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Chapter 17
Promotional Concepts and
Strategies
• Section 17.1 Promotion and Promotional Mix
• Section 17.2 Types of Promotion
Objectives
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Explain Role of Promotion in marketing
Identify Types of Promotion
Understand public relations vs publicity
Describe the promotional mix
Target market: group of people identified as most likely to
become customers of a product
• all marketing strategies directed at target market
Types of Markets
• There are two different types of markets with
different goals and objectives
1. Consumer
2. Industrial
1. Consumer market: all consumers who
purchase goods and services for personal use
Consumers want products and services that:
 Save money
 Make life easier
 Improve appearance
 Create status
 Provide personal satisfaction
2. industrial market: businesses that buy
products, often in large quantities, to use in their
operations;
Businesses want products and services that:
• Improve productivity
• Improve efficiency
• Increase sales
• Decrease expenses
Marketing Mix
The marketing mix X four basic marketing
strategies, called the four Ps, that is used to
influence buying decisions of a target market
 product
 place
 price
 promotion
Actions & decisions in these areas are based on
the people marketers want to win over
Marketing Essentials Chapter 1, Section 1.3
The Concept of Promotion
Promotion is persuasive communication
Why do companies use Promotion:
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Inform people about their products or services
Enhance their public image
Persuade people that their products are valuable
Educate the public on an issue, trend, or to change
law (ideas)
Promotion
A company must decide how to advertise,
promote, and publicize a product.
•How potential customers will be told about
products includes:
•Message
•Media selected
•Special offers
•Timing of promotional campaigns
The Concept of Promotion
The Goal of promotional activities are summarized
by the phrase AIDA:
• Attract Attention
• Build Interest
• Build Desire
• Ask for Action
Goal: attract attention, build interest and desire, and ask for action
Marketing Essentials Chapter 17, Section 17.1
Two Pathways of Promotion
• Product Promotion
• Institutional Promotion
Product promotion is the act of advertising a good or
service with the short/long term goal of increasing sales
• used to convince prospects to select its products
or services instead of a competitor’s
Product Promotion activities include:
• Explain features and benefits of a product/service
• Identify where it is sold and advertise sales
• Answer customer questions
• Introduce new offerings/products
• Foster good relations with existing customers enhance customer loyalty
Institutional promotion: marketing approach that
improve its image through demonstrating the goodwill of
a business
Institutional Promotion activities include:
• Maintain Web Sites- provide news and product
information
• Help an organization advocate for change
• Take a stand on trade or community issues
Five Types of Promotion in Promotional Mix
1.
2.
3.
4.
5.
Personal selling
Advertising
Direct Marketing
Sales Promotion
Public Relations
Product Promotion
Activities
Institutional Promotion
Activities
1. Personal Selling
Personal selling involves direct contact
between salespeople and customers
• The costliest form of promotion
• Occurs because of other promotional
efforts
• This can take place in the forms of:
• Personal meetings
• Telemarketing
• E-mail contact and other correspondence
2. Advertising
Advertising is a form of non-personal
promotion and one-way communication
(not directed to specific customer but many customers)
It can be found in places that include:
• Newspapers and magazines
• Television and Web sites
• Billboards and city buses
3. Direct Marketing
Direct marketing is a type of advertising
directed to a targeted group of prospects rather
than to a mass audience and generates a
response from the customer:
Generates a Response from the customer by:
• Making a special offer like a coupon, discount,
or special merchandise or delivery
• Prompts to visit a store, web site,
call, or returning a form or e-mail
3. Direct Marketing
Forms of direct marketing are mailed or sent
electronically:
• Mail
• E-Marketing
• Social Media
Marketing Essentials Chapter 17, Section 17.1
4. Sales Promotion
Sales promotion represents all marketing
activities–other than personal selling, advertising,
and public relations–that are used to stimulate
purchasing and sales
• Lasts a limited period of time – prompt short
term action
• Ex.:
• sample packages,
• sweepstakes contests or coupons that require you to buy a
product by a certain date
• tradeshows
4. Sales Promotion
Sales promotion objectives are to:
• Increase sales
• inform customers of new products
• Create a positive business or corporate image
5. Public Relations
Public relations (PR) activities that create a
favorable image for a company, its products,
or its policies
Goals:
• Create a favorable image
• Influence a target audience
• Cultivate media relations with reporters
who cover a specific industry
Types of Public Relations
What do you think are Public Relations activities a
company can engage in?
• Publicity
• Community Involvement
• Customer Appreciation Events
• Scholarships
• Speaking Events
• Sponsorship of Community Sports events
• Charitable Donations
• News release
Marketing Essentials Chapter 17, Section 17.1
New Release
A news release a free announcement that is sent
to media outlets to announce newsworthy
business developments
Examples:
• News about products
• Distribution channels
• Facilities
• Partners
• Revenues
• Employees, and events
Marketing Essentials Chapter 17, Section 17.1
Publicity
Publicity involves bringing news or
newsworthy information about an organization
to the public’s attention
• Sharing company information via the media
(TV, radio, internet, newspapers, etc)
Promotional Mix
• Promotional Mix: The combination of personal
selling, public relations, advertising, sales
promotion, sponsorships, direct mail, and trade
shows that are utilized in promoting a good or
service
Promotional Mix Policies:
Manufacturers utilize two different methods of
promotional mix:
1. Push policy
2. Pull policy
Marketing Essentials Chapter 17, Section 17.1
Promotional Mix Push Policies:
The push policy of promotion promotes to the
retailer, pushing the product to the retailer
• purpose is to convince a retailer to stock the
promoted product
• Use personal selling, advertising, and buying
discounts directed toward retailer
• Relies heavily on trade shows
Marketing Essentials Chapter 17, Section 17.1
Promotional Mix Pull Policies:
The pull policy directs promotion toward the
consumer. High interest and demand from
consumers convinces (pulls) the retailers to
stock the promoted item
• Uses local advertising, in-store displays, sales
promotions and public relations to reach
consumers
• Consumer samples and
demonstrations used
Five Types of Promotion in Promotional Mix
Examples of Each Different Type of Promotion
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Personal selling
Advertising
Direct Marketing
Sales Promotion
5. Public Relations
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Company Web Site
Community Involvement
Charity Involvement