Marketing: Unit 6- Promotion Concepts and Strategies

Product Promotion
Promotional method used by businesses to convince prospects to select their goods or services instead of a competitors brand
Institutional promotion
Create a favorable image for business, help it advocate for change, or take a stand on trade or community issues
Promotional mix
Product & institutional promotion
Describe the 5 types of promotion
1. Personal selling: expensive; direct contact between sales person and customer
2. Advertising: no personal promotion; pay to promote products in media outlets
3. Direct marketing: Mail, telemarketing, social media, e-marketing; message targeted to particular group
4. Sales promotion: coupons, displays, money-off promotion, product samples
5. Public relations: new releases, social media, publicity, activities that help influence a target audience
Push policy
Used by manufacturer to convince retailer to stock products being promoted, pushing product to retailer. Relies heavily on personal selling and promotion at trade shows
Manufacturer>retailer>consumer
Pull policy
Create consumer interest in a product and therefore, encourage stores to stock the pulling consumers to the product. The strategy used a lot of advertising and sales promotion
Consumer>retailer>manufacturer
Trade promotions
Push strategy! Sales promotions designed to get support for a product from manufacturers, wholesalers, and retailers
5 examples of trade promotions
1. Promotional allowances
2. Cooperative advertising
3. Slotting allowances
4. Sales force promotions
5. Trade shows & conventions
Consumer promotions
Pull strategy! Sales strategies that encourage customers &a prospects to buy a product or service
Coupons
A certificate that entitles a customer to a cash discount on goods or services
Premiums
Low cost item given to consumers at a discount or for free ex. Happy meal toy
Price packs
Sales promotions that provide consumers with a reduced price
Incentives
A higher priced product, award, or gift card given through contests, sweepstakes or special offers
Product samples
Ex: Charley’s sandwich samples
Promotional tie-ins
Activity that involves sales promotions between one or more retailers or manufacturers, also called cross promotion/ cross selling
Product placement
iPhone in a movie, ford car in a chase scene
Loyalty marketing programs
Rewards customers by offering incentives for repeat purchases, such as frequent flyer
Point of purchase kiosks
Stand alone structure
Difference between premium and incentive
Premiums are low cost and incentives are high cost
Give examples of promotions used in trade (business to business)
Get support for a product from manufacturers, wholesalers and retailers
Give examples of promotions used in the consumer market (family retail)
Sales strategies that encourage consumers and prospects to buy a product or service
why does visual merchandising include much more than just the display of products
It’s the whole package of sounds, smells, flooring, and lighting. The PHYSICAL elements that will grab customer attention
What are the artistic elements of display?
1. Color
2. Line
3. Shape
4. Direction
5. Texture
6. Proportion
7. Balance
8. Motion
9. Lighting
What shape is recommended for creating a focal point and good eye movement
Triangle
Steps to create a display
1. Select merchandise for display
2. Select the type of display
3. Choose a setting
4. Manipulate the artistic elements
5. Evaluate the completed display
Customer space
Restrooms, dressing rooms, sitting areas
Employee space
Break rooms
Fixtures
Permanent or moveable store furnishings that hold and display merchandise
Selling space
Merchandise for sale
Storage space
Extra stock
How can a company use a push policy to promote the sale of its products?
Use personal selling and promotion at trade shows