PROMOTION

PROMOTION WHAT IS IT? Any form of communication a business or organization uses to: INFORM (Tell about a product) PERSUADE (“buy my brand not my competitor’s”) REMIND (keep name in the public eye)

Promotional Objectives Build Awareness Increase demand Differentiate a product from the competitor Highlight product’s value Change/reinforce customer’s attitude

Promotional Messages Can you hear me now? Good. Buy it. Sell it. Love it. Live in your world, play in ours. Just do it. I’m lovin’ it. The happiest place on earth.

INSTITUTIONAL PROMOTION PROMOTION 2 TYPES PRODUCT PROMOTION VS. INSTITUTIONAL PROMOTION

PRODUCT PROMOTION GOAL: To sell goods and services Accomplished by: Advertisements Coupons Sales presentations ‘Product plugs’ in interviews Accomplished by: Explaining features/benefits Tell where products are sold Advertising sales Answer questions Introduce new products

Primary Product Promotion Emphasis on product & use, not the brand Competition between industries (pork vs beef) Good when introducing new concept or completely new product

Secondary (Selective) Product Promotion Specific brand or product Already known product Coca-Cola vs Pepsi

INSTITIUONAL PROMOTION GOAL: Create favorable image of the company Does NOT directly sell a certain product

INSTITIUONAL PROMOTION Used to: Change attitudes Highlight issues Inform public Show commitment Donated $5million in bottled water to hurricane-ravaged New Orleans in 2005

Promotion: ADVANTAGES Contributions to economy Supports mass media Benefits companies

Promotion: DISADVANTAGES Deceptive Manipulative Offensive Creates/reinforces stereotypes Plays upon fears Has limited abilities

METHODS OF PROMOTION ADVERTISING PUBLICITY SALES PROMOTION PERSONAL SELLING

ADVERTISING It is advertising if: The Time or Space devoted to it is PAID for Uses a set format Identifies the sponsor of the message

ADVERTISING: PROs & CONs Can’t focus on individual needs $$$$$$ Brief Reaches large # of people Costs per customer Choose appropriate media Control content Repeat Viewing “Presell”

PUBLICITY Placing newsworthy information about a company, product or person in the media How does Publicity differ from Advertising? PUBLICITY IS FREE

PUBLICITY: PROS & CONS GIVE UP CONTROL OF MESSAGE CONTENT AND PRESENTATION NEGATIVE PUBLICITY FREE LARGE AUDIENCE SEEN AS NON-BIASED Tiger Woods – Gatorade, AT&T, Accenture dropped him Kobe Bryant – McDonald’s, Nutella, & Ferrero SpA pulled sponsorship

(excludes advertising, publicity and personal selling) SALES PROMOTION Everything else that a company does to get customers to buy their products and use their services. (excludes advertising, publicity and personal selling)

SALES PROMOTIONS LOYALTY MARKETING PROGRAMS PROMOTIONAL TIE-INS (McDonald’s Monopoly promotion) VISUAL MERCHANDISING AND DISPLAYS PREMIUMS & INCENTIVES (Buy 1 get one free) PRODUCT SAMPLES PRODUCT PLACEMENT

PERSONAL SELLING TO BE COVERED LATER!!