Transcript Terms You Should Already Know from MKT PRIN

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Direct Marketing - Directed to a
targeted group of customers rather
than to a mass audience.
◦ Either mailed or emailed.
◦ Usually gives a special offer or gift for
responding.
◦ Usually asks a customer to call a toll-free
number, return a form, or send an email in
return for something “special.”
◦ Generates leads for sales people.
◦ CAN-SPAM act of 2003 states that you
must give an email recipient a way to opt
out of future emails and you must not use
deceptive subject lines.
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Institutional Promotion – Helps create
a favorable image for a company or
help it take a stand on a community
issue.
Product Promotion – Convinces
prospects to select it’s product or
service instead of a competitor’s
brand.
Personal Selling - Engaging in 2-way
selling process through personal
interactions.
 Meetings
 Telemarketing
 Email
 Correspondence
 Very Costly!
Advertising – Non-personal promotion.
 Companies pay to promote goods,
services, and ideas to the public.
 TV, magazine, newspaper, radio,
online, mobile, transportation
marketing, etc.
Public Relations
 Creating a favorable image for a
company or a product.
 News releases are often sent to the
media as a form of PR
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Answers the 5 W’s
Has a compelling headline
Has contact info
For further info…
Most PR professionals create publicity
for a company
A publicity campaign generates a
positive perception or awareness of an
organization.
PR is usually free!
News anchors and publications are seen
as more credible
Disadvantage – you can’t control
negative publicity and what is said about
you!
Push Policy
 Used only with the next partner in
the distribution channel
 A manufacturer uses a mix of
personal selling, advertising, and
buying discounts.
 This is known as PUSHING the
product to the retailer.
 It’s purpose is to convince the retailer
to stock the items offered by the
manufacturer.
 Relies heavily on trade shows
 Very good for products that have not
created a strong brand identity yet!
Pull Policy
 Directs promotions towards
consumers (not retailers).
 Designed to create consumer
demand through local/national
advertising, in-store displays, sales
promotions, and public relations.
 Consumer demand can PULL or
encourage retailers to stock certain
items being promoted.
 Relies heavily on advertising,
premiums, samples, and
demonstrations.
 BOTH types of policies are usually
used.
Trade Promotions
Consumer Promotions
Promotional Allowances
Coupons
Cooperative Advertising
Premiums
Slotting Allowances
Deals
Sales Force Promotions
Incentives
Trade Shows/Conventions
Product Samples
Sponsorship
Promotional tie-ins, cross-selling
Product Placement
Loyalty Marketing Programs
Online Loyalty Marketing
POP Displays
Create something like this in WORD
and fill it out as we review.
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Fill out your chart and write any
Notes you need on this Power
Point (or in Word – your choice)
Questions to ask when determining
a promo mix
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What are the features and benefits of your product?
Who is your primary and secondary target market?
What are your resources (what is your budget) and
objectives/policies (sales goals, is anything “off limits”?)
Do you have enough people to fulfill orders WHEN this
promotional plan generates an abundance of orders?
Given the budget amount from question 3, determine if
there are any promo types that are too costly? Are there
any that are unavailable at the time the client wishes to
use them? When should you promote more heavily
throughout the year?
Would you like to give incentives to retailers while also
advertising to the general public?
What is the main message you wish to get across in your
promotional efforts?
Can I see past examples of your promotional efforts?
Did these past efforts work? Why or why not?
Example
 Advertising and direct marketing
create awareness.
 PR cultivates a favorable image
and brand recognition
 Sales promotional activities
stimulate sales and supports
selling activities.
 Personal selling builds
relationships and completes the
sale.
Provide examples of how businesses have demonstrated the role
of promotion in their companies using the following categories:
Role of Promotion
To explain the features and
benefits of a product or
service
Advertise sales and inform
customers of where products
are sold
Introduce new products,
services or other offerings
Answer questions customers
may have about the company
and its products or services
Create a favorable image for
the company
Make a stand for a social
cause or issue
Help advocate for change
Example of Company
demonstrating that role
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Premiums – DECA would like to
increase its sales of clothing in
the Devils’ Den. What type of low
cost premiums can be offered to
achieve this objective? Assuming
100 of the premium items must
be purchased, how do you know
if it is worth it to offer the
premium?
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Research the latest trends in
sales promotions and create a
short presentation using the
media of your choice.
The presentation will include
elements from exercise D as well.
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Create a promotional calendar for
Devils’ Den that incorporates all
elements of the promotional mix