Presentation on theme: "Unit 11 Promotion Promotion n What are your first impressions of this ad? n After glancing at the ad, did it make you want to stop and read it? n How."— Presentation transcript:
Unit 11 Promotion
Promotion n What are your first impressions of this ad? n After glancing at the ad, did it make you want to stop and read it? n How does this ad motivate its target market to action?
Unit 11 Vocabulary n n Advertising n n Advertising Agencies n n Advertising Campaign n n Audience n n Broadcast Media n n Consumer Promotions n n Cost per Thousand (CPM) n n Coupons n n Direct Marketing n n Display n n Fixtures n n Frequency n n Impression n n Incentives n Institutional Advertising n Institutional Promotion n Kiosk n Marquee n Media n Media Planning n News Release n Online Advertising n Point-of-Purchase Displays n Premiums n Print Media n Product Promotion n Promotion n Promotional Advertising
Unit 11 Vocabulary n n Promotional Mix n n Promotional Tie-ins n n Publicity n n Public Relations n n Pull Policy n n Push Policy n n Sales Promotion n n Store Layout n n Storefront n n Specialty Media n n Trade Promotions n n Transit Media n n Visual Merchandising
Unit 11 Essential Question n How is promotional knowledge and skill in communicating information used to achieve a desired marketing outcome?
Essential Question 1 Promotion n What is the role of promotion as a marketing function?
What is promotion? n n Any form of communication used by a business to inform, persuade, or remind people about its products and improve its image. n n There are two forms of promotion: – –Product – –Institutional
Forms of Promotion n n Product: – –Creates an interest in the product. – –Introduces new products and businesses. – –Explains a product. – –Supports personal selling efforts. – –Creates new markets. n n Institutional: – –Creates a favorable impression and goodwill for a business or an organization. – –Presents information about the companies role in the community.
Essential Question 2 Promotion n What are the types of promotion?
Types of Promotion n n Advertising n n Public Relations n n Direct Marketing n n Sales Promotion n n Personal Selling DR. DIWAKAR NAGULA last week opened Southeast Spine & Rehabilitation at 130 North Gross Road, Kingsland. He specializes in treating chronic pain with traditional medicine as well as chiropractic manipulation and physical therapy. (Tribune & Georgian photo/Renee M. Liss)
Types of Promotion n n Advertising: Paid presentation of ideas, goods, or services directed toward a mass audience
Types of Promotion n n Public Relations: Activities used by an organization to create a favorable image for itself, its products, or its policies.
Types of Promotion n n Direct Marketing: Type of advertising directed to a targeted group of prospects and customers rather than a mass audience. – –Snail Mail – –
Types of Promotion n n Sales Promotion: Marketing activities – other than advertising, public relations, and personal selling – that are used to stimulate purchasing and sales – –Usually involves short term activities. – –Offers some type of incentive: product earned or given away – –Can be successfully used in all channels of distribution.
Types of Promotion – –Types of Sales Promotions » »Trade Promotions: Activities designed to get support for a product from manufactures, wholesalers, and retailers n n Promotional Allowances n n Cooperative Advertising n n Slotting Allowances n n Sales Force Promotions n n Trade Shows and Conventions
Promotional Mix – –Types of Sales Promotions » »Consumer Promotions: Strategies that encourage customers to buy a product or service n n Coupons n n Premiums n n Deals n n Incentives n n Product Samples n n Sponsorships n n Promotional Tie-Ins n n Product Placement n n Visual Merchandising
Types of Promotion n n Personal Selling: Oral presentations to one or more potential buyers with the intent of making a sale. n n The responsibility of sales personnel. – –Order - taking personnel – –Order - getting personnel n n The most flexible and individualized type of promotion available.
Essential Question 3 Promotion n What are the elements of the promotional mix?
Promotional Mix n n Promotional Mix: Combination of promotional strategies and cost-effective allocation of resources n n Strategies are designed to complement one another – –Advertising and direct marketing create awareness of a product – –Public relations creates a favorable image and brand recognition – –Sales promotions stimulate sales and reinforce advertising and selling efforts – –Personal selling builds on the previous by completing the sale
Promotional Mix n n Special promotional mix strategies – –Push Policy: Uses a mix of personal selling, advertising, and buying discounts to push a manufactures products onto the retailer in the distribution channel. – –Pull Policy: Uses a mix of local and national advertising, in-store displays, sales promotion, and public relations to reach customers to create a demand which will pull the product into the retail outlet.
Essential Question 4 Promotion n What are the different promotional channels used to communicate with targeted audiences?
Promotional Channels n n Promotional Channel: Method or means of communication used inform customers about products. They include: – –Advertising media (Newspaper, TV, etc.) – –Social media (Twitter, Facebook, etc.) – –Digital media (CDs, DVDs, etc.) – –Word-of-mouth – –Direct marketing (Postal mail, ) – –Sales promotion (Coupons, Samples, etc.) – –Trade-show/exposition participation – –Public relations activities
Essential Question 5 Promotion n What are the different types of advertising media and associated costs?
Advertising (Print Media) nnNnnNewspaper Finance News n Magazines TIMES
Advertising (Print Media) n n Direct Mail n Outdoor Advertising
Advertising (Print Media) nnDnnDirectories n Transit Advertising
Advertising (Print Media) n n Other print media.
Advertising (Broadcast Media) n Television
Advertising (Broadcast Media) n n Radio n Internet
Media Costs n Newspaper –Classified Ad: Advertise everything from services performed to houses for sale to job openings. –Display Ad: Involve creative illustration of the product being advertised.
