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Promotional Concepts & Strategies Answer the following three questions: • What unique promotional activities have you observed recently? • Identify at least three! • How do promotional activities influence your purchases? • In your opinion, what is the most effective form of promotion? Why?
Promotion in Marketing • Promotion is any activity that helps in the exposure or sale of a product • Examples? • The goals of promotional activities are AIDA Attention – first attract attention Interest – then build interest Desire – then build desire Action – ask for action!
Promotion in Marketing • Product promotion is a promotional method used by businesses to convince prospects to select their goods/services instead of a competitor’s brands • Promotional activities attempt to: • Explain major features and benefits of the product • Identify where it is sold • Advertise sales • Answer customer questions • Introduce new offerings • Foster good relations with existing customers
Promotion in Marketing • Institutional promotion is a promotional method used to create a favorable image for a business, help it advocate for change, or take a stand on trade or community issues • Institutional promotion includes: • Company websites • Activities to build goodwill or enhance reputation • Foster a favorable image for the company
Promotional Mix • Promotional mix is the combination of personal selling, advertising, direct marketing, sales promotion, and public relations strategies to reach company goals
Promotional Mix • Personal Selling • Requires sales representatives to generate and maintain direct contact with prospects and customers • Direct contact can include: • Personal meetings • In-home demonstrations • E-mail • Telephone conversations • Is one of the most expensive forms of promotion
Promotional Mix • Advertising • A form of non personal promotion in which companies pay to promote ideas, goods, and services • Where is advertising found? • Everywhere! • Billboards • Business cards • Brochures • Internet • Magazines • Newspapers • Phone directories • Grocery store receipts • Radio • Television • Sports arenas • Cars and buses • Restaurant menus • Websites
Promotional Mix • Direct Marketing • A type of promotion that companies use to address individuals directly and not through a third party medium (TV, radio, internet) • Examples or direct marketing include: • Direct mail • Telemarketing • E-marketing • The goals of direct marketing are to generate sales or leads for sales representatives to pursue
Promotional Mix • Sales Promotion • Represents all marketing activities—other than personal selling, advertising and public relations—that are directed at business or retail customers to boost sales • Sales promotions include: • Coupons • Money-off promotions • Competitions • Product samples • Point-of-purchase displays • The objectives of sales promotions are to increase sales, inform potential customers about new products, and create a positive business or corporate image
Promotional Mix • Public Relations • PR activities help an organization to influence a target audience • PR campaigns try to influence general opinion and create a favorable public image • Examples? • Publicity involves bringing positive news or newsworthy information about an organization to the public’s attention • Advantages/Disadvantages?
OEHS Image Activity • In a small group (no more than 3 per group): • Step 1: Brainstorm and discuss ideas for creating a better institutional image for OEHS • Step 2: Create a public relations campaign centered around one (or more) of the items generated • You may want to consider or include • A news release (see page 398 for an example) • The use of social media • Types of publicity or placement • All materials created, including brainstorm list, should be submitted for assessment
Developing a Promotional Mix • Figure 17.2 • Page 400 Develop aPromotional Mix
Types of Promotion Activity Team Activity (5 members per team) • Create a business that sells products to high school students • Assign each member to one of the types of promotion • Each member should develop ideas for a promotional mix • Report your “plan” using a post-it note Note: Be sure to identify your business and product!
The Push-Pull Concept • Push Policy is a type of promotion in which manufacturers use a mix of advertising, personal selling, and trade discounts with partners in the distribution channel to “push” the product through to the retailer • Pull Policy a type of promotion by manufacturers that directs promotional activities toward consumers • Examples are advertising, in-store displays, demonstrations, etc.
Sales Promotion • Sales promotions are incentives that encourage customers to buy products or services • Build brand awareness • Encourage customers to try a new product • Increase purchases by current customers • Reward customer loyalty • Include trade and consumer promotions
Trade Promotions • Trade promotions are sales promotions designed to get support for a product from manufactures, wholesalers, and retailers • Major trade promotions include: • Promotional allowance • Cooperative advertising • Slotting allowances • Sales force promotions • Trade shows and conventions
Consumer Promotions • Consumer Promotions are sales strategies that encourage customers and prospects to buy a product or service • Examples?