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Download 4.00 Acquire a foundational knowledge of promotion to understand
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4.00 Acquire a foundational knowledge of promotion to understand its nature and scope 4.01A Explain the role of promotion as a marketing function Define the term promotion Promotion is a marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome. It is the element of the marketing mix that encourages customers to buy or have certain views or opinions Apple is promoting numerous types of applications that appeal to the teen market For the under-20’s crowd, cool is all about the technology Who uses promotion? Any organization that has something to sell uses promotion at one time or another. Large and small businesses Government agencies Special interest groups Producers Intermediaries individuals Who uses promotion? Businesses that sell gaming systems, MP3 players, shoes, cars, and soft drinks rely heavily on promotion. They develop creative promotions to reach a wide audience and sell their products This results in the familiarity of the product. What companies are these? Characteristics of effective promotion Persuasive Relevant Appropriate Factual Repetitive Coordinated Benefits of using promotion Increased Sales: the most obvious way businesses benefit from promotion Promotion is used to spread the word to customers and to convince them to buy Strong position: used to position the company the way they want customers to see them Increased customer loyalty: want customers to identify with images projected through promotion . AEO and Hollister project an image of style and fashion. Benefits of using promotion Increased product/company awareness: helps customers learn that products exist and where they are available Better informed, more satisfied customers: happens when businesses promote product benefits, features and prices Increased employment opportunities: benefits the economy by providing job opportunities Increased media support: helps to pay for mass media – TV, radio, newspapers, magazines, Internet, etc Costs associated with the use of promotion Some are free or nearly free – issuing a press release about a new or improved product Advertising fees Costs for sales promotions Contests, salaries Considering the costs ahead of time helps marketers to create reasonable promotional budgets Types of promotional objectives Inform Communicate important information about new or improved products Persuade Competitive products Company image Remind Established products Established companies Relationship of promotion and marketing Promotion can be described as marketing communication A It sends a marketing message to a target audience business communicates a message to the customer – inform customer about goods, services or ideas – persuade them to buy – customer gives feedback by buying or not buying Promotion & Competition How A does Promotion affect Competition company introduces a product Other businesses wait to see how the product does If the product does well, they will follow them into the market with a similar product Competition through promotional activities occur during the growth stage The Promotional Mix Personal selling Planned, personalized communication designed to satisfy a customer’s needs and wants Used when things have to be explained in detail for large purchases or industry For example: A car salesman Public relations Activities used to build and maintain positive image about a company For example: FBLA volunteers at Downtown Winterfest and it’s published in the school newspaper The Promotional Mix Advertising Any non-personal form of communication designed to inform, persuade, or remind. Usually shows the best images and messages Materialism - Be the first to have it, stay ahead of others Avoid stereotyping Example: A woman drinking a diet soda Children - Communicate the right message Example: Video games have age ratings What’s in the promotional mix? Sales promotions Communications or activities used to stimulate sales, create awareness of a new product For example: Restaurants at the food court in the mall offers free samples Promotion & Technology How does Technology affect Promotion Businesses can create messages that are specific to groups or individuals Many different ways to communicate and customize messages Social Media Texts Emails Pop-ups Tags
