The Promotion Mix Promotion: influencing · Push-Pull Policy Trade Promotions Consumer Promotions...
Transcript of The Promotion Mix Promotion: influencing · Push-Pull Policy Trade Promotions Consumer Promotions...
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Promotion: influencing
buying decisions Chapter 17
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Opening Question
Have you ever
entered a contest by
a store or business to
win something?
Describe it.
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
What Is Promotion?
Promotion – any communication an
organization uses to:
• Inform
• Persuade or
• Remind
people about its products
• Also to improve the public image of
an organization
The Promotion Mix
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
The 2 Purposes Of Promotion
• Product promotion - Convince
market to buy a product
• Institutional promotion – Create a
favorable image for company
The Promotion Mix
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
The 5 Basic Types Of Promotion
1. Personal Selling
2. Advertising
3. Direct Marketing
4. Public Relations (PR)
5. Sales Promotion
- Direct Customer Contact
Non-personal /no direct customer contact
The Promotion Mix
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
1. Personal Selling
• Personal Selling - One of the largest
forms of promotion
–Most expensive form
• Make the sale after customer is
attracted by ads, sales promotion, or
PR
The Promotion Mix
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
2. Advertising
• EXAMPLES: Magazines, newspapers,
television, radio, web-sites
– One-way communication
The Promotion Mix
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
3. Direct Marketing
• Usually to a targeted group
• Two types:
– Printed
–Online
The Promotion Mix
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
4. Public Relations & Publicity
• Public Relations (PR)
Strategies to enhance company’s
reputation/image
• Publicity
– Part of PR and is the end result of PR
– End results = what makes headlines,
news, chat room, blogs (the media
placement)
The Promotion Mix
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
4. Public Relations & Publicity
Public Relations &
Publicity
Data Breach Troubling TARGET Customers bought less at Target as they felt
their credit/debit card security was compromised
Public Relations: Apologized for theft of information Assured zero liability for fraudulent
charges Implemented technological changes to
prevent recurrence of such an event in the future
Changed Top Management
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Advantages of Publicity
• It’s free
• “News” is usually viewed as more
objective and credible than
advertising
• People more likely to pay attention
to news than ads
Public Relations &
Publicity
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Disadvantages of Publicity
Unlike paid advertising, company has
no control over:
• The content or what is said
• When something is said
TACO BELL “Seasoned Meat” Lawsuit
2011
Public Relations &
Publicity
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
5. Sales Promotion
• Sales Promotion – All marketing
activities, other than the prior four.
– Product Placement
– Contests
– Etc.
• Will be discussed in 17.2
The Promotion Mix
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Promotional Mix
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Coordination of Promotional Mix
• Use more than one type of promotion
• Each should complement other types:
– Ads and direct mail create awareness
– PR creates positive image and
recognition
– Sales promotion create sales and
reinforces
– Personal selling closes the sale
The Promotion Mix
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Opening Question
What types of events are held in our
community to build the image of a
company?
What are the goals of these events?
Give specific examples.
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Opening Question
What types of promotions could a
company offer ANOTHER company
(B2B) to entice them to carry their
products. Provide examples with
specific company/products.
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Sales Promotions Chapter 17.2
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Sales Promotion
• Sales Promotions - Incentives that encourage
customers to buy
• Used to:
– Try a new product
– Build Awareness
– Increase purchases by current customers
– Reward loyalty
• Two General Categories:
– Business to Business (B2B) -> Trade
Promotions
– Business to Consumer (B2C) -> Consumer
Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
The Push-Pull Concept
Customer
Retailer Manufacturer
Push-Pull Policy
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Trade Promotions (B2B)
• Trade Promotions – Get support for a
product from manufacturers,
wholesalers, and retailers
• More $ promoting to business than
consumers
• Major trade promotions include:
1. Promotional allowances
2. Cooperative advertising
3. Slotting allowance
4. Sales force promotions
5. Trade shows and conventions
Trade Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
1. Promotional Allowances
• Promotional Allowance – Cash
payments or discounts given by
manufacturers to wholesalers and
retailers to encourage sales.
