Marketing Essentials–Chapter 17

Promotion
Any form of communication or activity that helps in the exposure or sale of a product (to inform, persuade, or remind).
promotional mix
The cost-effective combination of the different types of promotion used to reach company goals.
product promotion
A method used by business/organization to convince potential customers to buy their products instead of buying from a competitor.
institutional promotion
A method used by a business/organization to create a favorable image for itself, as opposed to promoting a product or service.
personal selling
A type of promotion that requires sales reps to make individual contact with potential buyers, making it the most expensive form of promotion.
advertising
Any paid form of non-personal promotion of ideas, goods, or services found everywhere (i.e. billboards, business cards, brochures, internet, magazines, newspapers, radio, tv, etc.).
sales promotion
Promotions that represent all marketing activities–other than personal selling, advertising, direct marketing and public relations–that are used to stimulate consumer purchasing and boost sales.
public relations
Activities designed to influence a target audience; these campaigns try to influence general opinion and create a favorable public image.
publicity
A public relation’s activity that involves bringing news or newsworthy information about an organization to the public’s attention.
push policy
This strategy is used to promote a product using a mix of personal selling, advertising, and buying discounts to encourage partners in the distribution channel to stock the product(s) being promoted.
pull policy
This strategy directs promotional activities towards customers to entice the customer to the store (or Web site).
sales promotions
Incentives offered that encourage customers to buy products (sometimes they are short-term offers).
trade promotions
Promotional ctivities designed to gain manufacturers’, wholesalers’, and retailers’ support for a product.
slotting allowance
Cash premium paid by the manufacturer to a retail chain for the costs involved in placing a new product on its shelves.
trade shows
Shows and conventions that are designed to showcase a particular line of products and to specifically reach customers in the chain of distribution.
sales force promations
Awards given to managers and employees who successfully meet or exceed a sales quota.
consumer sales promotions
Sales strategies designed to encourage customers to buy a product.
premiums
Low-cost items given to consumers at a discount or for free.
sponsorship
Involves the promotion of a company in association with a property
incentives
Higher-priced products earned and given through contests, sweepstakes, and rebates.
product samples
Free trial size of a product sent through the mail, distributed door-to-door, or given away at retail stores and trade shows.
promotional tie-ins
Involve sales promotional arrangements between one or more retailers or manufacturers and combine their resources to do a promotion that creates additional sales for each partner.
product placement
Where organizations can develop product recognition by making sure that it is featured in special events, on television, or in the movies.
customer advisory boards
panels of consumers who make suggestions about products and businesses
new release
Prewritten story about a company that is sent to the various media.
direct marketing
A type of promotion that companies use to address individuals directly through direct mail, e-marketing, or telephone.