Transcript What is Promotion? There are four basic types of promotion: 1

What is Promotion?
There are four basic types of
promotion:
1) Advertising 2) Sales Promotion
3) Personal Selling 4) Publicity
Promotion is any form of communication a business or
organization uses to inform, persuade, or remind people
about its products and improve its public image.
Product Promotion:
1) Explains the major features and benefits
of its products (especially in relation to competitors),
2) tells where the products are sold,
3) advertises sales on those products,
4) answers customer questions, and
5) introduces new products.
http://www.target.com/c/movies-entertainment/-/N5xsx0#?lnk=gnav_electronics_9_40&intc=1399552|null
http://en.wikipedia.org/wiki/List_of_highest-grossing_films
Institutional promotion is used to create a favorable image for itself. It
does not directly sell a product.
What do you think is the intended result of institutional promotion?
Advertising is any paid form of non-personal
presentation and promotion of ideas, goods, or
services by an identified sponsor. Its three
distinguishing features are that
•the time or space devoted to it is paid for
•it uses a set format to carry the message
rather than personal one-on-one selling
•it identifies the sponsor of the message
Publicity involves placing newsworthy
information about a company, product, or person
in the media.
*The principal function of publicity is to
build an image.
Sales Promotion: All other marketing activities other than
personal selling, advertising, and publicity.
It has three unique characteristics:
1) It usually involves short term activities (as
opposed to advertising and publicity which ten to
be longer in length).
2) It usually offers some type of incentive to
make a purchase.
3) It can be successfully used in all channels of
distribution with manufacturers, wholesalers,
retailers, and consumers.
Sales Promotions can be either consumer or trade
oriented.
Types of Trade Promotions:
Slotting Allowances: A cash premium paid by the
manufacturer to the retailer for the costs involved in
placing a new product on its shelves. The allowance
covers the space, retailer’s cents-off specials, charges
for store shelves, penalties if the product does not sell,
and store advertising and display costs.
Types of Trade Promotions…..
Buying allowances: Price discount given by
manufacturers to wholesalers and retailers to
encourage them to either buy a product or
buy a larger quantity of a product.
Trade Shows and Conventions: Designed to
reach wholesalers and retailers.
Types of Trade Promotions…..
Sales Incentives: Awards given to managers and
employees who successfully meet or exceed their
company’s set sales quota for a particular product or
line of products.
Consumer Sales Promotions
Licensing: Organizations, such as
manufacturers, movie makers, sports
teams, and celebrities, may license for a
fee their logo, trademark, trade
characters, names and licenses, or personal
endorsements to a business to be used in
promoting the business’s products.
http://www.walmart.com/tp/licensed
Consumer Sales Promotions…
Promotional Tie-ins: Involve sales promotional
arrangements between one or more retailers or
manufacturers. They combine their resources to
do a promotion that creates additional sales for
each partner.
http://articles.latimes.com/2006/may/08/entertainment/et-mcdonalds8
http://www.redbookmag.com/kids-family/blogs/mom-blog/the-lorax-promotional-tie-ins-mazda
Consumer Sales Promotions…
Visual Merchandising and Displays: The
coordination of all physical elements in a
place of business so that it projects the
right image to its customers. The visual
and artistic aspects of presenting a
product to a target group of customers.
(window, floor, counter display)
Consumer Sales Promotions…
Premiums and Incentives: Designed to
increase sales by builing product loyalty
and attracting new customers. There are
four types of popular premiums:
•coupons
•factor packs, or in-packs (cereal boxes)
•traffic builders (pens, calendars)
•coupon plans (proof of purchase, soup
labels)
Consumer Sales Promotions…
Product Samples: A free trial size of a
product that is sent through the mail,
distributed door-to-door, or through
retail stores and trade shows.
Personal Selling: Is the most flexible and
individualized of the promotion devices
available to business. What are some
obvious disadvantages?
Promotional Mix: A combination of
different types of promotion.
Choose your own ADventure….
Teams of three