Promotion

1. Promotion Chapter 15

2. Promotion • Communication to inform, persuade, and/or remind consumers about an organization’s products and services

3. Inform • When a product is new to the market • Introduction stage • Let customers know about product

4. Persuasion • Used when there is a lot of competition in the market • Want them to buy your product or services versus competitor • Growth/Maturity stage

5. Remind • When product been out awhile • Remind them of how good it is • Maturity stage

6. Product promotional • Advertising designed to increase sales of products or services • Examples: Milk Commercials “Got Milk” encouraging consumers to drink milk • Ad convincing consumers to buy a Honda over a Toyota

7. Institutional Advertising • Creates a favorable impression and goodwill for a business • Examples: Ford emphasizes “Quality is Job 1” in their ads • Dow Chemical has ads showing how they hire new college recruits • Gulf Oil promotes wildlife conservation in some of its ads.

8. Advantages of promotional activities • Society • Promotes economic growth • Adds money to the economy • Creates jobs • Supports mass media

9. Advantages (cont.) • Companies • Creates awareness of company and its products • Helps to develop the company’s image

10. Advantages (cont.) • To consumers • Encourage higher standard of living • Better educate consumers • Help consumers make more intelligent purchases

11. Disadvantages of Promotion • Some promotions are deceptive • Can manipulate consumers • Some are offensive • Some create or reinforce stereotypes • Play upon people’s fears

12. Communication in Promotion • Interpersonal communication – involves two or more people in an exchange • Mass communication – involves communication to a large audience and communication is one-way

13. Four Main Types of promotions (promotional mix) • Advertising • Publicity • Personal Selling • Sales Promotion

14. Advertising • Any paid form of nonpersonal communication sent through a mass medium by an organization about its products and services • Examples: TV, Radio, Newspaper, Internet

15. Media • The agencies, means, or instruments to convey messages • Radio • TV • Newspaper • Billboards

16. SECTION 19.1 Advertising Media Media Advertising Expenditures U.S. Advertising Expenditures Advertising is a multibillion-dollar business. Given the figures shown in the pie chart, calculate the total spent on advertising among all types of media. Why do you think television and newspapers bring in the most advertising expenditures?

17. Broadcast Media • Includes Radio and Television Advertising

18. Television advertising • Prime time for network stations • 8p.m to 11p.m. • What are infomercials??? • 30 minute commercial • Promotes items such as cookware, exercise equipment, and appliances

19. SECTION 19.1 Advertising Media Television Advertising • Television is the ultimate advertising medium for many businesses because it can communicate a message with sound, action, and color. • Advantages: Can be directed at a specific audience, is timely, takes advantage of holidays and special events. • Disadvantages: Highest production costs, high cost for time, audience is not assured.

20. Best times for Radio Advertising? • In the morning when going to work or school: 7:00a.m. – 9:00a.m. • In the afternoon when leaving work or school: 3:00p.m. – 6:00p.m.

21. Radio advertisements • Presented in 15, 30, or 60 second slots (longer slots are more expensive) • What are some of your favorite radio commercials????

22. Radio Advertising • Advantages – • Target specific audience • More flexible, can be changed easier • Mobile medium – can be taken with you • Disadvantages – Short life span • Lack of visual involvement (people change channel)

23. SECTION 19.1 Advertising Media Newspaper Advertising • Newspapers—daily or weekly, local, regional, or national—are the main form of print media for many businesses (especially retailers). • Advantages: Newspapers have large readership and a high level of reader involvement. • Disadvantages: Circulation can be wasted, advertising life is short, and ads are less appealing in black and white.

24. SECTION 19.1 Advertising Media Magazine Advertising • Both consumer and trade magazines generate a high level of reader involvement. Magazines can target specific regional areas or interest groups. • Advantages: Targeted audience, longer life span, more likely to be remembered, better print quality, variety of formats. • Disadvantages: Less mass appeal within a geographic area, more expensive, not very timely.

25. SECTION 19.1 Advertising Media Direct-Mail Advertising • Direct-mail advertising is sent by businesses directly through the mail to prospective customers. Types of direct-mail advertising include newsletters, catalogs, coupons, samplers, price lists, and others. • Advantages: Highly selective distribution, variety of sizes and formats, catalogs and coupons can actually make a sale. • Disadvantages: Low response rate, high costs.

26. SECTION 19.1 Advertising Media Directory Advertising • Telephone directories are the best known directories. They are divided into the White Pages (free alphabetical listings) and the Yellow Pages (paid categorical listings and free alphabetical listings for businesses). • Advantages: Relatively inexpensive, used by all demographic groups, long life span. • Disadvantages: Not timely.

