Unit 8Unit 8PromotionPromotion
PromotionPromotion
What are your firstWhat are your first impressions impressions of this ad?of this ad?
After glancing at the ad,After glancing at the ad, did did it make you want toit make you want to stop stop and read it?and read it?
How does this ad motivateHow does this ad motivate its target market to action? its target market to action?
Unit 8 VocabularyUnit 8 Vocabulary
Advertising Advertising Agencies Advertising Campaign Audience Broadcast Media Consumer Promotions Cost per Thousand (CPM) Coupons Direct Marketing Display Fixtures Frequency Impression Incentives
Institutional Advertising Institutional Promotion Kiosk Marquee Media Media Planning News Release Online Advertising Point-of-Purchase Displays Premiums Print Media Product Promotion Promotion Promotional Advertising
Unit 8 VocabularyUnit 8 Vocabulary
Promotional Mix Promotional Tie-ins Publicity Public Relations Pull Policy Push Policy Sales Promotion Store Layout Storefront Specialty Media Trade Promotions Transit Media Visual Merchandising
Unit 8 Essential QuestionUnit 8 Essential Question
How is promotional How is promotional knowledge and skill in knowledge and skill in communicating information communicating information used to achieve a desired used to achieve a desired marketing outcome?marketing outcome?
Essential Question 1 Essential Question 1
PromotionPromotion
What is the purpose of promotion?What is the purpose of promotion?
What is promotion?What is promotion?
Any form of communication used by a business to inform, persuade, or remind people about its products and improve its image.
There are two forms of promotion:– Product
– Institutional
Forms of PromotionForms of Promotion
Product:– Creates an interest in the product.
– Introduces new products and businesses.
– Explains a product.
– Supports personal selling efforts.
– Creates new markets.
Institutional:– Creates a favorable impression and goodwill for a
business or an organization.
– Presents information about the companies role in the community.
Essential Question 2 Essential Question 2
PromotionPromotion
What are the types of promotion?What are the types of promotion?
Types of PromotionTypes of Promotion
Advertising
Public Relations
Direct Marketing
Sales Promotion
Personal SellingDR. DIWAKAR NAGULA last week opened Southeast Spine & Rehabilitation at 130 North Gross Road, Kingsland. He specializes in treating chronic pain with traditional medicine as well as chiropractic manipulation and physical therapy. (Tribune & Georgian photo/Renee M. Liss)
Types of PromotionTypes of Promotion
Advertising: Paid presentation of ideas, goods, or services directed toward a mass audience
Types of PromotionTypes of Promotion
Public Relations: Activities used by an organization to create a favorable image for itself, its products, or its policies.
Types of PromotionTypes of Promotion
Direct Marketing: Type of advertising directed to a targeted group of prospects and customers rather than a mass audience.– Snail Mail
Types of PromotionTypes of Promotion Sales Promotion: Marketing activities –
other than advertising, public relations, and personal selling – that are used to stimulate purchasing and sales– Usually involves short term activities.– Offers some type of incentive: product earned
or given away– Can be successfully used in all channels of
distribution.
Types of PromotionTypes of Promotion
– Types of Sales Promotions» Trade Promotions: Activities designed
to get support for a product from manufactures, wholesalers, and retailers
Promotional Allowances Cooperative Advertising Slotting Allowances Sales Force Promotions Trade Shows and Conventions
Promotional MixPromotional Mix
– Types of Sales Promotions» Consumer Promotions: Strategies that
encourage customers to buy a product or service
Coupons Premiums Deals Incentives Product Samples Sponsorships Promotional Tie-Ins Product Placement Visual Merchandising
Types of PromotionTypes of Promotion
Personal Selling: Oral presentations to one or more potential buyers with the intent of making a sale.
The responsibility of sales personnel.– Order - taking personnel– Order - getting personnel
The most flexible and individualized type of promotion available.
Essential Question 3 Essential Question 3
PromotionPromotion
What strategies are used to develop What strategies are used to develop the promotional mix?the promotional mix?
Promotional MixPromotional Mix Promotional Mix: Combination of
promotional strategies and cost-effective allocation of resources
Strategies are designed to complement one another– Advertising and direct marketing create awareness
of a product– Public relations creates a favorable image and brand
recognition– Sales promotions stimulate sales and reinforce
advertising and selling efforts– Personal selling builds on the previous by
completing the sale
Promotional MixPromotional Mix Special promotional mix strategies
– Push Policy: Uses a mix of personal selling, advertising, and buying discounts to push a manufactures products onto the retailer in the distribution channel.
