SECTION 17.1 The Promotional Mix Marketing Essentials n Chapter 17 Promotional Concepts and Strategies Section 17.1 The Promotional Mix Chapter 17 n Promotional Concepts and Strategies 1 17.1 ASSIGNMENT SECTION 17.1 The Promotional Mix Ch 17.1 Assessment Pg. 304 # 1-5 DUE: Now Chapter 17 n Promotional Concepts and Strategies 2 SECTION 17.1 The Promotional Mix What You'll Learn The role of promotion in marketing The concept of promotional mix The characteristics of personal selling and advertising The nature and scope of publicity Chapter 17 n Promotional Concepts and Strategies 3 SECTION 17.1 The Promotional Mix Why It's Important Since businesses must continually promote their organizations, products, and policies to gain customer acceptance, you will need to learn successful promotional strategies. Chapter 17 n Promotional Concepts and Strategies 4 SECTION 17.1 The Promotional Mix Key Terms promotion sales promotion promotional mix public relations product promotion publicity institutional promotion push policy advertising pull policy Chapter 17 n Promotional Concepts and Strategies 5 SECTION 17.1 The Promotional Mix The Concept of the Promotional Mix Promotion is any form of communication a business or organization uses to inform, persuade, or remind people about its products. Promotional mix is a combination of the different types of promotion. A business decides on the promotional mix that will be most effective in persuading potential customers to purchase its products. Slide 1 of 2 Chapter 17 n Promotional Concepts and Strategies 6 SECTION 17.1 The Promotional Mix The Concept of the Promotional Mix A business uses product promotion to convince potential customers to buy its products instead of buying from a competitor. Institutional promotion is used by businesses to create a favorable image for themselves, as opposed to promoting specific products or services. Slide 2 of 2 Chapter 17 n Promotional Concepts and Strategies 7 17.1 Graphic Organizer SECTION 17.1 The Promotional Mix Elements of the Promotional Mix Four Basic Types of Promotion 1. Personal Selling 2. Advertising 3. Sales Promotion 4. Public Relations & Publicity Chapter 17 n Promotional Concepts and Strategies 8 SECTION 17.1 The Promotional Mix Types of Promotion 1. Personal Selling - one of the largest forms of promotion - designed to complete a sale once a customer is attracted to a business - one of the most expensive forms of promotion Slide 2 of 4 Chapter 17 n Promotional Concepts and Strategies 9 SECTION 17.1 The Promotional Mix Types of Promotion 2. Advertising - any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor - American businesses spend about $200 billion each year on advertising. Chapter 17 n Promotional Concepts and Strategies 10 SECTION 17.1 The Promotional Mix Types of Promotion 3. Sales Promotion - includes everything but personal selling, advertising, and public relations - used to stimulate consumer purchasing and sales effectiveness - increase sales - inform customers about new products - create a positive store or corporate image Slide 3 of 4 Chapter 17 n Promotional Concepts and Strategies 11 SECTION 17.1 The Promotional Mix Types of Promotion 4. Public Relations - any activity designed to create a favorable image of a business, its products, or its policies. Chapter 17 n Promotional Concepts and Strategies 12 SECTION 17.1 The Promotional Mix Types of Promotion Publicity - a specific kind of public relations that involves placing positive newsworthy information about a business in the media Advantages Disadvantages - much cheaper - companies cannot than advertising control negative publicity - a mention on the news - can be subjective info is more likely to be depending on the regarded as objective reporting organization Slide4 of 4 Chapter 17 n Promotional Concepts and Strategies 13 SECTION 17.1 The Promotional Mix Coordination of the Promotional Mix - Most businesses use more than one type of promotion - Each type of promotion is designed to complement one another - National advertising is accompanied with local advertising Chapter 17 n Promotional Concepts and Strategies 14 SECTION 17.1 The Promotional Mix Promotional Budget In large companies, the marketing department -establishes a promotion budget -allocates resources -coordinates the campaign -determines the right promotional mix for the company Chapter 17 n Promotional Concepts and Strategies 15 SECTION 17.1 The Promotional Mix Promotional Budget In smaller businesses, these responsibilities -rest with the owner-operator -are divided among employees -contracted to outside agencies Chapter 17 n Promotional Concepts and Strategies 16 SECTION 17.1 The Promotional Mix The Push-Pull Concept A push policy is used to convince a retailer to stock the products being promoted, pushing the product to the retailer. A push strategy relies heavily on personal selling and promotion at trade shows. A pull policy is designed to create consumer interest, pulling consumers to the product. Chapter 17 n Promotional Concepts and Strategies 17 17.1 ASSIGNMENT SECTION 17.1 The Promotional Mix Worksheet – Ch 17 Sales Promotion Extra Credit - Bring in an example of one of the four areas of the promotional mix. - Attach explanation of the form of promotion being used. - Give a short presentation to the class. Up to 5 points EC Homework – Ch 17 Fact & Idea Review Pg. 316 # 1- 8 Chapter 17 n Promotional Concepts and Strategies 18 SECTION 17.1 The Promotional Mix Marketing Essentials End of Section 17.1 Chapter 17 n Promotional Concepts and Strategies 19