Promotional Concepts and

StrategiesCHAPTER 17

THE CONCEPT OF PROMOTIONAL MIX

Promotionany form of communication a

business or organization uses to inform, persuade, or remind people about its products or improve its public image

Promotional Mix the combination of the

different types of promotion a business or organizations uses to promote its products

TYPES OF PROMOTION

Product Promotion

used to convince potential customer to buy their products instead of buying from a competitor

• Identifies where it is sold

• Advertises product sales

• Answers consumer

questions

• Introduces new offerings

Institutional Promotion used by a business to create

a favorable image for itself, as opposed to promoting a product or service

• Does not directly sell a

certain product, but a

favorable image will likely

increase sales for a company

MAKING UP THE PROMOTIONAL MIX

Five basic categories of promotion•Personal Selling•Advertising•Direct Marketing•Sales Promotion•Public Relations

PERSONAL SELLINGRequires that a company employ sales representatives

who generate and maintain direct contact with

prospective and existing customers

- costliest form of promotion

Typically comes after, or as a result of, other promotional

activities

Can take the form of

• Personal meetings

• Telemarketing

• E-mail contact

ADVERTISINGAny paid form of non-personal promotion of

ideas, goods, or services by an identified

sponsor

Companies pay to promote goods or services

through a variety of media outlets

• Magazines

• Newspapers

• Television

• Web sites

• Billboards

• City buses

DIRECT MARKETING Directed to a target group rather

than the masses

Goal is to generate leads for sales

team to pursue

Usually includes special offers,

delivery terms or merchandise – an

incentive to follow up

Two forms

• Print – sent through the regular mail

• Electronic – sent over e-mail

SALES PROMOTIONRepresents all marketing

activities – (other than personal selling, advertising, and public relations) - that are used to stimulate sales

Objectivesincrease salesinform potential customers about new productscreate a positive image

• Example - In store sale signage and coupons

PUBLIC RELATIONS AND PUBLICITY

Public Relations

any activity designed to create a favorable image

toward a business, its products, or its policies

• Builds brand awareness and loyalty

Publicity

specific type of public relations that involves

bringing news worthy information about a

company to the public’s attention

It differs from advertising because it is FREE News coverage Charity events Contests

DETERMINING THE PROMOTIONAL MIX

Strategies chosen for the mix are

designed to compliment each other

and reach a specific goal

For Example

• Advertising and direct marketing create

awareness of a product

• Public relations and publicity cultivate a

favorable image and brand recognition

• Sales promotions stimulate sales and

reinforce advertising

THE PUSH-PULL CONCEPT

Push Policy Promotional mix developed

for the next partner in the

distribution channel

Manufacturer Retailer

Pushing them to carry the

product in their store

• EX - personal selling,

buying discounts, trade

shows

Pull Policy Promotional mix developed to

reach the consumer

Manufacturer Consumer

Consumer demand can pull or

encourage the retailer to carry

the product being promoted

• EX - National advertising, In

store displays and sales

promotions