PROMOTION

PROMOTION

WHAT IS IT?Any form of communication a

business or organization uses to:INFORM

(Tell about a product)

PERSUADE (“buy my brand not my competitor’s”)

REMIND (keep name in the public eye)

Promotional Objectives

•Build Awareness• Increase demand•Differentiate a product

from the competitor•Highlight product’s value•Change/reinforce

customer’s attitude

Promotional Messages

•Can you hear me now? Good.•Buy it. Sell it. Love it.•Live in your world, play in

ours.• Just do it.• I’m lovin’ it.•The happiest place on earth.

PROMOTION2 TYPES

PRODUCT PROMOTIONVS.

INSTITUTIONAL PROMOTION

PRODUCT PROMOTION

• GOAL: To sell goods and services– Advertisements– Coupons– Sales

presentations– ‘Product plugs’

in interviews

• Accomplished by:– Explaining

features/benefits– Tell where

products are sold– Advertising sales– Answer questions– Introduce new

products

Primary Product Promotion

• Emphasis on product & use, not the brand

• Competition between industries (pork vs beef)

• Good when introducing new concept or completely new product

Secondary (Selective) Product Promotion

• Specific brand or product

• Already known product

• Coca-Cola vs Pepsi

INSTITIUONAL PROMOTION

•GOAL: Create favorable image of the company

•Does NOT directly sell a certain product

INSTITIUONAL PROMOTION

• Used to:– Change

attitudes– Highlight

issues– Inform public– Show

commitment

Donated $5million in bottled water to hurricane-ravaged New Orleans in 2005

Promotion:ADVANTAGES

•Contributions to economy•Supports mass media•Benefits companies

Promotion:DISADVANTAGES

• Deceptive• Manipulative• Offensive• Creates/

reinforces stereotypes

• Plays upon fears• Has limited

abilities

METHODS OF PROMOTION

•ADVERTISING•PUBLICITY•SALES PROMOTION•PERSONAL SELLING

ADVERTISING

• It is advertising if:–The Time or Space devoted

to it is PAID for–Uses a set format– Identifies the sponsor of the

message

ADVERTISING: PROs & CONs

• Reaches large # of people

• Costs per customer

• Choose appropriate media

• Control content• Repeat Viewing• “Presell”

• Can’t focus on individual needs

• $$$$$$• Brief

PUBLICITYPlacing newsworthy

information about a company, product or person in the

media•How does Publicity differ from

Advertising?–PUBLICITY IS FREE

PUBLICITY: PROS & CONS

• FREE• LARGE

AUDIENCE• SEEN AS NON-

BIASED

• GIVE UP CONTROL OF MESSAGE CONTENT AND PRESENTATION

• NEGATIVE PUBLICITY

Kobe Bryant – McDonald’s, Nutella, & Ferrero SpA pulled sponsorship

Tiger Woods – Gatorade, AT&T, Accenture dropped him

SALES PROMOTION

Everything else that a company does to get customers to buy their products and use their

services.(excludes advertising, publicity

and personal selling)

SALES PROMOTIONS

• LOYALTY MARKETING PROGRAMS

• PROMOTIONAL TIE-INS (McDonald’s Monopoly promotion)

• VISUAL MERCHANDISING AND DISPLAYS

• PREMIUMS & INCENTIVES (Buy 1 get one free)

• PRODUCT SAMPLES

• PRODUCT PLACEMENT

PERSONAL SELLING

TO BE COVERED LATER!!