S

BMF 12.1

Chapter 12: Promotion

Chapter 12.1: Role of Promotion

Objectives

  • Define promotion as one of the four P’s of marketing.

  • Explain the promotional mix.

  • Define the concept of integrated marketing communications.

Key Terms

  • Promotion: The act of creating awareness for products or services.

  • Product Promotion: Focus on specific products.

  • Institutional Promotion: Focus on promoting the company as a whole.

  • Persuasion: Influence behavior through message delivery.

  • Communication Process: Sender, encoding, channel, receiver, decoding, feedback.

  • Promotional Mix: Combination of promotional tools used.

  • Advertising: Paid non-personal communication.

  • Visual Merchandising: Store displays designed to attract customers.

  • Storefront: The external image of the business.

  • Marquee: Overhanging structure with a sign at the store entrance.

  • Public Relations (PR): Communication to foster goodwill between a business and the public.

  • Press Release: Official company communication to the media.

  • Integrated Marketing Communications (IMC): Coordination of all promotional efforts.

Key Terms Continued

  • Promotional Campaign: A planned series of promotional activities.

  • Electronic Promotion: Use of digital platforms for promotion.

  • Participatory Marketing: Engaging customers in the marketing process.

  • AIDA: Model for understanding customer engagement - Attention, Interest, Desire, Action.

Essential Question

  • What role do promotion strategies play in marketing?

Promotion Strategies

  • Promotion: Communicating with potential customers to influence buying behavior.

  • Product Promotion: Specific focus on individual products.

  • Institutional Promotion: Focused on the reputation of the company overall.

  • Purpose of Promotion: To inform, persuade, and remind the audience.

  • Guerilla Marketing: Unconventional, surprise-based advertising tactics designed to create buzz.

Types of Messages

  • Informative Messages: Provide education and information to consumers.

  • Persuasive Messages: Aim to change beliefs or provoke action through logic.

  • Reminding Messages: Reinforce familiarity over time to encourage purchase decisions.

Communication Process

  • A series of actions involved in message transmission from sender to receiver.

Six Elements of the Communication Process

  1. Sender: Originator of the message.

  2. Message: Encoded information to be communicated.

  3. Channel: Medium through which the message is conveyed.

  4. Receiver: Individual who receives the message.

  5. Decoding: Translation of the received message.

  6. Feedback: Response of the receiver back to the sender.

Promotional Mix

  • Promotional Mix: A combination of various elements used in a promotional campaign.

    • Public Relations: Building a positive company image.

    • Advertising: Paid, non-personal communication aimed at a target market.

    • Personal Selling: Direct interaction with customers.

    • Sales Promotions: Short-term incentives to encourage sales.

Details of Promotional Mix Elements

  • Advertising:

    • Types: Print media (newspapers, magazines), Broadcast media (radio, TV), Social media.

  • Sales Promotions: Encourage immediate purchase through incentives.

  • Visual Merchandising: Creating effective displays (Point-of-Purchase displays).

    • Storefront: Represents business image; Marquee: Sign structure at the entrance.

  • Public Relations (PR):

    • Activities to foster goodwill; includes press releases, speeches, public communications.

    • Proactive PR: Building a favorable public image.

    • Reactive PR: Addressing negative perceptions.

  • Personal Selling: Direct salesperson interaction; includes demonstrations and impromptu speaking.

Integrated Marketing Communications (IMC)

  • IMC Definition: Strategy that unifies various promotional efforts for a cohesive marketing message.

  • Promotional Campaign: Coordinated marketing actions aimed at achieving a specific goal.

    • Electronic Promotion: Utilizes digital technology for outreach.

    • Participatory Marketing: Engages customers actively in the marketing process.

AIDA Model in Marketing

  • Attention: Capture customer interest.

  • Interest: Engage the customer further.

  • Desire: Create a wish for the product.

  • Action: Encourage the final sale.