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
What is positioning?

• How you want the customer to think about your
  business???
• Low price leader
• Best quality
• Best value
• Most unique

7
Positioning based on

• Features and benefits
• New Balance shoe based on comfort and style
• Price/Quality
• Lowest price or high price
• Competition How you compare with the
  competition
• Price or non-price competition

8
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

9
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.

10
Four Main Types of promotions (promotional mix)

• Advertising
• Publicity
• Personal Selling
• Sales Promotion

11
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

12
Choosing advertising medium?

• 1. Cost - fall under business budget amount
• 2. What medium will reach the business target
  market the best?
• 3. What medium will reach the most of your target
  market for the money?

13
Personal Selling

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

14
Personal selling

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

15
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

16
Sales Promotion

• Activities or materials that offer consumers a
  direct incentive to buy a good or service
  typically short-term

17
Sales Promotion

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

18
Examples of sales promotions

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

19
Sales promotions (examples continued)

• Product samples detergent, cologne, toothpaste
  (dentists and doctors)
• Loyalty Marketing programs If they buy so many
  sandwiches, they get one free
• Promotional tie-in McDonalds having disney
  characters in their happy meals that go along
  with their movie Goofy movie

20
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

21
Sales Promotions (cont.)

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

22
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

23
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

24
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

25
A paid form of nonpersonal communication sent
through a mass medium is known asa. personal
sellingb. publicityc. sales promotiond.
advertising.
26

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

27

• 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

28

• 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

29

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

30

• 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.

31

• 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

32

• 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

33

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

34

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

35

• 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.

36

• 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.

37

• 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

38

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

39

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

40
Public Relation Specialist

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

41
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

42
What is the promotional mix?

• It is the combination of the promotional elements
  of
• Advertising
• Personal selling
• Sales Promotions
• Publicity

43
What is the promotional mix based on?

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

44
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

45
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