marketing essentials chapter 17

Institutional promotion

1.) Promotions that are used to create a favorable image for business help it advocate for change, or take a stand on trade or community issues. 2.) Institutional promotion cannot directly sell products or services. These activities do foster a favorable image for the company, which in turn may help sale efforts Example(s): Business maintain websites to provide news, product and general information, and to answer questions

Product promotion

1.) Promotions that convince prospects to select its products or services instead of a competitor's brand. Promotional activities explain the major features or benefits of the product or service, identify where it is sold, advertise sales, answer customer questions, and introduce new offerings. 2.) Theses promotions also help companies foster good relations with existing customers, thereby enhancing their loyalty Example(s): Target, Wal-Mart, H&M, Forever 21 advertisements

Trade promotion

1.) Sales promotion activities designed to help support for a product form manufacturers, wholesalers, and retailers. More money is actually spent on promoting to business than to consumers. Major trade promotions include promotional, cooperative advertising, allowances, slotting allowances, sales force promotions, and trade shows and conventions. Good business ethics require that trade promotional payments and awards be offered in a uniform manner, that terms be clearly spelled out, and that no be penalized for not achieving the goals, among other requirements. 2.) Promotional allowances- Cash payments or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales Example(s): Promotional allowances are used to encourage wholesalers or retailers to stock a large quantity of a product. It gives them an incentive to sell, so they can promote the product to customers. 3.) Cooperative advertising- A manufacturer supports the retailer by helping to pay for the cost of advertising its product loyalty 4.) Slotting allowance- A cash premium paid by a manufacturer to a retailer to help the retailer cover the costs of placing the manufacturer's product on the shelves. They can buy space in a store, slot allowances also pay for a retailer's discount specials on a product, charges for store shelves, penalties for poor sales, store advertising , and display costs 5.) Sales force promotion- Awards given to dealers and employees who successfully meet or exceed a sales quota. The quota s applies to a specific period of time, such as a month, one day, or year, or for a particular product or line of products. They vary from business to business but, includes cash bonuses or prizes such as merchandise or travel awards 6.) Trade shows and conventions- A particular line of products. They provide businesses with opportunities to introduce new products, encourage increased sales of existing products, meet customers and partners in the distribution chain, and gain continued company and product support. Example(s): The annual Consumer Electronic shows in Las Vegas

Consumer promotions

1.) Sales strategies that encourage customers and prospects to buy or service. They support advertising, personal selling, and public relations. 2.) Coupons- Certificates that entitle customers to cash discounts on goods or services. Example(s): coupons, premium deals, incentives, product samples, sponsorship, promotional tie-ins, product placement, loyalty marketing programs, and point of purchasing displays

Personal selling

1.) Selling that requires a company to employ sales representatives who generate and maintain direct contact with prospects and customers. It's an expensive form of promotion. Personal selling tales place after promotional activities. Example(s): Personal meetings, telemarketing, e-mail contact, and correspondence

How do the strategies work together?

1.) The strategies in the mix are designed to complement one another .Elements of the promotional mix must be coordinated. Example(s): National advertising should be reinforced by local promotional efforts.

How to determine a promotional budget?

1.) When determining the promotional budget, determine the ideal amount for promotional budget can be difficult .There is no precise way to measure the exact results of spending promotional dollars. Promotional budget is often a percentage of sales. The budget is dictated by revenue and includes operational costs

Promotional mix

1.) A combination of strategies' and a cost-effective allocation of resources Most business use more than one type of promotion to achieve their promotional goals. A business establishes promotional mix by following a series of steps that range from identifying the target market to measuring the results. Example(s): National advertising should be reinforced by local promotional efforts.

Product placement

1.) A consumer promotion that involves using a brand-name product in a movie, T.V. show, sporting event, or a commercial for another product. It helps an organization develop recognition for its product and gain increase exposure. Example(s): The cast from Survivors are given Doritos and mountain dew as a treats.

Advertising

1.) A form of nonpersonal promotion. Companies pay to promote ideas, goods, or services in a variety of media outlets. A company engages in a one-way communication to the prospect or customer. Example(s): Magazines, Newspapers, Television, and web sites

Product samples

1.) A free trial size of a product sent through the mail, distributed door to door, or given away at retail stores and trade shows. They are important in promoting new product Example(s): Detergents, toothpastes, shampoos, deodorants, and colognes that are frequently promoted

Pull policy

1.) A policy that directs promotion towards consumers. It's designed to create consumer interest and demand. Consumer demand can pull or encourage retailers to carry the product being promoted. This strategy relies heavily on advertising geared to consumers, in addition to premiums, samples, and demonstrations.

Push policy

1.) A policy used only with the next partner in the distribution channel. The manufactures pushes the product to the retailer. The main purpose is to convince a retailer to stock the products being promoted.

