strategies"— Presentation transcript:
1 Promotional Concepts & Strategies Answer the following three questions:What unique promotional activities have you observed recently?Identify at least three!How do promotional activities influence your purchases?In your opinion, what is the most effective form of promotion? Why?
2 Promotion in Marketing Promotion is any activity that helps in the exposure or sale of a productExamples?The goals of promotional activities are AIDAAttention – first attract attentionInterest – then build interestDesire – then build desireAction – ask for action!
3 Promotion in Marketing Product promotion is a promotional method used by businesses to convince prospects to select their goods/services instead of a competitor’s brandsPromotional activities attempt to:Explain major features and benefits of the productIdentify where it is soldAdvertise salesAnswer customer questionsIntroduce new offeringsFoster good relations with existing customers
4 Promotion in Marketing Institutional promotion is a promotional method used to create a favorable image for a business, help it advocate for change, or take a stand on trade or community issuesInstitutional promotion includes:Company websitesActivities to build goodwill or enhance reputationFoster a favorable image for the company
5 Promotional MixPromotional mix is the combination of personal selling, advertising, direct marketing, sales promotion, and public relations strategies to reach company goals
6 Promotional Mix Personal Selling Requires sales representatives to generate and maintain direct contact with prospects and customersDirect contact can include:Personal meetingsIn-home demonstrationsTelephone conversationsIs one of the most expensive forms of promotion
7 Promotional Mix Advertising BillboardsBusiness cardsA form of non personal promotion in which companies pay to promote ideas, goods, and servicesBrochuresInternetMagazinesWhere is advertising found?NewspapersPhone directoriesEverywhere!Grocery store receiptsRadioTelevisionSports arenasCars and busesRestaurant menusWebsites
8 Promotional Mix Direct Marketing A type of promotion that companies use to address individuals directly and not through a third party medium (TV, radio, internet)Examples or direct marketing include:Direct mailTelemarketingE-marketingThe goals of direct marketing are to generate sales or leads for sales representatives to pursue
9 Promotional Mix Sales Promotion Represents all marketing activities—other than personal selling, advertising and public relations—that are directed at business or retail customers to boost salesSales promotions include:CouponsMoney-off promotionsCompetitionsProduct samplesPoint-of-purchase displaysThe objectives of sales promotions are to increase sales, inform potential customers about new products, and create a positive business or corporate image
10 Promotional Mix Public Relations PR activities help an organization to influence a target audiencePR campaigns try to influence general opinion and create a favorable public imageExamples?Publicity involves bringing positive news or newsworthy information about an organization to the public’s attentionAdvantages/Disadvantages?
11 OEHS Image Activity In a small group (no more than 3 per group): Step 1: Brainstorm and discuss ideas for creating a better institutional image for OEHSStep 2: Create a public relations campaign centered around one (or more) of the items generatedYou may want to consider or includeA news release (see page 398 for an example)The use of social mediaTypes of publicity or placementAll materials created, including brainstorm list, should be submitted for assessment
12 Developing a Promotional Mix Figure 17.2Page 400Develop a Promotional Mix
13 Types of Promotion Activity Team Activity (5 members per team)Create a business that sells products to high school studentsAssign each member to one of the types of promotionEach member should develop ideas for a promotional mixReport your “plan” using a post-it noteNote: Be sure to identify your business and product!
14 The Push-Pull ConceptPush Policy is a type of promotion in which manufacturers use a mix of advertising, personal selling, and trade discounts with partners in the distribution channel to “push” the product through to the retailerPull Policy a type of promotion by manufacturers that directs promotional activities toward consumersExamples are advertising, in-store displays, demonstrations, etc.
15 Sales PromotionSales promotions are incentives that encourage customers to buy products or servicesBuild brand awarenessEncourage customers to try a new productIncrease purchases by current customersReward customer loyaltyInclude trade and consumer promotions
16 Trade PromotionsTrade promotions are sales promotions designed to get support for a product from manufactures, wholesalers, and retailersMajor trade promotions include:Promotional allowanceCooperative advertisingSlotting allowancesSales force promotionsTrade shows and conventions
17 Consumer PromotionsConsumer Promotions are sales strategies that encourage customers and prospects to buy a product or serviceExamples?CouponsPromotional Tie-InsPremiumsProduct PlacementDealsIncentivesProduct SamplesSponsorshipsPoint-of-Purchase DisplaysLoyalty Marketing ProgramsOnline Loyalty Marketing Programs