Download The Role of Promotion

MARKETING 4.01
Acquire a foundational
knowledge of promotion to
understand its nature and scope.
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Discussion???
• What is the most memorable
advertisement you’ve seen
recently?
• Discuss with table mates; be
ready to discuss with class.
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What is this commercial
promoting???
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http://www.youtube.com/watch?v=mI0ff3iO3n0
The Role of Promotion
• Promotion- any form of communication a business
or organization uses to inform, persuade, or remind
people about its products and improve its public
image.
• Product promotion - used to convince potential
customers to buy products from it instead of from a
competitor.
– Explains major _________ and benefits of its products
– Tells where those products are sold
– Advertises sales on those products
– Answers customer questions
– Introduces new products
Example?
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The Role of Promotion
• In which stage of a product’s life cycle do
promotional activities focus on differences
between competing products?
– Growth
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The Role of Promotion
• What is an example of an external factor
that affects promotion?
– Government regulation of ads
• Zoning laws determine billboard locations
• Can’t lie about product – fraud
• Restrict advertising to children
– Children are impressionable, and the wrong
kinds of advertising can affect their
development
• Stereotype - A generalization, usually
exaggerated or oversimplified and often
offensive, that is used to describe or distinguish
a group. Example?
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The Role of Promotion
• Materialism is interest in and
desire for money, possessions,
etc, rather than spiritual or
ethical values
– Example?
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The Role of Promotion
• Institutional Promotion- used to create a favorable
image for the business. Does not directly sell a
certain product. However, may ultimately result in
increased sales of a company’s products.
• An objective of institutional promotion is to
demonstrate the organization’s role in community
affairs.
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ACTIVITY 1
• Get with your 7 o’clock
appointment
• Fill in the blanks for 6-11 - 4
types of promotion.
• You have 10 minutes!
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Four Types of Promotion
1. Advertising - any
paid form of
nonpersonal
presentation and
promotion of ideas,
goods, or services
by an identified
sponsor. Example?
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Four Types of
Promotion
2. Publicity - placing newsworthy information
about a company, product, or person in the
media. Form of Public Relations
– Can be used to promote particular events and
promote particular products.
– The main purpose of publicity is to build an
image. Image - the way a business or
organization is defined in people’s minds.
Example?
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Four Types of Promotion
3. Sales Promotion - All marketing activities,
other than personal selling, advertising, and
publicity, that are used to stimulate consumer
purchasing and sales effectiveness.
• Objectives of Sales Promotion
– Increase sales
– Inform customers about new products
– Create a positive store or corporate image
• 3 Characteristics of Sales Promotion
– Short term activities
– Offers some type of incentive
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– Can be successfully used in all channels of distribution
Four Types of Promotion
4. Personal Selling - making an oral
sales presentation to one or more
potential buyers. On a per contact
basis, personal selling is the most
expensive form of promotion.
– Order-taking personnel
– Order-getting personnel
– Personal selling is generally
emphasized for complex, technical
products sold to industrial users.
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Four Types of Promotion
• Promotional Mix - a combination of
different types of promotion. A
business decides on a promotional
mix that will be most effective in
persuading customers or other
businesses to purchase and support
the business’s products.
– Competition- Competing businesses
within the same industry usually react
to each other’s promotional mixes by
playing follow the leader.
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ACTIVITY 2
• Get with your 11 o’clock
• Complete 4.01 promotional mix
match up
• You have 5-10 minutes!
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Public Relations
• Any activity designed to
create goodwill toward a
business.
• Benefits of PR
– Increasing sales
– Increasing firm’s good reputation
– Increasing customers reception of
advertising messages
– Spreading accurate information to the
public
– Conditioning customers to expect quality
products from the company
– Reducing the impact of problems
– Helping to obtain better treatment from
government
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Public Relations
• News Release - a pre-written story about the
company that is sent to various media for
publication.
– Hard News - information that should be
announced right away because the public will
want to know about it immediately
– Soft News - information that does not need to be
announced immediately because it will be of as
much interest to the public later as it is now
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Public Relations
Press Kit - a folder
containing articles, news
releases, feature stories,
and photographs about a
company, product, or
person.
Press Conference - a meeting
in which media members are
invited by the business or
organization to hear an
announcement about a
newsworthy event.
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Technology in Promotion
• New technology enables businesses to create
individualized messages that impact their
promotional mix.
• Information can be communicated by more
venues and messages can be customized.
– Example?
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International promotional
activities
• A business must
understand that the
laws governing
promotional activities
vary by country.
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ACTIVITY 3
 Get into groups of 4
• Pick a company of your choice and a country you want to
promote them in that is not English speaking. Develop a
mini international promotional mix plan for the
business.
 Include the following:
• What are 3 promotional laws that your int’l country has?
How does your promotion fit within those laws?
• Describe at least one way you will use each of the
following promotion types.
• Come up with a sample international advertisement that
will appeal to your target audience.
• Put all your findings in powerpoint form and print out as
handouts – 6 to a paper.
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