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Marketing Essentials

Marketing Essentials. n Chapter 17 Promotional Concepts and Strategies. Section 17.1 The Promotional Mix. SECTION 17.1. The Promotional Mix. The Concept of the Promotional Mix.

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Marketing Essentials

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  1. Marketing Essentials nChapter 17 Promotional Concepts and Strategies Section 17.1 The Promotional Mix

  2. SECTION 17.1 The Promotional Mix The Concept of the Promotional Mix • Promotion is any form of communication a business or organization uses to inform, persuade, or remind people about its products. • Promotional mix is a combination of the different types of promotion. A business decides on the promotional mix that will be most effective in persuading potential customers to purchase its products. Slide 1 of 2

  3. SECTION 17.1 The Promotional Mix 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. • Institutional promotion is used by businesses to create a favorable image for themselves, as opposed to promoting specific products or services. Slide 2 of 2

  4. SECTION 17.1 The Promotional Mix Types of Promotion • There are four basic types of promotion: • personal selling • advertising • sales promotion • public relations Slide 1 of 4

  5. SECTION 17.1 The Promotional Mix Types of Promotion • Personal Selling is one of the largest forms of promotion. It is any form of direct contact occurring between a salesperson and a customer. • The advantages: • There is two way communications between the seller and buyer • There is immediate feedback. Slide 2 of 4

  6. SECTION 17.1 The Promotional Mix Examples of Personal Selling • A salesperson at Foot Locker helping you with shoes • A car salesman/woman • Telemarketing- selling over the telephone (not too common now) Slide 2 of 4

  7. SECTION 17.1 The Promotional Mix Features of Personal Selling • Designed to influence purchase decisions • Very expensive • Should not be a “strong arm” tactic • Salespeople HAVE to be knowledgeable about what they are selling Slide 2 of 4

  8. SECTION 17.1 The Promotional Mix • Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor • American businesses spend about $200 billion each year on advertising. • FYI: This will be a brief overview on advertising. The next chapter consists entirely of advertising Slide 2 of 4

  9. SECTION 17.1 The Promotional Mix • Examples of advertising: • TV ads • Radio ads • Magazine ads • Direct mail • Outdoor advertising (billboards, etc) • Transit advertising (on a bus, etc.) • Online pop ups Slide 2 of 4

  10. SECTION 17.1 The Promotional Mix • Features of advertising: • Not limited to products • Has to be paid for • Same message for everyone • Actual cost is high • Advantages: • Can be seen/heard by many customers • Per person cost is typically low Slide 2 of 4

  11. SECTION 17.1 The Promotional Mix • Sales promotion is a short-term incentive offered to encourage buying a good or service. Sales promotions can be directed toward manufacturers, wholesalers, retailers, and consumers, as well as a company's employees. Sales promotions are usually supported by advertising activities. • (All marketing activities other than personal selling, advertising and public relations that are used to stimulate customer purchases) Slide 3 of 4

  12. SECTION 17.2 Sales Promotion Trade Promotions • Trade promotions are sales promotion activities designed to gain manufacturers', wholesalers', and retailers' support for a product. More money is actually spent on promoting to businesses than to consumers. Major trade promotions include: • slotting allowances • buying allowances • trade shows and conventions • sales incentives Slide 1 of 3

  13. SECTION 17.2 Sales Promotion • Examples • displays • Fashion shows • product samples • loyalty marketing programs • promotional tie-ins • product placement • Free gifts (key chain) • Free samples • Coupons • Buy one, get one free • Competitions/prizes • Financing • visual merchandising and displays • Trade shows • Conventions • Buying allowances • Slotting allowances

  14. SECTION 17.2 Sales Promotion • Advantages • There are 100’s of items to choose from • Companies can mix and match • It can be very inexpensive

  15. SECTION 17.1 The Promotional Mix Types of Promotion Publicityis a specific kind of public relations that involves placing positive newsworthy information about a business in the media. Note: Publicity can also be very negative! Slide4 of 4

  16. SECTION 17.1 The Promotional Mix Publicity Examples • Press conferences • News Releases • Appearance of an author/movie star • Article written up in newspaper/magazine • Mention of a companies charitable activities • Segment on the news Slide4 of 4

  17. SECTION 17.1 The Promotional Mix Publicity Features • Consumers pay close attention to publicity • View publicity as news • Publicity is non personal • Publicity advantages • It’s free • Has more credibility b/c it is not a commercial message and no one is being paid to say whatever it is they are saying Slide4 of 4

  18. SECTION 17.1 The Promotional Mix Coordination of the Promotional Mix Most businesses use more than one type of promotion to achieve their promotional goals. Each type of promotion is designed to complement one another, and all must be coordinated.

  19. SECTION 17.1 The Promotional Mix Promotional Budget • In large companies, the marketing department establishes a promotion budget, allocates resources, coordinates the campaign, and determines the right promotional mix for the company. • In smaller businesses, these responsibilities often rest with the owner-operator, are divided among employees, or contracted to outside agencies.

  20. ASSESSMENT 17.1 Reviewing Key Terms and Concepts • 1. What is promotion? • 2. Describe the concept of promotional mix. • 3. What is the difference between product and institutional promotion? • 4. Why is personal selling the most expensive form of promotion? • 5. What is the difference between publicity and advertising?

  21. ASSESSMENT 17.1 Thinking Critically • Some people think that advertising is a waste of money that needlessly raises the prices of goods and services. What do you think? Is the money spent on advertising justified? Provide an argument to support your position.

  22. 17.1 Graphic Organizer Elements of the Promotional Mix The Promotional Mix Personal Selling Advertising Sales Promotion Public Relations

  23. SECTION 17.2 Sales Promotion Sales Promotion • Public Relations refers to any activity designed to create a favorable image of a business, its products, or its policies

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