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Business & Marketing
Unit 6: Promotion
Business and Marketing
Unit 6: PROMOTION
2nd Semester
Mr. Schurig
Transition 17-1
• With groups of 2 to 4:
– Share and list the most interesting or
outrageous stories you have witnessed or
heard from a company promoting a new
product.
– In your opinion, did the technique work?
– Explain your answers
– Title: Marketing Transition 17-1
– Save Word document as:
Marketing-transition 17-1-filastname
– Be prepared to share with the class
Promotional Concepts
and Strategies
Chapter 17
Sec. 17.1 – Promotion and the
Promotion Mix
What you’ll learn
• The role of promotion in marketing
• The concept of promotional mix
• The characteristics of personal selling
and advertising
• The nature and scope of publicity
Promotional Concepts & Strategies
Promotion
• Any form of communication a business or
organization uses to inform, persuade, or
remind people about its products
Product Promotion
• Used to convince customers to buy your
products instead of those of the competition
Institutional Promotion
• Used by a
business to
create a
favorable
image for itself
Promotional Mix – a combination of the
different types of promotion
•
•
•
•
•
Personal Selling
Advertising
Direct marketing
Sales promotion
Public relations
Personal Selling
• Any form of direct contact occurring
between a salesperson and a
customer
Advertising
• Any paid form of nonpersonal presentation and
promotion of ideas, goods,
or services by an identified
sponsor
– Nationally, businesses spend
about $200 billion annually on
various types of advertising
Direct Marketing
• A type of advertising directed to a targeted
group of prospects and customers rather than to
a mass audience.
– Printed direct mail, sent via regular mail to a
home or business
– Electronic direct mail
• It’s goal is to generate sales or leads for sales
representatives to pursue
Sales Promotion
• All marketing activities, other than
personal selling, advertising, and
public relations, that are used to
stimulate consumer purchasing and
sales effectiveness
Public Relations and Publicity
• Public Relations – any activity designed to
create a favorable image toward a business,
its products, or its policies
PR Specialists
• Write News
Releases -- a
prewritten story
about a company
that is sent to the
various media
Writing News Releases
• First paragraph should answer Who, What, When,
Where, and Why questions.
• Develop important facts in next few paragraphs.
• Less important information can follow but should
be edited.
• Include the full name and position of any people
mentioned.
• Include the name, address, and phone number of
the contact person.
• Be brief – only one or two pages. “###” at the
bottom of the last page signifies the end.
Public Relations and Publicity
• Publicity – a specific kind of public
relations that involves placing positive
and newsworthy information about a
business, its products, or its policies in
the media.
Because it is free,
business often has the
least control over publicity
http://www.signonsandiego.com/uniontrib/20050503/news_1m3wankie.html
To see positive publicity
about Hogle Zoo, click on the
baby Orangutan.
To see negative publicity
abut Hogle Zoo, click on
the elephant
http://www.deseretnews.com/article/600132516/Zoo-goes-ape-over-baby.html
Coordination of Promotional Mix
• Most businesses use more than
one type
• All types of promotion must be
coordinated
• Must consider the promotional
budget
Class Work: 17-1
• Textbook:
–Page 368, 1 – 4
–Page 377, 20 – 21
• Save as:
Marketing-CW 17-1-filastname
• Researching Publicity
–Page 378, #29
–Save as:
Publicity-Research-filastname
• Next Class: Finish Chapter 17
Promotion
Chapter 17
Transition 17-2
•
With groups of 2 – 4:
755
–
Brainstorm and list some of the types of
promotions you encounter:
• Discounts, coupons, gifts, free offers, etc.
1. How do these affect your buying decision?
2. How does the promotion affect your
feelings toward the business?
3. Would you be likely to buy from that
business without a promotion?
•
Save as:
Marketing-promotions 17-2-filastname
Types of Promotions:
• Coupons
• Premiums (Free offers)
• Limited price discounts
• Rebates
• Product Samples
Sec. 17.2 – Types of Promotion
What you’ll learn
• The characteristics of sales
promotion
• The concept of trade promotions
• The different kinds of consumer sales
promotions
Sales Promotion
Incentives that encourage
customers to buy products
or services
Trade Promotions –
Designed to gain
manufacturers’,
wholesalers’, and retailers’
support for a product
Types of Trade Promotions
• Promotional Allowances – a cash
payment or discounts given by
manufacturers to wholesalers or retailers
for performing activities to encourage
sales.
Types of Trade Promotions
• Cooperative Advertising – A
manufacturer supports the retailer by
helping to pay for the cost of advertising
its product locally.
Types of Trade Promotions
• Slotting Allowances – a cash premium
paid for placing a product on a retailer’s
shelves
Types of Trade Promotions
• Sales Force
Promotions –
awards given to
managers and
employees who
successfully meet
or exceed a sales
quota.
Types of Trade Promotions
• Trade Shows and Conventions
The Consumer
Electronics
Show is held
annually in
Las Vegas.
Check it out by
clicking on the
image.
Consumer Sales Promotions –
designed to encourage customers
to buy a product
Types of Consumer Promotion
• Coupons –
certificates
that entitle
customers
to cash
discounts
on goods or
services.
Types of Consumer Promotion
• Premiums – low-cost items given to
consumers at a discount or for free –
Should:
–
–
–
–
be low-cost
provide added value
negate the target audience’s price issue
effectively differentiate the product from
the competition
– create an immediate need to buy
Types of Premiums
• Factory packs (in-packs) – free gifts
placed in product packages
Types of Premiums
• Traffic builders –
pen, calendar, keychain given free for
visiting or attending
event
Types of Premiums
• Coupon plans – ongoing program
offering a premium in exchange for
labels, coupons or other tokens from one
or more purchases.
Incentives – generally higherpriced products earned and given
through contests, sweepstakes, and
rebates
• Contests – activities that require
demonstration of a skill
• Sweepstakes – game of chance
Incentives
• Rebates – discounts offered to customers
who purchase
Product Samples
• Free, trial-size sample
• Distributed through mail, door-todoor, or at a retail or trade show
• Especially important with new
products
Sponsorship
• The sponsoring company pays a fee for
the right to promote itself and its products
or services at or on a set location
• May negotiate the right to use logos and
names on retail products
Promotional Tie-In
• Involves arrangements between one or
more retailers or manufacturers.
Ex: McDonald’s and Fisher-Price Toys
Product Placement
• Featuring a product at a
special event, on television,
or in the movies
Click on the “Pieces Icon” to
learn about the history of
product placement.
Loyalty Marketing Programs
• Frequent buyer programs
• Reward customers for making multiple
purchases
Point-of-Purchase Displays
• Placed in hightraffic areas and
promote impulse
purchases.
Class Work & Home Work 17-2
• Textbook:
– Page 375, 1 – 4
– Page 377, 22 – 24
• Workbook:
– Page 141 - 142
• Save as:
Marketing-CW 17-2-filastname
• Chapter 17 Activity Packet and Quiz