Public relations

1.) Activities that enable an organization to influence a target audience. They create favorable image for a company, products, or its public. Public relations rely on their strategies and techniques and their goal is to cultivate media relations with reports who cover a specific industry. They also use publicity as a tactic. Example(s): Public relations campaign and publicity

Direct Marketing

1.) Advertising directed to a targeted group of prospects and customers rather than to a mass audience. There are two forms of direct marketing, which are direct mail and electronic direct mail. Advertisements sent directly to a home or business via mail or e-mail. Its goal is to generate sales or leads for sales representatives to pursue. Direct marketing gives recipients an incentive to respond by visiting a store or web site, calling a toll- free number, returning a form, or sending an e-mail. Both print and electronic direct marketing allows a business to engage in one-way communication with its customer about product announcements, special promotions, bulletins, customers inquires, and order confirmations. Example(s): Special offers, coupons, discount, special merchandise via delivery

CAN- SPAM Act

1.) An act passed in 2003 by congress due to consumer complaints about unwanted electronic direct mailing. This act requires senders of unsolicited commercial e-mail to give recipients a way to opt out of e-mails, prohibits the use of deceptive subject lines and headers, and requires businesses to provide valid return addresses on their e-mails. Example(s): Do-not-call phone lists

New release

1.) An announcement that is sent to the appropriate media outlets. They announce newsworthy developments about the company's products or services, distribution channels, facilities and operations, partners, revenues, and earnings, employees, and events. Example(s): Radio news programs, newspapers, and television

Incentives

1.) Business uses these to promote many products because they create customer excitement and increase sales. They are generally higher-priced products earned given away through contests, sweepstakes, and rebates. Rebates are discounts are offered by manufacturers to customers who purchase an item during a given time period. Example(s): Sweepstakes, contest, and rebates

Promotional tie-ins cross promotion

1.) Cross-promotion and cross-selling campaigns that are involved with sales promotional arrangements between one or more retailers or manufacturers that produce mutually benefit results. Partners combine their resources to conduct a promotion that will create additional sale for each partner. The practice is becoming increasingly popular over the internet. Example(s): Traditional marketers offer an incentive for consumers to go online to make a purchase or receive a discount from an online marketer.

Point-of-purchase displays

1.) Displays designed primarily by manufacturers to hold and display their products. They are usually placed in high traffic areas and promote impulse purchases. It displays stimulate sales and serve as in store advertising Example (s):

Loyalty marketing programs

1.) Frequent buyer programs that reward customers for patronizing a company. The programs reward customers with free air travel once they have accumulated a designated amount of travel miles. Customer loyalty is also involved. Loyalty marketing offers consumers incentives to centime to buy. Both small and large businesses have adopted loyalty marketing. Example(s): TGI Friday's gold points card

Sales promotion

1.) Incentives that encourage customers to buy products or services. They can be used to encourage customers to try a new product, build awareness, and increase purchases by current customers, or reward loyalty. They are usually supported by advertising activities. They can also be business to business (B TO B) or business to consumer (B to C) oriented. Example(s): Business to business or Business to consumer

Sponsorship

1.) Its an integral part of promotion. Sponsorship companies pay fees for the right to and promote itself and its products or services at or on a set location The location can be a physical site or a person. They sponsor negotiate the right use a logo and names on retail products. A title sponsor is an organization that pays to have its name incorporated into the name of the sponsored location. It's a high- profile promotional medium. Their deals must withstand public and media security. It's measured based on the amount of people that view it Example(s): Mattel Children's Hospital at the university of California

Premiums

1.) Low cost items given to consumers at a discount or for free that designated to increase sales by building product loyalty, and attracting new customers. They can also persuade nonusers to switch brands. The fundamental concept is that people will be more motivated to buy a product when they are offered an added-value gift in exchange. 2.) Factory packs- In packs that are free gifts placed in product packages, or as a container premium. Its extremely popular with manufacturers 3.) Traffic builders- Low cost premiums, such as pens, mugs, hats, key chains, and pocket calendars that are given to consumers for visiting a new store or for attending a special event. 4.) Coupon plans- Ongoing programs that offer a variety of premiums in exchange for labels or coupons obtained from a product or label Example(s): A customer might send a manufacturer three soup-can labels in exchange for a recipe book

Publicity

1.) One tactic that public relations professionals use. It involves bringing news or newsworthy information about an organization to the public's attention. This process is known as placement 2.) The goal of publicity- To develop a positive perception or awareness of the organization in the marketplace 3.) 2 advantages - The placement of publicity is free and publicity often appears as a media story or is incorporated into a large story or report, which makes information appear more credible 4.) 1 disadvantage- Publicity is not easily controlled by the business that issues it. Example(s): Newspapers, radio news ,and new channel

Online loyalty marketing

1.) Online versions of loyalty marketing program became popular over time. Examples: Yahoo! Awards points to web surfers who buy from certain retailers or visit certain web sites

Promotion

1.) Persuasive communication to inform people about their products and services. Companies use promotional techniques to enhance their public image and reputation and persuade people that their products are available. 2.) Non-profit organizations rely on promotional activities to educate the public an issue or tend to advocate for change in law or policy. The goals are AIDA- Attention, then build Interest and Desire, and ask for Action. Example(s): Advertisements about world hunger, poverty, and etc.

Deals

1.) Price packs that offer short-term price reductions that are marked directly on the label or package. The deal might offer tow products bound together Example(s): Bausch & Lomb's Renu contact lens cleanser multipurpose wetting solution