Transcript Imagination at work

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Types of Promotion
Promotion
LAP 4
Objectives
Describe the types of promotion.
Discuss advantages and disadvantages
of promotional activities.
Describe the types of promotion.
Promotion
Allie’s Day
 Communicates information
 Builds awareness
 Increases
demand
Bombarded
by
 Differentiates
from the competition
promotional
 Highlights
value
messages
 Changes/Reinforces attitudes
Promotion: Communicates Information
 Goods
 Services
 Images
 Ideas
Promotional Objectives
 Build awareness
 Increase demand
 Differentiate a product from its competitors
 Highlight a product’s value
 Change or reinforce customer attitudes
Who Says…
“There’s an app for that”
“Imagination at work”
“A diamond is forever”
“Just do it”
“I’m lovin’ it”
“Where dreams come true”
“Expect more. Pay less.”
Who Says…
 “There’s an app for that”
Apple
 “Imagination at work”
General Electric (GE)
 “A diamond is forever”
De Beers
 “Just do it”
Nike
 “I’m lovin’ it”
McDonald’s
 “Where dreams come true” Disney Resorts and Parks
 “Expect more. Pay less.”
Target
Promotional Messages
•
Serve many purposes
•
Come in many shapes
and forms
•
Can be delivered in
a variety of ways
Reasons for Using
Promotional Messages
 Encourage customers to buy
its products
 Encourage customers to think
positively of business
Types of Promotional Messages
 Product promotion
 Institutional (or corporate)
promotion
Product Promotion
Goal = to persuade customers to
buy a particular good or service
TVCoupons
interviews
Personal
Advertisements
selling
Promotional
examples
What Product Promotion Can Do
Stimulate customer purchases
 Creates awareness of a good or service
 Informs customers about product features
 Encourages interest in and inquiries
about a good or service
What Product Promotion Can Do
Stimulate customer purchases
 Informs customers where a product
can be purchased
 Builds a reputation for a product
 Creates excitement and motivates
retailers and salespeople
Primary Product
Promotion
• Aims to stimulate demand,
or desire, for an entire class
of goods or services
• Emphasis is on the product
and its uses, rather than on
a particular brand.
• Competition is between the two
different industries.
• Especially useful and necessary
for introducing a new concept or
a totally new product
Secondary Product Promotion
• Also called selective product promotion
• Used to stimulate demand for a specific
brand of a product
• Used to compete against other makers
of the same type of product
Institutional
Promotion
• Also called corporate
promotion
• Goal = to create a certain
image of the company in
the eyes of the customer
• Does not attempt to sell
a good or service
Institutional Promotion
• Can be used to:
• Change a particular attitude toward a firm
or its products
• Inform customers of the company’s interest
in social or environmental issues
• Inform the public about the company’s future
• Inform customers of the
company’s name and type
of business
Institutional Promotion
• Can be used to:
• Show the company’s commitment to quality,
technology, or research
• Enhance company morale and recruit new
employees
• Build or reinforce a favorable company image
Public-service
promotions
Inform customers about
noncontroversial issues
that are in the public’s
best interest
Public-relations
promotions
Deal with issues that are in
the public’s interest but are
also related to the company
or its products
Patronage
promotions
Designed to promote a firm’s prestige or its features
imagination at work
Discuss advantages
and disadvantages
of promotional activities.
Advantages of Promotion
 Contributes to economic growth and
business activity
 Encourages customers
to purchase and use
new and improved
products
 Creates jobs
 Supports the mass
communication media
 Creates awareness of
companies and their
products
 Helps develop or enhance
companies’ images
 Encourages a higher
standard of living
Disadvantages of Promotion
 Some are deceptive.
 Some are manipulative.
 Some are offensive.
 Some may create/
reinforce stereotypes.
 Some play on
people’s fears.
“Autos manufactured
today are virtually
emission-free. And that’s
a dramatic improvement
over models from just
thirty years ago…”
Disadvantages of Promotion
 Promotion has limited abilities.
•
•
•
Cannot make up for the poor quality of a good/service
Cannot immediately achieve major success
Cannot substitute for well-trained salespeople
• Be aware of the promotional
messages you receive.
• Write them all down for one day.
• Identify as:
• Product promotion or
institutional promotion
• Primary product promotion or
secondary product promotion
• How did each message
affect you?
 Promotions for alcohol companies
• Controversial
• May influence children
• Portray drinking as “cool”
 Alcohol companies say:
• There are legal ages for purchasing alcohol.
• There are warnings on product packaging.
• They offer resources to help parents talk to children.

What do you think?
MBAResearch
Acknowledgments
Original Developers
Lelia Ventling,
Sarah Bartlett Borich, MBAResearch
Version 2.0
Copyright © 2010
MBA Research and Curriculum Center®
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