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NAME______________________________________ PERIOD ________ PROMOTIONAL CONCEPTS AND STRATEGIES CHAPTER 17 OBJECTIVES: 1) Explain the role of promotion in business and marketing 2) Identify the various types of promotion 3) Distinguish between public relations and publicity 4) Write a news release 5) Describe the concept of the promotional mix 6) Define sales promotion 7) Explain the use of promotional tie-ins, trade sales promotions, and loyalty marketing programs I. THE CONCEPT OF PROMOTION A. Define promotion __________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Goals of promotional activities is AIDA A – first ___________________ I – then build _______________ D – ____________ A – finally ask for ____________ B. Define product promotion ____________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ C. Define institutional promotion ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Chapter 17 – Promotional Concepts and Strategies D. Types of promotion in the promotional mix ( List & DEFINE each type) 1. __________________________ Generates direct ______________ with prospects and _____________________________ Examples include: __________________, in-home __________________, __________________ and __________________ correspondence Most __________________forms of promotion 2 Chapter 17 – Promotional Concepts and Strategies 2. __________________________ A form of _______________________________ To promote ______________, _____________, __________________ in a variety of media outlets Examples include __________________, business cards, brochures, Internet, __________________, newspapers, phone directories, __________________, radio, TV, __________________, cars and buses, restaurant menus and __________________. 3__________________________ A type of promotion that companies use to address individuals __________________ and not through a __________________medium (such as TV, radio, or the internet) _________________ Sent via _________________ mail to a home or business _________________ Customers are _________________ on the phone and asked directly for goods or services _________________ Any promotion delivered via the _________________ (e-mail, _________________, _________________, search engine marketing (paid search), web site optimization Electronic media that allows people with similar _________________ to participate in a social network Helps businesses reach _________________ customers _____________ of direct marketing are to _________________ sales or leads for sales representatives to pursue Gives recipients an _________________ to respond by visiting a _________________ or _________________, calling a _________________, returning a form, or sending an _________________ Targeted customers receive _________________________o r incentives, such as money-off coupon 3 Chapter 17 – Promotional Concepts and Strategies Allows businesses to engage in _______________________ communication Congress passed the _______________________Act of _______________________ Act requires senders of _______________________ commercial e-mail to give recipients a way to _______ out of e-mails Prohibits the use of _______________________ subject lines and headers Requires businesses to provide ______________________ return addresses on e-mails. 4. __________________________ According to AMA, sales promotion represents all __________________________ activities – other than __________________________, __________________________ and __________________________– that are directed at business or retail customers to __________________________sales. Objectives are to : _______________________sales, Inform ________________________ about new _______________________,Create ___________________ business or corporate ________________ Examples include ◦ _______________________ ◦ _______________________Promotions ◦ Competitions ◦ Product _______________________ ◦ _______________________Displays 5. __________________________ Public Relations activities enable an organization to ______________ a ______________ market Public Relations campaigns try to create a _______________________ general opinions and ___________ a favorable image for a person, company Public Relations goal is to encourage ___________________ with _______________ __________________________ Most important __________________________ An _______________________ that is sent to the appropriate ___________________________ Not _________________ by the business Public Relations: Using Social Media Businesses _________________ with customers Get _________________ on the company and its products and services Provide businesses with a way to obtain _________________ and speak _________________ with _________________ and existing customers 4 Chapter 17 – Promotional Concepts and Strategies Potential to reach prospective customers is _________________ Publicity Involves bringing _________________ or _________________ information about an organization to the _________________ attention. Known as _________________ Can be used to make public aware of certain _________________, specific _________________ or services, efforts by _________________ agencies, _________________ issue _________________ is one tactic that public relations professionals ____________ Publicity is _________________ CONCEPT OF PROMOTIONAL MIX: What is Promotional Mix? A combination of ________________ and cost-effective allocation of _______________ Identify _______________ market to measuring the results _______________ complement one another Elements of the mix must be _____________ 5 Chapter 17 – Promotional Concepts and Strategies PROMOTIONAL BUDGET: Roles of Marketing Department Determines __________________________________ Establishes the __________________ Distributes _________________________ Coordinates the ______________________ Supervises _____________________ resources _______________________ the results Determining the _______________ can be difficult PUSH-PULL CONCEPT: Push Policy: Manufacturer pushes __________________ to ____________________ Involves ___________________ selling and ___________________________ (trade shows) Pull Policy: Directs ______________________ towards _________________________ Creates consumer _____________________ and _____________________ Involves ____________________ to consumers (__________________ and _________________) 6 Chapter 17 – Promotional Concepts and Strategies Name: ___________________________________________ Period: ________ 17.2 - Types of Promotion