MARKETING 4.01Acquire a foundational

knowledge of promotion to understand its nature and

scope.

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Discussion???•What is the most memorable advertisement you’ve seen recently?

•Discuss with table mates; be ready to discuss with class.

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What is this commercial promoting???

3http://www.youtube.com/watch?v=mI0ff3iO3n0

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The Role of Promotion• Promotion- any form of communication a

business or organization uses to inform, persuade, or remind people about its products and improve its public image.

• Product promotion - used to convince potential customers to buy products from it instead of from a competitor.– Explains major _________ and benefits of its

products– Tells where those products are sold– Advertises sales on those products– Answers customer questions– Introduces new productsExample?

The Role of Promotion• In which stage of a product’s life

cycle do promotional activities focus on differences between competing products?

– Growth

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The Role of Promotion• What is an example of an external

factor that affects promotion?– Government regulation of ads

•Zoning laws determine billboard locations•Can’t lie about product – fraud•Restrict advertising to children

– Children are impressionable, and the wrong kinds of advertising can affect their development

•Stereotype - A generalization, usually exaggerated or oversimplified and often offensive, that is used to describe or distinguish a group. Example? 6

The Role of Promotion•Materialism is interest in and desire for money, possessions, etc, rather than spiritual or ethical values – Example?

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The Role of Promotion• Institutional Promotion- used to create a

favorable image for the business. Does not directly sell a certain product. However, may ultimately result in increased sales of a company’s products.

• An objective of institutional promotion is to demonstrate the organization’s role in community affairs.

ACTIVITY 1•Get with your 7 o’clock appointment

•Fill in the blanks for 6-11 - 4 types of promotion.

•You have 10 minutes!9

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Four Types of Promotion1. Advertising - any

paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Example?

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Four Types of Promotion

2. Publicity - placing newsworthy information about a company, product, or person in the media. Form of Public Relations

– Can be used to promote particular events and promote particular products.

– The main purpose of publicity is to build an image. Image - the way a business or organization is defined in people’s minds. Example?

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Four Types of Promotion3. Sales Promotion - All marketing activities, other than personal selling, advertising, and publicity, that are used to stimulate consumer purchasing and sales effectiveness. •Objectives of Sales Promotion

– Increase sales– Inform customers about new products– Create a positive store or corporate image

•3 Characteristics of Sales Promotion– Short term activities– Offers some type of incentive– Can be successfully used in all channels of distribution

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Four Types of Promotion4. Personal Selling - making an oral sales presentation to one or more potential buyers. On a per contact basis, personal selling is the most expensive form of promotion.

– Order-taking personnel– Order-getting personnel – Personal selling is generally

emphasized for complex, technical products sold to industrial users.

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Four Types of Promotion• Promotional Mix - a combination

of different types of promotion. A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the business’s products.– Competition- Competing businesses

within the same industry usually react to each other’s promotional mixes by playing follow the leader.

ACTIVITY 2•Get with your 11 o’clock •Complete 4.01 promotional

mix match up•You have 5-10 minutes!

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Public Relations• Any activity designed to

create goodwill toward a business.

• Benefits of PR– Increasing sales– Increasing firm’s good reputation– Increasing customers reception of

advertising messages– Spreading accurate information to the

public– Conditioning customers to expect quality

products from the company– Reducing the impact of problems– Helping to obtain better treatment from

government

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Public Relations • News Release - a pre-written story about the

company that is sent to various media for publication. – Hard News - information that should be

announced right away because the public will want to know about it immediately

– Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now

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Public Relations Press Kit - a folder containing articles, news releases, feature stories, and photographs about a company, product, or person.

Press Conference - a meeting in which media members are invited by

the business or organization to hear an announcement about a

newsworthy event.

Technology in Promotion• New technology enables businesses

to create individualized messages that impact their promotional mix.

• Information can be communicated by more venues and messages can be customized.– Example?

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International promotional activities

• A business must understand that the laws governing promotional activities vary by country.

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ACTIVITY 3 Get into groups of 4

• Pick a company of your choice and a country you want to promote them in that is not English speaking. Develop a mini international promotional mix plan for the business.

Include the following:• What are 3 promotional laws that your int’l country

has? How does your promotion fit within those laws?• Describe at least one way you will use each of the

following promotion types. • Come up with a sample international advertisement

that will appeal to your target audience.• Put all your findings in powerpoint form and print out

as handouts – 6 to a paper. 21