What is

Promotion?

Chapter 17

LAP – Know your Options!

4.1 Examine the types of promotion4.2 Distinguish between institutional and promotional advertising

Recognize This!

• There’s an App for That

• On your side

• Once you Pop you can’t Stop

• Just do it

• I’m Lovin it

• Where dreams come true

• Expect More, Pay Less

Were you right?

• Apple

• Nationwide

• Pringles

• Nike

• McDonald’s

• Disney

• Target

Two Categories of Promotion

• Product Promotion: tries to sell a product– Verizon and THE DROID, Red Bull Energy

Drink, Extra Desserts Extra Gum

• Institutional Promotion: creates an image– New Balance sponsors Susan G Komen

Race against Breast Cancer

Product Promotion

• Primary – aims to stimulate demand or desire for an entire class of product; emphasis on product category and not brand– GOT MILK, Beef, It’s What’s for Dinner, Pork,

The other white meat

• Secondary/Selective – used to stimulate demand for a specific brand– Borden Milk, Laura’s Lean Beef,

Know the Options Lap and Product/Institutional Worksheet Activity

4 Basic Types of Promotion

• Personal Selling

• Advertising – Direct Marketing

• Sales Promotion

• Public Relations (Publicity)

• OTHER and emerging areas – Internet, Social Networks,

The Promotional Mix

• Any combination of the different types of promotion a business chooses to use.

• Most businesses use more than one type of promotion

• Each type complements the other; some success is dependent on the other

• Must be carefully coordinated

Personal Selling

• Making an oral presentation to one or more potential buyers

Advertising

• ANY paid, nonpersonal form of communication of ideas, goods and services by an identified sponsor

• Distinguishing factors:– Paid– Set format– Identifies sponsor

• Be familiar with the Pro’s and Con’s of Advertising!!

AIDA Formula

• Sequence of stages a marketer leads the target audience through

• ATTENTION

• INTEREST

• DESIRE

• ACTION

Direct Marketing

• A form of Advertising directed to a targeted group of prospects vs. the mass audience

• Two Forms:– Printed Direct Mail– Electronic Direct Mail – HUGE

GROWTH!!

• Goal – to generate sales or lead for reps to pursue

• CAN-SPAM Act of 2003

Sales Promotion

• All marketing activities other than personal selling, advertising and publicity that is used to stimulate consumers purchases

• Two Orientations: – Trade: Business to Business (Industrial

Mkt)– Consumer: (Consumer Mkt.)

Public Relations

• PR activities enable an organization to influence an audience with a positive impact – cultivate media relations

• Publicity – (Placement) Placing newsworthy information about a company, product or person in the media (radio, tv, and stage)

• Pro’s and Con’s (Free but no control!)

Concept of the Promotional Mix

• Establishment of a BUDGET!!

• Push-Pull Concept: creating a promotional plan for each segment of distribution channel (M-W-R-C)– Push Policy: used only with the next partner

• Heavy on selling and sales promotion

– Pull Policy: Directs promotion toward consumer interest and demand

• Heavy on advertising and premiums, etc.

Assignment

• Finish Lap Test for Knowing the Options

• Complete Ch. 17 Fact and Idea worksheet