Promotional Concepts & Strategies 17.1 Promotional Mix 17.2 Types of Promotion
Product Promotion Promotional method business use to convince potential customers to buy their goods or services instead of a competitors. Institutional Promotion Promotional methods used to create a favorable image for a business. Helps to build goodwill and reputation. Promotion in Marketing Promotion: Pro.mo.tion, noun,: One of the 4 P’s of Marketing. Any activity that helps in the exposure or sale of a product. Goals of Promotion are summed up by AIDA acronym – Attract Attention, Build Interest & Desire, Ask for Action
Personal Selling Requires Sales Representatives to generate and maintain direct contact with prospects and customers. Most expensive form of promotion, typically takes place after other methods have been tried. Types of Promotion Promotional Mix: Pro.mo.tion Mix, noun,: Cost Effective combination of personal selling, advertising, direct marketing, sales promotion & public relations strategies used to reach company goals.
Advertising Advertising is found everywhere! Billboards, brochures, internet, magazines, receipts, radio, TV, busses, menus, receipts, everything now a days is used for advertising! Types of Promotion Advertising: Ad.ver.tis.ing, noun,: Form of non personal promotion in which companies pay to promote ideas goods, or services.
Direct Marketing Examples: Direct mail & Telemarketing New Wave of Direct Marketing: E-Marketing! Any promotion that is delivered via the internet such as: search engine marketing, mobile apps, social media, etc. Types of Promotion Direct Marketing: Dir.ect.mar.ket.ing, noun,: Form of promotion that addresses individuals directly, and not through a 3rd party medium (TV, Radio, Internet) .
Sales Promotion Coupons, money-off promotions, competitions, product samples, and point-of-purchase displays Objective of Promotion: Increase sales, inform potential customers about new products, and create a positive image. Types of Promotion Sales Promotion: noun,: All marketing activities that are directed at business or retail customers to boost sales
Public Relations Influence general opinion and create favorable public image for a person, organization, or a company, its products and policies. Types of Promotion Public Relations: noun,: Activities help an organization to influence a target audience.
Promotional Mix & Budget Most businesses will use more than one type of promotion to achieve their goals. They will use a cost-effective mix of strategies that include, advertising, selling, sales promotions, direct marketing, and public relations strategies. PromotionalMix
Push Concept Manufacturers push the product through the distribution channel to the retailer. Particularly helpful with products that do not have a strong brand identity. Push & Pull Concept Pull Concept Enticing or pulling consumers into the store to buy the product. Half-off deals or clearance sales bring people to the store. Designed to create interest and demand. For example, iPods, & iPhones always sell out! See the line to get in?
Slotting Allowance Cash premium paid by a manufacturer to a retailer to help the retailer cover the costs of placing the product on the shelves. Types of Promotion
Coupons Used to introduce new products, enhance sales, and to encourage retailers to stock and display both. Also, don’t forget about online coupon codes! Types of Promotion Coupons: cou.pon, noun,: Certificates that entitle customers to cash discounts on goods or services.
Premiums Designed to increase sales by building product loyalty and attracting new customers. Grouped into 3 categories: Factory packs, traffic builders, and coupon plans. Types of Promotion Premiums: pre.mi.um,noun,: Giveaways are low-cost items given to consumers at a discount or for free
Incentives Contests, Sweepstakes, Special offers, & Rebates Types of Promotion Incentives: in.cen.tive, noun,: Generally higher-priced products, awards, or gift cards that are earned and given away through contests, sweepstakes, special offers, and rebates
Promotional Tie-Ins, Cross-Promotion, Cross-Selling Partners combine their advertising and sales promotional activities to conduct a promotion that will create additional sales for each partner. Types of Promotion Promotional tie-ins:noun,: Activities that involve sales promotions between one or more retailers or manufacturers
Product Placement Consumer promotion that involves the verbal mention or appearance of a brand-name product in a tv series, movie, or event. Types of Promotion
Loyalty Marketing Programs Each purchase allows the customer to accumulate points for every purchase. They can be used for discounts, free items, etc. SalesPromotion Loyalty Marketing Programs: noun,: Reward customers by offering incentives for repeat purchases