Transcript Promotion and promotional Mix

CHAPTER 17
Promotion
any form of communication a
business or organization
uses to inform, persuade, or
remind people about its
products or improve its
public image
Promotional Mix
the combination of the
different types of promotion
a business or organizations
uses to promote its products
Product Promotion
Institutional Promotion
used to convince potential
customer to buy their
products instead of buying
from a competitor
used by a business to create a
favorable image for itself,
as opposed to promoting a
product or service
• Identifies where it is sold
• Advertises product sales
• Answers consumer
questions
• Introduces new offerings
• Does not directly sell a
certain product, but a
favorable image will likely
increase sales for a company
Five basic categories of promotion
• Personal Selling
• Advertising
• Direct Marketing
• Sales Promotion
• Public Relations
Requires that a company employ sales representatives
who generate and maintain direct contact with
prospective and existing customers
- costliest
form of promotion
Typically comes after, or as a result of, other promotional
activities
Can take the form of
• Personal meetings
• Telemarketing
• E-mail contact
Any paid form of non-personal promotion of
ideas, goods, or services by an identified
sponsor
Companies pay to promote goods or services
through a variety of media outlets
• Magazines
• Newspapers
• Television
• Web sites
• Billboards
• City buses
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Directed to a target group rather
than the masses
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Goal is to generate leads for sales
team to pursue
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Usually includes special offers,
delivery terms or merchandise – an
incentive to follow up
Two forms
• Print – sent through the regular mail
• Electronic – sent over e-mail
Represents all marketing
activities – (other than
personal selling, advertising,
and public relations) - that are
used to stimulate sales
Objectives
increase sales
inform potential customers about
new products
create a positive image
• Example - In store sale signage
and coupons
Public Relations
any activity designed to create a favorable image
toward a business, its products, or its policies
• Builds brand awareness and loyalty
Publicity
specific type of public relations that involves bringing
news worthy information about a company to the
public’s attention
It differs from advertising because it is FREE
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News coverage
Charity events
Contests
Strategies chosen for the mix are
designed to compliment each other
and reach a specific goal
For Example
• Advertising and direct marketing create
awareness of a product
• Public relations and publicity cultivate a
favorable image and brand recognition
• Sales promotions stimulate sales and
reinforce advertising
Push Policy
Promotional mix developed for
Pull Policy
Promotional mix developed to
the next partner in the
reach the consumer
distribution channel
Manufacturer  Consumer
Manufacturer  Retailer
Pushing them to carry the
product in their store
• EX - personal selling,
buying discounts, trade
shows
Consumer demand can pull or
encourage the retailer to carry
the product being promoted
• EX - National advertising, In
store displays and sales
promotions