Marketing Essentials Promotion
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| Promotion | any form of communication a business or organization uses to inform, persuade, or remind people about its products or improve its public image.
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| Promotional Mix | the combination of the different types of promotion a business or organizations uses to promote its products
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| Product Promotion | used to convince potential customer to buy their products instead of buying from a competitor
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| Institutional Promotion | used by a business to create a favorable image for itself, as opposed to promoting a product or service
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| Five basic categories of the Promotional Mix | Personal Selling, Advertising, Direct Marketing, Sales, Promotion, and Public Relations
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| Personal Selling | requires that a company employ sales representatives who generate and maintain direct contact with prospects and customers. It is one of the costliest forms of promotion.
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| Advertising | a form of non-personal promotion. Companies pay to promote ideas, goods, or services in a variety of media outlets.
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| Direct Marketing | type of advertising directed to a targeted group of prospects and customers rather than to a mass audience.
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| Sales Promotion | used to stimulate purchasing and sales. The objectives are to increase sales, inform potential customers about new products, and create a positive business or corporate image.
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| Public Relations | activities enable an organization to influence a target audience. Often, public relations campaigns try to create a favorable image for a company, its products, or its policies.
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| Push Policy | Promotional mix developed for the next partner in the distribution channel, to convince a retailer to stock the products being promoted.
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| Pull Policy | Promotional mix developed to reach the consumer, creates consumer demand for a product to get the products into the retail stores.
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| Sales Promotion | Incentives that encourage customers to buy products or services
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| Trade Promotions | Designed to gain manufacturers, wholesalers, and retailers support for a product
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| Promotional Allowances | a cash payment or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales
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| Cooperative Advertising | A manufacturer supports the retailer by helping to pay for the cost of advertising its product locally
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| Slotting Allowances | a cash premium paid for placing a product on a retailer’s shelves
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| Sales Force Promotions | awards given to managers and employees who successfully meet or exceed a sales quota.
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| Trade Shows and Conventions | The Consumer Electronics Show is held annually in Las Vegas. Check it out by clicking on the image.
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| Consumer Sales Promotions | designed to encourage customers to buy a product
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| Coupons | certificates that entitle customers to cash discounts on goods or services.
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| Premiums | low cost items given to consumers at a discount or for free
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| Factory packs | free gifts placed in product packages
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| Traffic builders | pen, calendar, key chain given free for visiting or attending event
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| Coupon plans | ongoing program offering a premium in exchange for labels, coupons or other tokens from one or more purchases.
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| Incentives | generally higher priced products earned and given through contests, sweepstakes, and rebates.
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| Contests | activities that require demonstration of a skill
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| Sweepstakes | game of chance
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| Rebates | discounts offered to customers who purchase
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| Product Samples | are Free and usually only a trial size sample which can be distributed through mail, door-to-door, or at a retail or trade show.
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| Sponsorship | company pays a fee for the right to promote itself and its products or services at or on a set location
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| Promotional Tie In | creates an arrangement between one or more retailers or manufacturers to help cross promote a product.
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| Loyalty Marketing Program | A Frequent buyer program that rewards customers for making multiple purchases
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| Point of purchase | displays are displays designed primarily by manufacturers to hold and display their products. They are usually placed in high
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