Promotional Concepts and strategies

1. Promotional Concepts and strategies Ch. 17 Promotion and Promotional Mix

2. The concept of promotion • Promotion is persuasive communication. Companies rely on promotion to inform people about their products and services. • The goals of promotion (AIDA): First attract Attention, then build Interest, and Desire, and finally ask for Action

3. A business uses… Product Promotion Institutional Promotion • To convince prospects to select its products ore services instead of a competitor's brands. Promotional activities explain the major features and benefits of the product or service. • Used to create a favorable image for a business, help it advocate for change, or take a stand on trade or community issues. Ex. Maintain web sites to provide information, and to answer questions.

4. The concept of Promotional Mix • To reach its promotional goals, an organization develops an effective promotional mix. • Promotional Mix = a combination of strategies and cost effective allocation of resources. Most businesses use ore than one type of promotion to achieve their promotional goals. • Businesses establish a promotional mix by following a series of steps that range from identifying the target market to measuring the results.

5. Types of Promotion in the Promotional Mix

6. News releases • An important promotional tool. • A news release is an announcement that is sent to the appropriate media outlets. They are sent to news papers and news stations to release important information about a company decision, event, etc.

7. Types of Promotion Sales, Trade and Consumer….

8. Trade Promotions • Sales promotion activities designed to get support for a product from manufacturers, wholesalers, and retailers. • More $$ is actually spent promoting to businesses than to consumers. • Trade promotions include promotional allowances, cooperative advertising, slotting allowances, sales force promotions, and trade shows and conventions.

9. Consumer Promotions • Sales strategies that encourage customers and prospects to buy a product or service. • Consumer promotions support advertising, personal selling, and public relations efforts. • Coupons • Premiums- low-cost items given to consumers at a discount or free. • Deals • Incentives • Product Samples • Sponsorship

10. Promotional tie-ins • Cross-promotion and cross-selling campaigns • Sales promotional activities between 2 or more retailers or manufacturers. They produce mutually beneficially results. • Popular online- fill out this survey and receive a 20% discount on your purchase.

11. Product Placement • Using a brand name product in a movie, TV show, video games, sporting event, or even in a commercial for another product. • Ex. Survivor, American Idol, Mt. Dew & Doritos Etc..