Marketing 1-Promotions

Define Promotion
any communication an organization uses to inform, persuade, and remind you about its products/services. Also used to improve the public image of an organization.
Two types of promotions
product promotion and institutional promotion
Define product promotion
convince the market to buy a product/service.
Define institutional promotion
create a favorable image for the company
5 types of promotion in the promotional mix
advertising, sales promotion, personal selling, direct marketing, and public realtions
define advertising
1 way communication: magazine, TV, radio, website, social media
define sales promotion
sales incentives that encourage customers to buy
define personal selling
make sale after customer is attracted by ads, sales promo, or pr, the seven steps
direct marketing
usually to a targeted group. two types: printed and online
public realtions
strategies to enhance company’s reputation/image.
What is the end result of PR
which of the five types of promotion need 2-way communication
personal selling
What are the two types of direct marketing
online and printed
Publicity vs. Advertising
Can’t control publicity, can control advertising. Have to pay for ads, publicity is free
Benefits of publicity
free, “news” is objective, people pay more attention to news than ads.
Downside of publicity
can’t control what is said, it could be negative
Two general types of sales promotion
Trade and Consumer
Pepsi pays $10,000 to 7-eleven to place their new product “Pepsi Jazz” in the refrigerator section closest to the register
B2B, Slotting Allowance
Mattel (the makers of Barbie) offers Toys R Us a 10% discount on all merchandise purchased if they prominently display Barbie products throughout the store.
B2B, Promotional Allowance
A 20% off shopping pass for Macys – found in the Bergen Record
B2C, Coupon
A 15 oz. bottle of Suave shampoo that is packaged together with a 4 oz tube of Suave gel.
B2C, Deal
Bertolli Olive Oil gives Shoprite $100,000 to include their new “double pressed” extra virgin olive oil product in Shoprite’s television ads
B2B, Cooperative Ad
A Gap insulated lunch bag that all customers receive for shopping in their new Ramsey Mega-store.
B2C, Premium- Traffic Builder
The lucky winner of the “American Idol Songwriting Competition” will have their song performed LIVE during the American Idol Finale!!
B2C, Incentive-Contest
Because of this type of promotion, Allendale’s little league players have “Village Pizza” on the back of their t-shirts
B2C, Sponsorship
When Hershey’s displayed E.T. on many of their candy bars packages they were supporting THIS type of promotion
B2C, Promotional Tie-in
The Gift Show in NYC at the Jacobs Javitz Center
B2B, Trade show
When the entire cast of Survivor sported Nike baseball caps
B2C, product placement
“The employee who sells the most cars at the end of the month wins an expense paid trip to Hawaii!!”
B2B, Sales force promotion
McDonald’s places game pieces on the wrapper of their new Angus Beef Sandwich. One particular game piece entitles you to a trip to Australia.
B2C, Sweepstakes
On impulse, while your checking out of Target, you see a whole display of Fritos and buy them
B2C, Point of purchase display
The special savings one receives when the cashier swipes their “Stop and Shop” card is an example of this promotion
B2C, Loyalty marketing program
The Rocky Mountain Chocolate Factory Store gives waiting customers a piece of chocolate to taste while they are waiting
B2C, Product samples
Staple’s agrees to mail customers a $20 check if they buy a printer and mail in their receipt, complete a form and show proof of purchase
B2C, Incentive-Rebate
If you shop at you could also receive Marriott points…save enough and you may be eligible for a free night!!
B2C, Online loyalty marketing program
3 types of premiums
factory packs (toy in a cereal box)
traffic builders (free pen)
coupon plan (lush 5 mask container)
Promotional Allowanced
cash payments or discounts given to manufacturers to wholesalers and retailers to encourage sales. Therefor, they are more likely to promote to product to customers.
Cooperative Advertising
Manufacturers helps retailers pay cost of advertising a product.
Slotting Allowances
Cash premium payed by the manufacturer to retailer to place their product on store shelf.
Sales Force Promotion
Awards given to dealers/employees who meet or exceed a sales quota. Certain time period or a particular product/product line. Cash, prizes, or travel rewards
Trade shows and conventions
showcases particular products. To introduce new products or encourage sales of existing products, meet partners in chain (networking), gain continued company and product support
physical or online coupons, must be showed to cashier usually
low cost items given to customer at discount or free. Increase sales, build product loyalty. Three types: factory packs, traffic builders, coupon plans
short term sale marked directly on packaging. also, two products for the price of 1
contest, sweepstakes, rebates
product samples
free trial-size
title sponsorship= pay to have name, “metlife” arena
Promotional Tie-ins
sales promo deals between retailer and manufacturer.
Product placements
tv, movie
Loyalty mktg program
frequent buyer program, reward for multiple purchases
online loyalty mktg program
self explanatory
Point of purchase display
display of products, usually in high-traffic areas

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