Promotion

1
Promotion

• Chapter 15

2
Promotion

• Communication to inform, persuade, and/or remind
  consumers about an organizations products and
  services

3
Inform

• When a product is new to the market
• Introduction stage
• Let customers know about product

4
Persuasion

• Used when there is a lot of competition in the
  market
• Want them to buy your product or services versus
  competitor
• Growth/Maturity stage

5
Remind

• When product been out awhile
• Remind them of how good it is
• Maturity stage

6
Product promotional

• Advertising designed to increase sales of
  products or services
• Examples Milk Commercials Got Milk
  encouraging consumers to drink milk
• Ad convincing consumers to buy a Honda over a
  Toyota

7
Institutional Advertising

• Creates a favorable impression and goodwill for a
  business
• Examples Ford emphasizes Quality is Job 1 in
  their ads
• Dow Chemical has ads showing how they hire new
  college recruits
• Gulf Oil promotes wildlife conservation in some
  of its ads.

8
Advantages of promotional activities

• Society
• Promotes economic growth
• Adds money to the economy
• Creates jobs
• Supports mass media

9
Advantages (cont.)

• Companies
• Creates awareness of company and its products
• Helps to develop the companys image

10
Advantages (cont.)

• To consumers
• Encourage higher standard of living
• Better educate consumers
• Help consumers make more intelligent purchases

11
Disadvantages of Promotion

• Some promotions are deceptive
• Can manipulate consumers
• Some are offensive
• Some create or reinforce stereotypes
• Play upon peoples fears

12
Communication in Promotion

• Interpersonal communication involves two or
  more people in an exchange
• Mass communication involves communication to a
  large audience and communication is one-way

13
Four Main Types of promotions (promotional mix)

• Advertising
• Publicity
• Personal Selling
• Sales Promotion

14
Advertising

• Any paid form of nonpersonal communication sent
  through a mass medium by an organization about
  its products and services
• Examples TV, Radio, Newspaper, Internet

15
Media

• The agencies, means, or instruments to convey
  messages
• Radio
• TV
• Newspaper
• Billboards

16
SECTION 19.1
Advertising Media
Media Advertising Expenditures
U.S. Advertising Expenditures Advertising is a
multibillion-dollar business. Given the figures
shown in the pie chart, calculate the total spent
on advertising among all types of media. Why do
you think television and newspapers bring in the
most advertising expenditures?
17
Broadcast Media

• Includes Radio and Television Advertising

18
Television advertising

• Prime time for network stations
• 8p.m to 11p.m.
• What are infomercials???
• 30 minute commercial
• Promotes items such as cookware, exercise
  equipment, and appliances

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SECTION 19.1
Advertising Media
Television Advertising

• Television is the ultimate advertising medium for
  many businesses because it can communicate a
  message with sound, action, and color.
• Advantages Can be directed at a specific
  audience, is timely, takes advantage of holidays
  and special events.
• Disadvantages Highest production costs, high
  cost for time, audience is not assured.

20
Best times for Radio Advertising?

• In the morning when going to work or school
  700a.m. 900a.m.
• In the afternoon when leaving work or school
  300p.m. 600p.m.

21
Radio advertisements

• Presented in 15, 30, or 60 second slots (longer
  slots are more expensive)
• What are some of your favorite radio
  commercials????

22
Radio Advertising

• Advantages
• Target specific audience
• More flexible, can be changed easier
• Mobile medium can be taken with you
• Disadvantages Short life span
• Lack of visual involvement (people change channel)

23
SECTION 19.1
Advertising Media
Newspaper Advertising

• Newspapersdaily or weekly, local, regional, or
  nationalare the main form of print media for
  many businesses (especially retailers).
• Advantages Newspapers have large readership and
  a high level of reader involvement.
• Disadvantages Circulation can be wasted,
  advertising life is short, and ads are less
  appealing in black and white.

24
SECTION 19.1
Advertising Media
Magazine Advertising

• Both consumer and trade magazines generate a high
  level of reader involvement. Magazines can target
  specific regional areas or interest groups.
• Advantages Targeted audience, longer life span,
  more likely to be remembered, better print
  quality, variety of formats.
• Disadvantages Less mass appeal within a
  geographic area, more expensive, not very timely.

