promotional concepts & strategies 17.1 promotional mix 17.2 types of promotion
TRANSCRIPT
Promotional Concepts &
Strategies
17.1 Promotional Mix
17.2 Types of Promotion
Prom
otio
n in
Marke
ting
Product PromotionPromotional method business use to convince
potential customers to buy their goods or services instead of a competitors.
Institutional PromotionPromotional methods used to create a favorable
image for a business. Helps to build goodwill and reputation.
Promotion: Pro.mo.tion, noun,:
One of the 4 P’s of Marketing. Any
activity that helps in the exposure or sale
of a product. Goals of Promotion are summed up by AIDA acronym – Attract Attention,
Build Interest & Desire, Ask for Action
Types o
f
Prom
otio
n
Personal SellingRequires Sales Representatives to generate and
maintain direct contact with prospects and customers. Most expensive form of promotion, typically takes place after other methods have
been tried.
Promotional Mix: Pro.mo.tion Mix, noun,:
Cost Effective combination of personal selling,
advertising, direct marketing, sales promotion & public
relations strategies used to reach company goals.
Types o
f
Prom
otio
n
AdvertisingAdvertising is found everywhere! Billboards,
brochures, internet, magazines, receipts, radio, TV, busses, menus, receipts, everything now a
days is used for advertising!
Advertising: Ad.ver.tis.ing, noun,:
Form of non personal promotion in which companies
pay to promote ideas goods, or services.
Types o
f
Prom
otio
nDirect Marketing
Examples: Direct mail & Telemarketing
New Wave of Direct Marketing: E-Marketing!
Any promotion that is delivered via the internet such as: search engine marketing, mobile apps, social media,
etc.
Direct Marketing: Dir.ect.mar.ket.ing, noun,:
Form of promotion that addresses individuals directly, and
not through a 3rd party medium (TV, Radio, Internet) .
Types o
f
Prom
otio
nSales PromotionCoupons, money-off promotions, competitions, product
samples, and point-of-purchase displays
Objective of Promotion: Increase sales, inform potential customers about new products, and create a positive
image.
Sales Promotion: noun,:
All marketing activities that are directed at
business or retail customers to boost sales
Types o
f
Prom
otio
nPublic Relations
Influence general opinion and create favorable public image for a person, organization, or a company, its
products and policies.
Public Relations: noun,:
Activities help an organization to influence a
target audience.
Prom
otio
nal
Mix
Promotional Mix & BudgetMost businesses will use more than one type of
promotion to achieve their goals.
They will use a cost-effective mix of strategies that include, advertising, selling, sales promotions, direct
marketing, and public relations strategies.
Push
& Pu
ll
Conce
pt
Push ConceptManufacturers push the product through the distribution
channel to the retailer. Particularly helpful with products that do not have a strong brand identity.
Pull ConceptEnticing or pulling consumers into the store to buy the product. Half-off deals or clearance sales bring people to the store. Designed to create interest and demand.
For example, iPods, &
iPhones always sell
out! See the line to
get in?
Types o
f
Prom
otio
nSlotting Allowance
Cash premium paid by a manufacturer to a retailer to help the retailer cover the costs of placing the product
on the shelves.
Types o
f
Prom
otio
nCoupons Used to introduce new products, enhance sales, and to
encourage retailers to stock and display both.
Also, don’t forget about online coupon codes!
Coupons: cou.pon, noun,:
Certificates that entitle customers to cash
discounts on goods or services.
Types o
f
Prom
otio
n
Premiums Designed to increase sales by building product loyalty
and attracting new customers. Grouped into 3 categories: Factory packs, traffic builders, and coupon
plans.
Premiums: pre.mi.um, noun,:
Giveaways are low-cost items given to
consumers at a discount or for free
Types o
f
Prom
otio
nIncentives
Contests, Sweepstakes, Special offers, & Rebates
Incentives: in.cen.tive, noun,:
Generally higher-priced products, awards, or gift cards that
are earned and given away through contests, sweepstakes,
special offers, and rebates
Types o
f
Prom
otio
nPromotional Tie-Ins,
Cross-Promotion, Cross-Selling
Partners combine their advertising and sales promotional activities to conduct a promotion that will create additional
sales for each partner.
Promotional tie-ins: noun,:
Activities that involve sales promotions between
one or more retailers or manufacturers
Types o
f
Prom
otio
nProduct PlacementConsumer promotion that involves the verbal mention or appearance of a brand-name product in a tv series,
movie, or event.
Sale
s
Prom
otio
nLoyalty Marketing ProgramsEach purchase allows the customer to accumulate points for every purchase. They can be used for discounts, free
items, etc.
Loyalty Marketing Programs: noun,:
Reward customers by offering incentives for
repeat purchases