CHAPTER 17: PROMOTION

Integrated Marketing Communications (IMC)

The role of promotion

Misconceptions

Promotional activities are unnecessary & cause higher prices

Promotional activities make up the entire field of marketing

Facilitate directly/ indirectly by informing customers & influencing them to accept a firm's products

To maintain positive relationships between a company & various groups in the marketing environment

The promotion mix: an overview

Advertising (paid non-personal message communicated through mass medium)

Personal selling (personal communication aimed at informing and persuading customers)

Sales promotion (use of activities as direct inducement)

Public relations (communication activities used to create and maintain relationships)

Ojectives

Methods

Boost sales

Reinforce advertising

Encourage trial of new product

Increases traffic in retail stores

Attract new customers

Build up reseller inventories

Sample = free product given to encourage trial & purchase

Premium = gift in return for buying product

Coupon = reduces the retail price

Frequent-user incentives = program that rewards frequent purchases

Rebate = return of part of the purchase price (coupon) - low cost promotion method - launch new products

Point-of-purchase displays = promotional material designed to inform and encourage purchases

Trade shows = industry wide exhibits where many sellers display their products

Buying allowance = a temporary price reduction for purchasing specified quantities of the product

Cooperative advertising =manufacture pays a certain amount of the retailer's media cost for advertising the manufactures product

Types of tools

Event sponsorship

Publicity

Written & spoken communications

Feature article

Captioned photograph

News release

Press conference

Types

Institutional advertising = enhance a firms image & builds its reputation

Primary - demand advertising
= increase demand for all brands of a products

Selective - demand advertising

Advertising media

Newspapers

Magazines

Direct mail

Yellow pages

Television

Radio

Internet

Social media