1. 2 Objectives Describe the role of promotion. List three goals of promotion. Describe how the communication process works in promotion. Explain the.

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Objectives

Describe the role of promotion. List three goals of promotion. Describe how the communication

process works in promotion. Explain the difference between

institutional and product promotion. Explain the difference between

personal and nonpersonal promotion.

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Objectives

Describe and give an example of each of the four elements of promotion.

Explain why the marketing concept is important in promotion.

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Marketing Terms

marketing communication

effective promotion product promotion institutional promoti

on personal promotion nonpersonal promot

ion

advertising sales promotion trade show trade allowance coupon rebate premium public relations publicity

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What Is Promotion?

Promotion is one of the Four Ps of marketing

Promotion is the process of telling people about a product or the company that

offers it

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Promotion Is Marketing Communication

Promotion is communication from an organization to

– its customers– its potential customers– the public

Marketing communication is another term for promotion

1. Give an example that showshow promotion is communication.

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Goals of Promotion

Goal of promotion: to help a business achieve its goals by communicating with

customers and the public Promotion

informs expresses persuades

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Inform

Businesses want to keep customers informed about new products new features on existing products how to use products safety issues charities and cultural organizations that the

business supports community events that the business supports

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Express

Promotional messages express emotion and entertain to attract customer attention to products create demand for products

Messages with emotion are more likely to be remembered

2. Describe an ad or commercial that you remember. What makes it vivid?

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Persuade

Persuasion use of logic, argument, or pleading to get

another person to agree with you or act in a certain way

The ultimate goal of promotion is to persuade people to buy the product

3. Describe a promotion that successfully persuaded you to buy a product.

How did it persuade you?

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Promotion uses the same communication process as does all communication the marketer is the sender the target market is the receiver

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Noise

Promotional messages encounter physical noise, technical problems, external

distractions, and internal distractions

Two methods to counteract distractions repeat the same message many times make the message stand out from all others

4. Describe an example of each method to counteract distractions for

promotional messages.

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Feedback

Effective promotion promotion that achieves its goals

How do marketers determine whether a promotion message was effective? through customer feedback obtained by

– monitoring sales– performing market research

5. If promotion is effective, what will happen to sales?

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6. Describe different types of promotion.

Photo by Amy J. Berk

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Types of Promotion

Promotion can be categorized based on the target market

– businesses or consumers what is being promoted: a product or

institution – product promotion: focuses on selling

the product– institutional promotion: focuses on

creating an image of the organization

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Types of Promotion

Personal or nonpersonal personal promotion

– customer and marketer communicate in person

– the only type of personal promotion is personal selling

nonpersonal promotion– communicates the same message to all

potential customers– examples: advertising, sales promotion,

and public relations

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Four Elements of Promotion

Promotion can also be categorized based on the four elements of promotion personal selling advertising sales promotion public relations

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Personal Selling

Personal selling seller communicates

in person with buyer a selling message

can be customized for each buyer– based on

immediate feedback from the customer

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Advertising

Advertising includes print ads commercials Internet ads outdoor advertising transit advertising direct marketing

7. Describe an ad that you have seen. Who is the target market for this ad?

Photo courtesy of IGA, Inc.

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Sales Promotion

Sales promotion marketing activities designed to entice

customers to buy a company’s products

B2B sales promotion trade shows trade allowances point-of-purchase advertising sales incentives

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Sales Promotion

B2C sales promotion coupons and rebates free samples premiums contests and

sweepstakes promotional tie-ins product placement visual merchandising

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Public Relations

Public relations promotional activities designed to create

goodwill between a company and the public

Proactive public relations communications initiated within the company

for the purpose of image building

Reactive public relations communications in response to negative

events or damaging information

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Public Relations

Main functions of public relations getting positive publicity developing philanthropic activities counteracting negative publicity

Publicity information about a company and its

products that appears in the media company does not pay for the articles

– the articles are part of the news-gathering function of the media

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Public Relations

Philanthropic activities the public relations

department usually– develops charitable

and community activities

– gets publicity for these activities

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Review

What is the goal of promotion? What is the difference between

B2B promotion and B2C promotion? product promotion and institutional

promotion? personal promotion and nonpersonal

promotion?

List the four elements of promotion.

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Glossary

advertising. Nonpersonal promotion paid for by an identified sponsor.

coupon. Printed piece of paper that indicates the product and the amount of price reduction when the coupon is used.

effective promotion. Promotion that achieves its goals.

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Glossary

institutional promotion. Communication that focuses on the image of the organization.

marketing communication. Communication from an organization to its customers, potential customers, and the public; promotion.

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Glossary

nonpersonal promotion. Promotion that communicates the same message to all potential customers.

personal promotion. Promotion in which the marketer and the customer communicate in person, and the marketer can immediately customize the message; personal selling.

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Glossary

premium. Item given to the customer for free or at a reduced price along with the purchase of a product.

product promotion. Marketing communication that focuses on the product and selling the product, in contrast to institutional promotion.

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Glossary

promotion. All communications from an organization to its customers, potential customers, and the public; marketing communication.

publicity. Information about a company and its products that appears in the media; however, the company does not pay the media to carry the message and therefore has no control over the story.

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Glossary

public relations. Promotional activities designed to create goodwill between a company and the public.

rebate. Return of a portion of the money paid for a purchase.

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Glossary

sales promotion. Marketing activities designed to entice customers to buy a company’s products. Examples include coupons, contests, free samples, and gift-inside.

trade allowance. Discount or money paid to the intermediary who buys the product.

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Glossary

trade show. Exhibit of products of interest to a specific industry.

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