The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Promotion: influencing
buying decisions Chapter 17
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Opening Question
Have you ever
entered a contest by
a store or business to
win something?
Describe it.
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
What Is Promotion?
Promotion – any communication an
organization uses to:
• Inform
• Persuade or
• Remind
people about its products
• Also to improve the public image of
an organization
The Promotion Mix
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
The 2 Purposes Of Promotion
• Product promotion - Convince
market to buy a product
• Institutional promotion – Create a
favorable image for company
The Promotion Mix
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
The 5 Basic Types Of Promotion
1. Personal Selling
2. Advertising
3. Direct Marketing
4. Public Relations (PR)
5. Sales Promotion
- Direct Customer Contact
Non-personal /no direct customer contact
The Promotion Mix
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
1. Personal Selling
• Personal Selling - One of the largest
forms of promotion
–Most expensive form
• Make the sale after customer is
attracted by ads, sales promotion, or
PR
The Promotion Mix
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
2. Advertising
• EXAMPLES: Magazines, newspapers,
television, radio, web-sites
– One-way communication
The Promotion Mix
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
3. Direct Marketing
• Usually to a targeted group
• Two types:
– Printed
–Online
The Promotion Mix
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
4. Public Relations & Publicity
• Public Relations (PR)
Strategies to enhance company’s
reputation/image
• Publicity
– Part of PR and is the end result of PR
– End results = what makes headlines,
news, chat room, blogs (the media
placement)
The Promotion Mix
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
4. Public Relations & Publicity
Public Relations &
Publicity
Data Breach Troubling TARGET Customers bought less at Target as they felt
their credit/debit card security was compromised
Public Relations: Apologized for theft of information Assured zero liability for fraudulent
charges Implemented technological changes to
prevent recurrence of such an event in the future
Changed Top Management
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Advantages of Publicity
• It’s free
• “News” is usually viewed as more
objective and credible than
advertising
• People more likely to pay attention
to news than ads
Public Relations &
Publicity
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Disadvantages of Publicity
Unlike paid advertising, company has
no control over:
• The content or what is said
• When something is said
TACO BELL “Seasoned Meat” Lawsuit
2011
Public Relations &
Publicity
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
5. Sales Promotion
• Sales Promotion – All marketing
activities, other than the prior four.
– Product Placement
– Contests
– Etc.
• Will be discussed in 17.2
The Promotion Mix
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Promotional Mix
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Coordination of Promotional Mix
• Use more than one type of promotion
• Each should complement other types:
– Ads and direct mail create awareness
– PR creates positive image and
recognition
– Sales promotion create sales and
reinforces
– Personal selling closes the sale
The Promotion Mix
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Opening Question
What types of events are held in our
community to build the image of a
company?
What are the goals of these events?
Give specific examples.
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Opening Question
What types of promotions could a
company offer ANOTHER company
(B2B) to entice them to carry their
products. Provide examples with
specific company/products.
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Sales Promotions Chapter 17.2
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Sales Promotion
• Sales Promotions - Incentives that encourage
customers to buy
• Used to:
– Try a new product
– Build Awareness
– Increase purchases by current customers
– Reward loyalty
• Two General Categories:
– Business to Business (B2B) -> Trade
Promotions
– Business to Consumer (B2C) -> Consumer
Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
The Push-Pull Concept
Customer
Retailer Manufacturer
Push-Pull Policy
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Trade Promotions (B2B)
• Trade Promotions – Get support for a
product from manufacturers,
wholesalers, and retailers
• More $ promoting to business than
consumers
• Major trade promotions include:
1. Promotional allowances
2. Cooperative advertising
3. Slotting allowance
4. Sales force promotions
5. Trade shows and conventions
Trade Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
1. Promotional Allowances
• Promotional Allowance – Cash
payments or discounts given by
manufacturers to wholesalers and
retailers to encourage sales.
