PROMOTION The communication of information about goods, services, images, and/or ideas to influence purchase behavior.

PROMOTION

The communication of information about goods, services, images, and/or ideas to influence purchase behavior.

Without promotion, buyers would not Without promotion, buyers would not know product existsknow 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

Feedback or Purchase

Receiver or Customer

Message or Promotion

Sender or Seller

Characteristics of PromotionCharacteristics of Promotion

Can be face to face, or personalCan be face to face, or personal– Salesman working with customerSalesman working with customer

Can be non-personalCan be non-personal– Cents-off coupons, displays, billboardsCents-off coupons, displays, billboards

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Characteristics of PromotionCharacteristics of Promotion

Should be persuasiveShould be persuasive Should be relevantShould be relevant

– To the intended audienceTo the intended audience Should be suited to the productShould be suited to the product Should be factualShould be factual Should be repetitiousShould be repetitious

– To be effective, promotional messages To be effective, promotional messages need to be repeated.need to be repeated.

Promotion links Buyers and Sellers

Promotional communications is designed to

inform, persuade and remind.

Sellers are anyone with Sellers are anyone with something to sellsomething to sell

• Producers

• Middleman or Agents

• Individuals

• Large and Small Business

• Government Agencies

Everyone is a buyer at some Everyone is a buyer at some point in timepoint 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 Sellers communicate information to buyersinformation to buyers

• 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

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

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

Television Radio Print – magazines, newspapers Transportation – bus, taxi, trucks Outdoor – Billboards, signs Direct Mail Directories

Personal Selling

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

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

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

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 PromotionFactors 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 External Environmental Factors affecting Promotionaffecting 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 FactorsMore 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 BusinessBenefits of Promotion to Business

Increased salesIncreased sales Enhanced Company ImageEnhanced Company Image Strengthened loyaltiesStrengthened loyalties

– To productTo product– To BusinessTo Business

Benefits of promotion to consumersBenefits of promotion to consumers

Informed that products exist and are Informed that products exist and are availableavailable

Help deciding between productsHelp deciding between products– Make better buying decisionsMake better buying decisions– Satisfy their needsSatisfy their needs

Learn new product usesLearn new product uses

Benefits of promotion to SocietyBenefits of promotion to Society

Helps provide jobsHelps provide jobs– Increased sales = increased production Increased sales = increased production

= increased employment = increased = increased employment = increased disposable income = increased salesdisposable income = increased sales

Encourages demandEncourages demand Helps to pay for mass mediaHelps to pay for mass media

– Your favorite TV show or magazine use Your favorite TV show or magazine use promotional dollars promotional dollars

Where would we be without it?

PROMOTION