Media Costs n Newspaper –Run-of-Paper Rate: Allows the newspaper to decide where to run the ad in the paper. –Open Rate: Rate charged to businesses that advertise infrequently. –Contract Rate: Discounted rate offered to business that advertise more frequently and for a specified period of time.
Media Costs n Magazine –Bleed: Ads are printed to the very edge of the page, leaving no white border. Generally costs 15 to 20 percent extra. –Black-and-White Rates: Lowest rates offered and the ads are in black and white. –Color Rates: Rates increase for each color added. –Full-Color: The most expensive rate and all four print colors are used.
Media Costs n Magazine –Premium Position: Rates determined as to where the ad is placed in the magazine. –Frequency Discounts: Offered to advertisers who run the same ad several times during the year. –Commission: A percentage of sales given by the magazine to the advertising agency for placing the ad for the advertiser. –Cash Discounts: Offered to businesses for paying the bill earlier than its due date.
Media Costs n Radio –Network Radio Advertising: Broadcast from a studio to all affiliated radio stations. –National Spot Radio Advertising: Used by national firms to advertise on a local station-by-station basis. –Local Radio Advertising: Used by local business for its target market. n Television –Vary with time of day. The most expensive is prime time 7 to 11 P.M.
Media Costs n CPM –Cost Per Thousand –Cost to expose 1000 readers to the ad. CPM = cost of ad X 1000 Circulation Circulation
Media Costs n Facebook n Twitter n LinkedIn n All use CPM rates on clicks, pass- through rates, likes, comments, retweets, etc.
Essential Question 6 Promotion n What are the components of advertisements?
Advertisement Components n Border: Separates the ad from the surrounding type n Heading: The key part of the sales message, may also contain subheads that either clarify or amplify the thought in the headline n Illustrations: Most effective way to draw the reader’s attention, illustrations that takes up 50 percent or more of the ad space increases readership by as much as 37 percent
Advertisement Components n Price: Price is presented in several ways: As part of the heading The core the ad is built around Preceding the copy In the text space. n White space: Use as much as possible to minimize distractions and draw attention to what matters most Does not have to be white – just absent of illustrations and text.
Advertisement Components n Body copy: Expands benefits offered in the headline and should be written as though you were making friendly, personal conversation n Signature: Is often a company logo or logotype and should not overpower other important aspects of the advertisement
Advertisement Components n The one second test: A way of determining whether a reader can tell at a glance what the advertiser is selling n Color: Achieve contrast in layout by effective use of different size type, bold type and color n Creativity: Simplicity, focal point and sequence in mind, will make the ad more visually appealing
Visual Headline Company’s logo (Signature) Body copy
Essential Question 7 Promotion n What are the various public relations activities?
Public Relations n n Public Relations: The establishment and maintenance of a good image for the company, its products and services. n n Types of Public Relations – –News Releases: An announcement sent by a business or organization to media outlets » »Feature Articles » »Photos » »Press Conference
Public Relations n n Types of Public Relations – –Publicity: Involves bringing news or newsworthy information to the public’s attention » »Builds a business’ image. » »Publicity is free. » »Not much control over the message being sent to the public.
Essential Question 8 Promotion n What are the differences between internal and external audiences for public relations activities?
Internal Public Relations n n Internal public relations activities are activities designed to keep groups within a company informed about various activities in order to maintain a good image for the company, its products and services. n n Internal audiences may include: – –Staff / Employees – –Top Management – –Board of Directors
External Public Relations n n External public relations activities are activities designed to keep groups outside a company informed about various activities in order to maintain a good image for the company, its products and services. n n External audiences may include: – –General Public / Customers – –Partner Organizations – –Donors / Funders
Essential Question 9 Promotion n What is the nature of a promotional plan?
Promotional Plan n n Contents of the Promotional Plan – –Objectives: Have a clear starting position; awareness of opinions, behavior and knowledge of the target audience; and available time and resources. – –Market Targets: Decide who exactly is to be the audience. Targeting the promotional activities and communications message to a specific audience guarantees a higher rate of success or return on investment.
Promotional Plan n n Contents of the Promotional Plan – –The Message: There are three principles that should be remembered when developing the communications or promotional message: » »1. The KISS Principle (Keep It Simple Stupid) » »2. The AIDA Principle (Attention/Interest/Desire/Action) » »3. Communication objectives: n n to be received (heard or read) n n to be understood n n to be accepted n n to get action (change of behavior or attitude)
Promotional Plan n n Contents of the Promotional Plan – –Estimated Budget: Determine a preliminary promotions budget. This initial estimate will be modified as the planning process proceeds and formal quotations are obtained. – –Promotional Elements (Tactics): Among the various elements of promotions are advertising, personal selling, reseller support, publicity, sales promotion and supplemental activities such as public relations.
Essential Question 10 Promotion n How are activities coordinated in a promotional plan?
Coordinating Promotional Mix n n Ensure all the communication channels used will be good exposure for whatever is being promoted n n Ensure the communication channels used will appeal to the target market – –Younger demographics are not going to read the newspaper as much as a social networking – –The mix should reflect who it is supposed to appeal to
Coordinating Promotional Mix n n Ensure all strategies send the same message about the product or business n n Ensure strategies chosen fit the product or business – –Free samples work for food/beverage products but not major clothing wear such as shirts/pants