Objectives • Define promotion • Define promotional mix • Define and discuss the elements of the promotional mix
What is Promotion? • Promotion- involves all communication activities that inform potential consumers about the existence of goods, services, or ideas and persuades them to buy
Promotional Mix • Promotional Mix- the most effective combination, or blend, of the marketing communication channels that a business uses to send its messages to consumers.
Advertising Reaches large, geographically dispersed audiences High frequency Low cost per exposure Consumers perceive advertised goods as more genuine Builds brand image Stimulates short-term sales Impersonal, one-way communication Expensive
Personal Selling • Most effective for building buyers’ partiality, confidence, and persuading action • Personal contact allows for feedback • Relationship building • Customers are more attentive • Sales force represents a long-term commitment (training) • Most expensive of the promotional tools
Public Relations • Highly credible non personal • Many forms: news stories, features, events & sponsorships, etc. • Reaches many prospects • Dramatizes company or product • Often under used • Relatively inexpensive (certainly not 'free' as many people think--there are costs involved) • Uncontrollable most times
Sales Promotion • May be targeted at the trade or ultimate consumer • Makes use of a variety of formats: premiums, coupons, contests, etc. • Attracts attention, offers strong purchase incentives • Boosts sagging sales • Stimulates quick response • Short-term • Not effective at building long-term brand loyalty
Visual Merchandising Increases awareness Informs and educates customers of use and combinations of products. Can be used in store, trade shows and outdoor. Varies in cost Dependent upon location/traffic