1. 5.02 Promotional mix and the different forms of promotion.

2. Elements of The Promotional Mix Any combination of the different forms of promotion to sell goods and services  Advertising  Sales Promotion  Personal Selling  Public or Community Selling  Internal  External  Sponsorship

3. Different Forms of Promotion - Advertising  Any paid, non-personal form of communication by an identified sponsor EX: TV commercials, magazine, Internet, advertisements, and direct mail

4. Different forms of promotion – Sales Promotion  Activities or communications that encourage consumers to purchase products EX: giveaways, sweepstakes, free samples, award shows, contests, and coupons

5. Different forms of promotion – Personal Selling  Personal selling is face-to-face, personalized communication between a seller and a buyer EX: presentation of a demo from a recording artist to a record label executive

6. Different forms of promotion – Public or Community Relations  Activities used by a business or organization to gain and maintain a positive relationship between themselves and the community TWO TYPES  Internal  External

7. Two types of Public or Community Relations 1.The internal community includes the employees of the company or organization EX: Coke holding an annual picnic for employees and their families.

8. Two types of Public or Community Relations 2.The external community includes people outside of the company or organization EX: Pepsi donating circus tickets to a Big Brother/Big Sister organization.

9. Different forms of promotion - Sponsorship  The financing of a sports or entertainment entity (athlete, league, team, concert, or event) by a business in return for recognition or affiliation

10.  Print Media  Newspapers  Magazines  Direct Mail  Outdoor Advertising  Transit Advertising  Broadcast Media  Radio Advertising  TV Advertising  Specialty Media  Online Media  Banner Ads  Pop-up Ads  E-mail Ads  Miscellaneous  Mobile Media  Apps  Commercials  Banners  Miscellaneous Media Types of media used in advertising

11. Types of media used in advertising- Print media  Any written form of communication used to inform, persuade, or remind consumers about products or services offered

12. Print Media - Newspaper  The most common and the most cost effective type of print media  Newspapers are most effective for local businesses that are trying to reach a specific geographical market

13. Print Media - Magazines  Likely to be used by advertisers to segment the market based on demographic and behavioral segmentation EX: men more likely to subscribe to Field and Stream, so this would be cost effective for a brand of men’s razors.

14. Print Media – Direct Mail  Sent directly to customers, or potential customers of a particular store EX: all Blockbuster Video members would receive a flyer announcing a special sales event

15. Print Media – Outdoor Advertising  Includes any outdoor signs and billboards  Outdoor advertising provides 24- hour advertising

16. Print Media – Transit Advertising  Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages

17. Types of media used in advertising – Broadcast Media  Any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered  Radio Advertising  TV Advertising

18. Broadcast Media - Radio Advertising  Advertisers match their target market to a radio station that segments a particular market.  Has the ability to reach a wide audience.

19. Broadcast Media - TV Advertising  Includes commercials and infomercials  Is the most effective type of broadcast media as well as the most expensive

20. Types of media used in advertising – Online Media (E-commerce)  Is the placement of advertising messages on the Internet World Wide Web

21. On-line Media – Banner Ads  Are rectangular boxes at the top or bottom of web sites that are used to promote a web site or business

22. On-line Media – Pop-up Ads  Pop-up advertisements are the advertisements that “pop-up” and interrupt Internet surfing

23. On-line Media – E-mail Ads  Are used to tailor messages to fit individual web surfers  E-marketers compile or purchase customers databases containing information based on sites visited by web surfers

24. Types of media used in advertising – Mobile Media (M-Commerce)  Include the use of mobile phones to promote of sell products EX: Apps, i-tunes, mobile games, and mobile banners

25. Types of media used in advertising – Specialty Media  Include “everyday” items with a company name written on them EX: calendars, pens, magnets, and coffee mugs

26. Types of media used in advertising – Miscellaneous  Many other creative ways of communicating advertising messages to consumers EX: blimps, supermarket carts, hot air balloons, and in-theater advertisements

27. Forms Of Sales Promotions  Annual Awards Shows  Trade Shows & Conventions  Incentives  Premiums  Sampling

28. Forms Of Sales Promotions – Annual Awards Shows Academy Awards (Oscars) awarded by Academy of Motion Picture Arts & Sciences  Nomination generates media coverage and increases ticket sales  Producers and studios promote films to Academy members through trade publications and talk-show circuit

