Introduction to Promotion

Promotion:

Function of informing, persuading, and influencing the consumer's purchase decision.

Marketing Communication:

Transmission from a sender to a receiver of messages dealing with buyer&-seller relationships.

AIDA Concept:

Acronym for attention&-interest&-desire&-action, the traditional explanation of the steps an individual must take prior to making a purchase decision.

Promotional Mix:

Blending of personal selling and nonpersonal selling (including advertising, sales promotion, and public relations) by marketers in an attempt to achieve promotional objectives.

Personal Selling:

Interpersonal influence process involving a seller's promotional presentation conducted on a person&-to&-person basis with the prospective buyer.

Advertising:

Paid, nonpersonal communication through various media by business firms, nonprofit organizations,and individuals who are identified in the advertising message and hope to inform or persuade members of a particular audience.

Sales Promotion:

Marketing activities other than personal selling, advertising, and publicity that stimulate consumer purchasing and dealer effectiveness; includes displays, trade shows, coupons, premiums, contests, product demonstrations, and various noncurrent selling efforts.

Public Relations:

Firm's communications and relationships with its various publics.

Publicity:

Stimulation of demand for a good, service, place, idea, person, or organization by disseminating commercially significant news or obtaining favorable media presentation not paid for by the sponsor.

Pulling Strategy:

Promotional effort by a seller to stimulate demand by final users, who will then exert pressure on the distribution channel to carry the good or service, thereby "pulling" it through the marketing channel.

Pushing Strategy:

Promotional effort by a seller to members of the marketing channel to stimulate personal selling of the good or service, thereby "pushing" it through the marketing channel.

Percentage&-of&-Sales Method:

Promotional budget allocation method in which the funds allocated for promotion during a given time period are based on a specified percentage of either past or forecasted sales.

Fixed&-Sum&-Per&-Unit Method:

Promotional budget allocation method in which promotional expenditures are a predetermined dollar amount for each sales or production unit.

Meeting&-Competition Method:

Promotional budget allocation method that matches competitors' promotional outlays on either an absolute or relative basis.

Task&-Objective Method:

Promotional budget allocation method in which a firm defines its goals and then determines the amount of promotional spending needed for achieving them.