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The Role of Promotion

• Promotion- any form of communication a business or organization uses to inform, persuade, or remind people about its products and improve its public images. • Product promotion - used to convince potential customers to buy products from it instead of from a competitor.
– – – – – Explains major features and benefits of its products Tells where those products are sold Advertises sales on those products Answers customer questions Introduces new products
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The Role of Promotion
• Institutional Promotion- used to create a favorable image for itself. Does not directly sell a certain product. However, may ultimately result in increased sales of a company’s products.

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A large number of people usually see the advertiser’s message – 2. or services by an identified sponsor. Can choose the most appropriate media to reach target mkt – 4. Can control the content of an advertisement – 5. Ads are subject to repeat viewing – Ads can “presale” products ME Ch 19 3 . Costs per potential customer are usually lower than other forms of promotion – 3. Advertising .any paid form of nonpersonal presentation and promotion of ideas.Four Types of Promotion • 1. goods. • Six Advantages of Advertising – 1.

Four Types of Promotion • Four Disadvantages of Advertising – 1. Some forms of advertising can be too expensive for many businesses – 3. Sometimes advertising is wasteful and inefficient . Advertising must be brief ME Ch 19 4 .message may be spent on non-potential customers – 4. Cannot focus well on individual needs – 2.

Publicity .placing newsworthy information about a company. or person in the media. ME Ch 19 5 . Can be used to promote particular events and promote particular products. product. Image . The main purpose of publicity is to build an image.Four Types of Promotion • 2.the way a business or organization is defined in people’s minds.

advertising is not Can be used to create a positive image within the community Viewed as being more credible or believable than advertising Viewed as news.Four Types of Promotion • Advantages of Publicity – – – – Publicity is free. people more attention to publicity • Disadvantages of Publicity – Give up much of your control of your message – Not all publicity is positive ME Ch 19 6 .

Four Types of Promotion • 3. advertising. Sales Promotion . other than personal selling. and publicity. • Objectives of Sales Promotion – Increase sales – Inform customers about new products – Create a positive store or corporate image • 3 Characteristics – Short term activities – Offers some type of incentive – Can be successfully used in all channels of distribution ME Ch 19 7 . that are used to stimulate consumer purchasing and sales effectiveness.All marketing activities.

Slotting allowances .special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity. Buying allowances . – 3.sales promotion activities designed to gain manufacturers’. – 2. Trade Shows and Conventions . wholesalers’.awards given managers and employees who successfully meet or exceed their company’s set sales quota. Sales incentives . More money is spent on promoting to businesses than to consumers. ME Ch 19 8 . – 1.Four Types of Promotion • Sales promotion can be either consumer or trade oriented • Trade Promotions .a cash premium paid by the manufacture to a retail chain for the costs involved in placing a new product on its shelves.designed to reach wholesalers – 4. and retailers’ support for a product.

Promotional tie-ins . ME Ch 19 9 . may license for a fee their logo.Four Types of Promotion • Consumer Sales Promotions . names and likenesses. trademark. They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner. trade characters. movie makers. or personal endorsements to a business to be used in promoting the business’s products.involve sales promotional arrangements between one or more retailers or manufacturers. such as manufactures.Organizations. and celebrities.designed to encourage customers to buy a product. sports teams. Licensing . – 1. – 2.

Visual Merchandising and Displays – Visual Merchandising .visual and artistic aspects of presenting a product to a target group of customers. ME Ch 19 10 .Four Types of Promotion – 3.the coordination of all physical elements in a place of business so that it projects the right image to its customers – Displays .

• • • • Coupons .free gifts placed in product packages Traffic Builders . distributed door-to-door. Premium and Incentives . or through retail stores and trade shows ME Ch 19 11 .low cost items given away free to consumers as a condition of purchase. pens Coupon Plans .ongoing programs in exchange for labels. coupons.most popular and frequently used sales promotion type – Premiums . Product Samples . or other tokens from one or more purchases – Incentives .low cost premiums like key chains.certificates given to customers entitling cash discounts Factory Packs (in-packs).Four Types of Promotion – 4.higher-priced products given in contests or sweepstakes – 5.free trial size of a product that is sent through the mail.

