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Marketing - Chapter 17 - Promotional Concepts and Strategies

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Kevin Krizan

on 23 January 2018

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Transcript of Marketing - Chapter 17 - Promotional Concepts and Strategies

Promotional Concepts and Strategies
The Promotional Mix
Concept of the Promotional Mix
Sales Promotions
incentives that encourage customers to buy products or services
Product Placement
Product Placement - a consumer promotion that involves the verbal mention or appearance of a brand-name product in a movie, TV series, or sporting event
Promotion - any activity that helps in the exposure or sale of a product (one of the 4 P's
AIDA - (Goals of promotional activities) first attract Attention, then build Interest and Desire, and finally ask for Action
Product promotion - promotional method used by businesses to convince prospects to select their goods or services instead of a competitor's brands
Institutional promotion - promotional method used to create a favorable image for a business
Promotional Mix
- the cost-effective combination of 5 basic categories used to reach company goals.
1. Personal Selling
2. Advertising
3. Direct Marketing
4. Sales Promotion
5. Public Relations
Personal Selling - sales reps generate and maintain direct contact with prospects and customers (usually most expensive form of promotion)
Advertising - form of nonpersonal promotion in which companies pay to promote ideas, goods, or services

Direct Marketing - type of promotion that companies use to address individuals directly and not through a third party medium (TV, radio,)
Contacted through mail, phone, internet)
Social Media - electronic media that allows people with similar interests to participate in a social network (Facebook, Twitter)




Public Relations (PR) - activities that help an organization to influence a target market; influence general opinion and create a favorable public image

news release - announcement sent to the appropriate media
Publicity - involves bring news to the public's attention (known as placement)
Advantages of PR - FREE; Viewed as more objective (more credible)
Disadvantages of PR - Content not controlled by the business that issues it; may be negative publicity
Most businesses use more than one promotional strategy
Businesses use a cost effective mix of promotional strategies
Steps to developing a promotional mix
1. Identify the target market
2. Establish objectives
3. Design promotional message
4. Select promotional activities
5. Allocate budget amounts
6. Measure results
Push Policy - manufacturer pushes the product through the distribution channel to the retailer
Goal - attempt to convince retailer to stock the products being promoted
Pull Policy - directs promotional activities toward consumers
Goal - entice the consumer into the store to buy the product
Sales Promotion - represents all marketing activities other than the other 4 parts of the promotional mix
(coupons, product samples, competitions, etc.)
We will study these in greater detail in 17.2
Trade Promotions - sales promotion activities designed to get support for a product from manufacturers, wholesalers, and retailers.
Promotional Allowances - cash payments or discounts given by manufacturers to wholesalers or retailers (discount for large purchase)
Cooperative Advertising - manufacturer helps retailer with cost of advertising
Slotting Allowance - cash paid by manufacturer to help the retailer cover the costs of placing the manufacturer's product on the shelves (range few thousand $ - millions of $)
Sales Force Promotions - awards given to dealers and employees who successfully meet or exceed a sales quota
Trade Shows and Conventions - showcase products (Consumer Electronics Show in Las Vegas)
Consumer Promotions - sale strategies that encourage customers to buy a product or service
Coupons - certificates that entitle customers to cash discounts on goods or services



Premiums - low cost items given to consumers at a discount or for free; designed to increase sales by building loyalty and attracting new customers

Deals - short-term price reductions marked directly on the label or package
Incentives - products, awards, or gift cards earned and given away through contests, sweepstakes, special offers, and rebates
Contest games or activities that require the participant to demonstrate a skill
Sweepstakes - games of chance
Product Samples - free trial size of a product
Sport Contest Examples
Sponsorship - the right to use logos and names on retail products to enhance corporate image
Promotional tie-ins (cross promotion) - activities that involve sales promotions between one or more retailers and manufacturers
Loyalty marketing programs - offering incentives for repeat purchases
Point-of-Purchase displays - designed by manufacturers to hold and display product (promote impulse purchases)

Kiosks - P-O-P displays that are stand-alone
structures
Google Car
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