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Promotion Chapter 15 Slide 2 Promotion Communication to inform, persuade, and/or remind consumers about an organizations products and services Slide 3 Inform When a product is new to the market Introduction stage Let customers know about product Slide 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 Slide 5 Remind When product been out awhile Remind them of how good it is Maturity stage Slide 6 What is positioning? How you want the customer to think about your business??? Low price leader Best quality Best value Most unique Slide 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 Slide 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 Slide 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. Slide 10 Four Main Types of promotions (promotional mix) Advertising Publicity Personal Selling Sales Promotion Slide 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 Slide 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? Slide 13 Personal Selling Person-to-person communication with potential customers in an effort to inform, persuade, or remind customers Slide 14 Personal selling Disadvantages Per person cost Advantages: Personal contact Can be more informative Feedback is immediate Slide 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 Slide 16 Sales Promotion Activities or materials that offer consumers a direct incentive to buy a good or service typically short-term Slide 17 Sales Promotion Short-term incentive offered to encourage buying a good or service. The purpose is to INCREASE DEMAND and STIMULATE SALES Slide 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) Slide 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 Slide 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 Slide 21 Sales Promotions (cont.) Advantages: Generates immediate, short-term sales Supports other parts of promotional campaign Disadvantages: Costs can be high (coupons, rebates, etc.) Slide 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 Slide 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 Slide 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 Slide 25 A paid form of nonpersonal communication sent through a mass medium is known as a. personal selling b. publicity c. sales promotion d. advertising. Slide 26 An important objective of promotion is to __________ buyers. a. deceive b. manipulate c. inform d. delude Slide 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 Slide 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 Slide 29 This type of advertising usually has a low response rate and is considered to be junk mail: a.Newspaper b.Direct mail c.Magazines d.Billboards Slide 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. Slide 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 Slide 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 Slide 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 Slide 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 Slide 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. Slide 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. Slide 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 Slide 38 The means by which advertising can be presented is known as a a. resource.b. banner. c. medium.d. message. Slide 39 3. Which of the following is the chief advertising medium for most retail stores? a. newspaper b. television c. radio d. magazines Slide 40 Public Relation Specialist Publicize the good news about a company Control negative damage done by negative news Slide 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 Slide 42 What is the promotional mix? It is the combination of the promotional elements of: Advertising Personal selling Sales Promotions Publicity Slide 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 Slide 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 Slide 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