Transcript Promotional mix

SECTION 17.1
The Promotional Mix
Marketing Essentials
n Chapter 17 Promotional Concepts and Strategies
Section 17.1 The Promotional Mix
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17.1 ASSIGNMENT
SECTION 17.1 The Promotional
Mix
Ch 17.1 Assessment
Pg. 304 # 1-5
DUE: Now
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SECTION 17.1
The Promotional Mix
What You'll Learn
 The role of promotion in marketing
 The concept of promotional mix
 The characteristics of personal selling and
advertising
 The nature and scope of publicity
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SECTION 17.1
The Promotional Mix
Why It's Important
Since businesses must continually promote
their organizations, products, and policies to
gain customer acceptance, you will need to
learn successful promotional strategies.
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SECTION 17.1
The Promotional Mix
Key Terms
 promotion
 sales promotion
 promotional mix
 public relations
 product promotion
 publicity
 institutional promotion
 push policy
 advertising
 pull policy
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SECTION 17.1
The Promotional Mix
The Concept of the Promotional Mix
Promotion is any form of communication a
business or organization uses to inform,
persuade, or remind people about its products.
Promotional mix is a combination of the
different types of promotion. A business
decides on the promotional mix that will be
most effective in persuading potential
customers to purchase its products.
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SECTION 17.1
The Promotional Mix
The Concept of the Promotional Mix
A business uses product promotion to
convince potential customers to buy its
products instead of buying from a competitor.
Institutional promotion is used by
businesses to create a favorable image for
themselves, as opposed to promoting specific
products or services.
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17.1 Graphic Organizer
SECTION 17.1 The Promotional
Mix
Elements of the Promotional Mix
Four Basic Types of Promotion
1. Personal
Selling
2. Advertising
3. Sales
Promotion
4. Public
Relations &
Publicity
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SECTION 17.1
The Promotional Mix
Types of Promotion
1. Personal Selling
- one of the largest forms of
promotion
- designed to complete a sale
once a customer is attracted to
a business
- one of the most expensive
forms of promotion
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SECTION 17.1
The Promotional Mix
Types of Promotion
2. Advertising
- any paid form of nonpersonal
presentation and promotion of
ideas, goods, or services by an
identified sponsor
- American businesses spend
about $200 billion each year on
advertising.
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SECTION 17.1
The Promotional Mix
Types of Promotion
3. Sales Promotion
- includes everything but personal selling,
advertising, and public relations
- used to stimulate consumer purchasing and
sales effectiveness
- increase sales
- inform customers about new products
- create a positive store or corporate image
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SECTION 17.1
The Promotional Mix
Types of Promotion
4. Public Relations
- any activity designed to create a favorable
image of a business, its products, or its policies.
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SECTION 17.1
The Promotional Mix
Types of Promotion
Publicity - a specific kind of public relations that
involves placing positive newsworthy information about
a business in the media
Advantages
Disadvantages
- much cheaper
- companies cannot
than advertising
control negative publicity
- a mention on the news
- can be subjective info
is more likely to be
depending on the
regarded as objective
reporting organization
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SECTION 17.1
The Promotional Mix
Coordination of the Promotional Mix
- Most businesses use more than one type
of promotion
- Each type of promotion is designed to
complement one another
- National advertising is accompanied with
local advertising
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SECTION 17.1
The Promotional Mix
Promotional Budget
In large companies, the marketing
department
-establishes a promotion budget
-allocates resources
-coordinates the campaign
-determines the right promotional mix for the
company
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SECTION 17.1
The Promotional Mix
Promotional Budget
In smaller businesses, these
responsibilities
-rest with the owner-operator
-are divided among employees
-contracted to outside agencies
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SECTION 17.1
The Promotional Mix
The Push-Pull Concept
A push policy is used to convince a
retailer to stock the products being
promoted, pushing the product to the
retailer. A push strategy relies heavily on
personal selling and promotion at trade
shows.
A pull policy is designed to create
consumer interest, pulling consumers to
the product.
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17.1 ASSIGNMENT
SECTION 17.1 The Promotional
Mix
Worksheet – Ch 17 Sales Promotion
Extra Credit
- Bring in an example of one of the four
areas of the promotional mix.
- Attach explanation of the form of promotion
being used.
- Give a short presentation to the class.
Up to 5 points EC
Homework – Ch 17 Fact & Idea Review
Pg. 316 # 1- 8
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SECTION 17.1
The Promotional Mix
Marketing Essentials
End of Section 17.1
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