Presentation on theme: "Chapter 15 Effective Promotion Means Effective Communication."— Presentation transcript:
Chapter 15 Effective Promotion Means Effective Communication
Promotion is any form of communication a business or organization uses to … inform, persuade, or remind consumers about its products or services. Promotion Frameworks 8.3.1
Promotion is Part of the Marketing Mix Promotion is one of the 4 elements of the Marketing Mix, also referred to as the 4 Ps of marketing. Frameworks 8.3
Promotion Is a Form of Communication Promotion is a communication process, or the transfer of a message from a sender to a receiver. The sender is the source of the message. The message is what is being communicated. Encoding is when the sender converts an idea into a message that the receiver can understand. The message channel is the vehicle by which the message travels. (TV, radio, newspaper, text message, a salesperson, or billboard) Frameworks 8.2
Promotion Is a Form of Communication The receiver is the person or persons to whom the message is directed. (potential customers) Decoding is the process by which the receiver interprets the transmitted language and symbols to comprehend the message. Noise is any distracting information in the transmission, the message channel, or the environment that might distract from the message. Feedback is the receivers response to the message. Frameworks 8.2
The Communication Process Frameworks 8.2.1
Types of Communication Interpersonal communication is any person- to-person exchange. Two-way communication Involves two or more people in some kind of person-to- person exchange, can be expensive Mass communication attempts to reach a wide audience, sometime millions of people, through mass media such as TV, radio, and newspapers. One-way communication, lacks direct feedback More cost efficient than personal selling
Advertising Advertising is any form of paid, non-personal communication that uses mass media to deliver the marketers message to an audience. Institutional advertising attempts to create a favorable impression and goodwill for a business or an organization by providing positive information about a business. Promotional advertising is designed to increase sales. It introduces new products and businesses, encourages an interest in products, and explains products and service features. Frameworks 9.1
Media Advertising Expenditures
Advertising Media Media are the agencies, means, or instruments used to convey advertising messages to the public. Television Radio Print Direct Mail Outdoor Ambient Internet Frameworks 9.2
Advertising Media Broadcast media includes television and radio, meaning that a signal is transmitted. Ads on radio and television are called spots. Print media includes magazines and newspapers. Direct mail media is any marketing message sent to an audience through the mail. Often referred to as junk mail. Outdoor advertising includes billboards, signs on buses or taxis, messages on buildings, or benches. Frameworks 9.2
Advertising Media Ambient advertising includes any nontraditional medium. Stickers on bananas, hot-air balloons, stunts, or guerilla advertising. Internet advertising is the fastest-growing type of advertising. It can be targeted and allows instant feedback. Frameworks 9.2
The Top Newspaper in the United States 1. USA Today, 2,281,831, up 0.05% 2. Wall Street Journal, 2,070,498, down 0.8% 3. New York Times, 1,136,433, up 0.2% 4. Los Angeles Times, 907,997, down 6.5% 5. Washington Post, 751,871, down 2.7% 6. New York Daily News, 735,536, down 1.5% 7. New York Post, 678,086, up 0.01% 8. Chicago Tribune, 573,744, down 6.6% 9. Houston Chronicle, 527,744, down 3.9% 10. San Francisco Chronicle, 468,739, down 6.1% Frameworks 8.3.2
Newspapers: Advantages Vs. Disadvantages Advantages Short lead time for placement of an ad Large circulation in a geographic newspaper Can carry response vehicles (coupons) Disadvantages Lower print quality Short life span Limited (usually) to geographic segmentation Frameworks 8.3.2
Magazine Advertising Both consumer and trade magazines generate a high level of reader involvement. Magazines can target specific regional areas or interest groups. Advantages: Targeted audience, longer life span, high pass along rate, more likely to be remembered, better print quality, variety of formats. Disadvantages: Less mass appeal, more expensive than newspapers, not very timely.
Trade Magazine Journal of Hospitality & Tourism Research - the foodservice industry's most trusted source for food and business trend information and exclusive research. Published 18 times a year.
Magazine Advertising What is the name of the number one, most circulated magazine, in the United States? 1. The AARP Magazine: Modern Maturity - 24,121, Readers Digest - 8,307, Better Homes and Gardens- 7,655, National Geographic - 5,060, Good Housekeeping - 4,676,815
Direct Mail Advertising Direct-mail advertising is sent by businesses directly through the mail to prospective customers. Types of direct-mail advertising include newsletters, catalogs, coupons, samplers, price lists, and others. Advantages: Highly selective distribution with a variety of sizes and formats. Can prevent competitors from seeing the advertising message. Disadvantages: Low response rate and high costs.
Directory Advertising Telephone directories are the best known directories. They are divided into the White Pages (free alphabetical listings) and the Yellow Pages (paid categorical listings and free alphabetical listings for businesses).
Directory Advertising Advantages: Relatively inexpensive, used by all demographic groups, long life span. Disadvantages: Not timely.
