5.02 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 AdvertisingSales PromotionPersonal SellingPublic or Community Selling

InternalExternal

Sponsorship

Different Forms of Promotion - Advertising

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

EX:

TV commercials, magazine, Internet,

advertisements, and direct mail

Different forms of promotion – Sales Promotion

Activities or communications that encourage consumers to purchase products

EX: 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

EX: 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

Internal

External

Two types of Public or Community Relations

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

EX: 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

EX: 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

Print Media

Newspapers

Magazines

Direct Mail

Outdoor Advertising

Transit Advertising

Broadcast Media

Radio Advertising

TV Advertising

Specialty Media

Online Media

Banner Ads

Pop-up Ads

E-mail Ads

Miscellaneous

Mobile Media

Apps

Commercials

Banners

Miscellaneous Media

Types of media used in advertising

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

EX: 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

EX: 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

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 Radio Advertising

TV Advertising

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 (E-commerce)

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 –Mobile Media (M-Commerce)

Include the use of mobile phones to promote of sell products

EX: Apps, i-tunes, mobile games, and mobile banners

Types of media used in advertising – Specialty Media

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

EX: calendars, pens, magnets, and coffee mugs

Types of media used in advertising – Miscellaneous

Many other creative ways of communicating advertising messages to consumers

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

Forms Of Sales Promotions

Annual Awards Shows

Trade Shows & Conventions

Incentives

Premiums

Sampling

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

Forms Of Sales Promotions –Annual Awards Shows

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

NARAS- 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

Forms Of Sales Promotions – Annual Awards Shows

Emmy Awards- Academy of TV Arts and Science awards (2 divisions)Night Time Television AwardsDaytime Emmy Awards

What Do the Emmy Awards do? Draws monumental attention to TV shows

Increases viewing because of winning actors/actresses

Forms Of Sales Promotions – Annual Awards Shows

Tony Awards - theater professionals for outstanding achievement

ESPY Awards - excellence in sports performance (by ESPN) Nominating committee consists of sports

executives, journalists and retired athletesESPY 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 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

EX: American Idol, Fear Factor, and Dog Eat Dog

Forms Of Sales Promotions - Incentives

SweepstakesPrizes awarded based on the chance or

luck of the contestant

EX: winning concert tickets from a local radio station

Forms Of Sales Promotions - Incentives

RebatesDiscounts offered by manufacturer

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

EX: 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

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

Forms Of Sales Promotions - Premiums

Coupons Offer price reductions and found in

print advertisements, inserted inside packaging, incorporated as part of the product package, or mailed to consumers

EX: Blockbuster coupons on popcorn packaging or coupons inserted in Sunday newspaper

Forms Of Sales Promotions - Premiums

Traffic-buildersLow cost items given to customers for

attending an event, or visiting a store

EX: first 200 customers to attend grand opening of new Sports Authority receive a Sports Authority

key chain

Forms Of Sales Promotions - Sampling

Sampling

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

EX: 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

2. Determine the objectives of the promotional activity

3. Establish a promotional budget

1. Determine strategy for reaching target market- Push 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 productsCustomers will “pull“ or convince

retailers to carry sports or entertainment products.

Relies heavily on advertising

1. Determine strategy for reaching target market- Pull strategies

2. Determine the objectives of the promotional activity

Increase sales

Increase market share

Create brand awareness

3. Establish a promotional budget

Common methods (No exact science)

Percentage of expected salesObjective and task methodCompetitive equivalence “Whimsical” allocation

3. Establish a promotional budget

Common methods (No exact science)

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

3. Establish a promotional budget

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. Establish a promotional budget

Competitive equivalence Involves matching competitors

promotional outlay

Weakest method because it takes into account competitors’ objective only

3. Establish a promotional budget

“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