PROMOTION
Any form of communication a
business or company uses to
inform, persuade, or remind
people about products and to
improve its image
Purposes of Promotion
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•
•
•
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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 vs.
Product Promotion
I: Used to create a favorable
image of the company, rather
than to directly sell products
P: Used to create a favorable
image of the product, rather
than to promote company
Types of Promotion
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Advertising
Sales Promotion
Personal Selling
Publicity/ Public
Relations
• Visual
Merchandising
ADVERTISING
The non-personal
presentation of
ideas and
products by an
**PAID
identified sponsor.
FOR**
Advertising
• Advantages
– 1. A large number of people usually see the advertiser’s message
– 2. Costs per potential customer are usually lower than other forms
of promotion
– 3. Can choose the most appropriate media to reach target market
– 4. Can control the content of an advertisement
– 5. Ads are subject to repeat viewing
– 6. Ads can “presale” products
• Disadvantages
– 1. Cannot focus well on individual needs
– 2. Some forms of advertising can be too expensive for many
businesses
– 3. Sometimes advertising is wasteful and inefficient - message may
be spent on non-potential customers
– 4. Advertising must be brief
SALES PROMOTION
2 for 1 Sale
Buy One,
Get One
Free
$2 off
after 8PM
on Tuesday
• stimulate purchases
• increase store traffic
Sales Promotion
• Advantages
– Unique and has special appeal to a potential customer
– Helps build customer loyalty
• Disadvantages
– Difficult to end without the customers becoming
dissatisfied
– Store image and sales can suffer if the promotion is not
properly planned and managed
– Only designed to supplement other promotional efforts
and cannot make up for poor products
PERSONAL SELLING
The PERSONAL presentation of a
product or company to one or
more potential buyers
Personal Selling
• Advantages
– Person contact with customer
– Can track success
• Disadvantages
– On a per contact basis, personal selling is the
most expensive form of promotion
PUBLICITY
PUBLIC RELATIONS
Creating demand
for a business or
product by placing
news about it in
the media
Publicity
• Advantages
– Publicity is free; advertising is not
– Can be used to create a positive image within the
community
– Viewed as being more credible or believable than
advertising
– Viewed as news, people more attention to publicity
• Disadvantages
– Give up much of your control of your message
– Not all publicity is positive
The combination of
promotion types represents
a product’s
PROMOTIONAL MIX