Marketing Mix - 4. Promotion

(Part I)

WHAT IS PROMOTION?

  • Creates______COMMUNICATION a business has with its customers
  • Used to communicate messages about a business’sPRODUCTorIMAGE

TWO MAIN TYPES OF PROMOTION:

  1. Promotion
  • Communicate Business MERCHANDISE
  • Introduces ______products/services
  • ADVERTISES______
  • Explains major FEATURES and BENEFITS
  • IDENTIFIES where it is ______
  • ANWERS customer questions
  • Fosters positive RELATIONS toenhance customer ______
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  1. Promotion
Enhance businessIMAGE
Builds GOODWILL to enhance company’s reputation and foster favorableIMAGE of company
Does ______DIRECTLY sell product
Helps ADVOCATE for ______or take a stand on trade or COMMUNITY issues
Provides POSITIVEinformation on:
  • Community projects
  • Public Health
  • ______
  • Environment

THREE (3) GOALS OF PROMOTION:

  1. ______–attempts to NOTIFYpotential and currentCUSTOMERSof a ______product or service or of an to an EXISTINGproduct/service
  • Often used in the ______ of the product life cycle

Ex: BAND-AID Company showing that their improved band aids are now waterproof

  1. ______– attempts to ENCOURAGE acustomer to take a SPECIFIC______, such as purchasing the product/service. (ex: encouragement to buy healthier bread products)
  • Often used in the ______ of the product life cycle. The marketer emphasizes the product’s advantagesovercompetitors’ products
  • Often use ______, REBATES, or FREE SAMPLES to provide additionalincentives to BUY, or they might emphasize the product’s ______ over competitor’s products or service

Ex: Car dealerships giving away movie tickets, just to come in and test drive a vehicle

  1. ______– attempts to RETELL customers about ______product/serviceon the market. Marketers remind consumers how good their products are
  • Often used in the ______of the product life cycle

Ex: Kellogg’s campaign – “tastethem again, for the first time” was an attempt to remind adults of the good taste of their childhood cereals

PROMOTIONAL MIX

Promotional Mix is ______of types of PROMOTION a business uses

  • Business selects ______ or MOREof PROMOactivities to help achievegoal of promotion
  • ______from promotion to promotion
  • Mostsuccessful include ______activities in promotional mix

PROMOTIONAL BUDGET

NECESSARY business ______- should be budgeted right along with other business expenses

  • Normally determined using a PERCENTAGE of the business’s ______SALES
  • Percentage is often based on the budget from the PREVIOUS YEAR’S net salesOR on competitive ratios in the category
  • Businesses often INCREASEtheir promotional budgets as SALES go ______
  • Important to remember to INVESTin promotionduring______sales PERIODS as well

ADVERTISING LAWS

Enacted and enforced by FEDERALgovernment’s Federal ______Commission (FTC)

  • ______CONSUMERSfrom advertising that is deceptive or false
  • False advertising happens when a business KNOWINGLYmakesclaims about a product that are NOT supported by FACT
  • Legalauthority to issue a cease and desist order
  • CEASE AND DESIST ORDER
  • Legally______business to discontinueadvertising that makes UNTRUE claims
  • ______
  • Illegal practice of advertising a product at a ______and then STOCKING little to none of that product, with the INTENTION of selling customers a more EXPENSIVE item