6.01Understand Promotions and the Promotional mix

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6.01 Understand Promotions and the Promotional
mix
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Promotion is

• Any form of communication a business uses to
  inform, remind, or persuade customers to purchase
  products and improve its public image
• For example How do you learn about new products
  in the marketplace? i.e. Harris Teeter places
  circular advertisements in the newspaper to
  inform customers of its weekly specials.

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Institutional vs. Product Promotion

• Institutional promotion
• Used in an effort to create a positive image,
  build goodwill, and increase customer loyalty for
  the business.
• For example, a local hardware store sponsors a
  neighborhood little league team.

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Institutional vs. Product Promotion

• Product Promotion
• Used to increase sales of a business and its
  products. Product promotion is heavily used for
  new products.
• For example, Coca-Cola runs a series of
  television commercials to promote its newest cola
  beverage.

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Elements of the Promotional Mix

• Personal selling -
• Planned, personalized communication designed to
  satisfy a customers needs and wants.
• For example, a car salesperson listens to a
  customers requirements and then suggests a
  vehicle with the features and benefits to satisfy
  his/her wants and needs.

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Elements of the Promotional Mix

• Advertising Any non-personal form of
  communication designed to inform, persuade, or
  remind customers about a good or service.
  Advertisements are paid for by an identified
  sponsor.
• For example, TV, radio, and magazine ads.

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Elements of the Promotional Mix

• Sales promotions Communications or activities
  used to stimulate sales, create awareness of a
  new product, or to create goodwill for the
  business.
• For example, a Chinese restaurant offers free
  samples in the mall food court hoping customers
  will like the sample and purchase a full meal.

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Whats in the promotional mix?

• Public relations
• Activities used to build and maintain a
  positive image about a company and its products.
• For example, Panera Bread Company donates its
  leftover bread to homeless shelters and charities
  in need