MP Unit 12- Promotion
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PROMOTION
Role of Promotion
- Promotion is any form of communication a business or organization uses to inform, persuade, or remind people about its products and to improve its public image.
- Product promotion is used to convince potential customers to buy products from your company instead of from a competitor.
- Introduces new products
- Explains major features and benefits of its products
- Tells where those products are sold
- Advertise sales on those products
- Answers consumer questions
Role of Promotion
Institutional Promotion is when a company tries to create a favorable image for itself.
- It does not try to directly sell a certain product.
- However, it may ultimately result in increased sales of a company’s products.
The 4 Types of Promotion
1. Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
- Advantages of Advertising
- Large numbers of people usually see advertisements
- Costs per customer are normally lower than other forms of promotion
- You can choose the most appropriate media to reach the target market
- You can control the content of the advertisement
- Ads are often seen more than once
- Ads can "pre-sell" products
Disadvantages of Advertising
- It cannot focus on individual needs
- Some forms of advertising can be too expensive for many businesses
- Sometimes advertising is wasteful and inefficient (the message may be spent on non-potential customers)
- Advertising must be brief
The 4 types of promotion
The 4 types of Promotion
2. Publicity is when a person brings newsworthy information about a company, product, or person to the media.
- It can be used to promote particular events or products.
- The main purpose of publicity is to build an image.
The 4 Types of Promotion
Advantages of publicity
Disadvantages of Publicity
- Publicity is free; advertising is not
- It can be used to create a more positive image for the company within the community.
- It is viewed as being more credible or believable than advertising
- People view publicity as news; therefore, it gets more attention than an advertisement
Disadvantages of Publicity
- The company loses much of the control over the message
- Not all publicity is positive
3. Personal Selling is when a company makes an oral sales presentation to one or more potential buyers. Personal selling is the most expensive form of promotion per contact.
Personal selling can include
- Order-taking personnel such as cashiers, counter clerks, and sales associates who each perform routine tasks.
- Order-getting personnel, such as professional salespeople, who are more involved in informing customers and helping them to buy. They usually sell big ticket items like real estate, cars, appliances, and industrial goods
The 4 types of promotion
4. Sales promotion includes all marketing activities (other than advertising, publicity, and personal selling) that are used to stimulate consumer purchasing and sales effectiveness.
Objectives
Characteristics
Objectives
- Increasing sales
- Informing customers about new products
- Creating a positive store or corporate image
Characteristics
- Short term activities
- Offering some type of incentive
- Can be successfully used in all channels of distribution
The 4 types of Promotion
Sales promotion can either be
- Consumer oriented - designed to encourage customers to buy a product
- Examples:
- Licensing- organizations (such as sports teams or manufacturers) may license their logo or give a personal endorsement to promote a business' product for a fee.
- Visual merchandising and displays- presenting a product in a way that appeals to the target group of customers
- Trade oriented- designed to gain manufacturers', wholesalers' and retailers' support
- Examples:
- Slotting allowances- paying a retailer to shelf a new product
- Sales incentives- awards given to employees who meet or exceed sales quota of the product
The 4 Types of Promotion
Advantages of Sales Promotions
- Have the ability to be unique and have a special appeal to a potential customer
- Helps build customer loyalty
- Difficult to end without the customers becoming dissatisfied
- Store image and sales can suffer if the promotion is not properly planned and managed
- Only designed to supplement other promotional efforts
- Cannot make up for poor products
The 4 types of promotion
Promotional Mix is a combination of the different types of promotion.
- A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the business’s products.
Promotional Mix
Factors affecting the selection of a promotional mix
Promotional Mix
- Distribution system
- Product's Company
- Historical perspective
- Available funds
- Size of sales force
- Competition
- Good, Service, or Idea
- Type of product
- Product nature
- Stage of life cycle
- Product’s market
- Type of consumer
- Number of Consumers
- Geographical location
Promotional channels are the means in which firms attempt to inform, persuade, and remind customers about the products and brands they sell
Includes
Includes
- Advertising media - television, radio, internet, product placement
- Social media- using Facebook, Twitter, Instagram to promote products
- Example: Asking consumers to add a picture of themselves using your product to Instagram including a hashtag
- Digital media- using electronic devices (computers, cell phones, tablets, gaming consoles) to inform customers about a product
- Example: pre-roll ads on YouTube videos
Promotional Channels
- Word-of-mouth: customers sharing their experiences using a product with others around them
- Direct marketing: physical marketing materials given to consumers with information about a product or service
- Examples: catalogs, "junk" mail, fliers
- Sales promotion- communication to increase product demand
- Examples: coupons, contests, rebates, product samples
- Trade-show/exposition participation- setting up a booth at a trade-show or exposition to increase the customer base
- Example: setting up a booth at E3 to promote your new video game
- Public relations activities- events to influence the consumers' perceptions about a company or product
- Example: a company becoming a "partner in education" with a local school
Promotional Channels
