Presentation on theme: "Promotion “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Peter Drucker Unit 3."— Presentation transcript:
1 Promotion“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”Peter DruckerUnit 3
3 Promotional in Marketing Promotion-one of the 4 P’sProduct promotion – promotional method used by businesses to convince prospects to select their goods or services instead of the competitorInstitutional promotion – promotional method used to create a favorable image for a business, help to advocate for change or take a stand on a community issue.
4 Types of Promotion in the Promotional Mix Promotional Mix is the cost-effective combination of personal selling, advertising, direct marketing, sales promotion and public relations.
5 Promotional MixPersonal Selling – requires a sales representative to generate and maintain direct contact with prospects and customersAdvertising – a form of non-personal promotion in which companies pay to promote ideas, good or servicesDirect Marketing – type of promotion that companies use to address individuals directly and not through a third party.
6 Promotional Mix, cont.Sales promotion – represents all marketing activities that are directed at business or retail customers to boost sales.Public relations – activities help an organization to influence a target audience.
8 Sales PromotionIncentives that encourage customers to buy products or services.
9 Types of Sales Promotions Trade promotionsConsumer PromotionsCoupons – certificates that entitle customer to cash discountsPremiums – giveaways are lost cost items given to consumer at a discount or for free.Deal – price packs offer short-term price reductions that are marketed directly on the label or package.(For example: T-shirts are $10.50 each or for two or more $6)
10 Types of Promotions, cont. Incentives – generally higher-priced products, awards or gift cards given away through contest, sweepstakes, special offers or rebates. (For example: McDonalds monopoly game)Product samples – a free trial size of a product is given awaySponsorship – Sponsors offer negotiate the right to use their logo and names on retail products to enhance their corporate image. (For example: Earnhardt Gnassi Racing Team – NASCAR)
11 Types of Promotions, cont. Promotional Tie-Ins, Cross-Promotion, Cross Selling: sales promotions between or more retails or manufactures (For example: When a new animated feature is about to hit theaters, a movie studio will offer ticket discounts in cereal boxes.Product Placement – consumer promotion that involves the verbal mention or appearance of a band name product in a TV series, move or sporting event. (For example: There is always a Diet Coke by each judge on American Idol).
12 Types of Promotions, cont. Loyalty Marketing Program – also known as frequent buyer programs (For example: ShopRite customers sign up for a loyalty program for discounts)Online Loyalty Program – Online version of a Loyalty Marketing ProgramPoint-of-Purchase – displays primarily by manufactures to hold and display their products and are usually in high traffic area to promote impulse purchases.
15 Purpose of Advertising Advertising – non-personal promotion which promotes ideas, good or services by using a variety of media.
16 Promotional and Institutional Advertising: Promotional Advertising – advertising designed to increase salesInstitutional Advertising – advertising designed to create a favorable image for a company and foster goodwill in the marketplace.Mass Advertisingenables companies to reach large numbers of people with their message. TV and radio are often used.
17 Types of MediaMedia – agencies, means, or instruments used to convey advertising to the public.Four types of media:PrintBroadcastInternetSpecialty
18 Print MediaAdvertising in newspapers, magazines, direct mail, signs, and billboards
19 Types of Print Media Newspaper Advantages: Disadvantages: Daily and weekly newspapersShoppers and Alternative Newspapers – shoppers contain minimal editorial content, often delivered to specific areas.National NewspapersAdvantages:Can target to people living in a certain areaAds and coupon sales are dated and easily trackedDisadvantages:Limited shelf livePrinted in Black and white, less visually appealing,Circulation and daily readership is declining
20 Types of Print Media Magazine Advantages: Disadvantages: Consumer Magazines – Car and Track, Sports Illustrated, Seventeen, Entertainment WeeklyBusiness-to-Business Magazines – (trade publications): interest professional in specific fields. Ex: Advertising AgeAdvantages:People tend to keep magazines longerDigital color and photographyCreate powerful more memorable imagesVariety of presentation (full page, half page, etc.)Disadvantages:More expensive than newspapersDeadline for submission is weeks or months before printNo flexibility if market changes
21 Types of Print Media Direct Mail Advantages: Disadvantages: Printed direct mailElectronic direct mailAdvantages:Highly selective to who receives itTries to reach new customersMost effective with current customersDisadvantages:Yields a low level of responseRedemption rate is 1% - 3%Image problems- most people consider it junk mailPrinting and distributing can be costly
22 Types of Print Media Directory Advertising Advantages: Disadvantages: White PagesYellow PagesAdvantages:InexpensiveTarget all demographic groupsDisadvantages:Printed only yearly
23 Types of Print Media Outdoor Advertising Advantages: Disadvantages: BillboardsDigital billboardsAdvantages:Highly visibleRelatively inexpensive24/7 messageLocated to reach a specific areaDisadvantages:Limited viewing timeIncreasing government regulations
24 Types of Print Media Transit Advertising – on public transportation BussesTaxiBus stopsPublic BenchesAdvantages:Reaches a wide and captive audience
25 Broadcast Media Radio TV Can be heard anywhere Update and change ads daily or hourlyAbility to reach a wide audienceTVUltimate advertisingHighly compelling: sight, sound, action and colorHighest production costExpensive
26 Internet Advertising Uses web or email Opt-in email Banner and Search Engine AdsVideo AdsSocial-media advertising
27 Specialty Media Known as giveaways Inexpensive Imprinted with logo Limited distribution,
28 Other Advertising In-store Ads New Media Ceiling and floor graphics Electronic shelf adsSupermarket cart displaysInstant coupon machineNew MediaCell phonesVideo games
29 Media PlanningProcess of selecting the appropriate advertising media and deciding the time and space in which ads should appear to accomplish marketing objective.Answer the three basic questions:Can the medium present the product and the appropriate business image?Can the descried customers be targeted with the medium?Will the medium get the desired response rate?