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Promotion. 4.01: Acquire a foundational knowledge of promotion to understand its nature & scope. Tuesday’s Warm-up. Choose a product you’ve purchased within the last several months. Television What made you want or need to buy it?

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Acquire a foundational knowledge of promotion

to understand its nature & scope

tuesday s warm up
Tuesday’s Warm-up
  • Choose a product you’ve purchased within the last several months.
    • Television
  • What made you want or need to buy it?
    • I was moving and didn’t want to transport television. Plus desire to get new television.
  • How did you hear about the product?
    • I went to Best Buy & I asked a friend
  • How did you know where to buy product?
    • Ads in paper & reputation of company
  • How did you know about the price or how much it would cost?
    • Ad in paper & sales clerk
tuesday s objectives
Tuesday’s Objectives

a. Define the term promotion.

b. List users of promotion.

c. Describe the benefits of using promotion.

d. Describe the costs associated with the use of promotion.

e. Describe types of promotional objectives.

f. Discuss the relationship of promotion and marketing.


Define the term promotion.

  • Any form of communication a business or organization uses to inform, persuade, or remind people about its products and improve its public image
  • Marketing communication based on sending a message to a target market
  • Designed to assist the customer in making a purchase
  • Encourages customers to buy or form an opinion about goods, services, or ideas
what does this mean to you
What does this mean to you
  • Think of a commercial
  • Describe it on piece of paper
  • Explain what it communicated to you
    • A good advertisement will use jingles, images, or a story to get your attention
    • Most commercials accomplish this through animals, songs, & physical comedy
    • Its not about the immediate response. Its about the impression.
    • Doritos (Dress up)
    • Sketchers
    • Pepsi
    • KIA Sorento
    • Doritos (Goat)
    • Doritos (Baby)
    • Chevy
    • Best Buy
    • Doritos (Dog)
    • Pepsi Max
  • At&t
  • Old Navy
  • Best Buy
  • Best Buy
  • Go Pro
  • Motorola Moto X
  • American Airlines
  • Buick
  • Are there any other promotions you have seen recently that got your attention?
users of promotion
Users of Promotion
  • Any institution that has something to sell uses promotion in some form
    • Businesses
      • Multinational firms can spend large sums on securing high-profile celebrities to serve as corporate spokespersons
      • Small business owner passing out business cards
    • Government Agencies
    • Special interest groups
    • Producers
    • Intermediaries (Middlemen)
    • Individuals
      • Political Candidate

Individuals such as political candidates use promotion to convince the public to agree with them or to vote for them.

Sometimes, along with positive promotions about themselves, political candidates or parties include negative advertisements about their opponents in their promotional campaigns.

These promotions aren't illegal, but are they ethical?

What do you think

  • Dave Wilson
benefits of using promotion
benefits of using promotion

Describe the benefits of using promotion.

Increase sales

Strong position

Increases customer loyalty

Increased product/company awareness

Better informed, more satisfied customers

Increased employment opportunities

Increased Media support


Describe the costs associated with the use of promotion

  • Advertising fees
    • Local channels: $200 - $1,500 to create a commercial
    • National Ad: $342,000
    • Super Bowl: $4 Million for 2013 commercial
    • American Idol: $475,000
  • Costs for sales promotions and contests
  • Salaries for promotional and sales staffs.
    • Average salary is $63,000/year
    • 3% higher than most professions
promotional objectives
Promotional objectives

Describe types of promotional objectives.


Discuss the relationship of promotion and marketing.

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

It is the marketing communication that involves sending a marketing message to a target audience.

