Standard 6 - Promotion

What you’ll learn:• Understand the nature and scope of

promotion• Understand promotional channels

used to communicate with the targeted audiences

Standard 6 Day 1 – Promotion

• Understand the nature and scope of promotion– Explain the role of promotion as a marketing

function– Identify elements of the promotional mix

(advertising, public relations, personal selling, sales promotion)

– Explain the nature of a promotional plan– Explain the importance of coordinating activities

in the promotional mix

Students will be able to:

Promotion

• Any form of communication a business or organization uses to inform, persuade, or remind people about its products

Promotional Mix

A combination of the different types of promotion

1. Personal Selling

2. Advertising

3. Sales promotion

4. Public relations

1) Personal Selling

• Any form of direct contact occurring between a salesperson and a customer

2) Advertising

• Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor– Nationally, businesses spend

about $200 billion annually on various types of advertising

3) Sales Promotion

• All marketing activities, other than personal selling, advertising, and public relations, that are used to stimulate consumer purchasing and sales effectiveness

4) Public Relations and Publicity

• Public Relations – any activity designed to create a favorable image toward a business, its products, or its policies.– It is designed to influence the

public’s view of a business

Promotional Plan

• Promotional Plan outlines how the Promotional Mix will be utilized

• Set goals and objectives– Increase awareness, sales, loyalty, etc.

• Establish spending guidelines– Different Mix elements have very different costs

• Determine Mix elements to reach target market– Research to determine best methods of Mix.

• Monitoring your Promotional Plan– E.g. Track sales prior to promotion and sales

after to quantify increase.

Coordination of Promotional Mix

• Most businesses use more than one type of promotion

• All types of promotion must be coordinated with a common theme

• Must consider the promotional budget

Promotion

Standard 6 Day 2

Standard 6 Day 2• Students will be able to:• Understand promotional channels used to communicate with the

targeted audiences– Explain types of advertising media used to communicate with

target audiences– Understand the use of public-relations activities to communicate

with targeted audiences– Identify methods personal selling is used to communicate with

targeted audiences – Identify and explain communication methods used in sales

promotions– Understand the use of social media tools to communicate with

targeted audiences– Identify metrics used to assess results of promotional efforts

Types of Advertising Media

1. Print Media

2. Broadcast Media

3. Online Advertising

4. Specialty Media

Media are the agencies, means, or instruments used to convey advertising messages to the public.

1) Print Media

Written advertising that may be included in everything from newspaper and magazines to direct mail, signs and billboards. They are among the oldest and most effective types of advertising.

Newspaper Advertising (Print)

• Local (Salt Lake Tribune) or National (USA Today)

• Daily or weekly• Shopper

– Little editorial content– Delivered free

Newspaper Advertising (Print)

• Advantages– Large readership and a high level of reader

involvement– Advertisers can target certain people– The cost is relatively low– Ads are timely

• Disadvantages– Wasted circulation– Short life– Black and white (although many papers are changing

to color format)

Magazine Advertising (Print)

• Classified as– Local, regional, or national– Weeklies, monthlies, and quarterlies– Consumer or business (trade)

Magazine Advertising (Print)

• Advantages– Can target audiences– Longer life span– Print quality is good– People keep magazines longer than newspapers– Offer a variety of presentation formats

• Disadvantages– Less mass appeal within a geographical area– More expensive– Deadlines make them less timely

Direct-Mail Advertising (Print)

• Sent by businesses directly through the mail– Sent to a home or business– Electronic mail

• Includes newsletters, catalogs, coupons, samplers, price lists, circulars, invitations, postage-paid reply cards, and letters.

• Mailing lists are assembled from current customer records or they may be purchased.

Direct-Mail Advertising (Print)

• Advantages– Can be highly selective– Controlled timing– Can be used to actually make the sale

• Disadvantages– Low response level– People think of it as “junk mail”– Dated lists– Cost is high

Directory Advertising (Print)

• An alphabetical listing of households and businesses.

• The best known are telephone directories.

Directory Advertising (Print)

• Advantages– Relatively inexpensive– Can be used with all demographic groups– Are found in 98% of American households– Usually kept for at least a year

• Disadvantage– Only printed once a year– Some service business’ are used infrequently;

therefore, directory advertising must be combined with another type.

Outdoor Advertising (Print)

• Standardized signs are available to local, regional, or national advertisers.

• Purchased from outdoor advertising companies in standard sizes

• Are placed in highly traveled roads, and freeways where there is high visibility.

• Posters – pre-printed sheets put up like wallpaper on outdoor billboards.

• Painted bulletins – painted billboards that are changed about every six months to a year.

• Spectaculars – use lights or moving parts and are in high traffic areas.

