• Promotion The function of informing, persuading, and influencing a purchase decision.

INTEGRATED MARKETING COMMUNICATIONS

• Coordination of promotional activities to produce a unified customer-focused message.

• Must take a broad view and plan for all form of customer contact.

• Elements include personal selling, advertising, sales promotion, publicity, and public relations.

THE PROMOTIONAL MIX

• Combination of personal and nonpersonal selling techniques designed to achieve promotional objectives.

• Personal selling

• Nonpersonal selling

Objectives of Promotional Strategy• Differentiate product

• Provide information

• Stabilize sales

• Increase sales

• Accentuate product value

Promotional Planning• Product placement

• Guerilla marketing

ADVERTISING

• Paid nonpersonal communication delivered through various media and designed to inform, persuade, or remind members of a particular audience.

Types of Advertising• Product advertising, institutional advertising, cause

advertising

Advertising and the Product Life Cycle• Informative advertising, persuasive advertising, and

reminder-oriented advertising.

Advertising Media• All media offer advantages and disadvantages

SALES PROMOTION

Consumer-Oriented Promotions• Premiums, coupons, rebates, samples

• Games, contest, and sweepstakes

• Specialty advertising

Trade-Oriented Promotions• Sales promotion geared to marketing intermediaries

rather than to consumers.

• Point-of-purchase (POP) advertising.

• Promote goods and services at trade shows.

PERSONAL SELLING

• A person-to-person promotional presentation to a potential buyer.

Sales Tasks• Order processing, creative selling, missionary selling,

telemarketing

The Sales Process

Public Relations• Public organization’s communications and relationships

with its various audience.

Publicity• Stimulation of demand by disseminating news or obtaining

favorable unpaid media presentations.

PROMOTIONAL STRATEGY

Pushing and Pulling Strategies• Pushing relies on personal selling to market an item

within a company’s distribution channels.

• Pulling promotes a product by generating demand.

• Most marketing situations require combinations of pushing and pulling strategies.

ETHICS IN PROMOTION

Puffery and Deception• Exaggeration about the benefits or superiority of a

product.

• Deliberately making promises that are untrue.

Promotion to Children and Teens• Children and teens have enormous purchasing power but

cannot analyze advertising messages.

Promotion in Public Schools and on College Campuses

• Schools earn income from in-school advertising, but it is generating backlash.

PRICING OBJECTIVES IN THE MARKETING MIX

• Price Exchange value of a good or service.

Pricing Objectives:

• Profitability

• Volume

• Meeting Competition

• Prestige

PRICING STRATEGIES

Price Determination in Practice• Cost-based pricing

Breakeven Analysis• Pricing technique used to determine the minimum sales

volume a product must generate at a certain price level to cover all costs.

Alternative Pricing Strategies• Skimming pricing

• Penetration pricing

• Everyday low pricing

• Discount pricing

• Competitive pricing

CONSUMER PERCEPTIONS OF PRICE

Price-Quality Relationships• Consumers’ perceptions of quality closely tied to

price.

Odd Pricing• Setting prices in uneven amounts or amounts that

sound less than they really are.

• Also used as a signal a product is on sale.