25
SECTION 19.1
Advertising Media
Direct-Mail Advertising

• Direct-mail advertising is sent by businesses
  directly through the mail to prospective
  customers. Types of direct-mail advertising
  include newsletters, catalogs, coupons, samplers,
  price lists, and others.
• Advantages Highly selective distribution,
  variety of sizes and formats, catalogs and
  coupons can actually make a sale.
• Disadvantages Low response rate, high costs.

26
SECTION 19.1
Advertising Media
Directory Advertising

• Telephone directories are the best known
  directories. They are divided into the White
  Pages (free alphabetical listings) and the
  Yellow Pages (paid categorical listings and
  free alphabetical listings for businesses).
• Advantages Relatively inexpensive, used by all
  demographic groups, long life span.
• Disadvantages Not timely.

27
SECTION 19.1
Advertising Media
Outdoor Advertising

• Outdoor signs are better known as billboards.
• Advantages Broad exposure, highly visible, some
  can be changed quickly.
• Disadvantages Use is restricted in some areas,
  limited viewing time, unknown audience.

28
SECTION 19.1
Advertising Media
Transit Advertising
Transit advertising includes printed posters
found inside business and commuter trains,
exterior posters on taxis and buses, and station
posters located near or in subways and in
railroad, bus, and airline terminals

• Advantages Reaches a wide and captive audience
  and is a relatively economical media.
• Disadvantages Unavailable in some areas,
  restricted to transit routes.

29
Online advertising

• Placing messages on the Internet
• Banner Ad rectangle at top or bottom of page
  with advertising on it or you can click to get to
  it
• Advantages A lot of people are on Internet, can
  keep track of number of clicks
• Disadvantages Not high response rate, may
  consider annoying/distraction

30
Specialty advertising

• Relatively inexpensive items with advertisers
  name on them (pens, hats, shirts, cups, etc.)
• Advantages reminder to use product
• Disadvantages small size may limit amount of
  message, might be given to people not interested
  in product

31
Cooperative Advertising

• Cost-sharing arrangement whereby both a supplier
  and a local advertiser pay for advertising (both
  names appear in ad)
• Example Macys having an ad promoting Jessica
  Simpsons new perfume

32
Advertising Campaign

• Is coordination of a series of advertisements
  around a particular theme to promote a product
• Geiko Caveman
• Coke Polar bears
• Milk producers Got Milk
• Advertising Agents work with business clients
  to develop advertising campaigns

33
Sales Promotion

• Short-term incentive offered to encourage buying
  a good or service. The purpose is to INCREASE
  DEMAND and STIMULATE SALES

34
Examples of sales promotions

• Coupons
• Buy one get one free sale
• Factory pack free gift in package (cracker
  jacks and cereal)
• Sponsorship local business having signs on our
  soccer fence (concert)

35
Sales promotions (examples continued)

• Product samples detergent, cologne, toothpaste
  (dentists and doctors)
• Promotional tie-in McDonalds having disney
  characters in their happy meals that go along
  with their movie Goofy movie
• Product placement Pepsi paying Amerian Idol
  judges to drink their products while on screen

36
Advantages/Disadvantages of Sales promotion

• Advantages Generates immediate short-term
  sales, supports other parts of promotional
  campaign
• Disadvantages Costs can be very high, promotion
  may not be effective so may lose money

37
A paid form of nonpersonal communication sent
through a mass medium is known asa. personal
sellingb. publicityc. sales promotiond.
advertising.
38

• An important objective of promotion is to
  __________
• buyers.
• a. deceive
• b. manipulate
• c. inform
• d. delude

39

• Which of the following is an example of outdoor
  media?
• A. A poster in a subway
• B. Large cards mounted on a bus
• C. Calendars printed with a companys name
• D. Electrical signs on high-traffic area

40

• In this type of advertising medium the readership
  is large and there is a high level of reader
  involvement
• A. magazine
• B. direct mail
• C. newspaper
• D. transit advertising

41

• This type of advertising usually has a low
  response rate and is considered to be junk
  mail
• Newspaper
• Direct mail
• Magazines
• Billboards

42

• The prime time for advertising on the television
  is
• A. 4p.m. to 7p.m.
• B. 3p.m. to 8p.m.
• C. 9p.m. to 12p.m.
• D. 8 p.m. to 11p.m.

