Promotion • Is persuasive communication • Companies rely on promotion to inform people about their products and services. • Companies use promotional techniques to enhance their public image and persuade people that their product is important.
Promotion(cont.) • Non-Profits rely on promotional activities to educate public about an issue or trend or to advocate for change in a law or policy. • Explain major features and benefits of product or service • Where it is sold
Promotion(cont.) • Advertise sales, answer customer questions and introduce new product offerings. • Product promotion helps foster good relations with existing customers—enhancing customer loyalty. • Institutional promotion is used to create a favorable image for a business, advocate for change or take a stand. (business also maintain websites)
Types of Promotion in the Promotional Mix • 1. Personal Selling • 2. Advertising • 3. Direct Marketing • 4. Sales Promotion • 5. Public Relations
Personal Selling • Requires direct contact with prospects and customers. • Very costly • Personal meetings, telemarketing, email • Typically takes place after—or as a result of—other promotional activities
Advertising • Form of non-personal promotion. • Can be found on magazines, newspapers, TV, websites, gyms, busses, etc.
Direct Marketing • Is a type of advertising directed to a targeted group of prospects and customers rather than to a mass audience. 1. Direct mail 2. Electronic Mail
Sales Promotion • Represents all marketing activities—other than personal selling, advertising, and public relations—that are used to stimulate purchasing and sales
Public Relations • Activities enable an organization to influence a target audience. • Try to create a favorable image for a company, it’s products, or it’s policies (can be unfavorable—politics) • Cultivate relations with media who cover specific industries.
PR – Writing a News Release • Is an announcement that is sent to the appropriate media outlets. The release announces newsworthy developments about the company’s products or services, distribution channels, facilities and operations, partners, revenues and earnings, employees and events. • Usually about 1 topic
Publicity • Is Free • Can’t control content
The concept of Promotional Mix A combination of strategies and a cost-effective allocation of resources. The strategies in the mix are designed to compliment one another: Marketing and direct marketing create awareness, PR helps cultivate a favorable image and brand recognition. Sales promotional activities stimulate sales, reinforce advertising and support selling efforts. Finally personal selling builds on all of these previous efforts by closing the sale.
Promotional Budget and Push-Pull concept Push Policy – is used only with the next partner in distribution channel. Pull Policy – directs promotion towards consumers. This policy is designed to create consumer interest and demand The consumer then demands or pulls the product to them.
Sales promotions (B-to-B or B-to-Consumer) Are incentives that encourage customers to buy products or services. • Can be used to encourage customers to try a new product • Build awareness • Increase purchases by current customers • Reward loyalty
Trade Promotions Are sales promotions activities designed to get support for a product from manufacturers, wholesalers, and retailers. More money is actually spent on promoting to businesses than to consumers.
Trade Promotions - Types 1. Promotional Allowances 2. Cooperative Advertising 3. Slotting Allowances 4. Sales Force Promotions 5. Trade Shows and conventions
Consumer Promotions - Types 1. Coupons 2. Premiums – are low cost items given to consumers at a discount or for free. 3. Deals – or price packs – offer short term price reduction that are marked on products or items bound together. 4. Incentives (generally for higher priced items) a. contests b. sweepstakes c. rebates 5. Product Samples
Consumer Promotions - Types 6. Sponsorship – is a high profile promotional medium 7. Promotional Tie-Inns – Involve more than one company 8. Product Placement 9. Loyalty Marketing Programs 10. Point of Purchase Displays