Promotion Communication to inform, persuade, and/or remind consumers about an organizations products and services
Inform When a product is new to the market Introduction stage Let customers know about product
Persuasion Used when there is a lot of competition in the market Want them to buy your product or services versus competitor Growth/Maturity stage
Remind When product been out awhile Remind them of how good it is Maturity stage
What is positioning? How you want the customer to think about your business??? Low price leader Best quality Best value Most unique
Positioning based on: Features and benefits: New Balance shoe based on comfort and style Price/Quality – Lowest price or high price Competition – How you compare with the competition Price or non-price competition
Product promotional Advertising designed to increase sales of products or services Examples: Milk Commercials Got Milk encouraging consumers to drink milk Ad convincing consumers to buy a Honda over a Toyota
Institutional Advertising Creates a favorable impression and goodwill for a business Examples: Ford emphasizes Quality is Job 1 in their ads Dow Chemical has ads showing how they hire new college recruits Gulf Oil promotes wildlife conservation in some of its ads.
Four Main Types of promotions (promotional mix) Advertising Publicity Personal Selling Sales Promotion
Advertising Any paid form of nonpersonal communication sent through a mass medium by an organization about its products and services Examples: TV, Radio, Newspaper, Internet
Choosing advertising medium? 1. Cost - fall under business budget amount 2. What medium will reach the business target market the best? 3. What medium will reach the most of your target market for the money?
Personal Selling Person-to-person communication with potential customers in an effort to inform, persuade, or remind customers
Personal selling Disadvantages Per person cost Advantages: Personal contact Can be more informative Feedback is immediate
Publicity/Public Relations Non-paid form of business communication about a business organization (news story) Advantages: typically free and it creates goodwill Disadvantages: organization has little control over it
Sales Promotion Activities or materials that offer consumers a direct incentive to buy a good or service – typically short-term
Sales Promotion Short-term incentive offered to encourage buying a good or service. The purpose is to INCREASE DEMAND and STIMULATE SALES
Examples of sales promotions Coupons Sponsorship – local business having signs on our soccer fence (concert) Incentives: Buy one get one free sale Factory pack – free gift in package (cracker jacks and cereal)
Sales promotions (examples continued) Product samples – detergent, cologne, toothpaste (dentists and doctors) Loyalty Marketing programs – If they buy so many sandwiches, they get one free Promotional tie-in – McDonalds having disney characters in their happy meals that go along with their movie Goofy movie
Advantages/Disadvantages of Sales promotion Advantages: Generates immediate short-term sales, supports other parts of promotional campaign Disadvantages: Costs can be very high, promotion may not be effective so may lose money
Sales Promotions (cont.) Advantages: Generates immediate, short-term sales Supports other parts of promotional campaign Disadvantages: Costs can be high (coupons, rebates, etc.)
Specialty advertising Relatively inexpensive items with advertisers name on them (pens, hats, shirts, cups, etc.) Advantages: reminder to use product Disadvantages: small size may limit amount of message, might be given to people not interested in product
Advertising Campaign Is coordination of a series of advertisements around a particular theme to promote a product Geiko – Caveman Coke – Polar bears Milk producers – Got Milk Advertising Agents – work with business clients to develop advertising campaigns
Cooperative Advertising Cost-sharing arrangement whereby both a supplier and a local advertiser pay for advertising (both names appear in ad) Example: Macys having an ad promoting Jessica Simpsons new perfume
A paid form of nonpersonal communication sent through a mass medium is known as a. personal selling b. publicity c. sales promotion d. advertising.
An important objective of promotion is to __________ buyers. a. deceive b. manipulate c. inform d. delude
Which of the following is an example of outdoor media? A. A poster in a subway B. Large cards mounted on a bus C. Calendars printed with a companys name D. Electrical signs on high-traffic area
In this type of advertising medium the readership is large and there is a high level of reader involvement A. magazine B. direct mail C. newspaper D. transit advertising
This type of advertising usually has a low response rate and is considered to be junk mail: a.Newspaper b.Direct mail c.Magazines d.Billboards
The 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.
With this type of advertising media sometimes you are limited to the routes that are available in your area A. direct mail B. billboards C. transit advertising D. all of these
What time slots are radio advertisement slots? A. 10, 15, or 20 seconds B. 15, 30, or 60 seconds C. 25, 50, or 60 seconds D. 25, 40, or 60 seconds
The ultimate advertising medium is _________ because you can communicate your message with sound, action, and color. A. television B. radio C. newspaper D. magazine
An advantage of this advertising media is that almost every home has one. A. radio B. newpaper C. phone book (directory advertising) D. magazine
What 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.
Persuasion 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 competition D. when the sales are declining.
An advantage of promotional activities to society is A. it creates jobs B. it adds money to the economy C. it supports mass media D. all of these
The means by which advertising can be presented is known as a a. resource.b. banner. c. medium.d. message.
3. Which of the following is the chief advertising medium for most retail stores? a. newspaper b. television c. radio d. magazines
Public Relation Specialist Publicize the good news about a company Control negative damage done by negative news
News Release News release – prewritten story about a company sent to the media New Principals Press conference – meeting in which a business invites media to hear a newsworthy announcement War Economic disaster
What is the promotional mix? It is the combination of the promotional elements of: Advertising Personal selling Sales Promotions Publicity
What is the promotional mix based on? Marketing Mix – product, price, promotion, place Target market Policy and objectives for advertising campaign Companys financial situation
Five steps to promotional planning Analyze the market – market research Identify the target market – market segmentation Develop promotional objectives – identify purpose or result of promotional objectives
Promotional objectives (continued) Develop a promotional budget – should be in line with objectives Select the promotional mix – advertising, publicity, etc.. Implement the promotional plan – Have a schedule and people responsible, keep in line with budget