Promotional Marketing

Sales MeetingFebruary 9, 2011

Video

Marketing and Branding in Real Estate:Superbowl Advertising Inspiredwith Tom Ferry, YourCoach.com

Why?

• Human Nature: We all love getting gifts!

• Giving a person something for free is the most effective way to:– Attract Attention– Develop a Relationship

Is it worth it?

• YES!• Georgia Southern University, 2005 Study:– Promotional products enhance the overall image of a

business– Product recipients are more likely to recommend the

giving business to others– 72 percent of people receiving promotional products at

trade shows remember the companies for more than 12 months

– 76 percent have a positive attitude toward the giving company

Careful Planning• Are you planning to collect names as leads or discount an item as a loss leader to gain a

larger customer base? Determine the reason for the promotion. • Who is the target of your promotional campaign? Is it your competitors customers or

existing clients who have not made a purchase in the last 12 months? • What incentive works best for your customer group? Coupons, sweepstakes or sampling? • What is your available budget? • How will you decide if promotional marketing is a success? Select a clear goal and do

not forget to measure the results.

• Is your promotion in compliance with State and Federal laws. Promotional marketing incentives must comply with the law. For instance, the Federal Trade Commission states "when a "free" offer is tied to the purchase of another product, the price of the purchased product should not be increased from its regular price."

Factors in Promo Campaign

• Budget• Long Term/Short Term Goals• Resource Availability and Cost per item• Market Size & Concentration• Customer Information Needs– Detailed and Complex?– Basic, Already Understood

Never mix image advertising with advertising designed to sell a specific product. To be effective, an ad must serve a single, clear purpose.

What to Promote

• Experience• Knowledge• Diversity• Personality• Niche’ Market

Promotional Mix

• 5 Elements:– Personal Selling, Advertising, Sales Promotion, Direct

Marketing, Publicity• Wide Range of Objectives– Sales Increases, Product Awareness, Brand Equity,

Positioning, Competitive Retaliations, Creation of Image• 3 Basic Objectives:– Present Information to Consumers as well as others– To Increase Demand– To differentiate a product/service

The Marketing Mix

• 4 Elements: Product, Price, Promotion, Distribution• 2 Types of Promotion:– Above the Line: Promotion in mass media (e.g. TV,

radio, newspapers, internet)• Advertiser pays an advertising agency to place the

advertisement

– Below the Line: All other promotion. • Intended to be subtle enough for the consumer to be

unaware that promotion is taking place. • E.g. sponsorship, product placement, testimonials, sales

promotion, merchandising, direct mail, personal selling, public relations, trade shows

Incentives

• Contests• Coupons• Sampling

Sponsorship Programs

• Analyze the current situation: look at which other businesses are sponsoring in the target area.

• Are competitors already doing this and is it providing them with an advantage?

• Define the sponsorship objectives: e.g. raise awareness of the brand; build an image; promote a new product/service

• Strategy: How does the sponsorship fit in with any other promotional activity?

• Define the target audience• Consider what resources are needed to make the

sponsorship a success.

Stages of Promotional Marketing

• Introduction– Inform Audience

• Growth– As product is accepted, increase awareness to encourage

loyalty• Maturity– Use Persuasive tactics to ensure you beat out competition– Clearly Communicate benefits

• Decline– Remind people of the product

Advantages of Using Promotional Products

• Flexible: promotional products can be used in all situations, from a corporate uniform to business gifts, or even merchandise.

• Tangible and long-lasting: promotional products have the benefit of being a long-lasting form of marketing.

• Impact and effectiveness can be easily measured• Higher perceived value: when your clients/potential clients

receive a promotional product they feel important to your business

• Complements other advertising methods: Increasing response rates and the overall effectiveness

Clear Consumer Communication

• Carefully Encode: Craft your message in a way that will be understood– Think about how your

audience perceives: Words, Symbols, Sounds, Other Stimuli

• Allow Feedback• Reduce Noise• Choose Right Audience

Targets

• Members of Organizations Target Market– Current, Previous, Potential Customers

• Influencers of the Organizations Target Market– Industry Trade Associations, Media

• Other Companies– Title & Escrow, Banks, Stagers

Goals• Focus first and foremost on your existing customers.

– Make sure they are aware of the full range of your products and services– Create opportunities to generate repeat and higher value purchases. – Get your existing customers to spread the word about your business

• Potential customers:– Aim to create brand awareness and credibility. – Ensure they understand your offer and how you differ from your competitors. – Promote individual products differently to different groups of customers.

• Have specific and measurable marketing objectives. – Will help you decide what your marketing messages should be; what marketing

techniques you should use• Customer Care:

– Ensuring that your existing customers are happy with what you offer not only secures repeat business but also generates positive word-of-mouth recommendation.

Items• Usability• Relevancy• Reliability• Visibility

Objectives

Campaign• Build Awareness• Create Interest

• Provide Information• Stimulate Demand• Reinforce the Brand

Get Creative!

• Giving prospects premium promotional goods will:– Increase brand awareness – Give a continual reminder of your brand

• Have something unique and emphasize itCustomized M & M’s

Reusable Items: Mugs, Water BottlesNonwoven grocery bags

e-Grip: Keeps Cell phone from slipping around in the carCompact Items: Umbrellas, FlashlightsTechy: Card Reader, USB Thumb Drive

Home Items: Cookie Cutters, Flower Seeds, Gardening Tools

Questions/Comments