5.02 Explain the promotional mix and the different forms of promotion.

1. 5.02 Explain the promotional mix and the different forms of promotion.

2. Elements of The Promotional Mix • Any combination of the different forms of promotion to sell goods and services

3. Different Forms of Promotion - Advertising • Any paid, non-personal form of communication by an identified sponsor • Examples include: TV commercials, magazine advertisements, direct mail, and the Internet

4. Different forms of promotion – Sales Promotion • Activities or communications that encourage consumers to purchase products • Example include: giveaways, sweepstakes, free samples, award shows, contests, and coupons

5. Different forms of promotion – Personal Selling • Personal selling is face-to-face, personalized communication between a seller and a buyer • Examples include: presentation of a demo from a recording artist to a record label executive

6. Different forms of promotion – Public or Community Relations • Activities used by a business or organization to gain and maintain a positive relationship between themselves and the community

7. Two types of Public or Community Relations • The internal community includes the employees of the company or organization • For example, Coke holding an annual picnic for employees and their families.

8. Two types of Public or Community Relations • The external community includes people outside of the company or organization • For example, Pepsi donating circus tickets to a Big Brother/Big Sister organization.

9. Different forms of promotion - Sponsorship • The financing of a sports or entertainment entity (athlete, league, team, concert, or event) by a business in return for recognition or affiliation

10. Types of media used in advertising- Print media • Any written form of communication used to inform, persuade, or remind consumers about products or services offered

11. Print Media - Newspaper • The most common and the most cost effective type of print media • Newspapers are most effective for local businesses that are trying to reach a specific geographical market

12. Print Media - Magazines • Likely to be used by advertisers to segment the market based on demographic and behavioral segmentation • For example: men more likely to subscribe to Field and Stream, so this would be cost effective for a brand of men’s razors.

13. Print Media – Direct Mail • Sent directly to customers, or potential customers of a particular store • For example: all Blockbuster Video members would receive a flyer announcing a special sales event

14. Print Media – Outdoor Advertising • Includes any outdoor signs and billboards • Outdoor advertising provides 24-hour advertising

15. Print Media – Transit Advertising • Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages

16. Types of media used in advertising – Broadcast Media • Any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered

17. Broadcast Media - Radio Advertising • Advertisers match their target market to a radio station that segments a particular market. • Has the ability to reach a wide audience.

18. Broadcast Media - TV Advertising • Includes commercials and infomercials • Is the most effective type of broadcast media as well as the most expensive

19. Types of media used in advertising – Online Media • Is the placement of advertising messages on the Internet World Wide Web

20. On-line Media – Banner Ads • Are rectangular boxes at the top or bottom of web sites that are used to promote a web site or business

21. On-line Media – Pop-up Ads • Pop-up advertisements are the advertisements that “pop-up” and interrupt Internet surfing

22. On-line Media – E-mail Ads • Are used to tailor messages to fit individual web surfers • E-marketers compile or purchase customers databases containing information based on sites visited by web surfers

23. Types of media used in advertising – Specialty Media • Include “everyday” items with a company name written on them • Examples include: calendars, pens, magnets, and coffee mugs

24. Types of media used in advertising – Miscellaneous • Many other creative ways of communicating advertising messages to consumers • Examples include: blimps, supermarket carts, hot air balloons, and in-theater advertisements

25. Forms Of Sales Promotions – Annual Awards Shows Academy Awards (Oscars) awarded by Academy of Motion Picture Arts & Sciences • Nomination generates media coverage and increases ticket sales • Producers and studios promote films to Academy members through trade publications and talk-show circuit

26. Forms Of Sales Promotions – Annual Awards Shows • National Academy Of Recording Arts and Sciences (NARAS) award the Grammy Awards • NARAS is an association of more than 13,000 recording professionals • A Grammy might draw attention to an artist, but does not guarantee acceptance in form of sales

27. Forms Of Sales Promotions – Annual Awards Shows • Emmy Awards are awarded by 2 branches of the same organization • Academy of TV Arts and Science awards prime-time Emmy Awards for night time television and Daytime Emmy Awards for daytime television

