Promotion

1. Promotion “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Peter Drucker Unit 3

2. Promotional Mix

3. Promotional in Marketing • Promotion-one of the 4 P’s • Product promotion – promotional method used by businesses to convince prospects to select their goods or services instead of the competitor • Institutional promotion – promotional method used to create a favorable image for a business, help to advocate for change or take a stand on a community issue.

4. Types of Promotion in the Promotional Mix Promotional Mix is the cost-effective combination of personal selling, advertising, direct marketing, sales promotion and public relations.

5. Promotional Mix • Personal Selling – requires a sales representative to generate and maintain direct contact with prospects and customers • Advertising – a form of non-personal promotion in which companies pay to promote ideas, good or services • Direct Marketing – type of promotion that companies use to address individuals directly and not through a third party.

6. Promotional Mix, cont. • Sales promotion – represents all marketing activities that are directed at business or retail customers to boost sales. • Public relations – activities help an organization to influence a target audience.

7. Types of Promotion

8. Sales Promotion • Incentives that encourage customers to buy products or services.

9. Types of Sales Promotions • Trade promotions • Consumer Promotions • Coupons – certificates that entitle customer to cash discounts • Premiums – giveaways are lost cost items given to consumer at a discount or for free. • Deal – price packs offer short-term price reductions that are marketed directly on the label or package.(For example: T-shirts are $10.50 each or for two or more $6)

10. Types of Promotions, cont. • Incentives – generally higher-priced products, awards or gift cards given away through contest, sweepstakes, special offers or rebates. (For example: McDonalds monopoly game) • Product samples – a free trial size of a product is given away • Sponsorship – Sponsors offer negotiate the right to use their logo and names on retail products to enhance their corporate image. (For example: Earnhardt Gnassi Racing Team – NASCAR)

11. Types of Promotions, cont. • Promotional Tie-Ins, Cross-Promotion, Cross Selling: sales promotions between or more retails or manufactures (For example: When a new animated feature is about to hit theaters, a movie studio will offer ticket discounts in cereal boxes. • Product Placement – consumer promotion that involves the verbal mention or appearance of a band name product in a TV series, move or sporting event. (For example: There is always a Diet Coke by each judge on American Idol).

12. Types of Promotions, cont. • Loyalty Marketing Program – also known as frequent buyer programs (For example: ShopRite customers sign up for a loyalty program for discounts) • Online Loyalty Program – Online version of a Loyalty Marketing Program • Point-of-Purchase – displays primarily by manufactures to hold and display their products and are usually in high traffic area to promote impulse purchases.

13. Advertising

14. Advertising Media

15. Purpose of Advertising • Advertising – non-personal promotion which promotes ideas, good or services by using a variety of media.

16. Promotional and Institutional Advertising: • Promotional Advertising – advertising designed to increase sales • Institutional Advertising – advertising designed to create a favorable image for a company and foster goodwill in the marketplace. • Mass Advertising • enables companies to reach large numbers of people with their message. TV and radio are often used.

17. Types of Media Media – agencies, means, or instruments used to convey advertising to the public. Four types of media: • Print • Broadcast • Internet • Specialty

18. Print Media Advertising in newspapers, magazines, direct mail, signs, and billboards

19. Types of Print Media • Newspaper • Daily and weekly newspapers • Shoppers and Alternative Newspapers – shoppers contain minimal editorial content, often delivered to specific areas. • National Newspapers • Advantages: • Can target to people living in a certain area • Ads and coupon sales are dated and easily tracked • Disadvantages: • Limited shelf live • Printed in Black and white, less visually appealing, • Circulation and daily readership is declining

20. Types of Print Media • Magazine • Consumer Magazines – Car and Track, Sports Illustrated, Seventeen, Entertainment Weekly • Business-to-Business Magazines – (trade publications): interest professional in specific fields. Ex: Advertising Age • Advantages: • People tend to keep magazines longer • Digital color and photography • Create powerful more memorable images • Variety of presentation (full page, half page, etc.) • Disadvantages: • More expensive than newspapers • Deadline for submission is weeks or months before print • No flexibility if market changes

21. Types of Print Media • Direct Mail • Printed direct mail • Electronic direct mail • Advantages: • Highly selective to who receives it • Tries to reach new customers • Most effective with current customers • Disadvantages: • Yields a low level of response • Redemption rate is 1% - 3% • Image problems- most people consider it junk mail • Printing and distributing can be costly

22. Types of Print Media • Directory Advertising • White Pages • Yellow Pages • Advantages: • Inexpensive • Target all demographic groups • Disadvantages: • Printed only yearly

23. Types of Print Media • Outdoor Advertising • Billboards • Digital billboards • Advantages: • Highly visible • Relatively inexpensive • 24/7 message • Located to reach a specific area • Disadvantages: • Limited viewing time • Increasing government regulations

24. Types of Print Media • Transit Advertising – on public transportation • Busses • Taxi • Bus stops • Public Benches • Advantages: • Reaches a wide and captive audience

25. Broadcast Media • Radio • Can be heard anywhere • Update and change ads daily or hourly • Ability to reach a wide audience • TV • Ultimate advertising • Highly compelling: sight, sound, action and color • Highest production cost • Expensive

26. Internet Advertising Uses web or email • Opt-in email • Banner and Search Engine Ads • Video Ads • Social-media advertising

27. Specialty Media • Known as giveaways • Inexpensive • Imprinted with logo • Limited distribution,

28. Other Advertising • In-store Ads • Ceiling and floor graphics • Electronic shelf ads • Supermarket cart displays • Instant coupon machine • New Media • Cell phones • Video games

29. Media Planning • Process of selecting the appropriate advertising media and deciding the time and space in which ads should appear to accomplish marketing objective. • Answer the three basic questions: • Can the medium present the product and the appropriate business image? • Can the descried customers be targeted with the medium? • Will the medium get the desired response rate?