Promotional Concepts Strategies OWhat might happen if a

Promotional Concepts & Strategies

OWhat might happen if a business did not promote their products?

Promotion Decisions about advertising, personal selling , direct marketing, sales promotion, promotion and public relations used to attract customers.

What is the different between these two videos? Video 1 Video 2 O https: //www. youtube. com/watch? v=h 9 tox Au. Xqb 8 com/watch? v=rubc. X p. SV 9 p. I O https: //www. youtube. com/watch? v=Lv. Vs m. Oe 4 HUg

Promotion – one of the 4 P’s Product Promotion O Promotional method used to convince prospects to buy their goods or services. Institutional Promotion O Promotional method used to create a favorable image for a business, help it advocate for change, take a stand on community issues.

Promotional Mix O The combination of advertising, personal selling, direct marketing, publicity, sales promotion, makes up the promotional mix.

Personal Selling OOne –on- one communication

Personal Selling Advantages Disadvantages O Tailored to each O Most Expensive individual “Flexible” O Immediate Feedback on a per contact basis O Can be perceived as too intrusive

Advertising OPaid, non-personal

Advertising Advantages O Same message delivered to many people O The person or contact cost of an ad is generally very low Disadvantages O The actual cost of the ad is HIGH O $5 million dollars for 30 seconds during Super Bowl 2017 O You cannot customize the message to the customer

O Super Bowl Ads Cost Chart O 2017 Super Bowl Ads

Direct Marketing O Direct Mail (printed) O Electronic Mail O GOAL: generate a response from the customer by making some kind of a special offer (coupon, discount, special merchandise).

Direct Marketing Advantages O Same message delivered to a targeted group of people O The person or contact cost of direct marketing is generally low (but not as low as advertising) O The message can be customized, to a degree Disadvantages O Can be considered very irritating O email & telemarketing both have regulations to ensure customers rights are protected

Sales Promotion OShort term promotional activity OEncourage Immediate purchase

Sales Promotion Advantages Disadvantages O Catches the interest of the impulse shopper O Can be low cost (no ad costs, no additional sales staff costs) O Not personalized O It can be very time consuming -demonstrations, trade shows O The promotion may not result in ANY sales free pen given away

Public Relations/PR ONot controlled by company OBuild goodwill OControl unfavorable event

Public Relations/PR Advantages O Often seen as impartial “news” O Very low cost Disadvantages O PR may not persuade a customer to buy from the company

PUSH/PULL Strategies PUSH O manufacturers use of mix of advertising, personal selling & trade discounts with distribution channel partners to “push” the product through to the retailer. PULL O Manufacturers directs promotional activities toward CONSUMERS Videos: Push/Pull marketing

Push Strategies

Section 17. 1 The Promotional Mix Examples of Each Different Type of Promotion

The Promotional Mix Personal Selling Direct contact Expensive Advertising is everywhere Direct Marketing Sales Promotion Mail Coupons News releases E-marketing Money-off promotions Social media Telemarketing Social media public relations Activities that help an organization to influence a target audience. news release An announcement sent to the appropriate media outlets. Product samples Public Relations (PR) Publicity Displays publicity Bringing news or newsworthy information about an organization to the public’s attention.

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Six Steps of the Promotional Mix

Section 17. 2 Types of Promotion 17. 2 Examples of Different Types of Sales Promotions -

Section 17. 2 Types of Promotion Trade Promotions Promotional Allowances Cooperative Advertising Slotting Allowances Sales Force Promotions Trade Shows and Conventions trade promotions Sales promotions designed to get support for a product from manufacturers, wholesalers, and retailers.

Trade Promotions

Cooperative Advertising

Trade Promotions

Sales Force Promotions

Trade Shows/Conventions

Section 17. 2 Types of Promotion Consumer Promotions Coupons Premiums Deals or Price Packs coupon A certificate that entitles a customer to a cash discount on goods or services. premium low-cost item given to consumers at a discount or free.

COUPONS

Premiums – low cost items Given to consumers at a discount or FREE Factory packs – free gifts placed in product packages

Deals or Price Packs short-term price reduction marked directly on the label or package. Price Packs

Section 17. 2 Types of Promotion Consumer Promotions Incentives Product Samples Sponsorship incentive A higher-priced product, award, or gift card that is earned and given away through contests, sweepstakes, special offers, and rebates.

Incentives – higher priced items earned through contests/sweepstakes

Product Samples

Sponsorship

Section 17. 2 Types of Promotion Consumer Promotions Promotional Tie-Ins Product Placement Loyalty Marketing Programs promotional tie-in Activity that involves sales promotions between one or more retailers or manufacturers; also called cross-promotion or cross-selling. . loyalty marketing program A marketing program that rewards customers by offering incentives for repeat purchases, such as a frequent flyer.

Promotional Tie-ins (Cross Promotion/Cross Selling)

Product Placement O Involves the verbal or appearance mention in TV series/ movies/ sporting events. O Product Placement in Movies O (not first clip, or White Castle) O Sorry for the swear words

Section 17. 2 Types of Promotion Consumer Promotions Online Loyalty Marketing Programs Point-of. Purchase Displays (Kiosks) kiosk A point-of-purchase display that is a stand-alone structure.

Loyalty Programs

Online Loyalty Programs

Kiosks

Your Assignment! 1. Carousel Review – first page

Section 17. 2 Types of Promotion Three Different Types of Premiums and Descriptions

Section 17. 2 Types of Promotion Examples of Each Type of Consumer Promotion

Section 17. 2 Types of Promotion Three Different Types of Premiums and Descriptions

Section 17. 2 Types of Promotion Examples of Each Type of Consumer Promotion