Students will understand and demonstrate

knowledge of PromotionStandard 2

Understand the role of Promotion

Define Promotion:

◦ Any form of communication a business or organizations uses to inform, persuade or remind.

Objective 2.1

Since businesses must continually promote their organizations, products and policies to gain customer acceptance, you will need to learn successful promotional strategies.

These strategies make up the Promotional Mix

Why is Promotion Important?

The promotional mix is a combination of the different types of promotion. There are four basic types of promotion:

1.Advertising2.Publicity/Public Relations3.Personal Sales4.Sales Promotion

Objective 2.2 – What is the Promotional Mix?

Advertising is any paid form of non-personal promotion of ideas, goods or services. Advertising can be found anywhere from magazines, TV and internet to anything that is ONE-WAY communication.

1. Advertising

Public relations - The method or activities of establishing and promoting a favorable relationship with the public.

Publicity is part of public relations and involves placing newsworthy information about a business, product or policy in the media.

It’s mostly free.

2. Public Relations/Publicity

Personal sales are when individuals make contact with potential buyers face-to-face to promote their business, products or policies.

3. Personal Sales

Sales promotion represents all marketing activities other than the three already mentioned, like:◦ Contests◦ Fashion shows◦ Coupons

Used to stimulate consumer purchase immediately

4. Sales Promotion

Factors affecting the promotional mix:

◦Technology◦Economy◦Market◦Distribution

Match the examples below to one of the 4 strategies in the promotional mix: (advertising, publicity, personal sales, sales promotion)

1. TV Commercial 2. Insurance sales 4. Coupon

5. contest 6. Fashion Show7. Magazine Ad

3. News release

7. Home Tupperware Party

1. Advertising (one-way paid communication)

2. Personal sales 3. Publicity 4. Sales Promotion 5. Sales Promotion 6. Sales Promotion 7. Advertising 8. Personal Sales

Answers to Matching

Advantages Disadvantages

Allows large number of people to see the advertised message

Can’t focus on individual needs

Can be controlled Can be too expensive for many businesses

Can have repeat viewers Can be inefficient (short coverage of billboards & magazines)

Can pre-sale products before customers go shopping

Advertising

Public Relations/PublicityAdvantages Disadvantages

save a business money by extending it’s advertising budget

May not be accurate or presented in the way or time that will reach the right audience

Can increase a business’ profit and exposure

Can be negative or harmful to the business

Lack of control of content

Personal SalesAdvantages Disadvantages

Personalized to individual customers

Most expensive form/per sale

Largest form of promotion Has slower distribution/coverage compared to advertising

Easier for personal sales to focus on target market and complete the sale

Sales PromotionAdvantages DisadvantagesVariety of activities Short term incentives

Includes many different marketing activities to stimulate consumer interest including business to business promotions

Can be controlled

Trade Promotions –sales promotion activities are designed to gain manufacturers’, wholesalers’ and retailers’ support for a product. More money is actually spent on promoting to businesses than to consumers.

Major trade promotions include: Slotting – Buying Allowances – Trade shows & conventions -

Different Types of Sales Promotions

◦Slotting – paid by the manufacturer to the retailer for placing their new products on the shelves, store advertising and display costs.

◦Buying Allowances – a price discount given by manufactures to retailers to encourage them to buy more.

◦Trade shows & Conventions – designed to reach wholesalers and retailers to display new products and/or increase sale of previous products.

Premiums – low cost items given to customers

Incentives – generally products earned through contest, sweepstakes and rebates

Product Samples – in store or by mail

Product tie-in’s or co-operative advertising- cost sharing arrangement whereby both a supplier and advertiser pay for advertising & promo

Different Types of Consumer Sales Promotions

Product placement – product recognition developed by featuring products in special events, TV, movies, etc.

Visual Merchandising & Display– coordination of all physical elements to project the right image to its consumers. Displays refers to the artistic and visual aspects used to present a product.

Loyalty Programs – frequent buyer rewards

Different Types of Consumer Sales Promotions- cont.