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Need screen-cap when cover is approved Types of Promotion LAP 4 Need screen-cap when cover is approved Types of Promotion LAP 4

Objectives Describe the types of promotion. Discuss advantages and disadvantages of promotional activities. Objectives Describe the types of promotion. Discuss advantages and disadvantages of promotional activities.

Describe the types of promotion. Describe the types of promotion.

Allie’s Day Bombarded by promotional messages Promotion § Communicates information § Builds awareness § Allie’s Day Bombarded by promotional messages Promotion § Communicates information § Builds awareness § Increases demand § Differentiates from the competition § Highlights value § Changes/Reinforces attitudes uy! Buy! B B

Promotion: Communicates Information ü Goods ü Services ü Images ü Ideas Promotion: Communicates Information ü Goods ü Services ü Images ü Ideas

Promotional Objectives § Build awareness § Increase demand § Differentiate a product from its Promotional Objectives § Build awareness § Increase demand § Differentiate a product from its competitors § Highlight a product’s value § Change or reinforce customer attitudes

Who Says… “There’s an app for that” “Imagination at work” “A diamond is forever” Who Says… “There’s an app for that” “Imagination at work” “A diamond is forever” “Just do it” “I’m lovin’ it” “Where dreams come true” “Expect more. Pay less. ”

Who Says… § “There’s an app for that” Apple § “Imagination at work” General Who Says… § “There’s an app for that” Apple § “Imagination at work” General Electric (GE) § “A diamond is forever” De Beers § “Just do it” Nike § “I’m lovin’ it” Mc. Donald’s § “Where dreams come true” Disney Resorts and Parks § “Expect more. Pay less. ” Target

Promotional Messages • Serve many purposes • Come in many shapes and forms • Promotional Messages • Serve many purposes • Come in many shapes and forms • Can be delivered in a variety of ways

Reasons for Using Promotional Messages § Encourage customers to buy its products § Encourage Reasons for Using Promotional Messages § Encourage customers to buy its products § Encourage customers to think positively of business

Types of Promotional Messages § Product promotion § Institutional (or corporate) promotion Types of Promotional Messages § Product promotion § Institutional (or corporate) promotion

Product Promotion Goal = to persuade customers to buy a particular good or service Product Promotion Goal = to persuade customers to buy a particular good or service Advertisements Coupons Examples: Personal selling TV interviews

What Product Promotion Can Do Stimulate customer purchases ü Creates awareness of a good What Product Promotion Can Do Stimulate customer purchases ü Creates awareness of a good or service ü Informs customers about product features ü Encourages interest in and inquiries about a good or service

What Product Promotion Can Do Stimulate customer purchases ü Informs customers where a product What Product Promotion Can Do Stimulate customer purchases ü Informs customers where a product can be purchased ü Builds a reputation for a product ü Creates excitement and motivates retailers and salespeople

Primary Product Promotion • Aims to stimulate demand, or desire, for an entire class Primary Product Promotion • Aims to stimulate demand, or desire, for an entire class of goods or services • Emphasis is on the product and its uses, rather than on a particular brand. • Competition is between the two different industries. • Especially useful and necessary for introducing a new concept or a totally new product

Secondary Product Promotion • Also called selective product promotion • Used to stimulate demand Secondary Product Promotion • Also called selective product promotion • Used to stimulate demand for a specific brand of a product • Used to compete against other makers of the same type of product

Institutional Promotion • Also called corporate promotion • Goal = to create a certain Institutional Promotion • Also called corporate promotion • Goal = to create a certain image of the company in the eyes of the customer • Does not attempt to sell a good or service

Institutional Promotion • Can be used to: • Change a particular attitude toward a Institutional Promotion • Can be used to: • Change a particular attitude toward a firm or its products • Inform customers of the company’s interest in social or environmental issues • Inform the public about the company’s future • Inform customers of the company’s name and type of business

Institutional Promotion • Can be used to: • Show the company’s commitment to quality, Institutional Promotion • Can be used to: • Show the company’s commitment to quality, technology, or research • Enhance company morale and recruit new employees • Build or reinforce a favorable company image

Public-service promotions Inform customers about noncontroversial issues that are in the public’s best interest Public-service promotions Inform customers about noncontroversial issues that are in the public’s best interest Public-relations promotions Deal with issues that are in the public’s interest but are also related to the company or its products

Patronage promotions Designed to promote a firm’s prestige or its features imagination at work Patronage promotions Designed to promote a firm’s prestige or its features imagination at work

Discuss advantages and disadvantages of promotional activities. Discuss advantages and disadvantages of promotional activities.

Advantages of Promotion ü Contributes to economic growth and business activity ü Encourages customers Advantages of Promotion ü Contributes to economic growth and business activity ü Encourages customers to purchase and use new and improved products ü Creates jobs ü Supports the mass communication media ü Creates awareness of companies and their products ü Helps develop or enhance companies’ images ü Encourages a higher standard of living

Disadvantages of Promotion ü Some are deceptive. ü Some are manipulative. ü Some are Disadvantages of Promotion ü Some are deceptive. ü Some are manipulative. ü Some are offensive. ü Some may create/ reinforce stereotypes. ü Some play on people’s fears. “Autos manufactured today are virtually emission-free. And that’s a dramatic improvement over models from just thirty years ago…”

Disadvantages of Promotion ü Promotion has limited abilities. • • • Cannot make up Disadvantages of Promotion ü Promotion has limited abilities. • • • Cannot make up for the poor quality of a good/service Cannot immediately achieve major success Cannot substitute for well-trained salespeople

• Be aware of the promotional messages you receive. • Write them all • Be aware of the promotional messages you receive. • Write them all down for one day. • Identify as: • Product promotion or institutional promotion • Primary product promotion or secondary product promotion • How did each message affect you?

§ Promotions for alcohol companies • • • Controversial May influence children Portray drinking § Promotions for alcohol companies • • • Controversial May influence children Portray drinking as “cool” § Alcohol companies say: • • • There are legal ages for purchasing alcohol. There are warnings on product packaging. They offer resources to help parents talk to children. § What do you think?

MBAResearch Acknowledgments Original Developers Lelia Ventling, Sarah Bartlett Borich, MBAResearch Version 2. 0 Copyright MBAResearch Acknowledgments Original Developers Lelia Ventling, Sarah Bartlett Borich, MBAResearch Version 2. 0 Copyright © 2010 MBA Research and Curriculum Center®

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