• Therefore, they are more likely to
promote the product to customers
Trade Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
2. Cooperative Advertising
• Manufacturer helps retailer pay cost
of advertising a product
Trade Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
3. Slotting Allowances
• Slotting allowance - Cash premium
paid by the manufacturer to retailer to
place their product on its store shelf
• Several thousand to several million
per product
Supermarket holds how
many products?
Available Products to stock?
Supermarket:
Holds: < 30,000 Products
Available Products:
100,000
Trade Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
5. Trade Shows and Conventions
• Trade Shows and Conventions –
Showcases a particular line of
products
• Uses:
– Introduce new products
– Encourage sales of existing products
– Meet partner in the chain
– Gain continued company and product
support
Trade Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Consumer Promotions (B2C)
• Sales strategies that designed to
encourage consumers to buy a
product
11 Categories:
•Coupons
•Premiums
•Deals
•Incentives
•Product Samples
•Sponsorships
•Promotional Tie-ins
•Product Placements
•Loyalty Marketing
Program
•Online Loyalty Mktg
Program
•Point-of-Purchase
Display Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
1. Coupons
Certificates which entitle customers
to cash discounts on goods or
services
Placed on or in packages,
newspapers/ magazines, mailers
Stores are reimbursed by
manufacturer for coupon
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
2. Premiums
• Low-cost items given to consumers at a
discount or for free
– Increase sales, builds product loyalty
and attracting new customers (persuade
nonusers to switch brands)
– Motivates people to buy a product when
they are offered an “added value” gift in
exchange
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
2. Examples of Premiums
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
2. Types of Popular Premiums
Factory packs, or In-packs – Free gifts
placed in or on product packages or as a
container premium
Traffic builders – Low-cost premiums, such
as pens, key chains, and calendars, which
are given away for free to consumers
visiting a new store or attending a special
event
Coupon plans – Ongoing programs
offering a variety of premiums in exchange
for labels, coupons, or other tokens from
one or more purchases Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
3. Deals
Offer short-term price reductions
that are marked directly on label of
package
• Coupling two products for the price
of one
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
4. Incentives
Higher-priced products earned and
given through contests, sweepstakes,
and rebates
Contest – Skill needed to win
Sweepstakes – game of chance
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
5.Product Samples
• Product Sample – A free trial-size of a
product
• How Distributed?
• Especially important when promoting
a new product
– Examples: Medicine and textbooks
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
6. Sponsorship*
Sponsorship – Promotion of a company in
association with a property
Title Sponsor – Pays to have its name
incorporated into the name of the property
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
8. Product Placement
• Displaying or using products in TV shows
and movies
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
9. Loyalty Marketing Programs
• Also called Frequent
Buying Program
• Rewards customers
for multiple purchases
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
10. Online Loyalty Mktg Program
• Certain web sites provide points for
visiting certain sites or making online
purchases.
• E-bates
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
10. Online Loyalty Mktg Program
• Top 10 retail websites :
1. Amazon.com
2.
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
11. Point of Purchase Displays
• Displays of products usually placed in
high traffic areas.
Consumer Promotions
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The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Review Sheet Answers
1. B2B – Slotting Allowance
2. B2B – Promotional Allowance
3. B2C – Coupon
4. B2C – Deal
5. B2B – Cooperative Ad
6. B2C – Traffic Builder
7. B2C – Contest
8. B2C – Sponsorship
9. B2C – Promotional Tie-in
10. B2B – Trade Show
11. B2C – Product Placement
12. B2B – Sales Force Promotion
13. B2C – Sweepstakes
14. B2C – Point-of-purchase Display
15. B2C – Loyalty Mktg Program
16. B2C – Product Samples
17. B2C – Rebate
18. B2C – Online Loyalty Mktg
Program
Consumer Promotions
Trade Promotions