chapter 11 Promotions
Objectives To recognize the complexity of promotion with respect to the various forms it can assume as part of the marketing mix To identify integral elements of promotion and the various approaches used in advertising To understand promotion in a historical context and consider how that context has evolved as a result of the importance of media and sponsorship relationships To recognize the key characteristics of effective promotional programs and campaigns aimed at expanding existing consumer bases and at increasing the frequency of consumption
Promotions Any activity designed to stimulate interest in, awareness of, and purchase of a product Method to convey information about the place, price, and product Critical in the positioning of a product in the mind of the consumer
Types of Promotions Advertising is any paid, nonpersonal (not directed to individuals), clearly sponsored message conveyed through the media. Personal selling is any face-to-face presentation in which the seller has an opportunity to persuade the consumer. Publicity is any form of exposure in the media not paid for by the beneficiary or within the beneficiary's control or influence. Sales promotion involves a variety of activities including displays, trade shows, sampling, coupons, premium items, exhibitions, and performances.
Goals of Promotions Promotions should include the following steps: A: Increase awareness I: Attract interest D: Arouse desire A: Initiate action
Advertising Advertising should do the following: Create awareness Communicate information about attributes and benefits Develop, change, and enhance an image Associate brand or product with emotions Precipitate behavior
Keys to Effective Ad Campaign Knowing the product Knowing the consumers
Batra, Myers, and Aaker Model of the Advertising Communication System Source Message Channel Receiver Destination
Assessing Effectiveness of Advertising Wasted circulation Cost per exposure Determining the creative approach Measurement (continued)
Assessing Effectiveness of Advertising (continued) Based on –Ability to reach target market –Ability to maximize cost per exposure –Appropriateness of creative message Measuring –Impact on sales –Impact on image –Impact on consumer awareness
Advertising Media For Sport Signage Endorsements and sponsorships Print media –Magazine –Newspaper –Schedule cards –Handouts and brochures –Posters –Information packages –Direct mail Electronic media –TV –Radio –Internet Billboards, blimps, and buses
Benefits of LED Signage Higher resolution and clarity Movement Animation Sound Portability: Can be updated by simply programming; no hard production costs or delays Flexibility: Variety of sizes and shapes Real-time alterations Life cycle Increased inventory: No space
Television Commercials: Structures Story Problem solution Chronology Special effects Testimonial Satire Spokesperson Demonstration Suspense Slice-of-life Analogy Fantasy Personality
Sales Promotions: Price Attract new consumers. Increase frequency of purchases. Reward loyalty. Prevent defection.
Promotional Components Theme Giveaways Product sampling Open house Coupons Bundling Contests and sweepstakes Premiums and redemptions Street promotions
Game Promotions Motivate customers to attend Increase the perceived value of the event Game promotions should do either of the following:
Those Who Do Not Attend the Games Aware nonconsumers Unaware nonconsumers Misinformed nonconsumers Media consumers
Promotional Progression Planning Model Level 1: Nonpattern attenders (light users) Level 2: Multiple attenders (medium users) Level 3: Frequent attenders (heavy users) Level 4: Defectors (descending the escalator)
Frequency Escalator
Sales Promotions Mailings Outbound calls: Telemarketing blasts Personal sales calls Hospitality Table Trade shows Retail outlet Kiosk
Effective Use of Promotions Promotions can increase perceived value at same price. Give them more! Value is increased by using a giveaway: –Costs less than a price discount –Keeps price integrity –Draws customers from competitor