5.02 Explain the promotional mix and the different forms of promotion.

5.02 Explain the promotional mix and the different forms of

promotion.

Elements of The Promotional Mix

Any combination of the different forms of promotion to sell goods and services

Different Forms of Promotion - Advertising

Any paid, non-personal form of communication by an identified sponsor

Examples include: TV commercials, magazine advertisements, direct mail, and the Internet

Different forms of promotion – Sales Promotion

Activities or communications that encourage consumers to purchase products

Example include: giveaways, sweepstakes, free samples, award shows, contests, and coupons

Different forms of promotion – Personal Selling

Personal selling is face-to-face, personalized communication between a seller and a buyer

Examples include: presentation of a demo from a recording artist to a record label executive

Different forms of promotion – Public or Community Relations

Activities used by a business or organization to gain and maintain a positive relationship between themselves and the community

Two types of Public or Community Relations

1. The internal community includes the employees of the company or organization

For example, Coke holding an annual picnic for employees and their families.

Two types of Public or Community Relations

2. The external community includes people outside of the company or organization

For example, Pepsi donating circus tickets to a Big Brother/Big Sister organization.

Different forms of promotion - Sponsorship

The financing of a sports or entertainment entity (athlete, league, team, concert, or event) by a business in return for recognition or affiliation

Types of media used in advertising- Print media

Any written form of communication used to inform, persuade, or remind consumers about products or services offered

Print Media - Newspaper

The most common and the most cost effective type of print media

Newspapers are most effective for local businesses that are trying to reach a specific geographical market

Print Media - Magazines

Likely to be used by advertisers to segment the market based on demographic and behavioral segmentation

For example: men more likely to subscribe to Field and Stream, so this would be cost effective for a brand of men’s razors.

Print Media – Direct Mail

Sent directly to customers, or potential customers of a particular store

For example: all Blockbuster Video members would receive a flyer announcing a special sales event

Print Media – Outdoor Advertising

Includes any outdoor signs and billboards

Outdoor advertising provides 24-hour advertising

Print Media – Transit Advertising

Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages

Battery Park in New York City

Types of media used in advertising – Broadcast Media

Any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered

Broadcast Media - Radio Advertising

Advertisers match their target market to a radio station that segments a particular market.

Has the ability to reach a wide audience.

Broadcast Media - TV Advertising

Includes commercials and infomercials

Is the most effective type of broadcast media as well as the most expensive

Types of media used in advertising – Online Media

Is the placement of advertising messages on the Internet World Wide Web

On-line Media – Banner Ads

Are rectangular boxes at the top or bottom of web sites that are used to promote a web site or business

On-line Media – Pop-up Ads

Pop-up advertisements are the advertisements that “pop-up” and interrupt Internet surfing

On-line Media – E-mail Ads

Are used to tailor messages to fit individual web surfers

E-marketers compile or purchase customers databases containing information based on sites visited by web surfers

Types of media used in advertising – Specialty Media

Include “everyday” items with a company name written on them

Examples include: calendars, pens, magnets, and coffee mugs

Types of media used in advertising – Miscellaneous

Many other creative ways of communicating advertising messages to consumers

Examples include: blimps, supermarket carts, hot air balloons, and in-theater advertisements

Forms Of Sales Promotions – Annual Awards Shows

Academy Awards (Oscars)awarded by Academy of MotionPicture Arts & Sciences

Nomination generates media coverage and increases ticket sales

Producers and studios promote films to Academy members through trade publications and talk-show circuit


National Academy Of Recording Arts and Sciences (NARAS) award the Grammy Awards

NARAS is an association of more than 13,000 recording professionals

A Grammy might draw attention to an artist, but does not guarantee acceptance in form of sales


Emmy Awards are awarded by 2 branches of the same organization

Academy of TV Arts and Science awards prime-time Emmy Awards for night time television and Daytime Emmy Awards for daytime television


Emmy Awards draws monumental attention to TV shows

Increases viewing because of winning actors/actresses


Tony Awards are awarded to theater professionals for outstanding achievementMichael Crawford in Phantom of the Opera—Best Musical Award


ESPY Awards by ESPN and are awarded for excellence in sports performance

Nominating committee consists of sports executives, journalists and retired athletes


Besides athletes and coaches, many actors and musicians attend and participate in event

ESPY Awards make contributions to the V Foundation, established by ESPN in honor of the late NCSU Basketball Coach Jim Valvano

Forms Of Sales Promotions – Trade Shows & Conventions

Provide promotional opportunities for manufacturers wholesalers, retailers, and movie producers to learn about and support new products and new technology in the

industry

Forms of Sales Promotions - Incentives

Used to generate awareness, interest, and increase sales.

Forms Of Sales Promotions - Incentives

Contests Prizes are awarded based on

contestant skill and/or ability Examples include: American

Idol, Fear Factor, and Dog Eat Dog


SweepstakesPrizes awarded based on the

chance or luck of the contestant Examples include winning concert

tickets from a local radio station


Rebates Discounts offered by manufacturer

when consumer purchases a sports entertainment good or service during specified time period

For example: mail-in rebates for purchasing two DVD’s at a time

Forms Of Sales Promotions - Premiums

Low cost items given away with the sponsor’s product as part of a sales promotion

For example: Powerade gives away a cooler with a purchase of a case of powdered drink mix

Forms Of Sales Promotions - Coupons

Offer price reductions and found in print advertisements, inserted inside packaging, incorporated as part of the product package, or mailed to consumers

For example: Blockbuster coupons on popcorn packaging or coupons inserted in Sunday newspaper

Forms Of Sales Promotions –Traffic builders

Low cost items given to customers for attending an event, or visiting a store

For example, first 200 customers to attend grand opening of new Sports Authority receive a Sports Authority key chain

Forms Of Sales Promotions - Sampling

Refers to giving consumers a “taste” for sporting event or concert

For example: fan participation at a track and field event and Faith Hill selecting member of the concert audience to stand with her on stage

Analyze the steps of promotional planning

1. Determine strategy for reaching target market

Push or Pull Strategies


Push strategies

Used by manufacturer to convince or “ push “ retailers to carry and promote products

Relies heavily on personal selling and sales promotion


Pull strategiesDirected towards customers to

increase their interest and demand for products

Customers will “pull“ or convince retailers to carry sports or entertainment products.

Relies heavily on advertising


2. Determine the objectives of the promotional activity

For example, is the objective to increase sales, increase market share, or create brand awareness ?


3. Establish a promotional budget

No exact science exists for establishing a promotional budget

Analyze steps of promotional planning - Budgets

Common methods of determining budgets include:

1. Percentage of expected sales. Based on a percentage of past or expected

sales to determine budget Advantages include limited financial risk. Disadvantages include sales may decrease

reducing promotional budget


2. Objective and task method

Company determines promotional goals, steps needed to meet goals and calculates cost for promotional activities

Most cost effective method for it takes into account what company wants to accomplish


3. Competitive equivalence

Involves matching competitors promotional outlay

Weakest method because it takes into account competitors’ objective only


4. “Whimsical” allocation

All money available after expenses is allocated as promotional budget

Short-term method used to increase sales by building reputation


4. Develop promotional mix

Specific mix chosen should take into consideration the target market, promotional goals, promotional budget

Care should be given to aligning national and local promotional efforts

5.02 Explain the promotional mix and the different forms of promotion.

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Transcript of 5.02 Explain the promotional mix and the different forms of promotion.