Chapter 19 What Is Promotion? by z4eM52K3


									          Chapter 19
       What Is Promotion?

Any form of communication
a business or organization
uses to inform, persuade,
or remind people about it’s
products and improve it’s public image.
Product Promotion
  An act to convince potential customers to buy
  products from it instead of from the

Institutional Promotion
  The attempt to create a
  favorable image for itself (especially
  in relation to competitors).

     There Are Four Types of Promotion:
Advertising, Publicity, Sales Promotion, Selling
  Any paid form of non-personal presentation and
   promotion of ideas, goods, or services by an
               identified sponsor.

                  How is advertising
                  distinguished from other forms
                  of promotion?

What are the advantages to advertising?

What are disadvantages to advertising?
  Involves placing newsworthy information about a
     company, product, or person in the media.

The Principle Factor of Publicity: BUILD AN IMAGE!

The way a business or organization is defined
 in people’s minds.
It is an impression based on a
 combination of factors: physical
 surroundings, personal experiences,
 and things written or said in the media.
          Publicity, cont.

What are the advantages of publicity?

What are the disadvantages of publicity?
             Sales Promotion
   The use of marketing devices such as displays,
   premiums, and contests to stimulate purchases.
  Can either be consumer oriented or trade oriented.

Trade Promotions
  Sales promotion activities designed to gain
  manufacturers, wholesalers, and retailers
  support for a product.
Consumer Sales Promotion
  Activities designed to gain consumers

What are the advantages of sales promotions?
         Trade Promotions (4)
Slotting Allowances
  Cash premium paid by the manufacturer to a retail chain
  for the costs involved in placing products on the shelf.
Buying Allowance
  Special price discount given by manufacturers to
  wholesalers and retailers to encourage them to buy a
  product or a larger quantity.
Sales Incentives
  Rewards given to employees who successfully meet or
  exceed their company’s sales quota for
  a particular product or line of products.

Also: Trade Shows and Conventions
           Sales Promotions

  Business arrangement whereby organizations
  license for a fee their logo, trademark, trade
  characters, names and likeness, or personal

Promotional Tie-Ins
  Involve sales promotional arrangements
  between one or more retailers or
Visual Merchandising and Displays

                                         Mail-In Rebate
Premiums and Incentives
  P- low-cost items given away free
  to consumers as a condition of purchase.
  I- higher priced products earned and
  given through contests or a sweepstakes award.

                 4 Types of Premiums

Product Sample
  Free trial size of a product that is sent through
  the mail, door-to-door, or retail and trade shows.
          Personal Selling
   Oral sales presentation to one or more
              potential buyers.

      Order Taking vs. Order Getting

What are the advantages?

What are the disadvantages?
             Promotional Mix
A combination of different types of promotion
that will be most effective in persuading
customers or other businesses to purchase and
support the business’s products.


…..use more than one type of promotion to achieve
   their goals.
…..use promotional techniques that will compliment
   each other.
…..must coordinate all types of sales promotion.

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