Presentation on theme: "5.02 Explain the promotional mix and the different forms of promotion."— Presentation transcript:
5.02 Explain the promotional mix and the different forms of promotion.
Elements of The Promotional Mix Any combination of the different forms of promotion to sell goods and services
Different Forms of Promotion - Advertising Any paid, non-personal form of communication by an identified sponsor Examples include: TV commercials, magazine advertisements, direct mail, and the Internet
Different forms of promotion – Sales Promotion Activities or communications that encourage consumers to purchase products Example include: giveaways, sweepstakes, free samples, award shows, contests, and coupons
Different forms of promotion – Personal Selling Personal selling is face-to-face, personalized communication between a seller and a buyer Examples include: presentation of a demo from a recording artist to a record label executive
Different forms of promotion – Public or Community Relations Activities used by a business or organization to gain and maintain a positive relationship between themselves and the community
Two types of Public or Community Relations 1. The internal community includes the employees of the company or organization For example, Coke holding an annual picnic for employees and their families.
Two types of Public or Community Relations 2. The external community includes people outside of the company or organization For example, Pepsi donating circus tickets to a Big Brother/Big Sister organization.
Different forms of promotion - Sponsorship The financing of a sports or entertainment entity (athlete, league, team, concert, or event) by a business in return for recognition or affiliation
Types of media used in advertising- Print media Any written form of communication used to inform, persuade, or remind consumers about products or services offered
Print Media - Newspaper The most common and the most cost effective type of print media Newspapers are most effective for local businesses that are trying to reach a specific geographical market
Print Media - Magazines Likely to be used by advertisers to segment the market based on demographic and behavioral segmentation For example: men more likely to subscribe to Field and Stream, so this would be cost effective for a brand of mens razors.
Print Media – Direct Mail Sent directly to customers, or potential customers of a particular store For example: all Blockbuster Video members would receive a flyer announcing a special sales event
Print Media – Outdoor Advertising Includes any outdoor signs and billboards Outdoor advertising provides 24-hour advertising
Print Media – Transit Advertising Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages
Battery Park in New York City
Types of media used in advertising – Broadcast Media Any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered
Broadcast Media - Radio Advertising Advertisers match their target market to a radio station that segments a particular market. Has the ability to reach a wide audience.
Broadcast Media - TV Advertising Includes commercials and infomercials Is the most effective type of broadcast media as well as the most expensive
Types of media used in advertising – Online Media Is the placement of advertising messages on the Internet World Wide Web
On-line Media – Banner Ads Are rectangular boxes at the top or bottom of web sites that are used to promote a web site or business
On-line Media – Pop-up Ads Pop-up advertisements are the advertisements that pop-up and interrupt Internet surfing
On-line Media – Ads Are used to tailor messages to fit individual web surfers E-marketers compile or purchase customers databases containing information based on sites visited by web surfers
Types of media used in advertising – Specialty Media Include everyday items with a company name written on them Examples include: calendars, pens, magnets, and coffee mugs
Types of media used in advertising – Miscellaneous Many other creative ways of communicating advertising messages to consumers Examples include: blimps, supermarket carts, hot air balloons, and in-theater advertisements
Forms Of Sales Promotions – Annual Awards Shows Academy Awards (Oscars) awarded by Academy of Motion Picture Arts & Sciences Nomination generates media coverage and increases ticket sales Producers and studios promote films to Academy members through trade publications and talk-show circuit
Forms Of Sales Promotions – Annual Awards Shows National Academy Of Recording Arts and Sciences (NARAS) award the Grammy Awards NARAS is an association of more than 13,000 recording professionals A Grammy might draw attention to an artist, but does not guarantee acceptance in form of sales
Forms Of Sales Promotions – Annual Awards Shows Emmy Awards are awarded by 2 branches of the same organization Academy of TV Arts and Science awards prime-time Emmy Awards for night time television and Daytime Emmy Awards for daytime television
Forms Of Sales Promotions – Annual Awards Shows Emmy Awards draws monumental attention to TV shows Increases viewing because of winning actors/actresses
Forms Of Sales Promotions – Annual Awards Shows Tony Awards are awarded to theater professionals for outstanding achievement Michael Crawford in Phantom of the OperaBest Musical Award
Forms Of Sales Promotions – Annual Awards Shows ESPY Awards by ESPN and are awarded for excellence in sports performance Nominating committee consists of sports executives, journalists and retired athletes
Forms Of Sales Promotions – Annual Awards Shows Besides athletes and coaches, many actors and musicians attend and participate in event ESPY Awards make contributions to the V Foundation, established by ESPN in honor of the late NCSU Basketball Coach Jim Valvano
Forms Of Sales Promotions – Trade Shows & Conventions Provide promotional opportunities for manufacturers wholesalers, retailers, and movie producers to learn about and support new products and new technology in the industry
Forms of Sales Promotions - Incentives Used to generate awareness, interest, and increase sales.