29. Forms Of Sales Promotions – Annual Awards Shows  Grammy Awards -National Academy Of Recording Arts and Sciences (NARAS)  NARAS- association of more than 13,000 recording professionals  A Grammy might draw attention to an artist, but does not guarantee acceptance in form of sales

30. Forms Of Sales Promotions – Annual Awards Shows  Emmy Awards- Academy of TV Arts and Science awards (2 divisions)  Night Time Television Awards  Daytime Emmy Awards  What Do the Emmy Awards do?  Draws monumental attention to TV shows  Increases viewing because of winning actors/actresses

31. Forms Of Sales Promotions – Annual Awards Shows  Tony Awards - theater professionals for outstanding achievement  ESPY Awards - excellence in sports performance (by ESPN)  Nominating committee consists of sports executives, journalists and retired athletes  ESPY Awards make contributions to the V Foundation, established by ESPN in honor of the late NCSU Basketball Coach Jim Valvano

32. Forms Of Sales Promotions – Trade Shows & Conventions  Provide promotional opportunities for manufacturers wholesalers, retailers, and movie producers to learn about and support new products in the industry

33. Forms of Sales Promotions - Incentives  Used to generate awareness, interest, and increase sales.

34. Forms Of Sales Promotions - Incentives Contests  Prizes are awarded based on contestant skill and/or ability EX: American Idol, Fear Factor, and Dog Eat Dog

35. Forms Of Sales Promotions - Incentives Sweepstakes  Prizes awarded based on the chance or luck of the contestant EX: winning concert tickets from a local radio station

36. Forms Of Sales Promotions - Incentives Rebates  Discounts offered by manufacturer when consumer purchases a sports entertainment good or service during specified time period EX: mail-in rebates for purchasing two DVD’s at a time

37. Forms Of Sales Promotions - Premiums  Low cost items given away with the sponsor’s product as part of a sales promotion EX: Powerade gives away a cooler with a purchase of a case of powdered drink mix

38. Forms Of Sales Promotions - Premiums Coupons  Offer price reductions and found in print advertisements, inserted inside packaging, incorporated as part of the product package, or mailed to consumers EX: Blockbuster coupons on popcorn packaging or coupons inserted in Sunday newspaper

39. Forms Of Sales Promotions - Premiums Traffic-builders  Low cost items given to customers for attending an event, or visiting a store EX: first 200 customers to attend grand opening of new Sports Authority receive a Sports Authority key chain

40. Forms Of Sales Promotions - Sampling Sampling  Refers to giving consumers a “taste” for sporting event or concert EX: fan participation at a track and field event and Faith Hill selecting member of the concert audience to stand with her on stage

41. Analyze the steps of promotional planning 1.Determine strategy for reaching target market 2.Determine the objectives of the promotional activity 3.Establish a promotional budget

42. 1. Determine strategy for reaching target market- Push strategies Push strategies  Used by manufacturer to convince or “ push “ retailers to carry and promote products  Relies heavily on personal selling and sales promotion

43. Pull strategies  Directed towards customers to increase their interest and demand for products  Customers will “pull“ or convince retailers to carry sports or entertainment products.  Relies heavily on advertising 1. Determine strategy for reaching target market- Pull strategies

44. 2. Determine the objectives of the promotional activity  Increase sales  Increase market share  Create brand awareness

45. 3. Establish a promotional budget Common methods ( No exact science)  Percentage of expected sales  Objective and task method  Competitive equivalence  “Whimsical” allocation

46. 3. Establish a promotional budget Common methods ( No exact science)  Percentage of expected sales.  Based on a percentage of past or expected sales to determine budget  Advantages include limited financial risk. Disadvantages include sales may decrease reducing promotional budget

47. 3. Establish a promotional budget  Objective and task method  Company determines promotional goals, steps needed to meet goals and calculates cost for promotional activities  Most cost effective method for it takes into account what company wants to accomplish

48. 3. Establish a promotional budget  Competitive equivalence  Involves matching competitors promotional outlay  Weakest method because it takes into account competitors’ objective only

49. 3. Establish a promotional budget  “Whimsical” allocation  All money available after expenses is allocated as promotional budget  Short-term method used to increase sales by building reputation

50. 4. Develop promotional mix  Specific mix chosen should take into consideration the target market, promotional goals, promotional budget  Care should be given to aligning national and local promotional efforts