43

• With this type of advertising media sometimes
  you are limited to the routes that are available
  in your area
• A. direct mail
• B. billboards
• C. transit advertising
• D. all of these

44

• What time slots are radio advertisement slots?
• A. 10, 15, or 20 seconds
• B. 15, 30, or 60 seconds
• C. 25, 50, or 60 seconds
• D. 25, 40, or 60 seconds

45

• The ultimate advertising medium is _________
  because you can communicate your message with
  sound, action, and color.
• A. television
• B. radio
• C. newspaper
• D. magazine

46

• An advantage of this advertising media is that
  almost every home has one.
• A. radio
• B. newpaper
• C. phone book (directory advertising)
• D. magazine

47

• What are the best times for radio advertising?
• A. 4a.m. - 6a.m. and 8p.m. to 11p.m.
• B. 5a.m. - 7a.m. and 6p.m. to 10p.m.
• C. 7a.m. 9a.m. and 3p.m. to 6p.m.
• D. 9a.m. 11a.m. and 1p.m. to 3p.m.

48

• Persuasion is typically used in an advertisement
  when
• A. a product is first introduced.
• B. when the product is brand new.
• C. when there is growing competition
• D. when the sales are declining.

49

• An advantage of promotional activities to society
  is
• A. it creates jobs
• B. it adds money to the economy
• C. it supports mass media
• D. all of these

50

• The means by which advertising can be presented
  is known as a
• a. resource. b. banner. c. medium. d.
  message.

51

• 3. Which of the following is the chief
  advertising medium for most retail stores?
• a. newspaper
• b. television
• c. radio
• d. magazines

52
Publicity/Public Relations

• Non-paid form of business communication about a
  business organization (news story)
• Advantages typically free and it creates
  goodwill
• Disadvantages organization has little control
  over it

53
Public Relation Specialist

• Publicize the good news about a company
• Control negative damage done by negative news

54
News Release

• News release prewritten story about a company
  sent to the media
• New Principals
• Press conference meeting in which a business
  invites media to hear a newsworthy announcement
• War
• Economic disaster

55
Personal Selling

• Person-to-person communication with potential
  customers in an effort to inform, persuade, or
  remind customers

56
Personal selling

• Disadvantages
• Per person cost
• Advantages
• Personal contact
• Can be more informative
• Feedback is immediate

57
Sales Promotion

• Activities or materials that offer consumers a
  direct incentive to buy a good or service
• Coupons
• Rebates
• Buy one get one free

58
Sales Promotions (cont.)

• Advantages
• Generates immediate, short-term sales
• Supports other parts of promotional campaign
• Disadvantages
• Costs can be high (coupons, rebates, etc.)

59
What is the promotional mix?

• It is the combination of the promotional elements
  of
• A. Advertising
• B. Personal selling
• C. Sales Promotions
• D. Publicity

60
Advertising

• Billboards, newspapers, transit, TV, radio,
  magazines, direct mail, social networking sites,
  directory advertising

61
Personal Selling

• Face to face interaction with the customer

62
Sales promotion

• Buy one get one free sales
• Coupons
• Rebates
• Loyalty reward programs
• Spirit cards

63
Public Relations/Publicity

• Non- paid
• Free publicity
• Good deeds/charity special events

64
What is the promotional mix based on?

• Marketing Mix product, price, promotion, place
• Target market
• Policy and objectives for advertising campaign
• Companys financial situation

65
Five steps to promotional planning

• Analyze the market market research
• Identify the target market market segmentation
• Develop promotional objectives identify purpose
  or result of promotional objectives

66
Promotional objectives (continued)

• Develop a promotional budget should be in line
  with objectives
• Select the promotional mix advertising,
  publicity, etc..
• Implement the promotional plan Have a schedule
  and people responsible, keep in line with budget