PROMOTION AND PROMOTIONAL MIX DEFINITION OF PROMOTION Communication

PROMOTION AND PROMOTIONAL MIX

DEFINITION OF PROMOTION • Communication used to inform, persuade and educate prospective customers about a product, service or company.

PROMOTION • Persuasive communication • Inform prospective customers about products and services • Enhance public image and reputation • Enhance image of product or service as valuable • Educate public about an issue or trend (mostly used by non-profits)

Types of Promotion • PRODUCT • INSTITUTIONAL

PRODUCT PROMOTION • Convince customers to buy a product or service instead of the competitor brand • Promotional activities explain the major features and benefits of the product or service • Identify where it is sold, advertise sales, answer customer questions • Introduce new offerings • Helps companies foster good relationships with existing customers and increase loyalty

INSTITUTIONAL PROMOTION • Activities and advertising that creates a positive image of a company or product • Product features and benefits are NOT used in this form of promotion • Examples: – Holiday Budweiser commercial – Sponsorship of charity events- Komen for the Cure

PROMOTIONAL MIX • Strategy used by companies to inform and persuade a target market • “Any combination of Advertising, Selling, Publicity, and Sales Promotion”

PROMOTIONAL MIX • ADVERTISING • SELLING • PUBLICITY • SALES PROMOTION

ADVERTISING • • • Paid communication One-way communication Broadcast (TV, Internet, Radio) Print (Newspaper, Magazines, Direct Mail) Outdoor (Billboards, Marquis) Transit (Busses)

SELLING • Face-to-face interaction with customer • Persuasive approach – educate and inform about the product/service • The goal is to lead the customer to a correct buying decision for their needs • Business-to-business selling • Business-to-consumer selling

PUBLICITY and PUBLIC RELATIONS • Activities that influence a target audience • Creates a favorable image for the company, it’s products, or policies • Cultivate media relations • IMAGE!

SALES PROMOTION • All marketing activities other than – Advertising – Selling – Publicity/PR – Activities that drive product sales – Examples: Coupons, contests, raffles, special events