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PROMOTION Any form of communication a business or company uses to inform, persuade, or remind people about products and to improve its image Discussion How are ... – PowerPoint PPT presentation

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Title: promotion terms

promotion terms
Sales force promotions Trade shows Consumer
promotions Coupons Premiums Deals Incentives Produ
ct samples Sponsorship Promotional
tie-ins Product placement Loyalty marketing
programs Online loyalty marketing Point-of-purchas
e displays Audience Frequency Impression Advertis
ing Campaign
  • promotion
  • Product promotion
  • Institutional promotion
  • Advertising
  • Visual Merchandising
  • Public relations
  • News release
  • Publicity
  • Promotional mix
  • Sales promotions
  • Trade promotions
  • Promotional allowances
  • Cooperative advertising
  • Slotting allowances

Create 6x6 BINGO board
  • 32 words, 4 FREE spaces

  • Any form of communication a business or company
    uses to inform, persuade, or remind people about
    products and to improve its image

  • How are promotion and communication similar?

Lesson Objectives
  • Define promotion
  • Identify purposes of promotion
  • Define institutional promotion
  • Identify 5 types of promotion
  • Define promotional mix

Purposes of Promotion
  • Convince potential customers to buy
  • Explain features/benefits of products
  • Tell where products are sold
  • Advertise sales on products
  • Answer customers questions
  • Introduce new products
  • Create a favorable image of the company or product

Institutional Promotion
  • Used to create a favorable image of the company,
    rather than to directly sell products

  • Why would an organization promote itself and not
    its products?

Types of Promotion
  • Advertising
  • Sales Promotion
  • Personal Selling
  • Publicity/ Public Relations
  • Visual Merchandising

  • The non-personal
  • presentation of
  • ideas and
  • products by an
  • identified sponsor.

Individual Activity
  • Create a poster to illustrate how the different
    types of advertising media are used. You may
    print pictures or use the magazines.
  • Follow the rubric.

Description Relevant Illustration of each type listed in notes Description of Illustration Points Possible
Print Media 25
Broadcast Media 20
Online Advertising 20
Specialty Media 15
Social Media 20
Mobile Media 20
List 2-3 advantages/2-3 disadvantages of each
type of advertising media.
  • Fill in chart, 8 in notebook

  • stimulate purchases
  • increase store traffic

Examples of sales promotions include coupons,
percent off sales, sweepstakes and contests.
  • 2 for 1 Sale
  • Buy One,Get One Free
  • Free P3 tshirt to 1st 20 customers
  • Game of the Week Giveaways

Sales promotions work to get the customers in
the store and to make purchases!
Sales Promotion
  • Incentives that encourage customers to buy
    products or services
  • Can be used to encourage customers to try a new
    product, build awareness, increase purchases by
    current customers or reward loyalty
  • Either business-to-business (B2B) or
    business-to-consumer (B2C) oriented

Business to Consumer Sales Promotions
  • Coupons
  • Manufacturers use coupons to introduce new
    products, to enhance the sales of existing
    products, and to encourage retailers to stock and
    display both
  • How are coupons used today?

Business to Consumer Sales Promotions
  • Premiums
  • Low-cost items given to consumers at a discount
    or for free
  • They are designed to increase sales by building
    product loyalty, and attracting new customers.
  • They can also persuade nonusers to switch brands
  • The concept behind premium marketing is that
    people will be more motivated to buy a product
    when they are offered and added-value gift in
  • 3 types
  • Factory packs, traffic builders, coupon plans

  • Factory packs (or in-packs) are free gifts placed
    in product packages.
  • This form of premium is especially popular with
    cereal manufacturers
  • Traffic Builders are low cost premiums such as
    pens, key chains, coffee mugs, etc. that are
    given away to consumers for visiting a new store
    or attending a special event
  • Coupon plans are ongoing programs offering a
    variety of premiums in exchange for labels or
    coupons obtained from a product or label.
  • A customer might send a manufacturer 3 soup can
    labels in exchange for a recipe book

Business to Consumer Sales Promotions
  • Deals
  • Offer short term price reductions that are marked
    directly on the label or package.
  • The deal may feature 2 similar products bound
    together for the price of one or two related

Business to Consumer Sales Promotions
  • Incentives
  • Used to create customer excitement and increase
  • Generally higher priced products earned and given
    away through contests, sweepstakes, and rebates
  • Contests- games/activities that require the
    participant to demonstrate a skill prizes may
    include scholarship, vacation, money
  • Sweepstakes- games of chance (by law in most
    states, no purchase is necessary in order to
    enter a contest or sweepstakes
  • Rebates- discounts offered by manufacturers to
    customers who purchase an item during a given
    time period

Business to Consumer Sales Promotions
  • Product samples
  • A free trial size of a product sent through the
    mail, distributed door-to-door, or given away at
    retail stores and trade shows
  • Samples are important when promoting new products
  • Drug manufacturers frequently give samples to
    doctors so they can let their patients try new

Business to Consumer Sales Promotions
  • Promotional Tie-IN
  • A joint promotion of two or more products or
    services that creates additional sales for each
  • For example, boxes of Post Great Grains cereal
    included a free trial package of Starbucks coffee
    as a value-added item for consumers (premium).
  • The tie-in promotion was intended to increase
    sales of both the cereal and the coffee.

