2PromotionCommunication to inform, persuade, and/or remind consumers about an organization’s products and services
3InformWhen a product is new to the marketIntroduction stageLet customers know about product
4PersuasionUsed when there is a lot of competition in the marketWant them to buy your product or services versus competitorGrowth/Maturity stage
5RemindWhen product been out awhileRemind them of how good it isMaturity stage
6What is positioning?How you want the customer to think about your business???Low price leaderBest qualityBest valueMost unique
7Positioning based on: Features and benefits: New Balance shoe based on comfort and stylePrice/Quality –Lowest price or high priceCompetition – How you compare with the competitionPrice or non-price competition
8Product promotionalAdvertising designed to increase sales of products or servicesExamples: Milk Commercials “Got Milk” encouraging consumers to drink milkAd convincing consumers to buy a Honda over a Toyota
9Institutional Advertising Creates a favorable impression and goodwill for a businessExamples: Ford emphasizes “Quality is Job 1” in their adsDow Chemical has ads showing how they hire new college recruitsGulf Oil promotes wildlife conservation in some of its ads.
10Four Main Types of promotions (promotional mix) AdvertisingPublicityPersonal SellingSales Promotion
11AdvertisingAny paid form of nonpersonal communication sent through a mass medium by an organization about its products and servicesExamples: TV, Radio, Newspaper, Internet
12Choosing advertising medium? 1. Cost - fall under business’ budget amount2. What medium will reach the business’ target market the best?3. What medium will reach the most of your target market for the money?
13Personal SellingPerson-to-person communication with potential customers in an effort to inform, persuade, or remind customers
14Personal selling Disadvantages Per person cost Advantages: Personal contactCan be more informativeFeedback is immediate
15Publicity/Public Relations Non-paid form of business communication about a business organization (news story)Advantages: typically free and it creates goodwillDisadvantages: organization has little control over it
16Sales PromotionActivities or materials that offer consumers a direct incentive to buy a good or service – typically short-term
17Sales PromotionShort-term incentive offered to encourage buying a good or service. The purpose is to INCREASE DEMAND and STIMULATE SALES
18Examples of sales promotions CouponsSponsorship – local business having signs on our soccer fence (concert)Incentives: Buy one get one free saleFactory pack – free gift in package (cracker jacks and cereal)
19Sales promotions (examples continued) Product samples – detergent, cologne, toothpaste (dentists and doctors)Loyalty Marketing programs – If they buy so many sandwiches, they get one freePromotional tie-in – McDonalds having disney characters in their happy meals that go along with their movie “Goofy” movie
20Advantages/Disadvantages of Sales promotion Advantages: Generates immediate short-term sales, supports other parts of promotional campaignDisadvantages: Costs can be very high, promotion may not be effective so may lose money
21Sales Promotions (cont.) Advantages:Generates immediate, short-term salesSupports other parts of promotional campaignDisadvantages:Costs can be high (coupons, rebates, etc.)
22Specialty advertising Relatively inexpensive items with advertiser’s name on them (pens, hats, shirts, cups, etc.)Advantages: reminder to use productDisadvantages: small size may limit amount of message, might be given to people not interested in product
23Advertising CampaignIs coordination of a series of advertisements around a particular theme to promote a productGeiko – CavemanCoke – Polar bearsMilk producers – “Got Milk”Advertising Agents – work with business clients to develop advertising campaigns
24Cooperative Advertising Cost-sharing arrangement whereby both a supplier and a local advertiser pay for advertising (both names appear in ad)Example: Macy’s having an ad promoting Jessica Simpson’s new perfume
25A paid form of nonpersonal communication sent through a mass medium is known as a. personal selling b. publicity c. sales promotion d. advertising.
26An important objective of promotion is to __________ buyers.a. deceiveb. manipulatec. informd. delude
27Which of the following is an example of outdoor media? A. A poster in a subwayB. Large cards mounted on a busC. Calendars printed with a company’s nameD. Electrical signs on high-traffic area
28In this type of advertising medium the readership is large and there is a high level of reader involvementA. magazineB. direct mailC. newspaperD. transit advertising
29This type of advertising usually has a low response rate and is considered to be “junk” mail: NewspaperDirect mailMagazinesBillboards
30The prime time for advertising on the television is A. 4p.m. to 7p.m.B. 3p.m. to 8p.m.C. 9p.m. to 12p.m.D. 8 p.m. to 11p.m.
31With this type of advertising media sometimes you are limited to the routes that are available in your areaA. direct mailB. billboardsC. transit advertisingD. all of these
32What time slots are radio advertisement slots? A. 10, 15, or 20 secondsB. 15, 30, or 60 secondsC. 25, 50, or 60 secondsD. 25, 40, or 60 seconds
33The ultimate advertising medium is _________ because you can communicate your message with sound, action, and color.A. televisionB. radioC. newspaperD. magazine
34An advantage of this advertising media is that almost every home has one. A. radioB. newpaperC. phone book (directory advertising)D. magazine
35What are the best times for radio advertising? A. 4a.m. - 6a.m. and 8p.m. to 11p.m.B. 5a.m. - 7a.m. and 6p.m. to 10p.m.C. 7a.m. – 9a.m. and 3p.m. to 6p.m.D. 9a.m. – 11a.m. and 1p.m. to 3p.m.
36Persuasion is typically used in an advertisement when A. a product is first introduced.B. when the product is brand new.C. when there is growing competitionD. when the sales are declining.
37An advantage of promotional activities to society is A. it creates jobsB. it adds money to the economyC. it supports mass mediaD. all of these
38The means by which advertising can be presented is known as a a. resource. b. banner c. medium. d. message.
393. Which of the following is the chief advertising medium for most retail stores? a. newspaperb. televisionc. radiod. magazines
40Public Relation Specialist Publicize the good news about a companyControl negative damage done by negative news
41News ReleaseNews release – prewritten story about a company sent to the mediaNew PrincipalsPress conference – meeting in which a business invites media to hear a newsworthy announcementWarEconomic disaster
42What is the promotional mix? It is the combination of the promotional elements of:AdvertisingPersonal sellingSales PromotionsPublicity
43What is the promotional mix based on? Marketing Mix – product, price, promotion, placeTarget marketPolicy and objectives for advertising campaignCompany’s financial situation
44Five steps to promotional planning Analyze the market – market researchIdentify the target market – market segmentationDevelop promotional objectives – identify purpose or result of promotional objectives
45Promotional objectives (continued) Develop a promotional budget – should be in line with objectivesSelect the promotional mix – advertising, publicity, etc..Implement the promotional plan – Have a schedule and people responsible, keep in line with budget