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Promotional Strategies

July 17, 2017Lecture Notes, Marketing InfoAdvertising, Marketing, Promotions

Generally, there are 2

Pushing

This involves encouraging distribution partners to stock more inventory (buy more product).

For example, a paper clip manufacturer’s sales rep (personal sales) might offer Staples a Trade Discount. Staples might turn around and offer a sale on paper clips that month to generate more foot traffic.

Pulling

The same manufacturer may invest in a nation wide ad campaign extolling the advantages of paper clips over staplers. Staples might then contact their supplier and order more paper clips to fulfill the demand generated by the advertising.

Advertising and Public Relations

Advertising falls into 2 classifications

Product

Product advertising is what we’re most familiar with. Product advertising informs us about new products, highlights those products features and benefits, and publicizes the pricing and/or availability.

For example, 7-Up’s “un-cola” campaign highlighted the fact that 7-Up is most definitely not a cola. Its featured unique selling point was what it is not.

Institutional

Institutional advertising promotes ideas, political issues, and organizations.

For example, Chevron’s “people care” campaign to promote the idea that Chevron makes every effort to minimize their impact on sensitive habitats in which they drill for oil.

Depending on the objective, advertising typically will do one of 3 things

Inform

Persuade

Remind

To these ends, there are 4 primary types of advertising:

Competitive

This type generates demand for a product by highlighting the features and benefits using broad, generalized comparisons to competitive products.

Comparative

This type generates demand using direct comparisons to a specific competing brand or product.

Informational

These ads generate interest in new products by explaining uses and benefits, then promoting availability.

Reminder

Reminder advertising notifies consumers that specific products or services are still available. Typically used to reinforce prior advertising efforts and/or extend the product life cycle.

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