• Therefore, they are more likely to
promote the product to customers
Trade Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
2. Cooperative Advertising
• Manufacturer helps retailer pay cost
of advertising a product
Trade Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
3. Slotting Allowances
• Slotting allowance - Cash premium
paid by the manufacturer to retailer to
place their product on its store shelf
• Several thousand to several million
per product
Supermarket holds how
many products?
Available Products to stock?
Supermarket:
Holds: < 30,000 Products
Available Products:
100,000
Trade Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
5. Trade Shows and Conventions
• Trade Shows and Conventions –
Showcases a particular line of
products
• Uses:
– Introduce new products
– Encourage sales of existing products
– Meet partner in the chain
– Gain continued company and product
support
Trade Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Consumer Promotions (B2C)
• Sales strategies that designed to
encourage consumers to buy a
product
11 Categories:
•Coupons
•Premiums
•Deals
•Incentives
•Product Samples
•Sponsorships
•Promotional Tie-ins
•Product Placements
•Loyalty Marketing
Program
•Online Loyalty Mktg
Program
•Point-of-Purchase
Display Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
1. Coupons
Certificates which entitle customers
to cash discounts on goods or
services
Placed on or in packages,
newspapers/ magazines, mailers
Stores are reimbursed by
manufacturer for coupon
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
2. Premiums
• Low-cost items given to consumers at a
discount or for free
– Increase sales, builds product loyalty
and attracting new customers (persuade
nonusers to switch brands)
– Motivates people to buy a product when
they are offered an “added value” gift in
exchange
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
2. Examples of Premiums
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
2. Types of Popular Premiums
Factory packs, or In-packs – Free gifts
placed in or on product packages or as a
container premium
Traffic builders – Low-cost premiums, such
as pens, key chains, and calendars, which
are given away for free to consumers
visiting a new store or attending a special
event
Coupon plans – Ongoing programs
offering a variety of premiums in exchange
for labels, coupons, or other tokens from
one or more purchases Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
3. Deals
Offer short-term price reductions
that are marked directly on label of
package
• Coupling two products for the price
of one
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
4. Incentives
Higher-priced products earned and
given through contests, sweepstakes,
and rebates
Contest – Skill needed to win
Sweepstakes – game of chance
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
5.Product Samples
• Product Sample – A free trial-size of a
product
• How Distributed?
• Especially important when promoting
a new product
– Examples: Medicine and textbooks
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
6. Sponsorship*
Sponsorship – Promotion of a company in
association with a property
Title Sponsor – Pays to have its name
incorporated into the name of the property
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
8. Product Placement
• Displaying or using products in TV shows
and movies
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
9. Loyalty Marketing Programs
• Also called Frequent
Buying Program
• Rewards customers
for multiple purchases
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
10. Online Loyalty Mktg Program
• Certain web sites provide points for
visiting certain sites or making online
purchases.
• E-bates
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
10. Online Loyalty Mktg Program
• Top 10 retail websites :
1. Amazon.com
2.
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
11. Point of Purchase Displays
• Displays of products usually placed in
high traffic areas.
Consumer Promotions
The Promotion Mix
Push-Pull Policy
Trade Promotions
Consumer Promotions
Public Relations &
Publicity
Review Sheet Answers
1. B2B – Slotting Allowance
2. B2B – Promotional Allowance
3. B2C – Coupon
4. B2C – Deal
5. B2B – Cooperative Ad
6. B2C – Traffic Builder
7. B2C – Contest
8. B2C – Sponsorship
9. B2C – Promotional Tie-in
10. B2B – Trade Show
11. B2C – Product Placement
12. B2B – Sales Force Promotion
13. B2C – Sweepstakes
14. B2C – Point-of-purchase Display
15. B2C – Loyalty Mktg Program
16. B2C – Product Samples
17. B2C – Rebate
18. B2C – Online Loyalty Mktg
Program
Consumer Promotions
Trade Promotions