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Promotion = Communication
Project #4 :: Promo Blitz
Principles of Marketing
Mrs. Schroeder
Promotion
 What are some examples of promotion?
 Sales associate helping customers
 TV commercials
 Billboards
 Direct mail
 Ads in the newspaper and magazines
 Public service announcements
 Corporate sponsorship of sporting events
Promotion is Marketing Communication: Goals of Promotion
 Promotion can be broadly described as the communication from an organization to
its customers, potential customers, and the public.
 Also called marketing communication.
 The role of promotion is to help a business achieve its marketing goals.
 The basic marketing goals of most businesses are to sell products and make a
profit.
 Promotion helps a business reach these goals by communicating.
Inform
 Businesses want to keep customers informed about:
 Existing products
 New products
 New features on existing products
 Safety issues that may affect the use of a product
 Charities and cultural organizations the business supports
 Events the business sponsors in the community
 Another important aspect of informing is to remind.
Express
 Promotional messages use words, pictures, color, motion, and music to express
and entertain.
 TV commercials are often built around emotion and entertainment.
 Coke
 Pepsi
Persuade
 Persuasion is the use of logic, argument, or pleading to get another person to
agree with you or to act in a certain way.
 The ultimate goal of promotion is to persuade potential customers to buy the
product.
 Promotional messages persuade people to buy through the use of information,
reminders, expression, and entertainment.
 A promotional message might persuade might persuade you to buy a product, if
the message did the following:
 Informed you about how the product meets your needs
 Provided a reminder that was timely
 Used expressive elements that made an impression and left you with a good
feeling about the company and its product
Promotion is Marketing Communication:
The Communication Process and Promotion
 Promotion takes place through the communication process.
 An important part of developing the promotional message is choosing the best
medium for the message.
Promotion is Marketing Communication: The Communication Process and
Promotion
Noise
 Noise can interfere with promotional messages, just the same way noise can
interfere with any communication.
 Promotional messages can encounter physical noise, technical problems, external
distractions, and internal distractions.
 One of the major sources of noise is the sheer number of promotional messages
that each person is exposed to every day.
 Marketers cannot control the environment where marketing messages are
received, but, they have two methods to try to counteract these distractions:
 Repeat the same promotional message many times, often using several
mediums
 Make the message stand out from all others
Feedback
 Once the message reaches the receivers (target market), the decode, understand,
and act on (or ignore) the message.
 Effective promotion, like effective communication, is promotion that achieves its
goals.
 Most obvious sign is increase in sales.
Promotion is Marketing Communication: Types of Promotion
 There are many ways to categorize promotion.
 Three common ways are:
 1. The target market
 2. What is being promoted
 3. The elements of promotion
Target Market: Business or Consumers
 Business-to-business (B2B) promotion is the promotion that occurs when a
business promotes its products to another business.
 Business-to-consumer (B2C) promotion is promotion that occurs when a
business promotes its products directly to the consumer market.
What: Product or Institution
 Product promotion is marketing communication that focuses on the product and
selling the product.
 Institutional promotion is communication that focuses on the image of the
organization.
The Four Elements of Promotion
 1. Personal selling
2. Advertising
3. Sales promotion
4. Public relations
 These elements fall into two categories: personal promotion and nonpersonal
promotion.
Personal Promotion
 In personal promotion, the marketer and the customer communicate in person.
 The main feature of personal selling is that the seller can customize the message,
based on the immediate response (feedback) from the customer.
Nonpersonal Promotion
 Nonpersonal promotion is promotion that communicates the same message to
all potential customers.
 Mass communication and the mass media are used to send nonpersonal
promotion.
Nonpersonal Promotion: Advertising
 Advertising is nonpersonal promotion paid for by an identified sponsor.
 Includes print ads in newspapers/magazines, commercials on radio/TV, Internet
ads, outdoor ads (billboards), and transit ads on buses/subway cars.
 Also includes direct marketing, or direct mail.
Nonpersonal Promotion: Sales Promotion
 Sales promotion consists of marketing activities designed to entice customers to
buy a company’s products.
 Ex. – coupons, contests, free samples, etc.
 Have goal of getting customer to buy the product.
 Most are short-term activities and are designed to be used with other forms of
promotion.
Business-to-Consumer Sales Promotion
 Visual Merchandising:
 Visual merchandising is the physical presentation of merchandise and the
design of a place of business for the purpose of increasing sales.
 Includes displays in store windows
 Purpose is to attract the customer to the merchandise
 Used to create atmosphere for service businesses
 Coupons and Rebates:
 A coupon is a printed piece of paper that indicates the product and the amount
of price reduction when the coupon is used.
 A rebate is the return of a portion of the money paid for a purchase. (Ex.: cars
= cash back)
 Free Samples:
 Free samples (trial samples) are small amounts of the product that are given to
the customer at no charge.
 Premiums:
 A premium is an item given to the customer for free or at a reduced price
along with the purchase of a product.
 Acts as an incentive by offering a reward or prize if the customer buys the
product.
 Contests and Sweepstakes:
 Contests and sweepstakes are competitions that offer participants a chance to
win a prize
 Contests usually require you to do something.
 A sweepstakes is a game of chance.
 Promotional Tie-In:
 A promotional tie-in is promotion involving the products of two or more
companies.
 Product Placement:

In product placement, the advertiser works with a media company to place
one of its products in a movie or TV show, so that the brand name can be
clearly seen.
Business-to-Business Sales Promotion
 B2B sales promotion (trade promotion) is sales promotion that occurs between
members of a distribution channel.
 The purpose is to get members of the distribution channel to buy the product,
and then sell it to the next member of the channel.
 Many companies spend more on trade promotions than on consumer sales
promotions.
 Trade Shows:
 A trade show is an exhibit of interest to a specific industry.
 Trade Allowance:
 A trade allowance is a discount or money paid to the intermediary who buys
the product.
 Trade Allowances:
 A buying allowance is a discount given to retailers for the goods purchased.
 A promotional allowance is money that the manufacturer pays to the reseller to
cover costs of promotion done by the reseller.
 A slotting allowance I money that the manufacturer or wholesaler pays to the
retailer to cover the costs of carrying a new product.
 Point-of-Purchase Advertising:
 A promotional display located at the place where the customer makes the
buying decision is called point-of-purchase advertising.
 Sales Incentives:
 Sales incentives consist of contests and rewards used by manufacturers and
other channel members to motivate wholesalers and retailers to sell more of
the product.
 Ex. – vacations for salespeople
Nonpersonal Promotion: Public Relations
 Public relations consists of promotional activities designed to create goodwill
between a company and the public.
 Is mostly institutional promotion
 A positive image often influences people to buy products from the company
 Proactive public relations consists of communications initiated within the company
for the purpose of image building.
 Info on new products, charitable events, etc.
 Reactive public relations consists of communications in response to negative
events or damaging information that appears in the media.
 Recalls, accidents, etc.
Publicity:
 Publicity is information about a company and its products that appears in the
media.
 The company does NOT pay for it.
 A press release is a story about the company that the public relations specialist
writes and sends to the media.
 A press kit consists of information about the company and its products.
 A press conference is a meeting called by a business to which the media is
invited.
Philanthropy:
 Philanthropy consists of actions that improve human welfare and spread goodwill.
The Marketing Concept and Promotion
 Promotion has been criticized for manipulating people into buying things that they
do not really want or need.
 Marketers that follow the marketing concept do not run into these sorts of
problems.
 The needs and wants of the customers should always be kept in mind.