Promotion What is Promotion ANY form of communication

Promotion

What is Promotion? ANY form of communication (paper, billboard, radio, TV, uniforms, etc. ) used to: n n n INFORM PERSUADE REMIND image. the public about a product or an

Promotion n INFORM Give the public information of product or service. This is typically done to establish demand. Ex: Newspaper advertisement for a university or college program that tells about features, availability, time, and location of different courses. Walsh Newspaper Walsh Billboard

Promotion n Persuade Convince the public to buy a specific product or service. This is typically done to increase demand. Ex. “Eat mor chikin” ad campaign

Promotion n REMIND “Remind” public of your product or service. Typically used for established products to MAINTAIN sales Ex. “I’d like to buy the world a Coke”

Promotion There are two main categories of promotion: n Product Promotion n Institutional Promotion

Promotion Product Promotion - Promotes Product (duh) Convince customers to buy a Product Explain Features and Benefits n Tell Where Product is Sold n Advertise Sales on Product n Answer Customer Questions n Introduce New Products n

Promotion Institutional Promotion - Promotes Image n By Increasing Image, Sales May Increase EX: Wal-Mart trying to improve image with ads reminding people of their small town roots.

Promotion Assignment: Identify 3 promotions for each role: Inform - Persuade - Remind Can be real or you can develop them yourself. Describe ad/promotion in detail.

Promotion There are four basic types of promotion: Advertising n Publicity n Sales Promotion n Personal Selling n

ADVERTISING n What is ADVERTISING? Any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor. Includes newspaper, magazine, billboard, radio, TV, etc.

ADVERTISING cont. THREE DISTIGUISHING FEATURES: 1) 2) 3) Time or space is paid for Set format to carry message (not personal selling) Identifies sponsor of message

ADVERTISING cont. ADVANTAGES 1) 2) 3) 4) 5) 6) Large Number of People See Ad Advertising cost per customer is low Businesses can choose most appropriate media Businesses control content of ad Subject to repeat viewing “Presell” Influence people BEFORE

ADVERTISING cont. DISADVANTAGES Cannot focus on individual needs. Message is same for all. 2) Can be too expensive for some businesses 3) Wasteful and inefficient. Many may not see or may not be potential customers. 4) Ads must be brief (space and cost). Unlike presentations 1)

Publicity n What is PUBLICITY? Newsworthy information about a company, product, or person that is placed in the media FOR FREE. Includes: News Reports, Sponsorships, Scholarships, Donations, etc. Can create positive image OR negative image.

PUBLICITY cont. ADVANTAGES 1) 2) 3) 4) FREE Audience for news is huge News media is credible…people likely to believe Positive stories can be powerful

PUBLICITY cont DISADVANTAGES 1) 2) 3) Cannot control information Do not have control over when it is released Negative publicity can be more damaging that positive publicity is beneficial

Promotion Assignment: Case Study: Page 247 Read and Answer questions 1 – 4 Use complete sentences / paragraphs

Promotion There are four basic types of promotion: Advertising n Publicity n Sales Promotion n Personal Selling n

Sales Promotion n What is SALES PROMOTION? Anything…all activities…other that Advertising, Publicity and Personal Selling used to stimulate sales or increase a corporate image.

Sales Promotion is either: business oriented (selling goods to wholesalers, retailers or other businesses) Trade Promotions customer oriented (promote sales from the retail market) Consumer Sales Promotions Trade Promotions (business-to-business) n Consumer Sales Promotion (retail customers) n

Trade Promotion (Business) Activities designed to gain support (resell) from businesses (other manufacturers, wholesalers, retailers) Slotting Allowances n Buying Allowances n Trade Shows / Conventions n Sales Incentives n

Trade Promotions (Business) n SLOTTING ALLOWANCES Manufacturers pay retailers to get their products on the shelves. Ex. Kit-Kat comes out with a new Mocha flavored candy. It pays Meijer $5000 to place the candy on end-caps in all their Michigan Stores.

Trade Promotion (Business) n BUYING ALLOWANCES A quantity discount given to businesses to get them to buy more goods. (If the business gets a discount, they make more profit per piece sold) Kraft takes 2% off the price of Macaroni and Cheese if Kroger purchases 500 boxes per store.

Trade Promotions (Business) n TRADE SHOWS / CONVETIONS An event where manufacturers get together to display their goods for wholesalers, retailers, and consumers to see new and existing products. Ex. Doctors fly to Paradise Island in the Bahamas for a week to see new drugs and medicines on display from various

Trade Promotion (Business) n SALES INCENTIVES Prizes and money given to managers and employees for selling a certain amount of goods. Ex. If Chuck, from Heidebrecht Chevrolet sells 60 cars this quarter, he will win a trip to Cawker City, Kansas, the home of the world’s largest ball of twine.

Consumer Sales Promotion Activities designed to generate sales (end user) from retail customers and businesses. Licensing n Promotional Tie-Ins n Visual Merchandising and Displays n Premiums and Incentives n Product Samples n

Consumer Sales Promotions n LICENSING Companies will sell the rights to use a logo, character, name, etc. , to other businesses. Led Zepplin sold the rights to “Rock And Roll” to Cadillac for use in their “Breakthrough” ad campaign in 2002.

Consumer Sales Promotions n PROMOTIONAL TIE-INS Multiple companies pool their resources to do promotions together. Taco Bell and 20 th Century Fox teamed together to promote the movie Star Wars.

Consumer Sales Promotions n VISUAL MERCHANDISING / DISPLAYS In store promotion with physical merchandise and exhibits Window mannequins show off clothing and apparel.

Consumer Sales Promotions n Premiums and Incentives Give-aways to customers. (MOST POPULAR PROMOTION) Coupons - Cash Discounts Factory Packs - Prize in Cracker Jack Traffic Builders - Toaster for opening bank acct. Coupon Plans - Send in 3 soup labels for a gift.

Promotion There are four basic types of promotion: Advertising n Publicity n Sales Promotion n Personal Selling n

Personal Selling Making oral presentation to one or more potential buyers. Order-taking n Order-getting n

Personal Selling n ORDER-TAKING Routine process of making a transaction with an interested buyer. Cashiers, sales associates, phone solicitors, etc.

Personal Selling n ORDER-GETTING Involved in determining wants and needs to match with features and benefits of products. Generally bigger ticket items. Ex. Professional Salespeople, industrial goods and services, presentations.

PROMOTIONAL MIX Using a combination of promotions to achieve business sales goals. n Each promotion should relate and compliment each other.