27. SECTION 19.1 Advertising Media Outdoor Advertising • Outdoor signs are better known as billboards. • Advantages: Broad exposure, highly visible, some can be changed quickly. • Disadvantages: Use is restricted in some areas, limited viewing time, unknown audience.

28. SECTION 19.1 Advertising Media Transit Advertising • Transit advertising includes printed posters found inside business and commuter trains, exterior posters on taxis and buses, and station posters located near or in subways and in railroad, bus, and airline terminals • Advantages: Reaches a wide and captive audience and is a relatively economical media. • Disadvantages: Unavailable in some areas, restricted to transit routes.

29. Online advertising • Placing messages on the Internet • Banner Ad – rectangle at top or bottom of page with advertising on it or you can click to get to it • Advantages: A lot of people are on Internet, can keep track of number of “clicks” • Disadvantages: Not high response rate, may consider annoying/distraction

30. Specialty advertising • Relatively inexpensive items with advertiser’s name on them (pens, hats, shirts, cups, etc.) • Advantages: reminder to use product • Disadvantages: small size may limit amount of message, might be given to people not interested in product

31. Cooperative Advertising • Cost-sharing arrangement whereby both a supplier and a local advertiser pay for advertising (both names appear in ad) • Example: Macy’s having an ad promoting Jessica Simpson’s new perfume

32. Advertising Campaign • Is coordination of a series of advertisements around a particular theme to promote a product • Geiko – Caveman • Coke – Polar bears • Milk producers – “Got Milk” • Advertising Agents – work with business clients to develop advertising campaigns

33. Sales Promotion Short-term incentive offered to encourage buying a good or service. The purpose is to INCREASE DEMAND and STIMULATE SALES

34. Examples of sales promotions • Coupons • Buy one get one free sale • Factory pack – free gift in package (cracker jacks and cereal) • Sponsorship – local business having signs on our soccer fence (concert)

35. Sales promotions (examples continued) • Product samples – detergent, cologne, toothpaste (dentists and doctors) • Promotional tie-in – McDonalds having disney characters in their happy meals that go along with their movie “Goofy” movie • Product placement – Pepsi paying Amerian Idol judges to drink their products while on screen

36. Advantages/Disadvantages of Sales promotion • Advantages: Generates immediate short-term sales, supports other parts of promotional campaign • Disadvantages: Costs can be very high, promotion may not be effective so may lose money

37. A paid form of nonpersonal communication sent through a mass medium is known asa. personal sellingb. publicityc. sales promotiond. advertising.

38. An important objective of promotion is to __________ buyers. a. deceive b. manipulate c. inform d. delude

39. Which of the following is an example of outdoor media? • A. A poster in a subway • B. Large cards mounted on a bus • C. Calendars printed with a company’s name • D. Electrical signs on high-traffic area

40. In this type of advertising medium the readership is large and there is a high level of reader involvement • A. magazine • B. direct mail • C. newspaper • D. transit advertising

41. This type of advertising usually has a low response rate and is considered to be “junk” mail: • Newspaper • Direct mail • Magazines • Billboards

42. The prime time for advertising on the television is • A. 4p.m. to 7p.m. • B. 3p.m. to 8p.m. • C. 9p.m. to 12p.m. • D. 8 p.m. to 11p.m.

43. With this type of advertising media sometimes you are limited to the routes that are available in your area • A. direct mail • B. billboards • C. transit advertising • D. all of these

44. What time slots are radio advertisement slots? • A. 10, 15, or 20 seconds • B. 15, 30, or 60 seconds • C. 25, 50, or 60 seconds • D. 25, 40, or 60 seconds

45. The ultimate advertising medium is _________ because you can communicate your message with sound, action, and color. • A. television • B. radio • C. newspaper • D. magazine

46. An advantage of this advertising media is that almost every home has one. • A. radio • B. newpaper • C. phone book (directory advertising) • D. magazine

47. What are the best times for radio advertising? • A. 4a.m. - 6a.m. and 8p.m. to 11p.m. • B. 5a.m. - 7a.m. and 6p.m. to 10p.m. • C. 7a.m. – 9a.m. and 3p.m. to 6p.m. • D. 9a.m. – 11a.m. and 1p.m. to 3p.m.

48. Persuasion is typically used in an advertisement when • A. a product is first introduced. • B. when the product is brand new. • C. when there is growing competition • D. when the sales are declining.

49. An advantage of promotional activities to society is • A. it creates jobs • B. it adds money to the economy • C. it supports mass media • D. all of these

50. The means by which advertising can be presented is known as a • a. resource. b. banner. c. medium. d. message.