28. Forms Of Sales Promotions – Annual Awards Shows • Emmy Awards draws monumental attention to TV shows • Increases viewing because of winning actors/actresses

29. Forms Of Sales Promotions – Annual Awards Shows • Tony Awards are awarded to theater professionals for outstanding achievement

30. Forms Of Sales Promotions – Annual Awards Shows • ESPY Awards by ESPN and are awarded for excellence in sports performance • Nominating committee consists of sports executives, journalists and retired athletes

31. Forms Of Sales Promotions – Annual Awards Shows • Besides athletes and coaches, many actors and musicians attend and participate in event • ESPY Awards make contributions to the V Foundation, established by ESPN in honor of the late NCSU Basketball Coach Jim Valvano

32. Forms Of Sales Promotions – Trade Shows & Conventions • Provide promotional opportunities for manufacturers wholesalers, retailers, and movie producers to learn about and support new products in the industry

33. Forms of Sales Promotions - Incentives • Used to generate awareness, interest, and increase sales.

34. Forms Of Sales Promotions - Incentives Contests • Prizes are awarded based on contestant skill and/or ability • Examples include: American Idol, Fear Factor, and Dog Eat Dog

35. Forms Of Sales Promotions - Incentives Sweepstakes • Prizes awarded based on the chance or luck of the contestant • Examples include winning concert tickets from a local radio station

36. Forms Of Sales Promotions - Incentives Rebates • Discounts offered by manufacturer when consumer purchases a sports entertainment good or service during specified time period • For example: mail-in rebates for purchasing two DVD’s at a time

37. Forms Of Sales Promotions - Premiums • Low cost items given away with the sponsor’s product as part of a sales promotion • For example: Powerade gives away a cooler with a purchase of a case of powdered drink mix

38. Forms Of Sales Promotions - Premiums Coupons • Offer price reductions and found in print advertisements, inserted inside packaging, incorporated as part of the product package, or mailed to consumers • For example: Blockbuster coupons on popcorn packaging or coupons inserted in Sunday newspaper

39. Forms Of Sales Promotions - Premiums Traffic-builders • Low cost items given to customers for attending an event, or visiting a store • For example, first 200 customers to attend grand opening of new Sports Authority receive a Sports Authority key chain

40. Forms Of Sales Promotions - Sampling Sampling • Refers to giving consumers a “taste” for sporting event or concert • For example: fan participation at a track and field event and Faith Hill selecting member of the concert audience to stand with her on stage

41. Analyze the steps of promotional planning • Determine strategy for reaching target market

42. Analyze the steps of promotional planning Push strategies • Used by manufacturer to convince or “ push “ retailers to carry and promote products • Relies heavily on personal selling and sales promotion

43. Analyze the steps of promotional planning Pull strategies • Directed towards customers to increase their interest and demand for products • Customers will “pull“ or convince retailers to carry sports or entertainment products. • Relies heavily on advertising

44. Analyze the steps of promotional planning • Determine the objectives of the promotional activity • For example, is the objective to increase sales, increase market share, or create brand awareness ?

45. Analyze the steps of promotional planning • Establish a promotional budget • No exact science exists for establishing a promotional budget

46. Analyze steps of promotional planning - Budgets • Common methods of determining budgets include: • Percentage of expected sales. • Based on a percentage of past or expected sales to determine budget • Advantages include limited financial risk. Disadvantages include sales may decrease reducing promotional budget

47. Analyze steps of promotional planning - Budgets • Objective and task method • Company determines promotional goals, steps needed to meet goals and calculates cost for promotional activities • Most cost effective method for it takes into account what company wants to accomplish

48. Analyze steps of promotional planning - Budgets • Competitive equivalence • Involves matching competitors promotional outlay • Weakest method because it takes into account competitors’ objective only

49. Analyze steps of promotional planning - Budgets • “Whimsical” allocation • All money available after expenses is allocated as promotional budget • Short-term method used to increase sales by building reputation

50. Analyze the steps of promotional planning • Develop promotional mix • Specific mix chosen should take into consideration the target market, promotional goals, promotional budget • Care should be given to aligning national and local promotional efforts