What is Promotion?AIDA, Pull and Push Strategies

The Role of Promotion

Communication by

marketers that informs,

persuades, and reminds

potential buyers of a

product in order to

influence an opinion or

elicit a response.

PromotionPromotion

Promotion Strategy

A plan for the optimal

use of the elements of

promotion: Advertising Public Relations Sales Promotion Personal Selling

PromotionalStrategy

PromotionalStrategy

Creates CompetitiveAdvantage!

Competitive Advantage

Unique featuresUnique features

Excellent serviceExcellent service

Low pricesLow prices

Rapid deliveryRapid delivery

High product qualityHigh product quality

Goals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

Goals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity

Goals and Tasks of Promotion

Remind customers that product may be needed

Remind customers where to buy product (which one to buy)

Maintain customer awareness

Reminder Promotion (during maturity)

Attention

What is AIDA?

Interest

Desire

Action

The AIDA Concept

Model that outlines the process

for achieving promotional goals

in terms of stages of consumer

involvement with the message.

Attention

Interest

Desire

Action

Attention

Interest

Desire

Action

AIDA ConceptAIDA

Concept

Must attract the attention of the consumer

1. Ask a question – ie: Acne got you down? What would you do for a Klondike bar?

2. Offer something for free 3. Say something shocking or startling4. Flatter the receiver – ie: Because you’re worth it

Attention

You must activate interest in your product. You can do this by providing information.

1)A description of the product2) Demonstrations, fashion shows, displays3) Activate the need in the customer - Maslow• Let’s try a few ourselves:

Interest

Now that the potential customer feels that he or she has a need, the promotion must create desire and demand. The product can be offered as a way to satisfy the need.

Can use free samples, coupons and rebates to encourage customers to try the product – Sales Promotions

Desire

Need to motivate your customer to buy your product.

"Call to Action"o "Call now to purchase this item"o "buy now, while supplies last"

Action

We will start from here on Tuesday.Critical part of developing effective

promotional strategies.

• Customer feedback cards• Surveys• follow-up phone calls, thank you cards

Evaluation

Pull Strategy - focuses on the consumers.

If the consumer cannot find an advertised product, they will ask the retailer for it. With enough consumer demand, the product will be pulled through the distribution channel to the retailer.

Pull vs. Push Strategies

Push Strategy - focuses on promoting products to the members of the distribution channel.

ex. a wholesaler might convince a retailer to buy a large supply of an item.

Pull vs. Push Strategy

Push and Pull Strategies

Manufacturerpromotes to wholesaler

Manufacturerpromotes to wholesaler

Wholesaler promotes to

retailer

Wholesaler promotes to

retailer

Retailer promotes toconsumer

Retailer promotes toconsumer

Consumerbuys from

retailer

Consumerbuys from

retailer

PUSH STRATEGY

Orders to manufacturer

Manufacturerpromotes to

consumer

Manufacturerpromotes to

consumer

Consumer demands product

from retailer

Consumer demands product

from retailer

Retailer demands product

from wholesaler

Retailer demands product

from wholesaler

Wholesaler demands

product frommanufacturer

Wholesaler demands

product frommanufacturer

Orders to manufacturer

PULL STRATEGY

•We will go over Sales Promotions tomorrow, so do not do this part of the summative.

•Remember summative is due Monday June 16!

Homework!