1. Promotional Concepts and Strategies

2. Promotion Any form of communication a business or organization uses to inform, persuade, or remind people about its products

3. Product Promotion Used to convince customers to buy your products instead of those of the competition

4. Institutional Promotion Used by a business to create a favorable image for itself –Example: Philip Morris

5. Promotional Mix – a combination of the different types of promotion Personal Selling Advertising Direct marketing Sales promotion Public relations

6. Personal Selling Any form of direct contact occurring between a salesperson and a customer

7. 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

8. 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

9. Sales Promotion All marketing activities, other than personal selling, advertising, and public relations, that are used to stimulate consumer purchasing and sales effectiveness

10. Public Relations and Publicity Public Relations – any activity designed to create a favorable image toward a business, its products, or its policies

11. 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.

12. 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

13. Coordination of Promotional Mix Most businesses use more than one type All types of promotion must be coordinated Must consider the promotional budget

14. Sales Promotion Incentives that encourage customers to buy products or services

15. Trade Promotions – Designed to gain manufacturers’, wholesalers’, and retailers’ support for a product

16. Types of Trade Promotions Promotional Allowances – a cash payment or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales.

17. Types of Trade Promotions Cooperative Advertising – A manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.

18. Types of Trade Promotions Slotting Allowances – a cash premium paid for placing a product on a retailer’s shelves

19. Types of Trade Promotions Sales Force Promotions – awards given to managers and employees who successfully meet or exceed a sales quota.

20. Consumer Sales Promotions Designed to encourage customers to buy a product

21. Types of Consumer Promotion Coupons – certificates that entitle customers to cash discounts on goods or services.

22. 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

23. Types of Premiums Factory packs (in-packs) – free gifts placed in product packages

24. Types of Premiums Traffic builders – pen, calendar, key- chain given free for visiting or attending event

25. Types of Premiums Coupon plans – ongoing program offering a premium in exchange for labels, coupons or other tokens from one or more purchases.

26. 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

27. Incentives Rebates – discounts offered to customers who purchase

28. Product Samples Free, trial-size sample Distributed through mail, door-to- door, or at a retail or trade show Especially important with new products

29. 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

30. Promotional Tie-In Involves arrangements between one or more retailers or manufacturers. Ex: McDonald’s and Kid Movies

31. Product Placement Featuring a product at a special event, on television, or in the movies http://www.youtube.com/watch ?v=AfAzUAxWELU

32. Television Commercial Vs. Product Placement (Based on actual TV show with 15 Million Viewers) QuestionTV CommercialProduct Placement Cost?$392,500 (US Only)$22,000 (20 Countries) Viewers?15 Million (US Only)120 Million (0ver 3 Years) % of Viewers Watching?8-10% (1.5 Million)100 % (120 Million +) Duration of Ad?1 Night1 to 40 Years Number of Times Shown?OnceHundreds of Times Number of Countries?120 Celebrities Use Product?NoYes Different Time Slots?NoYes Investment to Create CommercialYesNo Can the Celebrity Drink My Product? (Alcohol Products) NoYes

33. Visual Merchandising & Display Coordination or all products in a place of business so that the right image is projected to the customers

34. Loyalty Marketing Programs Frequent buyer programs Reward customers for making multiple purchases

35. Point-of-Purchase Displays Placed in high- traffic areas and promote impulse purchases.