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 competitors) REMIND (keep name in the public eye)

Promotional Goals AIDA A-First Attract Attention I-Build Interest D-Build Desire A-Ask for ACTION

AIDA and the Hierarchy of Effects AttentionInterestDesireAction Awareness Knowledge Liking Preference Conviction Purchase

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

2 Types of PROMOTION PRODUCT PROMOTION VS. INSTITUTIONAL PROMOTION

PRODUCT PROMOTION GOAL: To sell goods and services –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

Features vs. Benefits Features TELL Benefits SELL

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

Pepsi Refresh Grant Campaign

INSTITUITIONAL 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

Promotional Mix 1.ADVERTISING 2.PUBLIC RELATIONS 3.SALES PROMOTION 4.PERSONAL SELLING 5.DIRECT MARKETING

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 Example

ADVERTISING: PROs & CONs Reaches large # of people Costs per customer Choose appropriate media Control content Repeat Viewing Presell Cant focus on individual needs $$$$$$ Brief

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

Public Relations Example

PUBLICITY: PROS & CONS FREE LARGE AUDIENCE SEEN AS NON- BIASED GIVE UP CONTROL OF MESSAGE CONTENT AND PRESENTATION NEGATIVE PUBLICITY Kobe Bryant – McDonald s, Nutella, & Ferrero SpA pulled sponsorship after he was arrested for negative publicity

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 Promotion Example

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

Product Placement

PERSONAL SELLING TO BE COVERED LATER!!

DIRECT MARKETING Type of advertising directed to a targeted group instead of MASS audience. Goal: generate sales/leads Incentive: Contains a lead to get a response or to go into the store Examples: Junk Mail sent to your home, SPAM to

Do you ever look at Junk Mail? Who does?