Chapter 17 Promotional Concepts & Strategies Section 17.1 Promotion and Promotional Mix Section 17.2 Types of Prom

1. Key Terms promotion product promotion institutional promotion advertising direct marketing sales promotion public relations news release publicity promotional mix Chapter 17Promotional Concepts & StrategiesSection 17.1 Promotion and Promotional MixSection 17.2 Types of Promotion Objectives Explain the role of promotion in business and marketing Identify the various types of promotion Distinguish between public relations and publicity Describe the concept of the promotional mix Marketing Essentials Chapter 17, Section 17.1

2. The Concept of Promotion promotion Decisions about advertising, personal selling, sales promotion, and publicity used to attract potential customers. Promotion is persuasive communication. The goals of promotional activities are summarized by the phrase AIDA: Attract Attention Build Interest and Desire Ask for Action Marketing Essentials Chapter 17, Section 17.1

3. Types of Promotion in the Promotional Mix  Public Relations  Personal Selling There are five basic categories in the promotional mix: Promotional Mix  Advertising  Sales Promotion  Direct Marketing Marketing Essentials Chapter 17, Section 17.1

4. Types of Promotion in the Promotional Mix Personal selling involves direct contact between salespeople and customers. This can take place in the forms of: Personal meetings Telemarketing E-mail contact Correspondence Marketing Essentials Chapter 17, Section 17.1

5. advertising A form of nonpersonal promotion in which companies pay to promote ideas, goods, or services in a variety of media outlets. Types of Promotion in the Promotional Mix Advertisingis a form of non-personal promotion and one-way communication. It can be found in places including: Newspapers Magazines Television Web sites Billboards City buses Marketing Essentials Chapter 17, Section 17.1

6. direct marketing A type of advertising directed to a targeted group of prospects and customers rather than to a mass audience. Types of Promotion in the Promotional Mix Direct marketingis a type of advertising directed to a targetedgroup of prospects rather than to a mass audience. Two forms are: Printed direct mail Electronic direct mail The goals of direct marketing are to generate sales and leads for salespeople to pursue. Marketing Essentials Chapter 17, Section 17.1

7. sales promotion All marketing activities–other than personal selling, advertising, and public relations–that are used to stimulate purchasing and sales. Types of Promotion in the Promotional Mix Sales promotionrepresents all marketing activities–other than personal selling, advertising, and public relations–that are used to stimulate purchasing and sales. Its objectives are to: Increase sales Inform potential customers about new products Create a positive business or corporate image Marketing Essentials Chapter 17, Section 17.1

8. public relations (PR) Activities that help an organization influence a target audience. Types of Promotion in the Promotional Mix Public relations (PR)activities try to create a favorable imagefor a company, its products, or its policies. They can enable an organization to influence a target audience. One of the other goals of public relations is to cultivate media relations with reporters who cover a specific industry. Marketing Essentials Chapter 17, Section 17.1

9. news release An announcement that is sent by a business or organization to media outlets. Types of Promotion in the Promotional Mix Anews release is an announcement that is sent to media outlets. It can be used to announce newsworthy developments, such as news about products, distribution channels, facilities, partners, revenues, employees, and events. Marketing Essentials Chapter 17, Section 17.1

10. publicity A tactic that public relations professionals use to bring information about an organization to the public’s attention. Types of Promotion in the Promotional Mix Publicityinvolves bringingnewsor newsworthy information about an organization to the public’s attention. This process is also known as placement. The main function of publicity is to develop a positive perception orawareness of the organization in the marketplace. The placement of publicity is free because it often appears as a media story. Publicity’s risk is that its content is not easily controlled by the business that issues it. Marketing Essentials Chapter 17, Section 17.1

11. promotional mix A combination of strategies and a cost effective allocation of resources. The Concept of Promotional Mix A promotional mixis a combination of strategies and a cost-effective allocation of resources a company uses to reach its promotional goals. The strategies in the mix are designed to complement one another: Advertising and direct marketing create publicawareness. Public relations helps cultivate a favorable image and brand recognition. Sales promotional activities stimulate sales and reinforce advertising. Personal selling builds on all of these efforts by completing the sale. Marketing Essentials Chapter 17, Section 17.1

12. REVIEW • What is promotion? • What does AIDA stand for? • Describe the concept of promotional mix. • What is the difference between publicity and advertising?

13. Key Terms sales promotions trade promotions consumer promotions coupons premiums incentives promotional tie-ins Types of Promotion Objectives Define sales promotion Explain the use of promotional tie-ins, trade sales promotions, and loyalty marketing programs Marketing Essentials Chapter 17, Section 17.2

14. sales promotions All marketing activities--other than personal selling, advertising, and public relations--that are used to stimulate purchasing and sales. Sales Promotion Sales promotionsare incentives that encourage customers to buy products or services. They can be used to: Encourage customers to try a new product Build awareness Increase purchases by current customers Reward loyalty Marketing Essentials Chapter 17, Section 17.2

15. Consumer promotions are sales strategies that encourage customers and prospects to buy a product or service. Major consumer sales promotion devices include: • Coupons • Incentives • Product samples • Sponsorships • Promotional tie-ins • Product placement • Loyalty marketing programs • Point-of-purchase displays Marketing Essentials Chapter 17, Section 17.2

16. coupons Certificates that entitle customers to discounts on goods and services. Consumer Promotions Coupons are certificates that entitle customers to cash discounts on goods or services. They help to introduce new products, enhance sales of existing products, and encourage retailers to stock the advertised item. Marketing Essentials Chapter 17, Section 17.2

17. incentives Products earned or given away through contests, sweepstakes, and rebates. Consumer Promotions Incentivesare higher-priced products earned and given away through: Contests: Competitions based on a demonstrated skill Sweepstakes: Games of chance Rebates: Discounts offered if the item is purchased during a certain time period Marketing Essentials Chapter 17, Section 17.2

18. Consumer Promotions Sponsorship is an integral part of promotion. A sponsoring company pays a fee for the right to promote itself and its products at or on a set location, such as: A physical site (such as a stadium) An event (such as a concert) A group (such as a team) A person (such as a golfer) Sponsorship is a high-profile promotional medium. Therefore, deals must be able to withstand public and media scrutiny. Marketing Essentials Chapter 17, Section 17.2

19. promotional tie-ins Sales promotional arrangements between one or more retailers or manufacturers; also known as cross-promotion and cross-selling campaigns. Consumer Promotions Promotional tie-insare also known as cross-promotion and cross-selling campaigns. These activities involve sales promotional arrangements between one or more retailers or manufacturers, producing mutually beneficial results.

20. Consumer Promotions Product placement is a consumer promotion that involves using a brand-name product in a movie, TV show, sporting event, or in a commercial for another product.

21. This chapter has helped prepare you to meet the following DECA performance indicators: Develop a sales promotion plan Analyze the use of specialty promotions Explain the types of promotion Identify the elements of the promotional mix Prepare simple written reports

22. Choose a group (of 2-3) to work with. • Decide on a product to promote. • Come up with a holiday promotion idea & explain what media outlet you will use and why. • Come up with a clever promotional slogan to capture the theme of your holiday campaign. • Present to the class. HOLIDAY PROMOTION ACTIVITY