Outdoor Advertising: Billboards Outdoor signs are better known as billboards. Advantages: Broad exposure, highly visible, some can be changed quickly. Disadvantages: Use is restricted in some areas, limited viewing time, unknown audience. Photo taken in 2005
Outdoor Advertising: Billboards Everyone views billboards, but these are primarily targeted at tourists. Visible 24hours a day. Low cost per day. Must have short message, only 3-5 seconds of time available to read message. Brevity is the key! Photo taken in 2008
Do you know what is currently on the billboard at Daylight Donuts? Outdoor Advertising: Billboards Photo taken in 2010
Transit Advertising Transit advertising includes printed posters found inside business and commuter trains, exterior posters on taxis and buses, and station posters located near or in subways and in railroad, bus, and airline terminals.
Guerrilla Advertising This is a guerrilla marketing campaign for Smart cars in Canada utilizing an oversized bike lock. The car was parked on the street with the attention getting lock.
Guerrilla Advertising A full-sized Volkswagen was rendered in ice and placed on a London street. Sculptors spent 350 hours chiseling a nine-ton block of frozen water to create the VW. The ice car melted away in just 12 hours. But it generated four weeks' worth of press in Britain, and invaluable buzz among Londoners.
Guerrilla Advertising McDonald's wanted to advertise its quick breakfast meals to overworked professionals in fast- paced Hong Kong. The ad agency placed a bed in a busy subway station, and hired a model wearing office garb to nap in it. The sheets were printed with an image of a plate of McDonald's eggs, sausages, and hash browns.
Guerrilla Advertising To get Asian audiences to pay attention to American TV show CSI: Crime Scene Investigation, Saatchi & Saatchi developed a show-stopping campaign. The agency staged what looked like gruesome murder scenes (like this one) around Singapore. The yellow police tape was printed with CSI viewing schedules.
Guerrilla Advertising This guerrilla advertisement for Bounty paper towels, was too big to be ignored. The massive spilled coffee cup and forced city-dwellers to think about the massive messes only a paper towel like Bounty could clean up.
Advantages of Advertising Advertising has the ability to reach a wide audience. It is efficient in terms of cost-per-viewer. It is very controllable and repeatable. Advertising can reach people any where in the world. It can move people emotionally, particularly with television which combines sound, movement, and color.
Disadvantages of Advertising Advertising can be very expensive, particularly for smaller companies. It is impersonal, without immediate feedback. The message cannot be modified once delivered. Technology such as the DVR has allowed television viewers to skip ads. There is so much advertising clutter that most people screen out 99% of the ads they see.
Publicity Publicity is any nonpaid communication about a product, service, company, or cause. Public relations, or PR, is the effort to reach consumers by generating positive publicity. PR is considered more objective and believable than advertising. PR can be very inexpensive – it is usually free. PR is difficult to control, it could become negative and damaging to the company. Frameworks 8.3.2
Public Relations Activities A news release is a prewritten story about a company that is sent to various media. The news release should contain information that is news worthy. A press kit is a folder containing articles, news releases, feature stories, and photographs about the company, a new product, or person. A press conference is a meeting in which a business or organization invites media members to hear an announcement about a newsworthy event. Frameworks 9.4
Negative Publicity BP Chief Executive Tony Hayward tours his company's cleanup operations at Port Fourchon, La. (Carolyn Cole / Los Angeles Times / May 24, 2010)
How Should A Company Handle Potential Negative Publicity? Consider how the National Basketball Association handled the case of a referee convicted of betting on NBA games. It is alleged that the NBA threatened the publisher of Tim Donahys book. In fact, the original publisher did refuse to print the book for fear of liability lawsuits. Another publisher was eventually found. The book Personal Foul is available in the library. See Mrs. Nance.
Is it Possible to Repair the Damage Caused by Negative Publicity? Before he became a symbol of animal cruelty, Michael Vick was one of the most electrifying players in American football. As quarterback of the Atlanta Falcons, he was the highest paid player in the league, and he pulled in tens of millions of dollars in endorsements. But it all came to an abrupt end two years ago when police raided a farm Vick owned in Virginia and uncovered an illegal dog fighting operation. He eventually pled guilty to bankrolling the enterprise and participating in every aspect of it, including killing dogs that refused to fight. He was sentenced to two years in prison, and eventually declared bankruptcy.
