PROMOTIONAL MIX What is Promotion n Promotion any

PROMOTIONAL MIX

What is Promotion? n Promotion- any form of communication a business uses to inform, persuade, or remind people about its products n Promotional Mix- a combination of the different types of promotion. A business decides on the mix that will be most effective for the product’s target market.

The concept of the Promotional Mix A business uses product promotion to convince potential customers to buy its products instead of buying from a competitor. n Institutional promotion is used by businesses to create a favorable image for themselves, as opposed to promoting specific products or services n

Types of Promotion n There are four types of promotion n n Personal selling Advertising Sales Promotion Public Relations

Personal Selling n Uses planned, personalized communication in order to influence buying decisions and to ensure satisfaction n One of the largest forms of promotion n Designed to complete a sale once a customer is attracted to a business

Advertising n n n Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor Examples: magazine ad, TV commercial, direct mail, etc. American businesses spend about $200 billion each year on advertising.

Sales Promotion n EVERYTHING ELSE used to stimulate consumer purchasing and sales effectiveness other than personal selling, advertising, and public relations n Examples: store displays, fashion shows, coupons, free samples, contests, demonstrations, etc.

Public Relations n Any activity designed to create a favorable image of a business, its products, or its policies.

Publicity n n n A specific kind of public relations that involves placing positive newsworthy information about a business in the media. Publicity is much cheaper than advertising – it is NOT paid for by the company that benefits from it. A mention on the news is more likely to be regarded as objective. On the other hand, companies cannot control negative publicity.

Promotional Mix n Most businesses use more than one type of promotion to achieve their promotional goals. n Each type of promotion is designed to complement one another, and all must be coordinated.

Push-Pull Concept n Push Policy is used to convince a retailer to stock the products being promoted, pushing the product to the retailer. A push strategy relies heavily on personal selling and promotion at trade shows. n Pull Policy is designed to create consumer interest, pulling consumers to the product.

Review Worksheet Answer the questions about Promotion first. Then, flip over the worksheet and fill in the graphic organizer to see how promotion fits into the bigger picture of marketing!