Standard 2
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Understand the role of Promotion
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Define Promotion:
◦ Any form of communication a business or
organizations uses to inform, persuade or remind.
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Since businesses must continually promote
their organizations, products and policies to
gain customer acceptance, you will need to
learn successful promotional strategies.
These strategies make up the
Promotional Mix
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The promotional mix is a combination of the
different types of promotion. There are four
basic types of promotion:
1.Advertising
2.Publicity/Public Relations
3.Personal Sales
4.Sales Promotion
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Advertising is any paid form of non-personal
promotion of ideas, goods or services.
Advertising can be found anywhere from
magazines, TV and internet to anything that
is ONE-WAY communication.
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Public relations - The method or activities of
establishing and promoting a favorable
relationship with the public.
Publicity is part of public relations and involves
placing newsworthy information about a
business, product or policy in the media.
It’s mostly free.
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Personal sales are when
individuals make contact with
potential buyers face-to-face
to promote their business,
products or policies.
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Sales promotion
represents all marketing
activities other than the
three already mentioned,
like:
◦ Contests
◦ Fashion shows
◦ Coupons
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Used to stimulate
consumer purchase
immediately
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Factors affecting the promotional mix:
◦ Technology
◦ Economy
◦ Market
◦ Distribution
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Match the examples below to one of the 4
strategies in the promotional mix: (advertising,
publicity, personal sales, sales promotion)
1. TV Commercial
5. contest
2. Insurance sales
6. Fashion Show
3. News release
7. Magazine Ad
4. Coupon
7. Home Tupperware
Party
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1.
2.
3.
4.
5.
6.
7.
8.
Advertising (one-way paid communication)
Personal sales
Publicity
Sales Promotion
Sales Promotion
Sales Promotion
Advertising
Personal Sales
Advantages
Disadvantages
Allows large number of people to
see the advertised message
Can’t focus on individual needs
Can be controlled
Can be too expensive for many
businesses
Can have repeat viewers
Can be inefficient (short coverage
of billboards & magazines)
Can pre-sale products before
customers go shopping
Advantages
Disadvantages
save a business money by
extending it’s advertising budget
May not be accurate or presented
in the way or time that will reach
the right audience
Can increase a business’ profit and Can be negative or harmful to the
exposure
business
Lack of control of content
Advantages
Disadvantages
Personalized to individual
customers
Most expensive form/per sale
Largest form of promotion
Has slower distribution/coverage
compared to advertising
Easier for personal sales to focus
on target market and complete the
sale
Advantages
Disadvantages
Variety of activities
Short term incentives
Includes many different marketing
activities to stimulate consumer
interest including business to
business promotions
Can be controlled
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Trade Promotions –sales promotion activities
are designed to gain manufacturers’,
wholesalers’ and retailers’ support for a
product. More money is actually spent on
promoting to businesses than to consumers.
 Major trade promotions include:
 Slotting –
 Buying Allowances –
 Trade shows & conventions -
◦ Slotting – paid by the manufacturer to the
retailer for placing their new products on
the shelves, store advertising and display
costs.
◦ Buying Allowances – a price discount given
by manufactures to retailers to encourage
them to buy more.
◦ Trade shows & Conventions – designed to
reach wholesalers and retailers to display
new products and/or increase sale of
previous products.
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Premiums – low cost items given to customers
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Incentives – generally products earned through
contest, sweepstakes and rebates
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Product Samples –
in store or by mail
Product tie-in’s or co-operative advertising- cost
sharing arrangement whereby both a supplier and
advertiser pay for advertising & promo
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Product placement – product recognition
developed by featuring products in special
events, TV, movies, etc.
Visual Merchandising & Display– coordination of
all physical elements to project the right image to
its consumers. Displays refers to the artistic and
visual aspects used to present a product.
Loyalty Programs –
frequent buyer rewards