The Promotional Mix

Marketing II – Advertising and Branding

What is Promotion?

Any communication an organization uses to:

• Inform• Persuade• Remind people about its products• Also to improve the public image

of an organization

2 Purposes of Promotion

• Product promotion - Convince market to buy a product

• Institutional promotion – Create a favorable image for company

The Promotional Mix Includes:1. Personal Selling 2. Advertising – print, broadcast, online,

specialty/other3. Direct Marketing – online or print, target a group4. Public Relations (PR) – strategies to enhance a

company’s reputationo News stories, blogs, chat rooms, etc.o Free, believable, yet can’t control

5. Sales Promotion – incentives that get customers to buy

o B2B – Business to Businesso B2C – Business to Consumer

B2B: Trade Promotions1. Promotional Allowances - Cash

payments or discounts given by manufacturers to wholesalers and retailers to encourage sales

2. Cooperative Advertising - Manufacturer helps retailer pay cost of advertising a product

3. Slotting Allowances - Cash premium paid by manufacturer to retailer to place product on its store shelf

4. Sales Force Incentives - Awards given to retailers and their employees who meet a sales quota

5. Trade Shows and Conventions -Showcases particular line of products

B2C: Consumer Sales Promotions

• Sales strategies designed to encourage consumers to buy product

• 11 Different Types!!!

A Bit Overwhelming...Promotion

Personal Selling

Sales Promotion Public Relations

Advertising

Trade Promotions

Consumer Promotions

Sales Force Incentives

Trade Shows/Convention

Promotional Allowance

Slotting Allowance

1. Coupons2. Premiums

1. Factory Packs or In-Packs2. Traffic Builders3. Coupon Plans

3. Deals4. Incentives

1. Rebates2. Contests3. Sweepstakes

5. Product Samples6. Sponsorships7. Promotional Tie-Ins

(Cross-Promotions/Selling)8. Product Placements9. Loyalty Marketing Programs10. Online Loyalty Marketing Programs11. Point of Purchase Displays

Cooperative Advertising

Coupons

Certificates that give cash discounts to customers– Placed in or on packages– Printed in newspapers/magazines– Stores are reimbursed by

manufacturers for coupon

Premiums

• Low items given to consumers at a discount or for free

• Three Types of Premiums:– Factory Pack (In-Pack) – free gift in package– Coupon Plan – on-going program offering a

variety of premiums in exchange for labels or coupons

– Traffic Builder – free gift for visiting a new store or special event

Deals or Price Packs

• Offer short term price reductions that are marked directly on label of package– coupling two products for the price of

one

Incentives:Higher priced products earned or given away

through:• Contests• Sweepstakes• Rebates

Product Samples

Free trial size of a product sent through the mail, door-to-door, or

given at retail stores or shows

Sponsorship

Company pays a fee for the right to promote itself and its product

at or on a set location

Promotional Tie-Ins, Cross Promotion, Cross Selling

• Arrangement between one or more retailers or manufacturers

• Partners combine resources on a promotion that will generate additional sales for each partner

Product PlacementUsing a brand name product in a movie, tv

show, sporting event, or commercial

Loyalty Marketing Program

• Frequent buyer program• Rewards customers for

patronizing company

Online Loyalty MarketingCertain sites award points for shopping at online stores

Point of Purchase Displays

Usually placed in high traffic areas or to promote impulse purchases

A Bit Overwhelming...Promotion

Personal Selling

Sales Promotion Public Relations

Advertising

Trade Promotions

Consumer Promotions

Sales Force Incentives

Trade Shows/Convention

Promotional Allowance

Slotting Allowance

1. Coupons2. Premiums

1. Factory Packs or In-Packs2. Traffic Builders3. Coupon Plans

3. Deals4. Incentives

1. Rebates2. Contests3. Sweepstakes

5. Product Samples6. Sponsorships7. Promotional Tie-Ins

(Cross-Promotions/Selling)8. Product Placements9. Loyalty Marketing Programs10. Online Loyalty Marketing Programs11. Point of Purchase Displays

Cooperative Advertising