4 00 acquire a foundational knowledge of promotion to understand its nature and scope
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4.00 Acquire a foundational knowledge of promotion to understand its nature and scope. 4.01A Explain the role of promotion as a marketing function. Define the term promotion.

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4.00 Acquire a foundational knowledge of promotion to understand its nature and scope

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4.00Acquire a foundational knowledge of promotion to understand its nature and scope

4.01A Explain the role of promotion as a marketing function

Define the term promotion

  • Promotion is a marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome.

  • It is the element of the marketing mix that encourages customers to buy or have certain views or opinions

Apple is promoting numerous types of applications that appeal to the teen market

  • For the under-20’s crowd, cool is all about the technology

Who uses promotion?

  • Any organization that has something to sell uses promotion at one time or another.

    • Large and small businesses

    • Government agencies

    • Special interest groups

    • Producers

    • Intermediaries

    • individuals

Who uses promotion?

  • Businesses that sell gaming systems, MP3 players, shoes, cars, and soft drinks rely heavily on promotion.

  • They develop creative promotions to reach a wide audience and sell their products

  • This results in the familiarity of the product.

What companies are these?

Characteristics of effective promotion

  • Persuasive

  • Relevant

  • Appropriate

  • Factual

  • Repetitive

  • Coordinated

Benefits of using promotion

  • Increased Sales: the most obvious way businesses benefit from promotion

    • Promotion is used to spread the word to customers and to convince them to buy

  • Strong position: used to position the company the way they want customers to see them

  • Increased customer loyalty: want customers to identify with images projected through promotion .

    • AEO and Hollister project an image of style and fashion.

Benefits of using promotion

  • Increased product/company awareness: helps customers learn that products exist and where they are available

  • Better informed, more satisfied customers: happens when businesses promote product benefits, features and prices

  • Increased employment opportunities: benefits the economy by providing job opportunities

  • Increased media support: helps to pay for mass media – TV, radio, newspapers, magazines, Internet, etc

Costs associated with the use of promotion

  • Some are free or nearly free – issuing a press release about a new or improved product

  • Advertising fees

  • Costs for sales promotions

  • Contests, salaries

  • Considering the costs ahead of time helps marketers to create reasonable promotional budgets

Types of promotional objectives

  • Inform

    • Communicate important information about new or improved products

  • Persuade

    • Competitive products

    • Company image

  • Remind

    • Established products

    • Established companies

Relationship of promotion and marketing

  • Promotion can be described as marketing communication

    • It sends a marketing message to a target audience

  • A business communicates a message to the customer – inform customer about goods, services or ideas – persuade them to buy – customer gives feedback by buying or not buying

Promotion & Competition

  • How does Promotion affect Competition

    • A company introduces a product

    • Other businesses wait to see how the product does

    • If the product does well, they will follow them into the market with a similar product

    • Competition through promotional activities occur during the growth stage

The Promotional Mix

  • Personal selling

    • Planned, personalized communication designed to satisfy a customer’s needs and wants

    • Used when things have to be explained in detail for large purchases or industry

      For example: A car salesman

  • Public relations

    • Activities used to build and maintain positive image about a company

      For example: FBLA volunteers at Downtown Winterfest and it’s published in the school newspaper

The Promotional Mix

  • Advertising

    Any non-personal form of communication designed to inform, persuade, or remind.

    • Usually shows the best images and messages

      Materialism - Be the first to have it, stay ahead of others

    • Avoid stereotyping

      Example: A woman drinking a diet soda

    • Children - Communicate the right message

      Example: Video games have age ratings

What’s in the promotional mix?

  • Sales promotions

    • Communications or activities used to stimulate sales, create awareness of a new product

      For example: Restaurants at the food court in the mall offers free samples

Promotion & Technology

  • How does Technology affect Promotion

    • Businesses can create messages that are specific to groups or individuals

    • Many different ways to communicate and customize messages

      • Social Media

      • Texts

      • Emails

      • Pop-ups

      • Tags

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