Additional questions• What is the marketing function that provides

information to consumers that will assist them in making a decision to purchase a good or service?– Promotion

• Which is a factor that happens during pre-sales activities:– Review ethical and legal issues

• Should additional salespeople be hired for the Christmas season is a question pertaining to which marketing mix element?– Promotion

• Mis-interpretation by a salesperson is a problem encountered with the use of:– Selling policies

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MARKETING 4.01

Acquire a foundational knowledge of promotion to understand its nature and

scope.

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Discussion???•What is the most memorable promotion/ advertisement you’ve seen recently?

•Discuss with table mates; be ready to discuss with class.

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• What is this commercial informing, how is it persuading and what is it reminding you of….http://www.youtube.com/watch?v=6aKYZFcmAmU

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The Role of Promotion• Promotion- any form of communication a

business or organization uses to inform, persuade, or remind people about its products and improve its public image. Marketing and Promotion are interrelated

• Product promotion - used to convince potential customers to buy products from it instead of from a competitor.– Explains major _________ and benefits of its

products– Tells where those products are sold– Advertises sales on those products– Answers customer questions– Introduces new productsExample?

The Role of Promotion

• In which stage of a product’s life cycle do promotional activities focus on differences between competing products?

– Growth

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The Role of Promotion• What is an example of an external

factor that affects promotion?– Government regulation of ads

• Zoning laws determine billboard locations

• Can’t lie about product – fraud• Restrict advertising to children

– Children are impressionable, and the wrong kinds of advertising can affect their development

• Stereotype - A generalization, usually exaggerated or oversimplified and often offensive, that is used to describe or distinguish a group. Example?

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The Role of Promotion

•Materialism is interest in and desire for money, possessions, etc, rather than spiritual or ethical values – Example?

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The Role of Promotion• Institutional Promotion- used to create a

favorable image for the business. Does not directly sell a certain product. However, may ultimately result in increased sales of a company’s products.

• An objective of institutional promotion is to demonstrate the organization’s role in community affairs.

ACTIVITY 1•READ over the blocks on the back of your paper.

•Get with a person with a different color paper then you.

•Listen to instructions – not just COPYING, TEACHING!

•You have about 10 -15 minutes

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Four Types of Promotion1. Advertising - any

paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Example?

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Four Types of Promotion3. Sales Promotion - All marketing activities, other than personal selling, advertising, and publicity, that are used to stimulate consumer purchasing and sales effectiveness. •Objectives of Sales Promotion

– Increase sales– Inform customers about new products– Create a positive store or corporate image

•3 Characteristics of Sales Promotion– Short term activities– Offers some type of incentive– Can be successfully used in all channels of

distribution

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Four Types of Promotion

4. Personal Selling - making an oral sales presentation to one or more potential buyers. On a per contact basis, personal selling is the most expensive form of promotion.

– Order-taking personnel– Order-getting personnel – Personal selling is generally

emphasized for complex, technical products sold to industrial users.

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Public Relations• Any activity designed to

create goodwill toward a business.

• Benefits of PR– Increasing sales– Increasing firm’s good reputation– Increasing customers reception of

advertising messages– Spreading accurate information to the

public– Conditioning customers to expect quality

products from the company– Reducing the impact of problems– Helping to obtain better treatment from

government

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Four Types of Promotion

2. Publicity - placing newsworthy information about a company, product, or person in the media. Form of Public Relations

– Can be used to promote particular events and promote particular products.

– The main purpose of publicity is to build an image. Image - the way a business or organization is defined in people’s minds. Example?

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PUBLICITY

• News Release - a pre-written story about the company that is sent to various media for publication.

– Hard News - information that should be announced right away because the public will want to know about it immediately

– Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now

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PUBLICITYPress Kit - a folder containing articles, news releases, feature stories, and photographs about a company, product, or person.

Press Conference - a meeting in which media members are invited by

the business or organization to hear an announcement about a

newsworthy event.

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Four Types of Promotion• Promotional Mix - a combination

of different types of promotion. A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the business’s products.

– Competition- Competing businesses within the same industry usually react to each other’s promotional mixes by playing follow the leader.

ACTIVITY 2• Work in pairs!• Using the internet find a promotion for the

following categories:– Movie– Music Artist/Concert– Sports Team– Retail Store

• You must include all four Types of Promotion:

– Advertising– Public Relations/Publicity– Sales Promotion– Personal Selling

• Create a Power Point to illustrate your findings – 1st slide should be LABELED “4.01 PROMOTION TYPES ACTIVITY” and you & partner’s name. Also define, in your own words each promotion type. Each example should be EASILY recognizable to teacher; if not, write a brief explanation. PRINT (in color) as a “handout” where there are 6 slides per page. TURN IN ALL WORK TO CLASS BIN IN ORDER TO RECEIVE CREDIT

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Grading scale: 20 pts – per

category 5 pts- per

promotion type

20 pts- format correctly,

label, and neatness

ACTIVITY 3•Get with your 11 o’clock

•Complete (wkst on the back of 4.01crossword puzzle)

“4.01 promotional mix match up” •You have 5-10 minutes!•Continue to work on Activity from

yesterday

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Notebook Check 3.00 –report card for extra credit

