PROMOTION AND PROMOTIONAL MIX

Promotional Concepts and Strategies

LEARNING TARGETS

• AST 3-1: STUDENTS WILL UNDERSTAND THE ELEMENTS OF THE PROMOTIONAL MIX: ADVERTISING, PUBLIC RELATIONS, PERSONAL SELLING AND SALES PROMOTION.

OBJECTIVES

• EXPLAIN THE ROLE OF PROMOTION IN BUSINESS AND MARKETING

• IDENTIFY THE COMPONENTS OF THE PROMOTIONAL MIX

• DESCRIBE THE CONCEPT OF THE PROMOTIONAL MIX

THE CONCEPT OF PROMOTION

• ONE OF THE 4 P’S – WORKS WITH THE OTHER 3 TO DEVELOP A SOUND MARKETING STRATEGY

• PROMOTION IS A FORM OF COMMUNICATION THAT USES VARIOUS METHODS TO REACH A TARGETED AUDIENCE WITH A CERTAIN MESSAGE IN ORDER TO ACHIEVE SPECIFIC GOALS

• NEARLY ALL ORGANIZATIONS, BIG AND SMALL, WHETHER FOR-PROFIT OR NOT-FOR-PROFIT, IN ALL TYPES OF INDUSTRIES, MUST ENGAGE IN SOME FORM OF PROMOTION.

INSTITUTIONAL VS PRODUCT PROMOTION

• INSTITUTIONAL PROMOTION IS USED TO FOSTER A FAVORABLE IMAGE FOR THE COMPANY, NOTDIRECTLY SELL A PRODUCT OR SERVICE

• CREATE A FAVORABLE IMAGE FOR A BUSINESS

• HELP AN ORGANIZATION ADVOCATE FOR CHANGE

• TAKE A STAND ON TRADE OR COMMUNITY ISSUES

• PRODUCT PROMOTION IS PRODUCT SPECIFIC

• HIGHLIGHTS A PARTICULAR PRODUCT WITHOUT MENTION OF THE COMPANY OR BUSINESS

INSTITUTIONAL VS PRODUCT PROMOTION

• BP OIL

• BP CHIEFS WERE HOPING THE CAMPAIGN WOULD HELP TO FURTHER IMPROVE PERCEPTION OF THE BRAND

• SAMSUNG

• SAMSUNG PURCHASED A 60-SEC SPOT TO RUN DURING THE OSCAR’S 2017 POST CELL PHONE BATTERY DISASTER IN AN ATTEMPT TO GAIN MARKET SHARE

• BEN & JERRY’S ICE CREAM

PIECES OF THE PROMOTIONAL MIX

• THERE ARE FOUR BASIC CATEGORIES IN THE PROMOTIONAL MIX:

• DIRECT MARKETING

• PERSONAL SELLING

• ADVERTISING

• SALES PROMOTION

• PUBLIC RELATIONS

DIRECT MARKETING

• FOCUS YOUR CAMPAIGN DIGITALLY

• CURATE INFORMATION THAT IS ATTRACTIVE AND DIRECT TO CUSTOMER

• USE NUMEROUS ONLINE PLATFORMS TO REACH MARKET

• WHETHER YOU GO TRADITIONAL AT HOME MAILERS OR DIGITAL, YOU HAVE TO BE INNOVATIVE!

Home Mailer Digital Direct marketing (DDM)

Dog Case Study

PERSONAL SELLING

• PERSONAL SELLING – DIRECT FORM OF PROMOTION

• INVOLVES DIRECT CONTACT BETWEEN SALESPEOPLE AND CUSTOMERS.

• THIS CAN TAKE PLACE IN THE FORM OF:

• PERSONAL MEETINGS

• TELEMARKETING

• E-MAIL CONTACT

• CORRESPONDENCE

• RETAIL SETTING

Personal Selling Defined

ADVERTISING

• ADVERTISING IS ANY PAID, NON-PERSONAL FORM OF PROMOTION

• ONE-WAY COMMUNICATION USED WITH MASS MARKETING

• IT CAN BE FOUND IN PLACES INCLUDING:

• NEWSPAPERS

• MAGAZINES

• TELEVISION

• WEB SITES

• BILLBOARDS

• CITY BUSES

• ANYWHERE!

SALES PROMOTION

• SALES PROMOTION REPRESENTS ALL MARKETING ACTIVITIES–OTHER THAN PERSONAL SELLING, ADVERTISING, AND PUBLIC RELATIONS–

• INCLUDE CONTESTS, COUPONS, FREEBIES, LOSS LEADERS, POINT OF PURCHASE DISPLAYS, PREMIUMS, PRIZES, PRODUCT SAMPLES, AND REBATES.

• THAT ARE USED TO STIMULATE PURCHASING AND SALES. THE OBJECTIVES ARE TO:

• INCREASE SALES

• INFORM POTENTIAL CUSTOMERS ABOUT NEW PRODUCTS

• CREATE A POSITIVE BUSINESS OR CORPORATE IMAGE

POP display’s contest

PUBLIC RELATIONS

• PUBLIC RELATIONS (PR) ACTIVITIES TRY TO CREATE A FAVORABLE IMAGE FOR A COMPANY, ITS PRODUCTS OR ITS POLICIES.

• THEY CAN ENABLE AN ORGANIZATION TO INFLUENCE A TARGET AUDIENCE.

• PUBLICITY IS THE MARKETING PIECE OF PR. • DEFINED AS NON-PERSONAL STIMULATION OF DEMAND FOR A GOOD,

SERVICE, PERSON, CAUSE OR ORGANIZATION THROUGH UNPAID PLACEMENT OF SIGNIFICANT NEWS ABOUT IT IN A PUBLISHED MEDIUM OR THROUGH A FAVORABLE PRESENTATION OF IT ON THE RADIO OR TV

• EMBRACE OREGON

THE CONCEPT OF PROMOTIONAL MIX

• A PROMOTIONAL MIX IS A COMBINATION OF STRATEGIES AND A COST-EFFECTIVE ALLOCATION OF RESOURCES A COMPANY USES TO REACH ITS PROMOTIONAL GOALS. THE STRATEGIES IN THE MIX ARE DESIGNED TO COMPLEMENT ONE ANOTHER:

• ADVERTISING AND DIRECT MARKETING CREATE PUBLIC AWARENESS.

• PUBLIC RELATIONS HELPS CULTIVATE A FAVORABLE IMAGE AND BRAND RECOGNITION.

• SALES PROMOTIONAL ACTIVITIES STIMULATE SALES AND REINFORCE ADVERTISING.

• PERSONAL SELLING BUILDS ON ALL OF THESE EFFORTS BY COMPLETING THE SALE.