Promotion Chapter 19 What is Promotion n Any

Promotion Chapter 19

What is Promotion? n Any form of communication a business or organization uses to inform, persuade, or remind people about its products and improve its public image n There are two types: product promotion and institutional promotion

Product vs. Institutional Promotion n Product Promotion: convince potential customers to buy products from it instead of a competitor n Institutional Promotion: creates a favorable image for the business itself. This does not directly sell the product; it sells the business

Promotional Mix Concept Using several types of promotion within a business for the same products n Components: n Personal Selling l Publicity/Public Relations l Advertising l Sales Promotion l

Personal Selling n One of largest forms of advertising n Direct personal contact n Most expensive form n Communication between buyer and seller

Publicity/Public Relations n Involves placing newsworthy information about a company, product, or person in the media l l l Builds an image Free Public more likely to believe the sources: news, news programs, reporters, etc. ) Not able to control the message Can be positive or negative

Advertising l l l Paid form of presentation of products or ideas (commercials) Businesses spend millions of dollars a year on advertising Common types: n n n TV Radio Billboard Internet Magazine Newspaper

Sales Promotions Represents all marketing activities other than personal selling, advertising, and publicity that are used to stimulate consumer purchasing and sales effectiveness. n Objectives: n Increase sales l Inform customers of new products l Create positive image l