Business and Marketing Unit 6: PROMOTION 2 nd Semester Mr. Schurig
Transition 17-1 With groups of 2 to 4: –Share and list the most interesting or outrageous stories you have witnessed or heard from a company promoting a new product. –In your opinion, did the technique work? –Explain your answers –Title: Marketing Transition 17-1 –Save Word document as: Marketing-transition 17-1-filastname –Be prepared to share with the class
Sec. 17.1 – Promotion and the Promotion Mix The role of promotion in marketing The concept of promotional mix The characteristics of personal selling and advertising The nature and scope of publicity What you’ll learn
Promotion Any form of communication a business or organization uses to inform, persuade, or remind people about its products
Product Promotion Used to convince customers to buy your products instead of those of the competition
Institutional Promotion Used by a business to create a favorable image for itself
Promotional Mix – a combination of the different types of promotion Personal Selling Advertising Direct marketing Sales promotion Public relations
Personal Selling Any form of direct contact occurring between a salesperson and a customer
Advertising Any paid form of non- personal presentation and promotion of ideas, goods, or services by an identified sponsor –Nationally, businesses spend about $200 billion annually on various types of advertising
Direct Marketing A type of advertising directed to a targeted group of prospects and customers rather than to a mass audience. –Printed direct mail, sent via regular mail to a home or business –Electronic direct mail It’s goal is to generate sales or leads for sales representatives to pursue
Sales Promotion All marketing activities, other than personal selling, advertising, and public relations, that are used to stimulate consumer purchasing and sales effectiveness
Public Relations and Publicity Public Relations – any activity designed to create a favorable image toward a business, its products, or its policies
PR Specialists Write News Releases -- a prewritten story about a company that is sent to the various media
Writing News Releases First paragraph should answer Who, What, When, Where, and Why questions. Develop important facts in next few paragraphs. Less important information can follow but should be edited. Include the full name and position of any people mentioned. Include the name, address, and phone number of the contact person. Be brief – only one or two pages. “###” at the bottom of the last page signifies the end.
Public Relations and Publicity Publicity – a specific kind of public relations that involves placing positive and newsworthy information about a business, its products, or its policies in the media.
Because it is free, business often has the least control over publicity To see positive publicity about Hogle Zoo, click on the baby Orangutan. To see negative publicity abut Hogle Zoo, click on the elephant http://www.signonsandiego.com/uniontrib/20050503/news_1m3wankie.html http://www.deseretnews.com/article/600132516/Zoo-goes-ape-over-baby.html
Coordination of Promotional Mix Most businesses use more than one type All types of promotion must be coordinated Must consider the promotional budget
Transition 17-2 With groups of 2 – 4: –Brainstorm and list some of the types of promotions you encounter: Discounts, coupons, gifts, free offers, etc. 1.How do these affect your buying decision? 2.How does the promotion affect your feelings toward the business? 3.Would you be likely to buy from that business without a promotion? Save as: Marketing-promotions 17-2-filastname 755
Sec. 17.2 – Types of Promotion The characteristics of sales promotion The concept of trade promotions The different kinds of consumer sales promotions What you’ll learn
Sales Promotion Incentives that encourage customers to buy products or services
Trade Promotions – Designed to gain manufacturers’, wholesalers’, and retailers’ support for a product
Types of Trade Promotions Promotional Allowances – a cash payment or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales.
Types of Trade Promotions Cooperative Advertising – A manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.
Types of Trade Promotions Slotting Allowances – a cash premium paid for placing a product on a retailer’s shelves
Types of Trade Promotions Sales Force Promotions – awards given to managers and employees who successfully meet or exceed a sales quota.
Types of Trade Promotions Trade Shows and Conventions The Consumer Electronics Show is held annually in Las Vegas. Check it out by clicking on the image.
Consumer Sales Promotions – designed to encourage customers to buy a product
Types of Consumer Promotion Coupons – certificates that entitle customers to cash discounts on goods or services.
Types of Consumer Promotion Premiums – low-cost items given to consumers at a discount or for free – Should: –be low-cost –provide added value –negate the target audience’s price issue –effectively differentiate the product from the competition –create an immediate need to buy
Types of Premiums Factory packs (in-packs) – free gifts placed in product packages
Types of Premiums Traffic builders – pen, calendar, key- chain given free for visiting or attending event
Types of Premiums Coupon plans – ongoing program offering a premium in exchange for labels, coupons or other tokens from one or more purchases.
Incentives – generally higher- priced products earned and given through contests, sweepstakes, and rebates Contests – activities that require demonstration of a skill Sweepstakes – game of chance
Incentives Rebates – discounts offered to customers who purchase
Product Samples Free, trial-size sample Distributed through mail, door-to- door, or at a retail or trade show Especially important with new products
Sponsorship The sponsoring company pays a fee for the right to promote itself and its products or services at or on a set location May negotiate the right to use logos and names on retail products
Promotional Tie-In Involves arrangements between one or more retailers or manufacturers. Ex: McDonald’s and Fisher-Price Toys
Product Placement Featuring a product at a special event, on television, or in the movies Click on the “Pieces Icon” to learn about the history of product placement.
Loyalty Marketing Programs Frequent buyer programs Reward customers for making multiple purchases
Point-of-Purchase Displays Placed in high- traffic areas and promote impulse purchases.
Class Work & Home Work 17-2 Textbook: –Page 375, 1 – 4 –Page 377, 22 – 24 Workbook: –Page 141 - 142 Save as: Marketing-CW 17-2-filastname Chapter 17 Activity Packet and Quiz