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PROMOTION
The communication of information
about goods, services, images,
and/or ideas to influence purchase
behavior.
Without promotion, buyers would
not know product exists
• Requires someone to send a message
to someone who receives the message
and gives feedback to the sender of the
message.
• Message is letting the buyer know the
product exists
• Feedback is the buyer making a
purchase
Communicate with Customers
Message or
Promotion
Sender or
Seller
Receiver or
Customer
Feedback or
Purchase
Characteristics of Promotion

Can be face to face, or personal
– Salesman working with customer

Can be non-personal
– Cents-off coupons, displays, billboards
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Characteristics of Promotion
 Should
be persuasive
 Should be relevant
– To the intended audience
 Should
be suited to the product
 Should be factual
 Should be repetitious
– To be effective, promotional messages
need to be repeated.
Promotion links
Buyers and Sellers
Promotional communications
is designed to
inform, persuade and remind.
Sellers are anyone with
something to sell
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Producers
Middleman or Agents
Individuals
Large and Small Business
Government Agencies
Everyone is a buyer at
some point in time
• Buy for personal or business use
• Anyone willing and able to buy
– Producers
– Middlemen or Agents
– Individuals
– Large and Small Business
– Government Agencies
Sellers communicate
information to buyers
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•
•
•
The type of product they offer
Benefits or advantages of the product
The location where it can be purchased
How much the product will cost
Promotion influences
purchase behavior
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Companies know that there are
many who need their product.
They use promotion to influence
customers to buy their product over
another company’s product.
A variety of tools are used to
communicate with buyers
Promotional Mix
The combination, or blend, of
marketing communication channels
that a business uses to send its
messages to consumers.
Elements of the Promotional Mix

Advertising

Publicity

Sales Promotion

Personal Selling
Advertising
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Any paid form of non personal
communications.
Most visible element
The same message is delivered to
many customers at one time
Per contact cost of advertising is
low
Advertising Media
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Television
Radio
Print – magazines, newspapers
Transportation – bus, taxi, trucks
Outdoor – Billboards, signs
Direct Mail
Directories
Personal Selling

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
Planned, personalized form of
communications to influence
purchase decisions and ensure
satisfaction.
Advantage over Advertising is
immediate feedback from clients.
Most expensive promotional tool
Publicity
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Non-personal form of promotion
that is not paid for by the company
or individual that benefits.
Can be seen as more credible
because it is not a paid commercial.
Can be positive or negative
Newspaper article, celebrity on a TV
talk show discussing latest movie
Sales Promotion
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Promotional activities other than
publicity, advertising, and personal
selling that are designed to
stimulate buying.
Visual merchandising, fashion
shows, coupons, free samples,
contests, novelty items, trade
shows, demonstrations and exhibits
are examples of sales promotion
Importance of Promotional Mix
A good mix enables business
to communicate effectively
with customers
Promotional Mix
and Life Cycle of the Product
Promotional mix should vary as the
product moves through its life cycle.
More promotion at introduction to
increase consumer awareness
Less promotion at decline as product is
phased out of production
Promotion is one of the 4 P’s
Marketing is a blend of
Product, Place (distribution),
Price and Promotion known
as the Marketing Mix
All Elements of Marketing Mix
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Must work together before a business
can achieve its goals
It would be useless to promote a
product to create demand and not
produce and distribute it.
Product, Price and Place decisions
must be made before promotion
decisions can be made.
Factors Affecting
Promotion
• Internal environmental factors
– The Product
– Its Price
– It’s Place – Distribution
• Internal factors are easier to control by
the business
External Environmental
Factors affecting Promotion
• Competition
– use promotion to gain an edge or respond
• Technology
– Can provide promotional opportunities
• Demand
– Constantly changing
– Promotion must change to impact demand
More External Factors
• Cultural and Social Trends
– Changes in attitudes, lifestyles and tastes
• Legal and Political Factors
– Government regulations can restrict some
types of promotional messages
Benefits of Promotion to Business
 Increased
sales
 Enhanced Company Image
 Strengthened loyalties
– To product
– To Business
Benefits of promotion to consumers
 Informed
that products exist and are
available
 Help deciding between products
– Make better buying decisions
– Satisfy their needs
 Learn
new product uses
Benefits of promotion to Society
 Helps
provide jobs
– Increased sales = increased production
= increased employment = increased
disposable income = increased sales
 Encourages
demand
 Helps to pay for mass media
– Your favorite TV show or magazine use
promotional dollars
Where would we be without it?
PROMOTION