promotional concepts & strategies

Promotional Concepts & StrategiesAnswer the following three questions:1. What unique promotional activities

have you observed recently? Identify at least three!

2. How do promotional activities influence your purchases?

3. 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

1. 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

2. 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

3. 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

4. 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?

• Coupons • Promotional Tie-Ins

• Premiums • Product Placement

• Deals• Incentives• Product Samples• Sponsorships• Point-of-Purchase

Displays

• Loyalty Marketing Programs

• Online Loyalty Marketing Programs