The Promotional Mix

Objectives:
● Explain the role of promotion in business and marketing
● Identify types of promotion
● Distinguish between public relations and publicity
● Explain elements of a news release
● Describe the concept of the promotional mix

Key Terms:
● Promotion
● Product promotion
● Institutional promotion
● Promotional mix
● Advertising
● Direct marketing
● Social media
● Sales promotion
● Public relations
● News release
● Publicity
● Push policy
● Pull policy

Promotion in Marketing
● Promotion is decisions about advertising, personal selling, sales promotion, and public
relations used to attract customers
● Companies use promotional techniques to enhance their public image and reputation,
and to persuade people to value their products
○ Promotion is persuasive communication
● Non profit and charitable organizations rely on promotional activities to educate the
public about an issue or cause
○ Also use it to advocate for changing laws or policies
● The goals of promotional activities are summarized by AIDA
○ Attract Attention
○ Build Interest
○ Desire
○ Ask for Action

Product Promotion
● Product promotion is a promotional method used by businesses to convince prospects to
select their goods or services instead of a competitor’s brands
 ● Promotional activities explain the major features and benefits of the product, identify
where it is sold, advertise sales, answer customer questions, and introduce new
offerings
● Product promotion also helps businesses foster good relations with existing customers
○ Positive relations enhance customer loyalty

Institutional Promotion
● Institutional Promotion is a promotional method used to create a favorable image for a
business, help it advocate for change, or community issues
● As part of a stand on trade or community issues
● As part of institutional promotional efforts business maintain websites to provide news,
product, and general information, and to answer questions
● Institutional promotions do not directly sell a product
○ These activities build goodwill to enhance a company’s reputation and foster a
favorable image for the company, which may also help sales

Types of Promotion in the Promotional Mix

● The promotional mix is the cost effective combination of personal selling, advertising,
direct marketing, sales promotion, and public relations strategies used to reach company
goals
● Each of the five basic categories in the promotional mix plays a vital role in promoting
businesses and their products by allowing them to communicate with customers in many
ways other than direct contact

Personal Selling
● Personal selling requires sales representatives to generate and maintain direct contact
with prospects and customers
● Direct contact can be meetings, in office/home demonstrations, email, and phone calls
● Personal selling is one of the most expensive forms of promotion
● Personal selling takes place after other promotional activities have been tried

Advertising
● Advertising is a form of nonpersonal promotion in which companies pay to promote ideas
or services
○ These promotions are presented through a variety of media outlets
● Advertising is found everywhere: billboards, brochures, newspapers, receipts, T.V, radio,
menu’s, etc.
● Companies engage in a one-way communication to the customer/prospective customer

Direct Marketing
● Direct marketing is a type of promotion that companies use to address individuals
directly and not through a third party medium.
● The goal of direct marketing is to generate sales or leads for sales representatives
 ● Direct marketing gives recipients an incentive to respond by visiting a store or website,
calling a number, returning a form or sending an email
● Target customers receive special offers or incentives, such as money off coupons;
limited time sales, special merchandise offers, loyalty points, and free delivery

Sales Promotion
● Sales promotion represents all marketing activities - other than personal selling,
advertising, and public relations - that are directed at a business or retail customers to
boost sales
● The objective of sales promotions are to increase sales, inform potential customers
about new products and create a positive business image
● Sales promotions include:
○ Coupons
○ Money off promotions
○ Competitions
○ Product Samples
○ Point-of-Purchase Displays

Public Relations:
● Public Relations(PR) activities help an organization to influence a target audience
● Public relations campaigns try to influence general opinion and create a favorable public
image for a person, organization or a company, it products, or its policies
● Example: A campaign to encourage business to sponsor the Children’s Miracle Network,
a national network of children’s hospitals

Writing News Releases

● There are many media tools, one of the most important ones is the news release
● A news release is an announcement sent to the appropriate media outlets
● The release distribution channels, facilities, and operations, partners, revenues and
earnings, employees and events.

Using Social Media

● Social Media is electronic media that allows people with similar interests to participate in
a social network
○ Facebook, Twitter, Instagram, Linkedin & Youtube help businesses reach
prospective customers
● Businesses use social media to interact with customers and get feedback on the
company, its products and services
● People communicate and maintain a degree of personal control through the internet, cell
phones and input devices
● Social networks provide businesses with a way to obtain opinions and speak directly with
potential and existing customers