Promotion “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Peter Drucker Unit 3

Promotional Mix

Promotional in Marketing Promotion-one of the 4 P’s Product promotion – promotional method used by businesses to convince prospects to select their goods or services instead of the competitor Institutional promotion – promotional method used to create a favorable image for a business, help to advocate for change or take a stand on a community issue.

Types of Promotion in the Promotional Mix Promotional Mix is the cost-effective combination of personal selling, advertising, direct marketing, sales promotion and public relations.

Promotional Mix Personal Selling – requires a sales representative to generate and maintain direct contact with prospects and customers Advertising – a form of non-personal promotion in which companies pay to promote ideas, good or services Direct Marketing – type of promotion that companies use to address individuals directly and not through a third party.

Promotional Mix, cont. Sales promotion – represents all marketing activities that are directed at business or retail customers to boost sales. Public relations – activities help an organization to influence a target audience.

Types of Promotion

Sales Promotion Incentives that encourage customers to buy products or services.

Types of Sales Promotions Trade promotions Consumer Promotions Coupons – certificates that entitle customer to cash discounts Premiums – giveaways are lost cost items given to consumer at a discount or for free. Deal – price packs offer short-term price reductions that are marketed directly on the label or package.(For example: T-shirts are $10.50 each or for two or more $6)

Types of Promotions, cont. Incentives – generally higher-priced products, awards or gift cards given away through contest, sweepstakes, special offers or rebates. (For example: McDonalds monopoly game) Product samples – a free trial size of a product is given away Sponsorship – Sponsors offer negotiate the right to use their logo and names on retail products to enhance their corporate image. (For example: Earnhardt Gnassi Racing Team – NASCAR)

Types of Promotions, cont. Promotional Tie-Ins, Cross-Promotion, Cross Selling: sales promotions between or more retails or manufactures (For example: When a new animated feature is about to hit theaters, a movie studio will offer ticket discounts in cereal boxes. Product Placement – consumer promotion that involves the verbal mention or appearance of a band name product in a TV series, move or sporting event. (For example: There is always a Diet Coke by each judge on American Idol).

Types of Promotions, cont. Loyalty Marketing Program – also known as frequent buyer programs (For example: ShopRite customers sign up for a loyalty program for discounts) Online Loyalty Program – Online version of a Loyalty Marketing Program Point-of-Purchase – displays primarily by manufactures to hold and display their products and are usually in high traffic area to promote impulse purchases.

Advertising

Advertising Media

Purpose of Advertising Advertising – non-personal promotion which promotes ideas, good or services by using a variety of media.

Promotional and Institutional Advertising: Promotional Advertising – advertising designed to increase sales Institutional Advertising – advertising designed to create a favorable image for a company and foster goodwill in the marketplace. Mass Advertising enables companies to reach large numbers of people with their message. TV and radio are often used.

Types of Media Media – agencies, means, or instruments used to convey advertising to the public. Four types of media: Print Broadcast Internet Specialty

Print Media Advertising in newspapers, magazines, direct mail, signs, and billboards

Types of Print Media Newspaper Advantages: Disadvantages: Daily and weekly newspapers Shoppers and Alternative Newspapers – shoppers contain minimal editorial content, often delivered to specific areas. National Newspapers Advantages: Can target to people living in a certain area Ads and coupon sales are dated and easily tracked Disadvantages: Limited shelf live Printed in Black and white, less visually appealing, Circulation and daily readership is declining

Types of Print Media Magazine Advantages: Disadvantages: Consumer Magazines – Car and Track, Sports Illustrated, Seventeen, Entertainment Weekly Business-to-Business Magazines – (trade publications): interest professional in specific fields. Ex: Advertising Age Advantages: People tend to keep magazines longer Digital color and photography Create powerful more memorable images Variety of presentation (full page, half page, etc.) Disadvantages: More expensive than newspapers Deadline for submission is weeks or months before print No flexibility if market changes

Types of Print Media Direct Mail Advantages: Disadvantages: Printed direct mail Electronic direct mail Advantages: Highly selective to who receives it Tries to reach new customers Most effective with current customers Disadvantages: Yields a low level of response Redemption rate is 1% - 3% Image problems- most people consider it junk mail Printing and distributing can be costly

Types of Print Media Directory Advertising Advantages: Disadvantages: White Pages Yellow Pages Advantages: Inexpensive Target all demographic groups Disadvantages: Printed only yearly

Types of Print Media Outdoor Advertising Advantages: Disadvantages: Billboards Digital billboards Advantages: Highly visible Relatively inexpensive 24/7 message Located to reach a specific area Disadvantages: Limited viewing time Increasing government regulations

Types of Print Media Transit Advertising – on public transportation Busses Taxi Bus stops Public Benches Advantages: Reaches a wide and captive audience

Broadcast Media Radio TV Can be heard anywhere Update and change ads daily or hourly Ability to reach a wide audience TV Ultimate advertising Highly compelling: sight, sound, action and color Highest production cost Expensive

Internet Advertising Uses web or email Opt-in email Banner and Search Engine Ads Video Ads Social-media advertising

Specialty Media Known as giveaways Inexpensive Imprinted with logo Limited distribution,

Other Advertising In-store Ads New Media Ceiling and floor graphics Electronic shelf ads Supermarket cart displays Instant coupon machine New Media Cell phones Video games

Media Planning Process of selecting the appropriate advertising media and deciding the time and space in which ads should appear to accomplish marketing objective. Answer the three basic questions: Can the medium present the product and the appropriate business image? Can the descried customers be targeted with the medium? Will the medium get the desired response rate?