1. Post Midterm Exam review2. Midterm corrections3. 3.01 notes4. 4 stages of the life cycle

written assignment5. WU: 3.01a Review (written)6. 3.01 Review7. “Positioning your product

in the market” wkst8. 3.03 notes9. “What strategies” wkst10. “Identify the Product Mix”

wkst11. Mkt 3.03 Crossword Puzzle12. 3.01 & 3.03 Quiz

13. 3.04 notes14. “Which Common

Positioning Matchup” wkst

15. Pepi’s Pizza Case study16. 3.04 Review17. 3.06A Review (written)18. Selling Price Math

(written)19. “What Type of Pricing”

wkst20. 3.06 Review21. 3.04 & 3.06 Quiz22. Channels of Distribution

Matchup wkst23. 3.07 Review24. 3.00 Post assessment

review25. Syllabus

Technology in Promotion• New technology enables businesses

to create individualized messages that impact their promotional mix.

• Information can be communicated by more venues and messages can be customized.– Example?

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International promotional activities

• A business must understand that the laws governing promotional activities vary by country.

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ACTIVITY 4 Working with your table mates:

• Pick a company of your choice and a country you want to promote – the country can not have English as their first or dominate language. Develop a mini international promotional mix plan for the business.

Include the following:• What are 3 promotional laws that your int’l country has?

How does your promotion fit within those laws? Site source.

• Describe at least one way you will use each of the 4 promotion types (discussed in 4.01 notes).

• Come up with a sample international advertisement that will appeal to your target audience (remember it should appeal to THAT COUNTRY’S PEOPLE).

• Put all your findings in PowerPoint form and print out as handouts – 6 to a paper! Label 4.01 International Promotion

• You can not pick a company that already has a strong international presence (no McDonalds, Toms, Coke, Pepsi, etc.). Make sure you check their website if you are not sure!! NO DUPLICATES OF COUNTRIES OR COMPANIES!

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Grading scale:

5 pts – country/comp.

10 pts- laws/sited pg

10 pts- 4 types of promotion & specific description

10 pts- advertisement chosen/creative

10 pts- presentation

5 pts – formatted correctly

Countries and Companies already chosen- 1st block

• France chick fila China Spain • Northface Switzerland India • New balance Germany South

Korea• Venezuela Zara Japan Russia

Estonia • Subway pizza hut American

Eagle Italy • Lucky charms Bojangles TCBY

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Countries and Companies already chosen- 2nd block

• Chick-fila Taco Mac Switzerland • France Netherlands Russia Japan• Spain Romania Starbucks Red Mango• Germany Baja TCBY Barnes & Noble• China Smoothie king Krispy Kreme• India• Italy• Egypt

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Countries and Companies already chosen- 4th block• Gatorade Switzerland Colombia • uggz Francesca's Italy KFC Norway

• Subway France chick-fila Germany • Northface Denmark tenders Spain • 5 guys Ethiopia Patagonia chipotle

• Sweden Hershey Brazil Argentina

Egypt26

WARM UP: 4.01 B ReviewWhich promotional type?

1. Carrie Underwood puts on a concert for her fans– Publicity

2. Pizza Hut gives away free magnets with each pizza– Sales Promotion

3. Amit’s company pays to have his business’ logo on the side of a bus

– Advertising4. Belk’s sales associate helps a customer find a

sweater for her mother.– Selling

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C1. Some governments regulate

promotional activities in their countries to protect consumers from?

A. Unnecessary media exposure B. Inconsistent selling strategies C. Deceptive advertising D. Unlimited liability

4.01 QUIZ REVIEW

D2. Banner and pop-up ads impact the way audiences receive promotional information. These types of messages exist because of the following technological development:

A. HTMT B. Intranet C. Advertisement D. Internet

A3. A television commercial depicts a woman mopping the kitchen with a new floor cleaner is an example of advertisement _______________:

A. Stereotyping B. Personal Selling C. Materialism D. Conflicts

B4. Advertising that promotes the

support a bank gives to community projects is _______ advertising.

A. Promotional B. Institutional C. Publicity D. Sales Promotional

B5. Government regulations is a ____ factor effecting promotion

A. Internal B. External C. Interrelated D. Federal

D6. Determine whether the following is a true statement: It is important for the promotional message to be factual

A. False, it being memorable is more

important

B. True, it should alter facts as

necessary

C. False, it doesn't need to be factual

D. True, it needs to be factual

B7. In which stage of a product's life cycle do promotional activities focus on differences between competing products?

A. Introduction B. Growth C. Maturity D. Decline

A8. How do competing businesses within the same industry usually react to each other's promotional mixes?

A. They play follow the leader B. They increase promotional budgets C. Change prices D. Try and look good to the public

C

9. This picture is an example of: A. Public Relations B. Technological Promotion C. Product Promotion D. Promotional tie ins

A10. What form of promotion is generally emphasized for complex, technical products sold to industrial users?

A. Personal Selling B. Advertisement C. Sales Promotion D. Public Relations

B11. To demonstrate the organization's role in community affairs is an objective for what type of promotion?

A. Publicity B. Institutional C. Sales Promotion D. Product Promotion

C12. Which of the following best describes the relationship of promotion and marketing:

A. Independent B. One to one C. Interrelated D. Dependent

A13. Which of the following situations most accurately depicts a promotional ethical issue in relation to children:

A. Individualized messages B. Attractive commercials C. Publicity campaigns D. Personalized premiums