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Promotion
Introduction to
Marketing
What is Promotion?
• One of the 4 P’s (marketing
mix)
• One of the 7 Functions of
Marketing
What is Promotion?
Persuasive communication
(that is, communication
intended to persuade)
Why? Goals of Promotion:
• Attract attention
• Build interest and desire
• Ask for action
Two kinds of Promotion:
1.Product promotion –
businesses tell consumers
about their products / services
and try to persuade them to
choose their products / services
over a competitor’s brand.
2. Institutional promotion –
businesses try to enhance their
image, advocate for change, or to
take a stand on an issue. Includes
websites that offer information.
Institutional promotion does not
directly sell a product or service.
Promotional Mix
1.Personal selling
2.Advertising
3.Direct marketing
4.Sales Promotion
5.Public Relations
Personal Selling
A business employs sales
representatives who have direct
contact with sales prospects and
customers. Includes personal
meetings, telemarketing, e-mail
contact and correspondence. May
take place AFTER other activities.
High cost.
Advertising
Nonpersonal promotion.
Businesses pay to promote ideas,
goods, or services in a variety of
media outlets. Includes
magazines, newspapers,
television, websites, billboards,
t.v., and radio. Cost varies.
• http://youtu.be/GHX2mvFVQMs
Direct Marketing
Advertising aimed at a targeted group
of prospects and customers, rather
than a mass audience. Two forms:
(1) printed direct mail, and (2) direct
e-mail. The purpose is to generate
leads for sales representatives to
pursue.
Sales Promotion
All marketing activities other than
personal selling, direct marketing,
or advertising, used to stimulate
sales and purchases. Includes
coupons, product samples,
displays.
Examples of Sales Promotion
Public Relations and Publicity
• Activities that enable a business or
organization to influence a target
audience
• Can be used to create a favorable
image for a company, its products,
or its policies
• Includes news releases, news stories
Push v. Pull
• Push – manufacturers use with next
partner in the distribution channel
– that is, manufacturers push the
product to the retailer – convince
them to stock the product
• Pull – directs promotion to the
customer – create consumer
interest and demand
2 Types of Sales Promotion
•Trade Promotion
•Consumer Promotion
Trade promotion
Business to business sales promotion
activities – not directed at customer.
More money is spent on this
Includes promotional allowance
(discounts, cash payments to
retailers), cooperative advertising,
slotting allowance, trade shows and
conventions
Consumer promotions
Sales strategies to encourage
customers to buy certain products.
Includes coupons, premiums,
product samples, rebates,
sponsorships, contests,
sweepstakes, and loyalty programs