2 PromotionCommunication to inform, persuade, and/or remind consumers about an organization’s products and services
3 InformWhen a product is new to the marketIntroduction stageLet customers know about product
4 PersuasionUsed when there is a lot of competition in the marketWant them to buy your product or services versus competitorGrowth/Maturity stage
5 RemindWhen product been out awhileRemind them of how good it isMaturity stage
6 What is positioning?How you want the customer to think about your business???Low price leaderBest qualityBest valueMost unique
7 Positioning 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
8 Product 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
9 Institutional 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.
10 Four Main Types of promotions (promotional mix) AdvertisingPublicityPersonal SellingSales Promotion
11 AdvertisingAny paid form of nonpersonal communication sent through a mass medium by an organization about its products and servicesExamples: TV, Radio, Newspaper, Internet
12 Choosing 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?
13 Personal SellingPerson-to-person communication with potential customers in an effort to inform, persuade, or remind customers
14 Personal selling Disadvantages Per person cost Advantages: Personal contactCan be more informativeFeedback is immediate
15 Publicity/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
16 Sales PromotionActivities or materials that offer consumers a direct incentive to buy a good or service – typically short-term
17 Sales PromotionShort-term incentive offered to encourage buying a good or service. The purpose is to INCREASE DEMAND and STIMULATE SALES
18 Examples 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)
19 Sales 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
20 Advantages/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
21 Sales Promotions (cont.) Advantages:Generates immediate, short-term salesSupports other parts of promotional campaignDisadvantages:Costs can be high (coupons, rebates, etc.)
22 Specialty 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
23 Advertising 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
24 Cooperative 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
25 A paid form of nonpersonal communication sent through a mass medium is known as a. personal selling b. publicity c. sales promotion d. advertising.
26 An important objective of promotion is to __________ buyers.a. deceiveb. manipulatec. informd. delude
27 Which 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
28 In this type of advertising medium the readership is large and there is a high level of reader involvementA. magazineB. direct mailC. newspaperD. transit advertising
29 This type of advertising usually has a low response rate and is considered to be “junk” mail: NewspaperDirect mailMagazinesBillboards
30 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.
31 With 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
32 What 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
33 The ultimate advertising medium is _________ because you can communicate your message with sound, action, and color.A. televisionB. radioC. newspaperD. magazine
34 An advantage of this advertising media is that almost every home has one. A. radioB. newpaperC. phone book (directory advertising)D. magazine
35 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.
36 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 competitionD. when the sales are declining.
37 An advantage of promotional activities to society is A. it creates jobsB. it adds money to the economyC. it supports mass mediaD. all of these
38 The means by which advertising can be presented is known as a a. resource. b. banner c. medium. d. message.
39 3. Which of the following is the chief advertising medium for most retail stores? a. newspaperb. televisionc. radiod. magazines
40 Public Relation Specialist Publicize the good news about a companyControl negative damage done by negative news
41 News 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
42 What is the promotional mix? It is the combination of the promotional elements of:AdvertisingPersonal sellingSales PromotionsPublicity
43 What is the promotional mix based on? Marketing Mix – product, price, promotion, placeTarget marketPolicy and objectives for advertising campaignCompany’s financial situation
44 Five steps to promotional planning Analyze the market – market researchIdentify the target market – market segmentationDevelop promotional objectives – identify purpose or result of promotional objectives
45 Promotional 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