Personal Selling Personal selling is person-to-person communication with a potential customer in an effort to inform, persuade, or remind the customer to purchase the organizations products or services. Personal selling can be very informative and can be very persuasive. Feedback is immediate allowing the presentation to be flexible and tailored to the customers needs. Personal selling is very expensive per person reached. While advertising can reach millions simultaneously, personal selling reaches one customer at a time. Frameworks 8.4
Sales Promotion Sales promotion is any short-term incentive, activity, or material that gives consumers a direct incentive to buy. Examples include coupons, rebates, free samples, contests, sweepstakes, or a free item with purchase. Sales promotion activities generate short-term sales. Results are measurable, particularly with contests, coupons, and sweepstakes. The disadvantages of sales promotion include too much focus on the short-term and losses in profits. Frameworks 8.3.2Frameworks 9.5
Sales Promotion Frameworks 9.5
Sales Promotion A product sample is a sales promotion activity that consists of a free trial size of a product sent through the mail, distributed door-to-door, or given away at retail stores and trade shows. Detergents, toothpastes, shampoos, deodorants, and colognes are frequently promoted this way. Product sampling can increase sales by as much as 70%. Frameworks 9.5
Sales Promotion Loyalty marketing programs, also called frequent buyer programs, reward customers for making multiple purchases. Frameworks 9.5
Sales Promotion – Rebates Frameworks 9.5
Sales Promotion – Contests Vs. Sweepstakes A contest is a game or activity that requires the participant to demonstrate a skill. A sweepstakes is a game of chance. Frameworks 9.5
Specialty Media Specialty media are relatively inexpensive, useful items with an advertiser's name printed on them. Successful specialty media include bottle openers, calendars, magnets, pens and pencils, memo pads, and key chains. Frameworks 9.2
Viral Marketing - Word-of-Mouth - Buzz Viral marketing encourages people to pass along a marketing message. Viral marketing depends on a high pass-along rate from person to person. If a large percentage of recipients forward something to a large number of friends, the overall growth snowballs very quickly. If the pass-along numbers get too low, the overall growth quickly fizzles. A lot like word-of-mouth or buzz.
Viral Marketing – Simsonize Me
Viral Marketing The Obama family pictured moving into the White House. Really?
Viral Video: ed to Me! Read this BEFORE you watch the video. It is amazing. If you thought that the people who set up a room full of dominoes to have them knocked over later was amazing, you haven't seen anything yet. There are no computer graphics or digital tricks in these images. Everything that you see happened in real time exactly as you see it. The recording required 606 takes and in the first 605 takes there always was something, usually of minor importance, that didn't work. It was necessary for the recording team to install the set-up time after time and it took several weeks working day and night to achieve this effect. The recording cost 6 million dollars and it took 3 months to finish, including the engineering design of the sequence. The duration of the video is only 2 minutes, but every time that Honda shows the commercial on British television, they make enough money to support any of us for the rest of our lives. However, this commercial has turned out to be the most displayed in the history of the Internet. Honda execs think that it will pay for itself simply because of the free showings. (Honda is not paying one cent for you to see it.) When Honda senior execs viewed it, they immediately approved it without hesitation - including costs. There are only six Honda Accords built by hand in the whole world, and to the horror of Honda engineers, the recording team disassembled two of them for the recording. Everything you see in the sequence (besides the walls, floor, ramp and the untouched Honda Accord) is part of those two automobiles. The voice is that of Garrison Keiller. The commercial was so well received by Honda execs when they saw it, that their first comment was how amazing the computer graphics were. They almost fell out of their chairs when told that the recording was real without any graphics manipulation. By the way, about the windshield wipers in the new Honda Accords, they are sensitive to water and designed to start working as soon as they get wet.
Viral Video: Entertainment or Ad?
Viral Marketing: Another Example ( sent from a former student.) Hi, Chris! Dont know if you remember me but I was a student of yours in 1989 (Denise Burris). Long time ago, eh? Anyway, my husband and I just moved back to Harrison after living in Phoenix for the past ten years. I have a photography business that was flourishing in Phoenix but am trying to get off the ground here and the secretary at the high school told me you were in charge" of the seniors. So, I was wondering if you know of a way to get my name out in front of the seniors who havent had their senior photos done. If you can think of anything, please let me know. I would certainly appreciate it. My website is if youd like to take a look.www.denise-george.com Thanks for your help, Denise
Television Television is the ultimate advertising medium for many businesses because it can communicate a message with sound, action, and color. Advantages: Can be targeted at a specific audience, is timely, takes advantage of holidays and special events. Disadvantages: The highest costs of any medium, high cost for time and production, audience is not assured. Frameworks 9.2
Targeting with Television
Radio Advertising It is estimated that radio reaches 96 percent of all people age 12 and over in a given week. Advantages: "Drive times" can provide concentrated audience, specific audiences can be targeted, is flexible, and mobile. Disadvantages: Short life span, stations often must compete for audience, listeners can be easily distracted. Frameworks 9.2
Internet Advertising o Internet advertising involves placing advertising messages on the Internet. o A banner ad is an ad on a Web page that is hyperlinked to the advertisers Web page. Advantages: Ability to incorporate animation and sound, effectiveness easily measured. Disadvantages: Low response rates Frameworks 9.2
Cooperative Advertising Cooperative advertising is a cost-sharing arrangement whereby both a supplier and a local advertiser pay for advertising. Advantages: Shared advertising expenses, pre-made print advertisements, in-store displays, and TV and radio scripts. Disadvantages: Loss of control over content for the local advertiser.
The Promotional Mix The promotional mix is the combination of advertising, public relations, personal selling, and sales promotion that marketers use to reach a target market. The elements of the promotional mix must be coordinated to deliver a cohesive message.