1. What is Promotion? AIDA, Pull and Push Strategies

2. The Role of Promotion Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. Promotion

3. Promotion Strategy A plan for the optimal use of the elements of promotion:  Advertising  Public Relations  Sales Promotion  Personal Selling Promotional Strategy Promotional Strategy Creates Competitive Advantage!

4. Competitive Advantage Unique features Excellent service Low prices Rapid delivery High product quality

5. Goals and Tasks of Promotion Informing Reminding Persuading Target Audience Target Audience

6. Goals and Tasks of Promotion Informing Reminding Persuading Target Audience Target Audience PLC Stages PLC Stages: Introduction Early Growth PLC Stages: Growth Maturity PLC Stages: Maturity

7. Goals and Tasks of Promotion  Remind customers that product may be needed  Remind customers where to buy product (which one to buy)  Maintain customer awareness Reminder Promotion (during maturity)

8. A ttention What is AIDA? I nterest D esire A ction

9. The AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. A ttention I nterest D esire A ction A ttention I nterest D esire A ction AIDA Concept AIDA Concept

10. Must attract the attention of the consumer 1. Ask a question – ie: Acne got you down? What would you do for a Klondike bar? 2. Offer something for free 3. Say something shocking or startling 4. Flatter the receiver – ie: Because you’re worth it Attention

11. You must activate interest in your product. You can do this by providing information. 1)A description of the product 2) Demonstrations, fashion shows, displays 3) Activate the need in the customer - Maslow Let’s try a few ourselves: Interest

12. Now that the potential customer feels that he or she has a need, the promotion must create desire and demand. The product can be offered as a way to satisfy the need. Can use free samples, coupons and rebates to encourage customers to try the product – Sales Promotions Desire

13. Need to motivate your customer to buy your product. "Call to Action" o "Call now to purchase this item" o "buy now, while supplies last" Action

14. We will start from here on Tuesday. Critical part of developing effective promotional strategies. Customer feedback cards Surveys follow-up phone calls, thank you cards Evaluation

15. Pull Strategy - focuses on the consumers. If the consumer cannot find an advertised product, they will ask the retailer for it. With enough consumer demand, the product will be pulled through the distribution channel to the retailer. Pull vs. Push Strategies

16. Push Strategy - focuses on promoting products to the members of the distribution channel. ex. a wholesaler might convince a retailer to buy a large supply of an item. Pull vs. Push Strategy

17. Push and Pull Strategies Manufacturer promotes to wholesaler Manufacturer promotes to wholesaler Wholesaler promotes to retailer Wholesaler promotes to retailer Retailer promotes to consumer Retailer promotes to consumer Consumer buys from retailer Consumer buys from retailer PUSH STRATEGY Orders to manufacturer Manufacturer promotes to consumer Manufacturer promotes to consumer Consumer demands product from retailer Consumer demands product from retailer Retailer demands product from wholesaler Retailer demands product from wholesaler Wholesaler demands product from manufacturer Wholesaler demands product from manufacturer Orders to manufacturer PULL STRATEGY

18. We will go over Sales Promotions tomorrow, so do not do this part of the summative. Remember summative is due Monday June 16! Homework!