5Unit 8 Essential Question How is promotional knowledge and skill in communicating information used to achieve a desired marketing outcome?
6Essential Question 1 Promotion What is the purpose of promotion?
7What is promotion?Any form of communication used by a business to inform, persuade, or remind people about its products and improve its image.There are two forms of promotion:ProductInstitutional
8Forms of Promotion Product: Institutional: Creates an interest in the product.Introduces new products and businesses.Explains a product.Supports personal selling efforts.Creates new markets.Institutional:Creates a favorable impression and goodwill for a business or an organization.Presents information about the companies role in the community.
9Essential Question 2 Promotion What are the types of promotion?
10Types of Promotion Advertising Public Relations Direct Marketing Sales PromotionPersonal SellingDR. DIWAKAR NAGULA last week opened Southeast Spine & Rehabilitation at 130 North Gross Road, Kingsland. He specializes in treating chronic pain with traditional medicine as well as chiropractic manipulation and physical therapy. (Tribune & Georgian photo/Renee M. Liss)
11Types of PromotionAdvertising: Paid presentation of ideas, goods, or services directed toward a mass audience
12Types of PromotionPublic Relations: Activities used by an organization to create a favorable image for itself, its products, or its policies.
13Types of PromotionDirect Marketing: Type of advertising directed to a targeted group of prospects and customers rather than a mass audience.Snail Mail
14Types of PromotionSales Promotion: Marketing activities – other than advertising, public relations, and personal selling – that are used to stimulate purchasing and salesUsually involves short term activities.Offers some type of incentive: product earned or given awayCan be successfully used in all channels of distribution.
15Types of Promotion Types of Sales Promotions Trade Promotions: Activities designed to get support for a product from manufactures, wholesalers, and retailersPromotional AllowancesCooperative AdvertisingSlotting AllowancesSales Force PromotionsTrade Shows and Conventions
16Promotional Mix Types of Sales Promotions Consumer Promotions: Strategies that encourage customers to buy a product or serviceCouponsPremiumsDealsIncentivesProduct SamplesSponsorshipsPromotional Tie-InsProduct PlacementVisual Merchandising
17Types of PromotionPersonal Selling: Oral presentations to one or more potential buyers with the intent of making a sale.The responsibility of sales personnel.Order - taking personnelOrder - getting personnelThe most flexible and individualized type of promotion available.
18Essential Question 3 Promotion What strategies are used to develop the promotional mix?
19Promotional MixPromotional Mix: Combination of promotional strategies and cost-effective allocation of resourcesStrategies are designed to complement one anotherAdvertising and direct marketing create awareness of a productPublic relations creates a favorable image and brand recognitionSales promotions stimulate sales and reinforce advertising and selling effortsPersonal selling builds on the previous by completing the sale
20Promotional Mix Special promotional mix strategies Push Policy: Uses a mix of personal selling, advertising, and buying discounts to push a manufactures products onto the retailer in the distribution channel.Pull Policy: Uses a mix of local and national advertising, in-store displays, sales promotion, and public relations to reach customers to create a demand which will pull the product into the retail outlet.
21Essential Question 4 Promotion What are the different types of advertising media and associated costs?
28Media CostsNewspaperClassified Ad: Advertise everything from services performed to houses for sale to job openings.Display Ad: Involve creative illustration of the product being advertised.
29Media CostsNewspaperRun-of-Paper Rate: Allows the newspaper to decide where to run the ad in the paper.Open Rate: Rate charged to businesses that advertise infrequently.Contract Rate: Discounted rate offered to business that advertise more frequently and for a specified period of time.
30Media CostsMagazineBleed: Ads are printed to the very edge of the page, leaving no white border. Generally costs 15 to 20 percent extra.Black-and-White Rates: Lowest rates offered and the ads are in black and white.Color Rates: Rates increase for each color added.Full-Color: The most expensive rate and all four print colors are used.
31Media CostsMagazinePremium Position: Rates determined as to where the ad is placed in the magazine.Frequency Discounts: Offered to advertisers who run the same ad several times during the year.Commission: A percentage of sales given by the magazine to the advertising agency for placing the ad for the advertiser.Cash Discounts: Offered to businesses for paying the bill earlier than its due date.
32Media Costs Radio Television Network Radio Advertising: Broadcast from a studio to all affiliated radio stations.National Spot Radio Advertising: Used by national firms to advertise on a local station-by-station basis.Local Radio Advertising: Used by local business for its target market.TelevisionVary with time of day. The most expensive is prime time 7 to 11 P.M.
33Media Costs CPM CPM = cost of ad X 1000 Circulation Cost Per Thousand Cost to expose 1000 readers to the ad.CPM = cost of ad X 1000Circulation
34Essential Question 5 Promotion What is cooperative advertising?
35Cooperative Advertising Type of trade promotions where the manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.
36Essential Question 6 Promotion What are the differences between publicity and public relations?
37Public Relations Types of Public Relations News Releases: An announcement sent by a business or organization to media outletsFeature ArticlesPhotosPress Conference
38Public Relations Types of Public Relations Publicity: Involves bringing news or newsworthy information to the public’s attentionBuilds a business’ image.Publicity is free.Not much control over the message being sent to the public.
39Essential Question 7 Promotion How do the various media impact the public?
40Media ImpactMedia: The agencies, means, or instruments used to convey advertising messages to the public.Print MediaBroadcast MediaOnline MediaSpecialty Media
41Media ImpactMedia Planning: Process of selecting the advertising media and deciding the time or space in which ads should appearTo establish the media plan and select the right medium, advertisers address three basic questions:Can the medium present the product and the appropriate business image?Can the desired customers be targeted with medium?Will the medium get the desired response rate?
42Essential Question 8 Promotion How do ethics and legal issues impact promoting and advertising a product or service?