Promotional Concepts &

Strategies

17.1 Promotional Mix

17.2 Types of Promotion

Prom

otio

n in

Marke

ting

Product PromotionPromotional method business use to convince

potential customers to buy their goods or services instead of a competitors.

Institutional PromotionPromotional methods used to create a favorable

image for a business. Helps to build goodwill and reputation.

Promotion: Pro.mo.tion, noun,:

One of the 4 P’s of Marketing. Any

activity that helps in the exposure or sale

of a product. Goals of Promotion are summed up by AIDA acronym – Attract Attention,

Build Interest & Desire, Ask for Action

Types o

f

Prom

otio

n

Personal SellingRequires Sales Representatives to generate and

maintain direct contact with prospects and customers. Most expensive form of promotion, typically takes place after other methods have

been tried.

Promotional Mix: Pro.mo.tion Mix, noun,:

Cost Effective combination of personal selling,

advertising, direct marketing, sales promotion & public

relations strategies used to reach company goals.

Types o

f

Prom

otio

n

AdvertisingAdvertising is found everywhere! Billboards,

brochures, internet, magazines, receipts, radio, TV, busses, menus, receipts, everything now a

days is used for advertising!

Advertising: Ad.ver.tis.ing, noun,:

Form of non personal promotion in which companies

pay to promote ideas goods, or services.

Types o

f

Prom

otio

nDirect Marketing

Examples: Direct mail & Telemarketing

New Wave of Direct Marketing: E-Marketing!

Any promotion that is delivered via the internet such as: search engine marketing, mobile apps, social media,

etc.

Direct Marketing: Dir.ect.mar.ket.ing, noun,:

Form of promotion that addresses individuals directly, and

not through a 3rd party medium (TV, Radio, Internet) .

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f

Prom

otio

nSales PromotionCoupons, money-off promotions, competitions, product

samples, and point-of-purchase displays

Objective of Promotion: Increase sales, inform potential customers about new products, and create a positive

image.

Sales Promotion: noun,:

All marketing activities that are directed at

business or retail customers to boost sales

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f

Prom

otio

nPublic Relations

Influence general opinion and create favorable public image for a person, organization, or a company, its

products and policies.

Public Relations: noun,:

Activities help an organization to influence a

target audience.

Prom

otio

nal

Mix

Promotional Mix & BudgetMost businesses will use more than one type of

promotion to achieve their goals.

They will use a cost-effective mix of strategies that include, advertising, selling, sales promotions, direct

marketing, and public relations strategies.

Push

& Pu

ll

Conce

pt

Push ConceptManufacturers push the product through the distribution

channel to the retailer. Particularly helpful with products that do not have a strong brand identity.

Pull ConceptEnticing or pulling consumers into the store to buy the product. Half-off deals or clearance sales bring people to the store. Designed to create interest and demand.

For example, iPods, &

iPhones always sell

out! See the line to

get in?

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f

Prom

otio

nSlotting Allowance

Cash premium paid by a manufacturer to a retailer to help the retailer cover the costs of placing the product

on the shelves.

Types o

f

Prom

otio

nCoupons Used to introduce new products, enhance sales, and to

encourage retailers to stock and display both.

Also, don’t forget about online coupon codes!

Coupons: cou.pon, noun,:

Certificates that entitle customers to cash

discounts on goods or services.

Types o

f

Prom

otio

n

Premiums Designed to increase sales by building product loyalty

and attracting new customers. Grouped into 3 categories: Factory packs, traffic builders, and coupon

plans.

Premiums: pre.mi.um, noun,:

Giveaways are low-cost items given to

consumers at a discount or for free

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f

Prom

otio

nIncentives

Contests, Sweepstakes, Special offers, & Rebates

Incentives: in.cen.tive, noun,:

Generally higher-priced products, awards, or gift cards that

are earned and given away through contests, sweepstakes,

special offers, and rebates

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f

Prom

otio

nPromotional Tie-Ins,

Cross-Promotion, Cross-Selling

Partners combine their advertising and sales promotional activities to conduct a promotion that will create additional

sales for each partner.

Promotional tie-ins: noun,:

Activities that involve sales promotions between

one or more retailers or manufacturers

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f

Prom

otio

nProduct PlacementConsumer promotion that involves the verbal mention or appearance of a brand-name product in a tv series,

movie, or event.

Sale

s

Prom

otio

nLoyalty Marketing ProgramsEach purchase allows the customer to accumulate points for every purchase. They can be used for discounts, free

items, etc.

Loyalty Marketing Programs: noun,:

Reward customers by offering incentives for

repeat purchases