Promotional Tie-ins
Involve sales promotional arrangements between
one or more retailers or manufacturers.
Ex Doritos and the game developers of Halo are
using promotional tie-ins by offering free xp in
Halo if you buy Doritos.
Ex Dr. Pepper and marvel are promoting their
iron man movie.
Ex The Dark Knight is using Mtn DEW to promote
their new movie.
Ex Star Wars is using Cheerios to promote their
new movie by putting toys in the cereal.
Ex Star Wars is using Pepsi to promote their
  • Sponsorship is not the same as advertising
  • Sponsorships provide a lateral partnership
    between 2 parties
  • It is a form of marketing in which companies
    attach their name, brand, or logo to an event for
    the purpose of achieving future profits
  • For example, major corporations sponsored the
    NCAA college football bowl games recently

Product Placement
  • The majority of us are getting tired of ads.
    Today's consumer sees advertising everywhere
    tv, radio, billboards, magazines, buses,
    newspapers, the Internet...
  • More and more ad-space is popping up every day.
    From people walking down the street wearing
    signs, to flyers on our cars and in our
    mailboxes, to ads on the ATM screen as we wait
    for it to dispense our cash -- we see ads all
    day, every day.
  • When is an ad not an ad? When it's a product
    placement. Once mainly found only on the big
    screen, product placement has been making quite a
    few appearances on TV -- not to mention in video
    games and even books. 
  • New Superman movie (most commercialization ever),
    Ad-free 24

Point of Purchase Displays
  • The customer is thinking about a particular
    product but often they are drawn to the one which
    is displayed in a more prominent fashion without
  • Well done point of purchase (POP) displays will
    draw consumers to one product over another, or
    give one store a better image (visual
  • POP display often carry impulse purchases that
    have a higher markup !
  • Usually near the checkout counter
  • Gum, drinks

Loyalty Marketing Programs
  • Customer loyalty is all about attracting the
    right customer, getting them to buy, buy often,
    buy in higher quantities and bring you even more
  • VIP and loyalty program members are 70 more
    likely to spread the word about your business.
  • 65 want stores they want to frequent to email
    them coupons and promotions.
  • The probability of making an additional sale or
    upselling to loyal customers is 60-70.
  • Compared with loyal customers, new ones are more
    price-conscious. The chances of getting a sale
    from a new person is 5 to 20. And actual sales
    from promotions sent to them is less than 1.
  • JOIN from web or mobile. Connect via Facebook or
    Twitter. Get ready to be rewarded for your brand
    loyalty. Being Social has its advantages!

  • The last consumer sales promotion activity that
    we talked about yesterday was loyalty marketing
  • Write 1 example of a loyalty program from 5
    different stores that you are a customer at.

Loyalty Marketing Program
  • Def A marketing approach in which companies
    focus on growing clientele through incentives.

5 Examples of Loyalty Marketing 1.) Coupons-
Discounts on certain items 2.) Reward Points
Card- What they scan when you purchase an item to
gain reward points 3.) Reward Points- Going to
the internet and buying things with reward points
for shopping there 4.) Premium Membership-
Special discounts when becoming a member of
store 5.) Deals- Buying 3 tires and getting the
4th one free
Business 2 Business Sales Promotions (Trade
  • Trade promotions are sales promotions activities
    designed to get support for a product from
    manufacturers, wholesalers, and retailers.
  • Promotional allowances, cooperative advertising,
    slotting allowances, sales force promotions,
    trade shows and conventions
  • More money is actually spent on promoting to
    businesses rather than consumers

Promotional Allowances
  • Represent cash payments or discounts given by
    manufacturers to wholesalers or retailers for
    performing activities to encourage sales.
  • For example
  • Stocking a large quantity of a product
  • The cash payment or price discount gives
    wholesalers and retailers an incentive to sell,
    so they are more likely to promote to customers.

Cooperative Advertising
  • A manufacturer supports a retailer by helping to
    pay for the cost of advertising its product

Slotting Allowance
  • Cash premium paid by a manufacturer to a retailer
    to help the retailer cover the costs of placing
    the manufacturers product on the shelves.
  • Can range from a few thousand dollars to several
    million dollars per product.
  • In addition to buying space in the store,
    slotting allowances also pay for a retailers
    discount specials on a product, charges for store
    shelves, penalties for poor sales, store
    advertising, and display costs.

Article Summary
Sales Force Promotions, Trade Show Conventions
Personal Selling
  • The salesperson is used as a vehicle to inform,
    remind and persuade customers about the products
    available to them.
  • The personal presentation of a product

Publicity/Public Relations
  • Creating demand for a business or product by
    placing news about it in the media
  • Publicity is similar to institutional advertising
    in that its main purpose is to create a favorable
    image about the company hoping to increase sales
  • The difference is that information about the
    company is placed in the media in the form of a
    news release, instead of an advertisement
  • Involves the activities that businesses do to
    create publicity for the company

Visual Merchandising
  • The coordination of all physical elements in a
    place of business so that it projects the right
    image to its customers
  • Arranging merchandise to entice customers to buy

The combination of promotion types represents a
  • Describe the promotional mix that would be
    appropriate for our school based enterprise.
  • Explain how you would use each type of promotion.
  • Tell why you would or would not use each type of

Can you name a type of business that
  • Uses a lot of advertising and sales promotion,
    but very little personal selling?
  • Uses little advertising, but lots of personal

What types of promotion do you think the
following businesses use?
  • Hayes Chrysler/Jeep
  • Ruby Tuesday
  • Cigarette manufacturers
  • Avon Corporation
  • ebay

Create a Sales Promotion for P3
  • List 5 different examples of sales promotions
    from researching online.
  • List 3 different sales promotions that P3 could
    utilize during the holiday season. See handout.

  • Pick your favorite one and create a post, print
    ad and short video to promote your idea!