Promotional Concepts and Strategies CHAPTER 17

Promotional Concepts and Strategies CHAPTER 17

THE CONCEPT OF PROMOTIONAL MIX Promotion any form of communication a business or organization uses to inform, persuade, or remind people about its products or improve its public image Promotional Mix the combination of the different types of promotion a business or organizations uses to promote its products

TYPES OF PROMOTION Product Promotion Institutional Promotion used to convince potential customer to buy their products instead of buying from a competitor used by a business to create a favorable image for itself, as opposed to promoting a product or service Identifies where it is sold Advertises product sales Answers consumer questions Introduces new offerings Does not directly sell a certain product, but a favorable image will likely increase sales for a company

MAKING UP THE PROMOTIONAL MIX Five basic categories of promotion Personal Selling Advertising Direct Marketing Sales Promotion Public Relations

PERSONAL SELLING Requires that a company employ sales representatives who generate and maintain direct contact with prospective and existing customers - costliest form of promotion Typically comes after, or as a result of, other promotional activities Can take the form of Personal meetings Telemarketing E-mail contact

ADVERTISING Any paid form of non-personal promotion of ideas, goods, or services by an identified sponsor Companies pay to promote goods or services through a variety of media outlets Magazines Newspapers Television Web sites Billboards City buses

DIRECT MARKETING Directed to a target group rather than the masses Goal is to generate leads for sales team to pursue Usually includes special offers, delivery terms or merchandise – an incentive to follow up Two forms Print – sent through the regular mail Electronic – sent over e-mail

SALES PROMOTION Represents all marketing activities – (other than personal selling, advertising, and public relations) - that are used to stimulate sales Objectives increase sales inform potential customers about new products create a positive image Example - In store sale signage and coupons

PUBLIC RELATIONS AND PUBLICITY Public Relations any activity designed to create a favorable image toward a business, its products, or its policies Builds brand awareness and loyalty Publicity specific type of public relations that involves bringing news worthy information about a company to the public’s attention It differs from advertising because it is FREE News coverage Charity events Contests

DETERMINING THE PROMOTIONAL MIX Strategies chosen for the mix are designed to compliment each other and reach a specific goal For Example Advertising and direct marketing create awareness of a product Public relations and publicity cultivate a favorable image and brand recognition Sales promotions stimulate sales and reinforce advertising

THE PUSH-PULL CONCEPT Push Policy Promotional mix developed for the next partner in the distribution channel Manufacturer Retailer Pushing them to carry the product in their store EX - personal selling, buying discounts, trade shows Pull Policy Promotional mix developed to reach the consumer Manufacturer Consumer Consumer demand can pull or encourage the retailer to carry the product being promoted EX - National advertising, In store displays and sales promotions