Promotion and Promotional Mix
Key Terms
promotion
advertising
direct
marketing
sales
promotion
public relations
promotional
mix
product life
cycle
brand
positioning
Objectives
 Explain the role of promotion in
business and marketing
 Identify the various types of
promotion
 Describe the concept of the
promotional mix
Take out a piece of paper
for your notes & title it:
Promotional Mix Review
Marketing Essentials Chapter 17, Section 17.1
REVIEW
A marketing mix is the elements
of marketing that can be used by
a company to influence consumers
to purchase goods or services.
?
Price
?
Product
?
Place
?
Promotion
Promotional
Mix
A promotional mix is
the combination of different
promotional elements that
a company uses to reach
and influence potential
customers.
The marketing mix is often referred to as the 4 P’s
These are the tools or basic strategies that marketers
use to influence potential customers.
There are five basic categories in
the promotional mix:
Public Relations
Personal Selling
Advertising
Promotional
Mix
Direct Marketing
Marketing Essentials Chapter 17, Section 17.2
Sales Promotion
Types of Promotion in the
Promotional Mix
Personal selling
involves direct
contact between
salespeople and
customers. This can
take place in the
forms of:
• Personal meetings
• Telemarketing
Marketing Essentials Chapter 17, Section 17.1
advertising
A form of
nonpersonal
promotion in
which companies
pay to promote
ideas, goods, or
services in a
variety of media
outlets.
Types of Promotion in the
Promotional Mix
Advertising is a form of non-personal
promotion and one-way communication.
It can be found in places including:
• Newspapers
• Magazines
• Television
• Web sites
• Billboards
• City buses
Marketing Essentials Chapter 17, Section 17.1
direct
marketing
A type of
advertising
directed to a
targeted group of
prospects and
customers rather
than to a mass
audience.
Types of Promotion in the
Promotional Mix
Direct marketing is a type of
advertising directed to a targeted group
of prospects rather than to a mass
audience. Three forms are:
• Printed direct mail
• Electronic direct mail
• Social Media
The goals of direct marketing are to generate
sales and leads for salespeople to pursue.
Marketing Essentials Chapter 17, Section 17.1
public
relations (PR)
Activities that
help an
organization
influence a target
audience.
publicity
A tactic that
public relations
professionals use
to bring
information
about an
organization to
the public’s
attention.
Types of Promotion in the
Promotional Mix
Public relations (PR) activities try to
create a favorable image for a company,
its products, or its policies.
Publicity involves bringing news or
newsworthy information about an
organization to the public’s attention.
Publicity’s risk is that
its content is not easily
controlled by the
business that issues it.
Marketing Essentials Chapter 17, Section 17.1
Types of Promotion in the
Promotional Mix
sales
promotion
All marketing
activities–other
than personal
selling,
advertising, and
public relations–
that are used to
stimulate
purchasing and
sales.
Sales promotion
represents all marketing activities
(other than personal selling, advertising,
and public relations)
that are used to
stimulate
purchasing
and sales.
There are two types:
• Consumer sales promotion
• Trade promotion
Marketing Essentials Chapter 17, Section 17.1
Consumer Promotions
consumer
promotions
Sales
strategies that
encourage
customers
and prospects
to buy a
product or
service.
Consumer promotions are sales strategies
that encourage customers and prospects to
buy a product or service.
Trade promotions
are sales promotion
activities designed
to get support for a
product from:
• Manufacturers
• Wholesalers
• Retailers
Marketing Essentials Chapter 17, Section 17.2
The Concept of Promotional Mix
promotional
mix
A combination of
strategies and a
cost effective
allocation of
resources.
A promotional mix X 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.
Marketing Essentials Chapter 17, Section 17.1
Let’s look at a real example!
Gatorade introduced in 1965
In early summer of
1965, a University of
Florida assistant coach
sat down with a team of
university physicians
and asked them to
determine why so
many of his players
were being affected by
heat and heat related
illnesses.
What comes to mind when you think of Gatorade?
In the summer of 1969,
Gatorade became the official
sports drink of the NFL—a
title it holds to this day.
What is brand identity? Definition: How you want
the consumer to perceive your product or your brand.
What is positioning? Definition: Positioning has come to
mean the process by which marketers try to create an image
or identity in the minds of their target market for its product,
brand, or organization
Product Positioning
The focus of positioning is the image a
product projects. The goal of product positioning
is to set the product apart from the competition.
Products can be positioned:
 by price and quality
 by features and benefits
 in relation to the competition
 in relation to other products
in a line
Product Positioning
Positioning by Price
and Quality
• Stresses paying more as a symbol of quality or
low price as an indication of value.
Positioning by Features and Benefits
• Stresses product features and
benefits, or unique characteristics.
Marketed as a platform for audio and
visual media such as books, periodicals,
movies, music, and games, as well as web content
Product Positioning
Positioning in Relation to the Competition
Stresses comparison to the
competition or play to the
competitor's weaknesses.
Positioning in Relation to Other
Products in a Line
Stresses association with a
successful brand.
Slide 3 of 3
What positioning strategy did
Gatorade use?
Positioning by Features & Benefits
Gatorade No. 1 Sports Beverage Worldwide
Marketing Essentials Chapter 17, Section 17.1
CASE STUDY
You have been hired to create a promotional
campaign for a “mystery” product.
Tell us who your target audience is, what
image you would like to create for the product
(positioning strategy), and what promotional
mix you have for the campaign. Provide
rationale for your choices.
Hint: Create your concept 1st so you have a
central theme