Presentation on theme: "5.02 Explain the promotional mix and the different forms of promotion."— Presentation transcript:
15.02 Explain the promotional mix and the different forms of promotion.
2Elements of The Promotional Mix Any combination of the different forms of promotion to sell goods and services
3Different Forms of Promotion - Advertising Any paid, non-personal form of communication by an identified sponsorExamples include: TV commercials, magazine advertisements, direct mail, and the Internet
4Different forms of promotion – Sales Promotion Activities or communications that encourage consumers to purchase productsExample include: giveaways, sweepstakes, free samples, award shows, contests, and coupons
5Different forms of promotion – Personal Selling Personal selling is face-to-face, personalized communication between a seller and a buyerExamples include: presentation of a demo from a recording artist to a record label executive
6Different 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
7Two types of Public or Community Relations The internal community includes the employees of the company or organizationFor example, Coke holding an annual picnic for employees and their families.
8Two types of Public or Community Relations The external community includes people outside of the company or organizationFor example, Pepsi donating circus tickets to a Big Brother/Big Sister organization.
9Different 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
10Types of media used in advertising- Print media Any written form of communication used to inform, persuade, or remind consumers about products or services offered
11Print Media - Newspaper The most common and the most cost effective type of print mediaNewspapers are most effective for local businesses that are trying to reach a specific geographical market
12Print Media - Magazines Likely to be used by advertisers to segment the market based on demographic and behavioral segmentationFor example: men more likely to subscribe to Field and Stream, so this would be cost effective for a brand of men’s razors.
13Print Media – Direct Mail Sent directly to customers, or potential customers of a particular storeFor example: all Blockbuster Video members would receive a flyer announcing a special sales event
14Print Media – Outdoor Advertising Includes any outdoor signs and billboardsOutdoor advertising provides 24-hour advertising
15Print Media – Transit Advertising Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages
17Types 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
18Broadcast 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.
19Broadcast Media - TV Advertising Includes commercials and infomercialsIs the most effective type of broadcast media as well as the most expensive
20Types of media used in advertising – Online Media Is the placement of advertising messages on the Internet World Wide Web
21On-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
22On-line Media – Pop-up Ads Pop-up advertisements are the advertisements that “pop-up” and interrupt Internet surfing
23On-line Media – E-mail Ads Are used to tailor messages to fit individual web surfersE-marketers compile or purchase customers databases containing information based on sites visited by web surfers
24Types of media used in advertising – Specialty Media Include “everyday” items with a company name written on themExamples include: calendars, pens, magnets, and coffee mugs
25Types of media used in advertising – Miscellaneous Many other creative ways of communicating advertising messages to consumersExamples include: blimps, supermarket carts, hot air balloons, and in-theater advertisements
26Forms Of Sales Promotions – Annual Awards Shows Academy Awards (Oscars)awarded by Academy of MotionPicture Arts & SciencesNomination generates media coverage and increases ticket salesProducers and studios promote films to Academy members through trade publications and talk-show circuit
27Forms Of Sales Promotions – Annual Awards Shows National Academy Of Recording Arts and Sciences (NARAS) award the Grammy AwardsNARAS is an association of more than 13,000 recording professionalsA Grammy might draw attention to an artist, but does not guarantee acceptance in form of sales
28Forms Of Sales Promotions – Annual Awards Shows Emmy Awards are awarded by 2 branches of the same organizationAcademy of TV Arts and Science awards prime-time Emmy Awards for night time television and Daytime Emmy Awards for daytime television
29Forms Of Sales Promotions – Annual Awards Shows Emmy Awards draws monumental attention to TV showsIncreases viewing because of winning actors/actresses
30Forms Of Sales Promotions – Annual Awards Shows Tony Awards are awarded to theater professionals for outstanding achievementMichael Crawford in Phantom of the Opera—Best Musical Award
31Forms Of Sales Promotions – Annual Awards Shows ESPY Awards by ESPN and are awarded for excellence in sports performanceNominating committee consists of sports executives, journalists and retired athletes
32Forms Of Sales Promotions – Annual Awards Shows Besides athletes and coaches, many actors and musicians attend and participate in eventESPY Awards make contributions to the V Foundation, established by ESPN in honor of the late NCSU Basketball Coach Jim Valvano
33Forms 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 theindustry
34Forms of Sales Promotions - Incentives Used to generate awareness, interest, and increase sales.
35Forms Of Sales Promotions - Incentives ContestsPrizes are awarded based on contestant skill and/or abilityExamples include: American Idol, Fear Factor, and Dog Eat Dog
36Forms Of Sales Promotions - Incentives SweepstakesPrizes awarded based on the chance or luck of the contestantExamples include winning concert tickets from a local radio station
37Forms Of Sales Promotions - Incentives RebatesDiscounts offered by manufacturer when consumer purchases a sports entertainment good or service during specified time periodFor example: mail-in rebates for purchasing two DVD’s at a time
38Forms Of Sales Promotions - Premiums Low cost items given away with the sponsor’s product as part of a sales promotionFor example: Powerade gives away a cooler with a purchase of a case of powdered drink mix
39Forms 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 consumersFor example: Blockbuster coupons on popcorn packaging or coupons inserted in Sunday newspaper
40Forms Of Sales Promotions – Traffic builders Low cost items given to customers for attending an event, or visiting a storeFor example, first 200 customers to attend grand opening of new Sports Authority receive a Sports Authority key chain
41Forms Of Sales Promotions - Sampling Refers to giving consumers a “taste” for sporting event or concertFor example: fan participation at a track and field event and Faith Hill selecting member of the concert audience to stand with her on stage
42Analyze the steps of promotional planning Determine strategy for reaching target market Push or Pull Strategies
43Analyze the steps of promotional planning Push strategiesUsed by manufacturer to convince or “ push “ retailers to carry and promote productsRelies heavily on personal selling and sales promotion
44Analyze the steps of promotional planning Pull strategiesDirected towards customers to increase their interest and demand for productsCustomers will “pull“ or convince retailers to carry sports or entertainment products.Relies heavily on advertising
45Analyze the steps of promotional planning Determine the objectives of the promotional activityFor example, is the objective to increase sales, increase market share, or create brand awareness ?
46Analyze the steps of promotional planning Establish a promotional budgetNo exact science exists for establishing a promotional budget
47Analyze steps of promotional planning - Budgets Common methods of determining budgets include:Percentage of expected sales.Based on a percentage of past or expected sales to determine budgetAdvantages include limited financial risk.Disadvantages include sales may decrease reducing promotional budget
48Analyze steps of promotional planning - Budgets Objective and task methodCompany determines promotional goals, steps needed to meet goals and calculates cost for promotional activitiesMost cost effective method for it takes into account what company wants to accomplish
49Analyze steps of promotional planning - Budgets Competitive equivalenceInvolves matching competitors promotional outlayWeakest method because it takes into account competitors’ objective only
50Analyze steps of promotional planning - Budgets “Whimsical” allocationAll money available after expenses is allocated as promotional budgetShort-term method used to increase sales by building reputation
51Analyze the steps of promotional planning Develop promotional mixSpecific mix chosen should take into consideration the target market, promotional goals, promotional budgetCare should be given to aligning national and local promotional efforts