Transcript What is Promotion? - Lindbergh School District

What is Promotion?
Any form of communication a business uses
to inform, persuade, or remind people about
its products and improve its public image and
attract potential customers
Role of Promotion
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Product promotion (convince customers to
buy their product vs. competitor)
 explain major features and benefits
 tell where products are sold
 advertise sales
 answer customer questions
 introduce new products
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Institutional Promotion (create favorable company
image)
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Help advocate change
Take a stand on trade on community issues
Concept of Promotional Mix
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1. Use more than one
Personal Selling
type of promotion to
Advertising
reach goals
Direct Mailing 2. Each type is designed
to compliment the
Sales Promotion
others
Publicity
3. All must be
coordinated
4. Creation of a
promotional budget
Types of Promotion
Advertising-any paid form of nonpersonal
presentation and promotion of ideas,
goods, or services by an identified
sponsor
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Three features
1. The time or space devoted to it is paid
for
2. It uses a set format to carry the message
rather than one-to-one selling
3. It identifies the sponsor of the message
1. Advertising
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Advantages
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large number of people see message
cost per potential customer are low
can choose appropriate media for target audience
can control content and adapt it to the media
used
Subject to repeat viewing
Presell product (make-up consumers mind before
they shop
Advertising
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Disadvantages
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Cannot focus well on individual needs
Some forms are too expensive (TV)
Sometimes it is wasteful and ineffective
Often advertisements must be brief due to cost
and the need to attract and hold customer
attention
2. Direct Mailing
Advertising directed to targeted group
of prospects and customers rather than
to a mass audience.
Two forms:
 Printed direct mail
 E-direct mail
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Direct Mail
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Objective is to generate sales or leads for
sales representatives to pursue.
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Target customer to generate a response through
coupon, special offer or discount
An incentive to respond by visiting store or
website, call number or send email
Advantage is one-communication with
customer on promotion
Disadvantage is consumer complaints on junk
3. Publicity
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Involves placing newsworthy info about a company,
product, or person in the media
Principle function is to build an image
Right kind of publicity can create a positive image and
maintain or improve that image in the community
Publicity is free & the audience for news is huge and
news is well respected source
No control over message, or when & how presented,
sometimes it is negative
4. Sales Promotion
all marketing
activities other
than personal
selling, advertising,
and publicity used
to stimulate
consumer
purchasing and
sales effectiveness
Sales Promotion
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Three characteristics
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It usually involves short term activities
It usually offers some type of incentive to make a
purchase
It can be used successfully in all channels of
distribution
Objectives: increase sales, inform customers
about new products, create a positive store
or corporate image
A. Trade Promotions
1.
2.
3.
4.
Slotting allowance- cash
premium paid to a retailer for
the costs involved in placing
a new product on the shelf
Buying allowance-special
price discount
Trade shows and conventions
Sales incentives-awards
given to employees who
meet or exceed a set sales
quota
B. Consumer Sales Promotions
5.Promotional Tie-Ins-promotion
involving two or more companies
6.Online loyal marketing programs
7.Premiums and incentives
 Premiums-Low cost items
given away for free to
consumers as a condition of
purchase
 Incentives-sweepstakes,
contests, rebates, & coupons
Consumer Sales Promotions
8.Visual Merchandising &
Displays
9.Sponsorship
10. Product samples-free
trial size
11.Licensing-agreement to
pay a fee to use a
company’s logo,
trademark, etc to
promote products
12. Product Placement
5. Personal Selling
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Advertising, publicity, and sales
promotion are nonpersonal selling
Two type of personal selling
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Order-taking personnel (cashiers, counter
clerks, & sales associates)
Order-getting personnel (professional
salespeople
Personal Selling
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Designed to
complete a sale
once a customer
has been
attracted to a
business
Most flexible of
all promotion
Personal Selling
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Disadvantages
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can only help one
person at a time
employees must
completely
understand the
selling process and
be well trained
High cost