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Terms in this set (34)
Persuasive communication. Companies rely on promotion to inform people about their products and services.
What businesses use to convince prospects to select its products or services instead of a competitors brands.
Used ti create favorable image for a business, help it advocate for change, or take a stand on trade or community issues.
Types of promotion in the promotional mix
1. Personal Selling
3. Direct Marketing
5. Public relations
Personla selling requires that a company employ sales representatives who generate and maintain direct contact with prospects and customers. It is one of the costliest forms or promotions.
A form of nonpersonal promotion. Companies pay to promote ideas, goods, or services in a variety of media outlets. Found everywhere from magazines, newspapers, television, and web sights to gymnasiums and city buses.
Type of advertising directed to a targeted group of prospects and customers rather than to a mass audience. The two forms of direct are printed direct mail, which is information sent via regular mail to a home or business, and electronic direct mail.
According to the American Marketing Association (AMA) sales promotion represents all marketing activities-- other than personal selling, advertising, and public relations-- that are used to stimulate purchasing and sales.
PR activites enable an organization to influence a target audience. Often, public relations campaigns try to create a favorable image for a company, its products, or its poliies. However, companies can rely upon public relations strategies and techniques for many reasons.
Although there are many media tools, one of the most important ones is the new release. A news release is an announcement that is sent to the appropriate media outlets.
One of tactic that publin relations professionals use. Publicity involves brining news or newsworthy information about an oranization to the publics attentions. This is process is know as placement.
To reach its promotional goals, an organization develops an effective promotional mix-- a combination of strategies and a costeffective allocation of resources. Most businesses use more than one type of promotion to achieve their promotional goals. A business establishes a promotional mix by following a series of steps that range from identifying the target market to measuring the results.
In large companies, the marketing department has many roles. It determines the promotional mix, establishes the budget, allocates resources, coordinates the campaign, supervises any outside resources, and measures the results.
Push-Pull concept (Push policy)
Manufacturers often develop a promotional mix for eact segment of the distribution channel. To promote a product to large retailers that sell its products, a manufacturer might want to use a mox of person selling, advertising, and buying discounts. This type of promotion, known as the push policy, is used only with the next partner in the distribution channel.
Push-Pull concept (Pull policy)
The pull policy directs promotion towards consumers. This pull policy of promotions is designed to create consumer interest and encourage retailers to carry a product. This strategy relies heavily on advertising that is geared to consumers, premiums, samples, and demonstrations.
Incentives that encourage customers to buy products or services. Sales promotions can be used to encourage customers to try a new product, build awareness, increase purchases by current customers, or reward loyalty. Sales promotions are usually supported by advertising activities. The activites may be either business-to-business (B2B) activites or business-to-consumer (B2C) activities.
Sales promotion activities designed to get supports for a product from manufacturers, wholesalers, and retailers. More money is actually spent on promoting to buisnesses than to consumers.
Promotional represent cash payments or discounts given by manufacturers to wholesalers or reatailers for preforming activites to encourage sales.
A manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.
A slotting allowance is a cash premium paid by a manufacturer to a retailer to help the reatailer cover the cost of placing the manufacturers product on the shelves.
Sales Force Promotion
Sale force promotions are awards givin to dealers and empolyees who successfully meet or exceed a sales quota. Such quotas can apply to a specific period of time, such as a month, one day, or a year, or for a perticular product or line of products.
Trade shows and Convetions
Trade shows and conventions showcase a particular line of products. One of the largest trade shows in the annual Consumer Electronics show in Las Vegas, which attracts more than 190,000 manufacturers, retailers, product engineers, and devlopers.
Customer Promotions are sales strategies that encourage customers and prospects to buy a product or service. Consumer promotions support advertising, personal selling, and public relations efforts.
Cupons are certificates that entitle customers to cash discounts on goods or services.
Premiums are low-cost items given to customers at a discount or for free. They are designed to increader sales by building product loyalty, and attracting new customers. They also can persuade nonusers to switch brands.
Deals or price packs offer short-term price reductions that are marked directly on the label or package. The deal might feature two similar products bound together for the price of one or two related products, such as Bausch & Lomb's Renu contact lens cleaner and its multipurpose wetting solutions.
Businesses use incentives to promote many products because they create customer excitement and increase sales. Incentives generally are higher-priced products earned and given away through contests, sweepstakes, and rebates.
Another form of cunsumer sales promotion is the product sample. A product sample is a free trial size of a product sent through the mail, distributed door-to-door, or given away at retail stores and trade shows.
Sponsorship has become an intergal part of promotion. The sponsoring company pays a fee for the right to promote itself and its products or services at or on a set location. The location can be a physical site (such as a stadium), and event (such as a concert), a group (such as a car racing team), or a person (such as a golfer or tennis player).
Promotional Tie-Ins, Cross-Promotion, Cross Selling
Promotional tie-ins are also known as cross-promotion and cross-selling campaigns. These activites involve sales promotional arrangements between one or more retailers or manufacturers. They produce mutaully beneficially results.
Product placement is a consumer promotion that involves using a breand-name product in a movie, television show, sporting event, or even in a commerical for another product.
Loyalty Marketing Programs
Loyalty marketing programs, also called frequent buyer programs, reward customers for patronizing a company. The airline industry instituted one of the first such promotions, the frequent flier program. These programs reward customers with free air travel once they have accumulated a designated amount of travel miles.
Oneline Loyalty Marketing
Online versions of loyalty marketing programs have also become popular. The internet search engine Yahoo! awards points to Web surfers who buy from certain retailers or visit certain Web sites.
Point-of-purchase displays are displays designed primarily by manufacturers to hold and display their products. They are usually placed in high-traffic areas and promote inpulse purchases.
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