What is Promotion?

1. What is Promotion? AIDA, Pull and Push Strategies

2. Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. The Role of Promotion Promotion

3. A plan for the optimal use of the elements of promotion: • Advertising • Public Relations • Sales Promotion • Personal Selling Promotion Strategy Promotional Strategy Creates Competitive Advantage!

4. High product quality Rapid delivery Low prices Excellent service Unique features Competitive Advantage

5. Informing Reminding Target Audience Persuading Goals and Tasks of Promotion

6. Informing Reminding Target Audience PLC Stages: Introduction Early Growth PLC Stages: Maturity Persuading PLC Stages: Growth Maturity Goals and Tasks of Promotion

7. Reminder Promotion (during maturity) • Remind customers that product may be needed • Remind customers where to buy product (which one to buy) • Maintain customer awareness Goals and Tasks of Promotion

8. What is AIDA? Attention Interest Desire Action

9. The AIDA Concept AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. Attention Interest Desire Action

10. Attention Must attract the attention of the consumer Ask a question – ie: Acne got you down? What would you do for a Klondike bar? Offer something for free Say something shocking or startling Flatter the receiver – ie: Because you’re worth it

11. Interest You must activate interest in your product. You can do this by providing information. 1)A description of the product 2) Demonstrations, fashion shows, displays 3) Activate the need in the customer - Maslow Let’s try a few ourselves:

12. Desire Now that the potential customer feels that he or she has a need, the promotion must create desire and demand. The product can be offered as a way to satisfy the need. Can use free samples, coupons and rebates to encourage customers to try the product – Sales Promotions

13. Action Need to motivate your customer to buy your product. "Call to Action" "Call now to purchase this item" "buy now, while supplies last"

14. Evaluation We will start from here on Tuesday. Critical part of developing effective promotional strategies. Customer feedback cards Surveys follow-up phone calls, thank you cards

15. Pull vs. Push Strategies Pull Strategy - focuses on the consumers. If the consumer cannot find an advertised product, they will ask the retailer for it. With enough consumer demand, the product will be pulled through the distribution channel to the retailer.

16. Pull vs. Push Strategy Push Strategy - focuses on promoting products to the members of the distribution channel. ex. a wholesaler might convince a retailer to buy a large supply of an item.

17. PUSH STRATEGY Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer Consumer buys from retailer Orders to manufacturer PULL STRATEGY Manufacturer promotes to consumer Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer Orders to manufacturer Push and Pull Strategies

18. Homework! We will go over Sales Promotions tomorrow, so do not do this part of the summative. Remember summative is due Monday June 16!