Forms Of Sales Promotions - Incentives Contests Prizes are awarded based on contestant skill and/or ability Examples include: American Idol, Fear Factor, and Dog Eat Dog
Forms Of Sales Promotions - Incentives Sweepstakes Prizes awarded based on the chance or luck of the contestant Examples include winning concert tickets from a local radio station
Forms Of Sales Promotions - Incentives Rebates Discounts offered by manufacturer when consumer purchases a sports entertainment good or service during specified time period For example: mail-in rebates for purchasing two DVDs at a time
Forms Of Sales Promotions - Premiums Low cost items given away with the sponsors product as part of a sales promotion For example: Powerade gives away a cooler with a purchase of a case of powdered drink mix
Forms Of Sales Promotions - Coupons Offer price reductions and found in print advertisements, inserted inside packaging, incorporated as part of the product package, or mailed to consumers For example: Blockbuster coupons on popcorn packaging or coupons inserted in Sunday newspaper
Forms Of Sales Promotions – Traffic builders Low cost items given to customers for attending an event, or visiting a store For example, first 200 customers to attend grand opening of new Sports Authority receive a Sports Authority key chain
Forms Of Sales Promotions - Sampling Refers to giving consumers a taste for sporting event or concert For example: fan participation at a track and field event and Faith Hill selecting member of the concert audience to stand with her on stage
Analyze the steps of promotional planning 1. Determine strategy for reaching target market Push or Pull Strategies
Analyze the steps of promotional planning Push strategies Used by manufacturer to convince or push retailers to carry and promote products Relies heavily on personal selling and sales promotion
Analyze the steps of promotional planning Pull strategies Directed towards customers to increase their interest and demand for products Customers will pull or convince retailers to carry sports or entertainment products. Relies heavily on advertising
Analyze the steps of promotional planning 2. Determine the objectives of the promotional activity For example, is the objective to increase sales, increase market share, or create brand awareness ?
Analyze the steps of promotional planning 3. Establish a promotional budget No exact science exists for establishing a promotional budget
Analyze steps of promotional planning - Budgets Common methods of determining budgets include: 1. Percentage of expected sales. Based on a percentage of past or expected sales to determine budget Advantages include limited financial risk. Disadvantages include sales may decrease reducing promotional budget
Analyze steps of promotional planning - Budgets 2. Objective and task method Company determines promotional goals, steps needed to meet goals and calculates cost for promotional activities Most cost effective method for it takes into account what company wants to accomplish
Analyze steps of promotional planning - Budgets 3. Competitive equivalence Involves matching competitors promotional outlay Weakest method because it takes into account competitors objective only
Analyze steps of promotional planning - Budgets 4. Whimsical allocation All money available after expenses is allocated as promotional budget Short-term method used to increase sales by building reputation
Analyze the steps of promotional planning 4. Develop promotional mix Specific mix chosen should take into consideration the target market, promotional goals, promotional budget Care should be given to aligning national and local promotional efforts