Four Types of Promotion • Advantages of Sales Promotions – Unique and has special appeal to a potential customer – Helps build customer loyalty • Disadvantages of Sales Promotions – Difficult to end without the customers becoming dissatisfied – Store image and sales can suffer if the promotion is not properly planned and managed – Only designed to supplement other promotional efforts and cannot make up for poor products ME Ch 19 12 .

personal selling is the most expensive form of promotion. – Order-taking personnel . – Order-getting personnel .cashiers. are more involved in informing customers and helping them to buy.making an oral sales presentation to one or more potential buyers.Four Types of Promotion • 4. counter clerks. and industrial goods ME Ch 19 13 . appliances. and sales associates.professional salespeople. cars. perform routine tasks. On a per contact basis. Usually sell big ticket items like real estate. Personal Selling .

Four Types of Promotion • Promotional Mix . A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the business’s products.a combination of different types of promotion. ME Ch 19 14 .

or Idea • Type of product • Product nature • Stage of life cycle – Product’s market • Type of consumer • Number of Consumers • Geographical location ME Ch 19 15 . Service.Promotional Mix • Factors affecting the selection of a promotional mix – Good.

Promotional Mix – Distribution System – Product’s Company • Historical perspective • Available funds • Size of sales force – Competition ME Ch 19 16 .

or person in the media. product.Publicity and Public Relations • Publicity .Placing newsworthy information about a company.bad stories can get printed ME Ch 19 17 . • Advantages – Free to the business – Seen as more credible than advertising • Disadvantages – Lack of control by the business .

Publicity and Public Relations • Public Relations .any activity designed to create goodwill toward a business. • Benefits of PR – – – – – Increasing sales Increasing firm’s good reputation Increasing customers reception of advertising messages Spreading accurate information to the public Conditioning customers to expect quality products from the company – Reducing the impact of problems – Helping to obtain better treatment from government ME Ch 19 18 .

Audiences for PR • Internal Audiences .groups within the organization • Employee Relations .goal is to keep your employees happy by using: – – – – Tuition reimbursement Newsletters Health and wellness programs Opportunities for communications ME Ch 19 19 .

seminars. entertainment ME Ch 19 20 . etc.panels of consumers that make suggestions about products and businesses – Customer newsletters. check cashing. free delivery. lunches. free parking.groups outside the organization • Customers .Audiences for PR • External Audiences . annual reports – Customer events . Ways to keep customers happy include: – Provide special services and amenities such as gift-wrapping. – Advisory boards .Satisfied customers = repeat business.

company sponsors activities that benefit the civic. and cultural life of the community. social.HP donating computers to the high school – Sponsorship of community events – Scholarships ME Ch 19 21 . Activities can include: – School partnerships .Audiences for PR • Community .

– Hard News .information that does not need to be announced immediately because it will be of as much interest to the public later as it is now ME Ch 19 22 . It usually contains information about the company’s employees.Public Relations • News Release . or participation in an event or program. stores. products.information that should be announced right away because the public will want to know about it immediately – Soft News . operations. Can contain hard or soft news.a pre-written story about the company that is sent to various media for publication. corporate philosophy.

Purposes of News Releases • • • • • To introduce new products To keep the business in the public eye To position the business’s image To support good employee relations To create good community relations ME Ch 19 23 .

Getting Your News Release in the Media • • • • • • • • • • • • Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites ME Ch 19 24 .

product. ME Ch 19 25 .Public Relations • Press Kit . and photographs about a company. feature stories. or person.a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event.a folder containing articles. Press kits are given to the media to assist them in reporting on the intended news item. • Press Conference . news releases.