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