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Objectives
Describe the role of promotion. List three goals of promotion. Describe how the communication
process works in promotion. Explain the difference between
institutional and product promotion. Explain the difference between
personal and nonpersonal promotion.
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Objectives
Describe and give an example of each of the four elements of promotion.
Explain why the marketing concept is important in promotion.
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Marketing Terms
marketing communication
effective promotion product promotion institutional promoti
on personal promotion nonpersonal promot
ion
advertising sales promotion trade show trade allowance coupon rebate premium public relations publicity
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What Is Promotion?
Promotion is one of the Four Ps of marketing
Promotion is the process of telling people about a product or the company that
offers it
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Promotion Is Marketing Communication
Promotion is communication from an organization to
– its customers– its potential customers– the public
Marketing communication is another term for promotion
1. Give an example that showshow promotion is communication.
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Goals of Promotion
Goal of promotion: to help a business achieve its goals by communicating with
customers and the public Promotion
informs expresses persuades
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Inform
Businesses want to keep customers informed about new products new features on existing products how to use products safety issues charities and cultural organizations that the
business supports community events that the business supports
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Express
Promotional messages express emotion and entertain to attract customer attention to products create demand for products
Messages with emotion are more likely to be remembered
2. Describe an ad or commercial that you remember. What makes it vivid?
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Persuade
Persuasion use of logic, argument, or pleading to get
another person to agree with you or act in a certain way
The ultimate goal of promotion is to persuade people to buy the product
3. Describe a promotion that successfully persuaded you to buy a product.
How did it persuade you?
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Promotion uses the same communication process as does all communication the marketer is the sender the target market is the receiver
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Noise
Promotional messages encounter physical noise, technical problems, external
distractions, and internal distractions
Two methods to counteract distractions repeat the same message many times make the message stand out from all others
4. Describe an example of each method to counteract distractions for
promotional messages.
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Feedback
Effective promotion promotion that achieves its goals
How do marketers determine whether a promotion message was effective? through customer feedback obtained by
– monitoring sales– performing market research
5. If promotion is effective, what will happen to sales?
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6. Describe different types of promotion.
Photo by Amy J. Berk
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Types of Promotion
Promotion can be categorized based on the target market
– businesses or consumers what is being promoted: a product or
institution – product promotion: focuses on selling
the product– institutional promotion: focuses on
creating an image of the organization
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Types of Promotion
Personal or nonpersonal personal promotion
– customer and marketer communicate in person
– the only type of personal promotion is personal selling
nonpersonal promotion– communicates the same message to all
potential customers– examples: advertising, sales promotion,
and public relations
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Four Elements of Promotion
Promotion can also be categorized based on the four elements of promotion personal selling advertising sales promotion public relations
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Personal Selling
Personal selling seller communicates
in person with buyer a selling message
can be customized for each buyer– based on
immediate feedback from the customer
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Advertising
Advertising includes print ads commercials Internet ads outdoor advertising transit advertising direct marketing
7. Describe an ad that you have seen. Who is the target market for this ad?
Photo courtesy of IGA, Inc.
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Sales Promotion
Sales promotion marketing activities designed to entice
customers to buy a company’s products
B2B sales promotion trade shows trade allowances point-of-purchase advertising sales incentives
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Sales Promotion
B2C sales promotion coupons and rebates free samples premiums contests and
sweepstakes promotional tie-ins product placement visual merchandising
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Public Relations
Public relations promotional activities designed to create
goodwill between a company and the public
Proactive public relations communications initiated within the company
for the purpose of image building
Reactive public relations communications in response to negative
events or damaging information
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Public Relations
Main functions of public relations getting positive publicity developing philanthropic activities counteracting negative publicity
Publicity information about a company and its
products that appears in the media company does not pay for the articles
– the articles are part of the news-gathering function of the media
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Public Relations
Philanthropic activities the public relations
department usually– develops charitable
and community activities
– gets publicity for these activities
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Review
What is the goal of promotion? What is the difference between
B2B promotion and B2C promotion? product promotion and institutional
promotion? personal promotion and nonpersonal
promotion?
List the four elements of promotion.
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Glossary
advertising. Nonpersonal promotion paid for by an identified sponsor.
coupon. Printed piece of paper that indicates the product and the amount of price reduction when the coupon is used.
effective promotion. Promotion that achieves its goals.
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Glossary
institutional promotion. Communication that focuses on the image of the organization.
marketing communication. Communication from an organization to its customers, potential customers, and the public; promotion.
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Glossary
nonpersonal promotion. Promotion that communicates the same message to all potential customers.
personal promotion. Promotion in which the marketer and the customer communicate in person, and the marketer can immediately customize the message; personal selling.
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Glossary
premium. Item given to the customer for free or at a reduced price along with the purchase of a product.
product promotion. Marketing communication that focuses on the product and selling the product, in contrast to institutional promotion.
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Glossary
promotion. All communications from an organization to its customers, potential customers, and the public; marketing communication.
publicity. Information about a company and its products that appears in the media; however, the company does not pay the media to carry the message and therefore has no control over the story.
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Glossary
public relations. Promotional activities designed to create goodwill between a company and the public.
rebate. Return of a portion of the money paid for a purchase.
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Glossary
sales promotion. Marketing activities designed to entice customers to buy a company’s products. Examples include coupons, contests, free samples, and gift-inside.
trade allowance. Discount or money paid to the intermediary who buys the product.
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Glossary
trade show. Exhibit of products of interest to a specific industry.
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