The Promotional
Mix
Marketing II – Advertising and
Branding
What is Promotion?
Any communication an organization
uses to:
• Inform
• Persuade
• Remind people about its products
• Also to improve the public image of
an organization
2 Purposes of Promotion
• Product promotion - Convince market
to buy a product
• Institutional promotion – Create a
favorable image for company
The Promotional Mix Includes:
1. Personal Selling
2. Advertising – print, broadcast, online,
specialty/other
3. Direct Marketing – online or print, target a
group
4. Public Relations (PR) – strategies to enhance
a company’s reputation
o
o
News stories, blogs, chat rooms, etc.
Free, believable, yet can’t control
5. Sales Promotion – incentives that get
customers to buy
o
o
B2B – Business to Business
B2C – Business to Consumer
B2B: Trade Promotions
1. Promotional Allowances - Cash
payments or discounts given by manufacturers
to wholesalers and retailers to encourage sales
2. Cooperative Advertising - Manufacturer
helps retailer pay cost of advertising a product
3. Slotting Allowances - Cash premium paid
by manufacturer to retailer to place product on
its store shelf
4. Sales Force Incentives - Awards given to
retailers and their employees who meet a sales
quota
5. Trade Shows and Conventions -
B2C: Consumer Sales Promotions
• Sales strategies designed to encourage
consumers to buy product
• 11 Different Types!!!
A Bit Overwhelming...
Promotion
Personal Selling
Sales Promotion
Trade Promotions
Public Relations
Consumer Promotions
1.
2.
Slotting Allowance
Promotional Allowance
3.
4.
Trade Shows/Convention
Sales Force Incentives
Cooperative Advertising
Advertising
5.
6.
7.
8.
9.
10.
11.
Coupons
Premiums
1. Factory Packs or In-Packs
2. Traffic Builders
3. Coupon Plans
Deals
Incentives
1. Rebates
2. Contests
3. Sweepstakes
Product Samples
Sponsorships
Promotional Tie-Ins (CrossPromotions/Selling)
Product Placements
Loyalty Marketing Programs
Online Loyalty Marketing Programs
Point of Purchase Displays
Coupons
Certificates that give cash discounts to
customers
– Placed in or on packages
– Printed in newspapers/magazines
– Stores are reimbursed by manufacturers
for coupon
Premiums
• Low items given to consumers at a discount
or for free
• Three Types of Premiums:
– Factory Pack (In-Pack) – free gift in package
– Coupon Plan – on-going program offering a
variety of premiums in exchange for labels or
coupons
– Traffic Builder – free gift for visiting a new store
or special event
Deals or Price Packs
• Offer short term price reductions that are
marked directly on label of package
– coupling two products for the price of one
Incentives:
Higher priced products earned or given away through:
• Contests
• Sweepstake
s
• Rebates
Product Samples
Free trial size of a product sent through the
mail, door-to-door, or given at retail stores
or shows
Sponsorship
Company pays a fee for the right to
promote itself and its product at or
on a set location
Promotional Tie-Ins, Cross Promotion, Cross
Selling
• Arrangement between one or more retailers or
manufacturers
• Partners combine resources on a promotion
that
will generate additional sales for
each partner
Product Placement
Using a brand name product in a movie, tv show,
sporting event, or commercial
Loyalty Marketing Program
• Frequent buyer program
• Rewards customers for
patronizing company
Online Loyalty Marketing
Certain sites award points for shopping at online
stores
Point of Purchase Displays
Usually placed in high traffic areas or
to promote impulse purchases
A Bit Overwhelming...
Promotion
Personal Selling
Sales Promotion
Trade Promotions
Public Relations
Consumer Promotions
1.
2.
Slotting Allowance
Promotional Allowance
3.
4.
Trade Shows/Convention
Sales Force Incentives
Cooperative Advertising
Advertising
5.
6.
7.
8.
9.
10.
11.
Coupons
Premiums
1. Factory Packs or In-Packs
2. Traffic Builders
3. Coupon Plans
Deals
Incentives
1. Rebates
2. Contests
3. Sweepstakes
Product Samples
Sponsorships
Promotional Tie-Ins (CrossPromotions/Selling)
Product Placements
Loyalty Marketing Programs
Online Loyalty Marketing Programs
Point of Purchase Displays