Exercise 11. Working in pairs do the following tasks.

1. What are the six elements of the promotional mix? What is the central focus of the promotional mix? Draw a scheme of promotional mix.

2. Read the passage below about two promotion strategies. Think of any product and describe how to implement a push strategy or/and pull strategy for this product (e.g. Coca-Cola drink). Push strategies versus pull strategies.

There are two ways to promote the movement of products from producers to consumers. The first is called a push strategy. In push strategy, the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise. If it works, consumers will then walk into the store, see the product, and buy it. The idea is to push the product down the distribution system to the stores. One example of a push strategy is to offer dealers one free case of soda for every dozen cases they purchase.

A second strategy is called a pull strategy. In a pull strategy, heavy advertising and sales promotion efforts are directed toward consumers so that they will request the products from retailers. If it works, consumers will go to the store and order the products. Seeing the demand for the products, the store owner will then order them from the wholesaler. The wholesaler, in turn, will order them from the producer. Products are thus pulled down through the distribution system. Dr. Pepper has used television advertising in a pull strategy to increase distribution. Of course, a company could use both a push and pull strategy at the same time in a major promotional effort.

3. Consult the Glossary to find information about the major classes of advertising. Give definitions and examples of retail, trade, industrial and institutional advertising. Explain the differences among different forms of advertising.

4. Can you list the advertising media in order based on the total amount of money spent by advertisers?

5. Bring in samples of advertising to show how informative consumer advertising can be. Bring in other ads that are not so informative. Discuss both sets of ads to see which are more effective in attracting consumer interest.