5.03 Coordinate Promotional Efforts

1. 5.03 CoordinatePromotional Efforts SEM II

2. Implementation of the push or pull strategies will depend on the identified target market Push strategies – used by a manufacturer to convince or “push” retailers to carry and promote products in their retail establishments. Relies heavily on personal selling and sales promotion Pull Strategies are directed towards customers to increase their interest and demand for products. Customers will “pull” or convince retailers to carry the products. Relies heavily on advertising. Consider the Audience

3. Primary target markets are the core group of consumers on which promotional efforts are focused. Secondary target markets are consumers who occasionally purchase the product because of one identifying factor. Audience includes: Influencers Example: A teenage daughter who wants a ticket to a concert. Decision-makers Example: The parent that will be deciding on whether the purchase of the ticket will occur. Followers Example: The friend who will accompany the daughter to the concert. Purchasers Example: The parent who will pay for the ticket. Consider the Audience (Continued)

4. Identify objectives • Inform consumers of the product • Persuade the consumers to purchase the product • Remind the consumers of the availability and benefits of the purchase

5. Should be interdependent and utilize several promotional tools Marketers should consider the following when selecting promotional tools: Product life cycles Consumer segmentation Current market characteristics Consumer decision-making process Needs to be reviewed to ensure companies are reaching their intended audience Discuss the promotional mix

6. Quiz Preview • The strategy used by a manufacturer to convince retailers to carry or promote its products is known as: • A. Influential. • B. Pull. • C. Purchasing. • D. Push. • Outward Bound USA promotes its wilderness adventures through brochures distributed to schools and through an informative web site. This is an example of which strategy? • A. Discount • B. Endorse • C. Pull • D. Push • The group of consumers who occasionally purchases the product because of one identifying factor is considered the: • A. Primary consumers. • B. Primary target market. • C. Secondary tertiary market. • D. Secondary target market. • Monique’s grandmother bought her gift certificates to the local theater because she knew Monique enjoyed going to the movies. Monique’s grandmother is an example of which promotional audience? • A. Demonstrator • B. Follower • C. Influencer • D. Purchaser • The elements of the promotional mix should be: • A. Dependent. • B. Independent. • C. Interdependent. • D. Involved

7. Unit 5 Project Part 4 • As a Senior Seminar Student you are competing for an opportunity to become employed full-time in your university’s athletic department after graduation. • Now that you fully understand the target markets of your respective school’s sports, its now time to create strategies to encourage attendance: • Slide 7: Push Strategy • You are to create a strategy that will “push” the school administration into promotions that will entice greater attendance at sporting events. • You are to pick a sport at your school and based on the research done, device a promotional strategy that the administration can use get more students/fans to games. • Along with the strategy state the following: • What is the objective of the strategy? • Who are the Influencers in the Audience? • Who are the Decision-Makers in the Audience? • Who are the Followers in the Audience? • Who are the Purchasers in the Audience? • Slide 8: Pull Strategy • You are to create a strategy that the students will use to “pull” the administration into their needs and wants for attending sporting events. • You are to pick a sport at your school and based on research done, device a set of demands students could make to the administration that would get them coming to more sporting events. • Along with the strategy state the following: • What is the objective of the strategy? • Who are the Influencers in the Audience? • Who are the Decision-Makers in the Audience? • Who are the Followers in the Audience? • Who are the Purchasers in the Audience? • Continue along with Unit 5 Project Part 3. Complete and submit to Edmodo by the end of class.

8. Budget allotments Determine current budget as a stand-alone budget, aside from the entire organization’s budget Budget from previous year and future issues are not taken into consideration Imitation on competitors Budget is set up to mimic competitors Example: McDonalds funded the Ronald McDonald House and other fast-food restaurants followed with their own efforts. Methods of designing the promotional budget

9. Proportion of revenue Allocation of budget based on percentage figures Example: Promotion gets 15% of the current years sales revenues to spend the following year. Activity-based cost method Set objectives, determine the costs and work within them Example: The Carolina Hurricanes devise a promotional plan for a new ad campaign without preparing a cost analysis. After the campaign is complete, costs are determined for each task in the promotional plan. Methods of designing the promotional budget (continued)

10. Develop a Media Strategy • Media is selected based on target market • Advertisers must look for creative ways to reach their audience and uniquely position their product due to advertising clutter • Venue advertising has increased as changes in technology allow for frequent changes to signage and sponsors

11. Develop a Media Strategy (continued) • Product demonstrations and on-site displays are growing in popularity • Usually set up as pre-event entertainment • Example: Tony Stewart’s Home Depot showcar is on display outside a hospitality tent at the Coca-Cola 600. • Internet offers new and innovative ways to promote products Hospitality

12. Quiz Preview • Methods of designing the promotional budget include the: • A. Activity-based cost method. • B. Cost allotment. • C. Pull strategy method. • D. Push strategy method. • Due to the unique nature of the new product, the brand manager proposed the promotional budget be set up as a stand-alone budget separate from the division budget. This is an example of which method of promotional budget design? • A. Activity-based cost method • B. Budget allotments • C. Imitation of competitors • D. Proportion of revenue

13. Unit 5 Project Part 5 • As a Senior Seminar Student you are competing for an opportunity to become employed full-time in your university’s athletic department after graduation. • To successfully implement your new promotional strategies you must have a budget and a media strategy: • Slide 9: Budget Allocations • Your school has 8 varsity sports: Men – Football, Basketball, Baseball, and Soccer. Women – Volleyball, Basketball, Softball, and Soccer. • Each year $10,000 is set aside to pay for school sports promotions with the following break down: Football 25%, Men’s BB 15%, Baseball 11%, Men’s Soccer 12%, Volleyball 12%, Women’s BB 10%, Softball 7%, Women’s Soccer 8%. • First, calculate your sports allocation. Next, using that allocation you are to create a budget for promotions of that sport. You are to include things such as labor costs, material costs (paper, etc), media costs, etc. • Slide 10: Media Strategies • You are to create 4 different media strategies to help promote attendance at your school’s sporting events. • You may choose from any of the medias we have learn in SEM I or II (i.e. TV, Radio, Online, Websites, Email, Direct Mail, etc) • Describe each media and how it will be specifically used to promote the school sporting events. • Continue along with Unit 5 Project Part 4. Complete and submit to Edmodo by the end of class.