PROMOTION AND PROMOTIONAL MIX Review for Advanced Marketing

PROMOTION AND PROMOTIONAL MIX Review for Advanced Marketing

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 nonprofits)

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 and Direct Marketing”

PROMOTIONAL MIX • ADVERTISING • SELLING • PUBLICITY • SALES PROMOTION • Direct Marketing

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

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! http: //www. youtube. com/watch? v=SKL 254 Y_jtc

SALES PROMOTION • Stimulation of sales through contests, demonstrations, discounts, trade shows, games, giveaways, point of sale special offers and similar activities that drive product sales • Aimed at consumer OR distribution channel

Direct Marketing • Making direct contact with existing and potential customers about a product or business • Enables to target specific customer with personalized message • Types of direct marketing include: e -mail, direct mail, mobile marketing, and telemarketing.

Assignment: Identify Promotional Mix of An Existing Product/Service • Students work independently or with a partner to complete this assignment • Select a company and a product or service that is marketed by that company • Research the promotional activities for that specific product/service using the Internet • Prepare a PPT presentation to deliver to class that identifies the promotional mix of that product/service