What is
Promotion?
Chapter 17
LAP – Know your
Options!
4.1 Examine the types of
promotion
4.2 Distinguish between
institutional and
promotional advertising
Recognize This!
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There’s an App for That
On your side
Once you Pop you can’t Stop
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Where dreams come true
Expect More, Pay Less
Were you right?
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Apple
Nationwide
Pringles
Nike
McDonald’s
Disney
Target
Two Categories of
Promotion
• Product Promotion: tries to sell a
product
– Verizon and THE DROID, Red Bull Energy
Drink, Extra Desserts Extra Gum
• Institutional Promotion: creates an
image
– New Balance sponsors Susan G Komen
Race against Breast Cancer
Product Promotion
• Primary – aims to stimulate demand or
desire for an entire class of product;
emphasis on product category and not
brand
– GOT MILK, Beef, It’s What’s for Dinner, Pork,
The other white meat
• Secondary/Selective – used to stimulate
demand for a specific brand
– Borden Milk, Laura’s Lean Beef,
Know the Options Lap
and Product/Institutional
Worksheet Activity
4 Basic Types of
Promotion
• Personal Selling
• Advertising
– Direct Marketing
• Sales Promotion
• Public Relations (Publicity)
• OTHER and emerging areas –
Internet, Social Networks,
The Promotional Mix
• Any combination of the different
types of promotion a business
chooses to use.
• Most businesses use more than one
type of promotion
• Each type complements the other;
some success is dependent on the
other
• Must be carefully coordinated
Personal Selling
• Making an oral presentation to one
or more potential buyers
Advertising
• ANY paid, nonpersonal form of
communication of ideas, goods and
services by an identified sponsor
• Distinguishing factors:
– Paid
– Set format
– Identifies sponsor
• Be familiar with the Pro’s and Con’s
of Advertising!!
AIDA Formula
• Sequence of stages a marketer
leads the target audience through
• ATTENTION
• INTEREST
• DESIRE
• ACTION
Direct Marketing
• A form of Advertising directed to a
targeted group of prospects vs. the
mass audience
• Two Forms:
– Printed Direct Mail
– Electronic Direct Mail – HUGE
GROWTH!!
• Goal – to generate sales or lead for
reps to pursue
• CAN-SPAM Act of 2003
Sales Promotion
• All marketing activities other than
personal selling, advertising and
publicity that is used to stimulate
consumers purchases
• Two Orientations:
– Trade: Business to Business (Industrial
Mkt)
– Consumer: (Consumer Mkt.)
Public Relations
• PR activities enable an organization to
influence an audience with a positive
impact – cultivate media relations
• Publicity – (Placement) Placing
newsworthy information about a
company, product or person in the
media (radio, tv, and stage)
• Pro’s and Con’s (Free but no control!)
Concept of the
Promotional Mix
• Establishment of a BUDGET!!
• Push-Pull Concept: creating a
promotional plan for each segment of
distribution channel (M-W-R-C)
– Push Policy: used only with the next partner
• Heavy on selling and sales promotion
– Pull Policy: Directs promotion toward
consumer interest and demand
• Heavy on advertising and premiums, etc.
Assignment
• Finish Lap Test for Knowing the
Options
• Complete Ch. 17 Fact and Idea
worksheet