– Pull Policy: Uses a mix of local and national advertising, in-store displays, sales promotion, and public relations to reach customers to create a demand which will pull the product into the retail outlet.
Essential Question 4 Essential Question 4
PromotionPromotion
What are the different types of What are the different types of advertising media and associated advertising media and associated costs?costs?
Advertising Advertising (Print Media)(Print Media)
Newspaper
Finance News
Magazines
TIMES
Advertising Advertising (Print Media)(Print Media)
Direct Mail
Outdoor Advertising
Advertising Advertising (Print Media)(Print Media)
Directories
Transit Advertising
Advertising Advertising (Print Media)(Print Media)
Other print media.
Advertising Advertising (Broadcast Media)(Broadcast Media)
Television
Advertising Advertising (Broadcast Media)(Broadcast Media)
Radio
Internet
Media CostsMedia Costs Newspaper
– Classified Ad: Advertise everything from services performed to houses for sale to job openings.
– Display Ad: Involve creative illustration of the product being advertised.
Media CostsMedia Costs Newspaper
– Run-of-Paper Rate: Allows the newspaper to decide where to run the ad in the paper.
– Open Rate: Rate charged to businesses that advertise infrequently.
– Contract Rate: Discounted rate offered to business that advertise more frequently and for a specified period of time.
Media CostsMedia Costs Magazine
– Bleed: Ads are printed to the very edge of the page, leaving no white border. Generally costs 15 to 20 percent extra.
– Black-and-White Rates: Lowest rates offered and the ads are in black and white.
– Color Rates: Rates increase for each color added.
– Full-Color: The most expensive rate and all four print colors are used.
Media CostsMedia Costs Magazine
– Premium Position: Rates determined as to where the ad is placed in the magazine.
– Frequency Discounts: Offered to advertisers who run the same ad several times during the year.
– Commission: A percentage of sales given by the magazine to the advertising agency for placing the ad for the advertiser.
– Cash Discounts: Offered to businesses for paying the bill earlier than its due date.
Media CostsMedia Costs Radio
– Network Radio Advertising: Broadcast from a studio to all affiliated radio stations.
– National Spot Radio Advertising: Used by national firms to advertise on a local station-by-station basis.
– Local Radio Advertising: Used by local business for its target market.
Television– Vary with time of day. The most expensive is prime
time 7 to 11 P.M.
Media CostsMedia Costs CPM
– Cost Per ThousandCost Per Thousand
– Cost to expose 1000 readers to the ad.Cost to expose 1000 readers to the ad.
CPM = CPM = cost of ad X 1000cost of ad X 1000
CirculationCirculation
Essential Question 5 Essential Question 5
PromotionPromotion
What is cooperative advertising?What is cooperative advertising?
Cooperative AdvertisingCooperative Advertising
Type of trade promotions where the manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.
Essential Question 6 Essential Question 6
PromotionPromotion
What are the differences between What are the differences between publicity and public relations?publicity and public relations?
Public RelationsPublic Relations
Types of Public Relations– News Releases: An announcement sent by a
business or organization to media outlets» Feature Articles
» Photos
» Press Conference
Public RelationsPublic Relations
Types of Public Relations– Publicity: Involves bringing news or
newsworthy information to the public’s attention» Builds a business’ image.» Publicity is free.» Not much control over the message being
sent to the public.
Essential Question 7 Essential Question 7
PromotionPromotion
How do the various media impact How do the various media impact the public?the public?
Media ImpactMedia Impact
Media: The agencies, means, or instruments used to convey advertising messages to the public.– Print Media– Broadcast Media– Online Media– Specialty Media
Media ImpactMedia Impact
Media Planning: Process of selecting the advertising media and deciding the time or space in which ads should appear
To establish the media plan and select the right medium, advertisers address three basic questions:
1. Can the medium present the product and the appropriate business image?
2. Can the desired customers be targeted with medium?
3. Will the medium get the desired response rate?
Essential Question 8 Essential Question 8
PromotionPromotion
How do ethics and legal issues How do ethics and legal issues impact promoting and advertising a impact promoting and advertising a product or service?product or service?