Sales Promotion definition Date: ____________ A. _________________ that encourage customers to _________ products or services B. Build _________________ awareness C. _________________ customers to _________ new products D. _________________ purchases by current _________________ E. _________________ customer loyalty F. Sales promotions are usually _________________ by _________________ activities that include _________________ promotions and _________________ promotions G. TRADE PROMOTIONS ____________promotion activities designed to get ______________ for a _______________ from ____________________, __________________, and _______________________ More _________________ is actually spent on promotion to _________________ than to __________________________ Good business _______________ require that trade promotional _________________________ and ______________________ be offered in uniform manner TYPE OF TRADE PROMOTIONS: 1. Promotional Allowances Represents ___________ payments or __________________ given by ___________________ to ________________ or ____________________ for performing activities to encourage ___________ 2. Cooperative Advertising Manufacturer supports the __________________ by helping to pay for the cost of locally ______________________ its ___________________ Known as __________________ __________________ 3. Slotting Allowances A ______________________ premium paid by a _____________________ to a ___________________ to help the retailer ________________________ of placing the manufacturer’s product on the shelves Range from a few ______________________ dollars to several ______________________ dollars per product 7 Chapter 17 – Promotional Concepts and Strategies Also pay retailer’s ______________________ ______________________, charge for ______________________shelves, ______________________ for poor sales, store ______________________ and ______________________ costs 4. Sales Force Promotion __________________ given to ________________ and ________________ who successfully meet or exceed a _________________ Sales force promotions vary, but can include _________________ or _________________ such as _________________ awards or _________________ awards. 5. Trade Shows and conventions Showcase a particular _________________________ Introduce ______________ products, encourage _______________ ______________of existing products & meet customers DEFINE CONSUMER PROMOTIONS Sales __________________ that encourage customers and prospects to ___________ a product or service Consumer promotions support ___________________________, ______________________ selling and _____________________________ efforts TYPES OF CONSUMER PROMOTIONS: DEFINE & GIVE EXAMPLES 1. Coupons Certificates that entitle customers to ______________________ on goods or services Placed inside product ________________ or in ______________________ / magazines 2. Premiums ___________________________ given to consumers at a _____________ or for _________ Designed to _____________ ___________ by building product _________________ & __________ new _______________________ 8 Chapter 17 – Promotional Concepts and Strategies Fundamental concept behind premium marketing is that people will be more _______________________ to buy a product when they are _______________________ an added _______________ _____________ in exchange Three types of premiums ______________________________________________ ______________________________________________ ______________________________________________ Drawback – customers think premiums are _______________________ Factory Packs, or in-packs, are __________ ______________ placed in product _______________________ or as a container _______________________ ◦ Popular with _______________________ manufactures Traffic Builders – _______________________premiums such as ___________, _______________________, pocket _______________________, and coffee mugs ◦ _______________________ or _______________________ event Coupon Plans – _______________________ programs offering a variety of _______________________ in exchange for _______________________ or _______________________ obtained from a product ◦ Ex – Send 3 soup _______________________ in to manufacturer to receive a cookbook 3. Deals Deals or ____________________ offer ________________________________________ that are marked directly on the ____________________ or _______________ 4. Incentives Are ______________________ earned and given away through _______________-games of ___________; ____________________-games of chance; and _________________. Create customer _____________________ & __________________ sales 5. Product Samples A __________________________ size of a product ___________ through the __________, distributed _____________, or given away retail___________________ and _______________ shows 6. Sponsorship _______________ pays a ______________ for the right to promote ______________ and its ________________ or __________________ at or on a set location 9 Chapter 17 – Promotional Concepts and Strategies Negotiate the right to use ______________________ and ______________ on retail products 7. Promotional Tie-Ins, Cross-Promotion, Cross-Selling _________________________ and ____________________________ campaigns Activities include ___________________ arrangements between one or more __________________ or ________________________ They product mutually beneficially results 8. Product Placement A _________________ promotion that involves using a ________________ product in a ___________, television show, ____________________, or even in a __________________ for another product 9. Loyalty Marketing Programs Also called ______________________ programs, ______________________, or ______________________ programs reward customers by offering incentives for ______________________ purchases Also ______________________ programs, Customer loyalty means that _____________ are so _____________ with a brand or retailer that they continue to ___________________ that brand or patronize that retailer 10. Online Loyalty Marketing ___________________ of loyalty marketing programs Internet search engine _________________ point 11. Point-of-purchase displays _________________ designed primarily by ____________________ to __________ and ___________ their ______________________ High ______________________ area and promote ______________________ purchases ______________________ – web based or display screens that customers can use to ______________________ with sales staff 10 Chapter 17 – Promotional Concepts and Strategies 11