ADVERTISING & PROMOTION

UNIT OBJECTIVES  Objectives:  Understand the difference between advertising and promotion  Understand the various components of advertising and promotion  Understand the value of advertising and promotion

WHAT IS ADVERTISING?  Paid public announcement to persuade you to buy an item or service.

NEWSPAPER: LOCAL NEWSPAPERS TARGET A PRECISE GEOGRAPHIC AREA Pros:  Newspapers are produced and delivered every day  Low cost in comparison to other media options Cons:  Consumers discard the paper after reading, Creative limits due to black/white publication

MAGAZINES: TARGET CONSUMER INTEREST (SPORTS, FASHION, HOBBIES) Pros:  Target a specific segment  Creative flexibility  Longer life than a newspaper Cons:  Costly  Requires lead time of 2-3 months

RADIO: Pros:  Low cost in comparison to TV & Magazine  Reach consumers in their car, at work and at home Cons:  Listeners do not always listen to background noise  Change stations

TELEVISION: BEST ADVERTISING MEDIUM Pros:  Targeted to specific markets  Repeat frequently  Creative freedom Cons:  COST!!!  Commercials are brief, repetition is necessary  Remote control Super Bowl Ads

YELLOW PAGES: CONSUMERS ARE READY TO PURCHASE WHEN THE LOOK UP YOUR NUMBER.

ONLINE  Banner Ads  Personal s  Company/Team Websites   Excellent advertising medium to reach teens

OUTDOOR ADVERTISING:  Signs on buildings  Billboards use color, lighting and special effects to create an image  Walls, benches and vehicles

POINT-OF-PURCHASE DISPLAYS:  Signs, banners, display racks in stores close to the product being sold.  Effective POP displays are located in high traffic areas.  Window displays are effective POP advertising

SPONSORSHIP:  Event sponsorship - a business helps fund an event in exchange for displaying a brand name, logo or advertising message at the event.

SALES PROMOTIONS – USE OF INCENTIVES TO INCREASE THE BRAND VALUE FOR CONSUMERS.  Sales promotions cause immediate purchases, rather than a long-term change of behavior

METHODS OF SALES PROMOTIONS:  Coupons – a reduction in price for a buyer  Causes a consumer to change brand loyalties or buy the product again  Flexibility  Premiums – Items that are free or cost less with the purchase of another item.  Ex: Cereal & toy

SALES PROMOTIONS  Contests: When consumers use a skill to compete for a prize.  Sweepstakes: Winners are determined by chance  McDonalds & Monopoly

SALES PROMOTIONS  Sampling: Small samples of food purchases intended to persuade consumers to buy the product  Rebates: Money-back offer from the manufacturer to consumer.  Technological products

SALES PROMOTIONS  Frequency: Regular buyers are rewarded with special deals or offers  Ex: Incentive cards  Season Ticket Holders

DIRECT MARKETING: INTERACTIVE METHOD OF MARKETING DESIGNED TO GENERATE A MEASURABLE RESPONSE OR TRANSACTION.  Direct Mail (coupons/samples)  Telemarketing  Magazine/Newspaper Inserts  Flyers