  • Objective #1: Promotion
    • Describe a commercial or ad that they have seen recently, and explain what the commercial or ad communicated to them.
    • What makes an advertisement interesting or effective to you?
  • Objective #2: Users
    • Users of promotion. Ethics of political ads
    • What does your school sell? Universities? Doctors office? Politicians?
  • Objective #3: Benefits
    • Of all the benefits of promotion listed; which do you think is most effective? Explain answer.
  • Objective #4 Costs
      • Look at costs of super bowl commercials
          • Wonderful Pistachios might go with Miley
      • Visit and pick who you think will be named a semi-finalist
      • Dodge 2014 Commercial:
    • Objective #5: Persuade, Remind, & Inform
      • Find an advertisement in a magazine that accomplishes each of these three
      • Label ad & explain why it is what it is



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

Objective B: Explain the types of promotion

warm up

What are the three objectives of a promotion?

wednesday s objectives
Wednesday’s Objectives

a. Define the following terms:

product promotion, primary product promotion, secondary product promotion,

institutional promotion, public service, public relations, and patronage.

b. Identify types of product promotion.

c. Describe the uses of product promotion.

d. Identify types of institutional promotion.

e. Describe uses of institutional promotion.

f. Discuss the advantages of promotional activities.

g. Discuss the disadvantages of promotional activities.

key terms
Key terms
  • Product Promotion: used to convince potential customers to buy products from it instead of from a competitor
    • Inform customers about features & benefits
    • Tells where those products are sold
    • Create awareness
    • Build a reputation for the product
    • Encourage interests
    • Can be in the form of advertisements, coupons, salespersons efforts to persuade, trade shows, commercials, infomercials, etc…
uses of product promotion
Uses of product promotion

Describe the uses of product promotion.

  • Creates consumer awareness of a good or service
  • Informs customers about product features
  • Encourages interest in and inquiries about a good or service
  • Informs consumers where a product can be purchased
  • Builds a reputation for a product
  • Creates excitement and motivates retailers and salespeople
key terms1
Key Terms

Primary product promotion:

The aim is to stimulate demand or interest in an entire class of products.

Emphasis is on the product and its uses, and not on a particular brand.

Competition is between the two different industries.

Example: Beef v. Pork

This type promotion useful when introducing a new concept or a totally new product.

key terms2
Key terms

Secondary Product Promotion

  • Selective product promotion used to stimulate demand for a specific brand or product
  • Product class is already established so promotion is geared towards a specific brand
  • Example:

Bordon Milk or Deans Milk can promote their brand because the American Dairy Association & Dairy Council have already promoted and established the industry so that primary demand exists.

key terms3
Key Terms

Institutional Promotion

Corporate advertising that does not attempt to sell a product

Expensive method of advertising

Goal is to create a favorable image of the company

Occurs when a company sponsors or partners events, charities, or causes that build goodwill

key terms4
Key terms

Public Service

Promotions that are done to promote issues frequently considered to be in the best interests of the community at large

Public Service Announcements (PSA)

Community Service Announcement (CSA)

Can be done via tv, radio, or print ads

  • Texting while driving
  • Drug Use
  • Be active: Read, Play Sports, School, etc..
  • Local companies encourage local action.,28804,1920454_1920455_1920449,00.html

key terms5
Key Terms

Public Relations

  • Provide a service for the company by giving the public and the media a better understanding of how the company works
  • Can be proactive or reactive
  • Designed to put a positive spin on company actions
  • Use media outlets to explain situations
    • Create press releases
    • Contact news outlets
    • More credible than paid advertising
key terms6
Key terms


  • Promotions designed to promote a firms prestige or features
  • Companies position themselves as prestigious in the minds of consumers
    • Leads to continued support, loyalty and repeat business of customers.
    • Customers (patrons) are satisfied with the company and trust and/or have confidence in company based on past experiences.
    • Patronizing makes it easy for a company to sell its products.
  • Activity 1
  • Locate one example each of institutional and product promotion in magazines or on the Internet. Affix the promotions to paper and label each by its type of promotion. Explain why you believe it is institutional or product promotion.

Activity 2

Of the “Top Ten” Public Service Announcements viewed; which was most effective and why? Choose an issue in society and create a Public Service Announcement for this topic.

Activity 3

  • Choose any company to create a press release for. You will be graded based on content as well as formatting. Both are crucial in advertising.