“Promotion”

Roles of PromotionCommunication ProcessPromotional MixPromotional Planning

Unit 6

1. Inform– Tell the consumer more about the product.

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– Complex products require more details

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3 Reasons to Use Promotion

2. Persuade–

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– Incentives - Coupons, Rebates, Free Samples

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– More appealing label or packaging

– Use more Power Words!!!

3. Remind

– “Great taste”, “More consumers choose us”

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Give out promotional items with company or product name, logo, or slogan.

Promotion is a Communication Process

Feedback – receiver’s reaction or response to the sender’s message directive (buy product, use coupon, go to website, etc).

Feedback helps the sender know if the message got through and is understood.

Interference – causes receivers to miss the message or misunderstand it (changed channel, left room, TiVo, etc).

Promotional Mix• Varies from business to business• Always has same goal - communicate effectively with customers• Elements:

Advertising PublicitySales PromotionPersonal Selling

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What is Advertising?Any paid form of nonpersonal

communication sent through the media.• Most common type of promotion• Examples: TV and Radio commercialsTV and Radio commercials

Print adsPrint adsOut-of-home advertisementsOut-of-home advertisements

CatalogsCatalogsDirect mailDirect mail

Product placementProduct placementOnline ads Online ads

Advantages of Advertising

• Reaches millions at relatively low cost per person

• • Uses color, print, sound, and motion; can affect

consumers’ emotions.

Disadvantages of Advertising•

• Target audience may not receive message

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What is Publicity?

Free communication about a company or its product.

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Advantages & Disadvantages of Publicity

• Advantages

– – Creates Goodwill for

company/product

• Disadvantages

– – Can’t cancel or

change information

Sales Promotion

• Visual merchandising• Coupons• In-store demonstrations• Discounts and incentives

Sales Promotions – activities or materials within a place of purchase that offer consumers incentive to act now.

• Product samples• Contests• Introductory offers• Free accessories

Advantages & Disadvantages of Sales Promotion• Advantages–

– Supports other parts of promo campaign

• Disadvantages–

– May not result in continued sales

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What is Personal Selling? Person-to-person communication with customers.

Advantages:

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Disadvantages:

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