Promotional Process in Marketing

Promotion
any communication method used by companies to inform, persuade or remind customers of their products
Promotional mix
combination of any one or more types of promotion including: sales promotion, public relations, advertising and personal selling
Source
message sender; person who encodes the message
Receiver
message destination; person who decodes the message
Noise
any type of distraction reducing communication process effectiveness
Feedback
receiver’s response to the message
Encoding
source decides what it wants to say and translate the message so it will have the same meaning to the receiver
message channels
“carrier” of the message
decoding
translation of the message by the receiver in the communication process
push-pull concept
marketers rely on different promotional mixes to pull in consumers; consumer demand pulls product through the channels
trade-oriented sales promotion
activities geared toward gaining product support from manufacturers, wholesalers and retailers
Slotting Allowances
cash premium paid by manufactures to retailers for the costs of putting a new product on the shelves
Buying Allowances
price discounts given by the manufacturer to wholesalers and retailers to stimulate the purchase of a product
Sales Incentives
awards given to managers and employees who successfully meet or exceed a sales quota; sales contests
Premium
low costs items given to consumers at a discount or for free
Coupons
certificate allowing customers to receive cash discounts
Coupon Plans
continuous programs offering different premiums to customers by exchanging coupons, labels, tokens, etc.
Traffic Builders
low-cost premiums given to customers for attending special events
Factory Packs
free gifts placed inside product packages
Incentives
using contests, sweepstakes and rebates as vehicle for customers to win higher-priced products
Contests
type of incentives which require participants to demonstrate a skill
Sweepstakes
type of incentives which are games of chance
Rebates
cash discounts for customers who purchase a product
Product samples
free trial-size examples of a product distributed through the mail, at retail stores and door to door
Promotional Tie-ins
promotional arrangements made between one or more retailers or manufacturers
Product placement
placing products in highly viewed events
Visual merchandising
integrating physical elements in order to project an image to the customer
Product Placement
placing products in highly viewed events
Visual Merchandising
intergrating physical elements in order to project an image to the customer
Public Relations
often used by businesses to help portray positive company images by participating in public relation events
Customer Advisory Boards
panels of consumers who provide comments about products and businesses; help businesses to understand consumer preferences and trends
Consumer affairs specialists
people hired by businesses to handle customer complaints and act as consumer advocates
Employee relations
programs designed to motivate employees and foster good attitudes
Public