Transcript Promotional Concepts and strategies

PROMOTIONAL CONCEPTS
AND STRATEGIES
Ch. 17 Promotion and Promotional Mix
The concept of promotion
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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
A business uses…
Product Promotion
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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.
Institutional Promotion
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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.
The concept of Promotional Mix
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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.
Types of Promotion in the Promotional
Mix
Personal Selling
Advertsing
• Sales representatives who generate and maintain direct contact with
prospects and customers.
• Form of nonpersonal promotion. Companies pay for promotional ideas,
goods, or services in a variety of media outlets.
Direct Marketing
• Type of marketing directed at a targeted group of prospects and
customers trather than a mass audience.
• 2 types: direct mail and electronic mail
Sales Promotions
• All marketing activities other than personal selling, advertising and public
relations. Objective is to increase sales, inform potential customers about
new products and create a positive business or corporate image.
Public Relations
• (PR) Activities enable an organization to influence a target audience.
Campaigns that create a favorable image for the company, its products, or
its policies.
News releases
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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.
Types of Promotion
Sales, Trade and Consumer….
Trade Promotions
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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.
Consumer Promotions
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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
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Promotional tie-ins
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Cross-promotion and cross-selling campaigns
Sales promotional activities between 2 or more
retailers or manufacturers. They produce mutually
beneficially results.
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Product Placement
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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..