Promotion Strategies

1. Promotion Strategies

2. Promo Video • https://www.youtube.com/watch?v=BDcTSTMKfbE

3. Promotion Defined • Communication used by marketers to inform, remind, or persuade potential buyers. • Makes people aware of items to increase sales or popularity.

4. Need to know • Target Market – Very specific! • Frequency – How often your ad runs? • Reach – How many people see your ad?

5. The Promotion Mix Sales Promotion Advertising Personal Selling Public Relations

6. ADVERTISING • Any INFORMATIVE or PERSUASIVE message that is: • Carried by a non-personal medium • Paid for by a sponsor who is identified in the message. • Can reach a large number of people quickly • The internet has increased the options for customers to provide feedback to the advertising.

7. Examples of Advertising • Magazines • Newspapers • Television • Websites • City Buses • Billboards

8. SALES PROMOTION • Includes all promotional activities which are NOT personal selling, advertising, or public relations. • The purpose of Sales Promotions is to stimulate dealer effectiveness or to increase purchases during a specific time period. • Short term techniques are often in the form of incentives.

9. Major Types of Sales Promotion • Consumer Sales Promotions • Coupons • Premiums • Contests • Product Samples • Trade Promotions • Buying and Merchandising Allowance • Salesforce • Bonus Money • Contests

10. PUBLIC RELATIONS • Involves information that is: • Carried by a non-personal medium • Not paid for by a Sponsor • The organization being publicized is not identified as the message sponsor. • Uses third-party sources. • Offers a favorable mention of the marketer’s company or product without direct payment to the publisher.

11. Public Relations Examples • A campaign to encourage businesses to donate computers to schools • Donating to hospitals • Donating to a cause or an organization

12. PERSONAL SELLING • Basic Objectives • Convert potential customers to actual customers. • Keep customers satisfied and loyal. • “Help” current customers to buy more products. • Provide market information to the firm. • Helps customers understand needs and decision processes • Involves personal contact

13. Personal Selling Examples • Personal Meeting • Telemarketers • Emails • Correspondence

14. Case Study • http://www.slideshare.net/fullscreen/monikagvt09/promotional-mix-3675309/8

15. Advertising Decisions • HOW MUCH? • Percent of Sales • Per-unit Expenditure • All you can Afford • Competitive Parity • Research Based • Task Based

16. Ad Vehicles T.V. – Expensive, great for stimulating most of the senses. Many get fast forwarded now. Radio – Very intimate. Cheaper. Easier to select a more targeted market. Digital music and satellite radio is making this less desirable. Magazine – Higher quality images than newspaper or direct mail. Magazines target a specific market. Kept longer than newspapers. Can be very expensive.

17. Newspaper • Newspaper – Very inexpensive, no creative costs (newspaper can create it for you), enormous flexibility in design, placement, and frequency. Most papers are only black and white, newspaper stats are plummeting. With younger demographic. Short shelf life. Ad clutter.

18. Internet • Internet – Consumers use internet to assist them in nearly every aspect of life. • Reach more people at a fraction of the cost compared to traditional advertising. • Through social media blogs, specialized websites and forums, ads can reach a very specific target market. • Users are starting to ignore internet ads because of ad clutter and viruses.

19. Internet Continued • Complaints about your product are easily posted. And viewed by others. Allows for interactive marketing.

20. Billboard • 3-5 seconds to capture attention • Pictures are powerful • Guaranteed audience • Too many ads on the roads today • Can be very selective with ad placement • Can’t change channel on a billboard !

21. Direct Mail • Junk mail • Able to do coop advertising! • 10% or less response rate • If you have a large budget and a product that most common folks would purchase if they had the money, this may be the way to go!

22. Let’s practice • Create (or discuss) a billboard ad for a product • Create a magazine ad for the same product • What are the differences in your strategy?

23. Assignment –Promotional Plan • Write a promotional plan for any wearable technology device and choose 3 vehicles to advertise the product. • Discuss competition and budget considerations as well. • Show an example of one of the ads!

24. Assignment –Promotional Plan • Write a promotional plan for any wearable technology device and choose 3 vehicles to advertise the product. • Discuss competition and budget considerations as well. • Show an example of one of the ads!

25. DAY 2 • Communication and Strategies

26. The Communication Process NOISE NOISE Source Channel Decoding Encoding Receiver Message FEEDBACK

27. Hierarchy of Communication Effects Model PURCHASE The Objectives of Advertising CONVICTION PREFERENCE LIKING KNOWLEDGE AWARENESS BRAND IGNORANCE

28. Push Strategies • Promote to intermediaries to push the product through the channel Promotes to Promotes to Promotes to PRODUCER WHOLESALER RETAILER CONSUMER

29. Pull Strategy • Promote to consumers to stimulate demand and pull the product through the channel Promotes To PRODUCER WHOLESALER RETAILER CONSUMER Orders it Orders it Asks for it