A billboard gets right to the point

Which type of outdoor advertising is this?

http://adcritic.com/gfx/print/pdf/nike-pandd050411.pdf

Outdoor Advertising (Print)

• Advantages– Highly visible and relatively inexpensive– 24-hour a day message and located to

reach specific target markets• Disadvantages

– Becoming more restricted – increasingly regulated

– Limited viewing time

Transit Advertising (Print)

• Uses public transportation facilities• Commuter trains, taxis and buses, station

posters near or in subways and in railroad, bus, and airline terminals

Transit Advertising (Print)

• Advantages– Reaches a wide captive audience– Economical– Defined market

• Disadvantages– Not available in smaller towns and cities– Subject to defacement

2) Broadcast Media

• Includes radio and television

• The average person will spend nearly ten years watching TV and almost six years listening to the radio over a 70 year lifetime.

Television Advertising (Broadcast)

• Communicates with sound, action, and color.• Prime time is between 8 and 11 p.m.• Is appealing to large companies with

widespread distribution.

Television Advertising (Broadcast)

• Advantages– Can be directed to an audience with a specific

interest– Message can be adapted to take advantages of

holidays and special events• Disadvantages

– Highest production cost of any media type– High dollar cost for the time used– Actual audience size is not assured – people leave

the room or channel surf – effect of TIVO

Radio Advertising

• Radio reaches 96 % of people over 12 yrs which makes it very effective

• Best times are “drive times” – morning and late afternoon/early evening

Radio (Broadcast)

Radio Advertising (Broadcast)

• Advantages– Can select an audience, such as teens by

choosing the right station– More flexible than print – messages can be

easily changed– It’s a mobile medium – can be taken just

about anywhere• Disadvantages

– Short life span – when broadcast, it is over– Lack of visual involvement

3) Online Advertising

• Placing advertising messages on the Internet

• Banner ads – created with rich media technology that uses the strategy of popping up and interrupting the readers search

• Social Media uses customers to place product pictures in social networking pages.

4) Specialty Media

• Relatively inexpensive, useful items with an advertisers name printed on them

• Given away with no obligation attached• Calendars, magnets, pens, pencils, memo pads,

and key chains

Specialty Media

• Businesses are constantly creating innovative means of transmitting their messages

• Sports arena billboards, ads in movie theaters, hot air balloons and blimps, skywriting, etc.

Public Relations

• Write News Releases -- a prewritten story about a company that is sent to the various media

Writing News Releases (Public Relations)

• First paragraph should answer Who, What, When, Where, and Why questions.

• Develop important facts in next few paragraphs.• Less important information can follow but should be

edited.• Include the full name and position of any people

mentioned.• Include the name, address, and phone number of

the contact person.• Be brief – only one or two pages. “###” at the

bottom of the last page signifies the end.

Selling

• Personal Selling – any form of direct contact between a salesperson and a customer

• Retail Selling – customers come to the store

• Business-to-business Selling – takes place in a manufacturer’s or wholesaler’s showroom or a customer’s place of business

• Telemarketing – selling over the telephone

Sales Process (Selling)

1. Approaching the customer2. Determining needs3. Presenting the product4. Overcoming objections5. Closing the sale6. Suggestion selling7. Relationship building

Sales Promotions

Designed to encourage customers to buy a product

1. Coupons

2. Premiums

3. Incentives

4. Product Samples

5. Sponsorship

6. Promotional Tie-in

7. Product Placement

8. Loyalty Marketing Program

9. Point of Purchase Display

Types of Promotion (Sales Promotion)

• Coupons – certificates that entitle customers to cash discounts on goods or services.

Types of Promotion (Sales Promotion)

• Premiums – low-cost items given to consumers at a discount or for free – Should:– be low-cost– provide added value– negate the target audience’s price

issue– effectively differentiate the product

from the competition– create an immediate need to buy

Types of Premiums (Sales Promotion)

• Factory packs (in-packs) – free gifts placed in product packages

Types of Premiums (Sales Promotion)

• Traffic builders – pen, calendar, key-chain given free for visiting or attending event

Types of Premiums (Sales Promotion)

• Coupon plans – ongoing program offering a premium in exchange for labels, coupons or other tokens from one or more purchases.

Incentives (Sales Promotion)

Generally higher-priced products earned and given through contests, sweepstakes, and rebates• Contests – activities that require

demonstration of a skill• Sweepstakes – game of chance

Incentives (Sales Promotion)

• Rebates – discounts offered to customers who purchase

Product Samples (Sales Promotion)

• Free, trial-size sample• Distributed through mail, door-to-door,

or at a retail or trade show• Especially important with new products

Sponsorship (Sales Promotion)

• The sponsoring company pays a fee for the right to promote itself and its products or services at or on a set location

• May negotiate the right to use logos and names on retail products

Promotional Tie-In (Sales Promotion)

• Involves arrangements between one or more retailers or manufacturers.

Ex: McDonald’s and Fisher-Price Toys

Product Placement (Sales Promotion)

• Featuring a product at a special event, on television, or in the movies

Click on the “Pieces Icon” to learn about the history

of product placement.

Loyalty Marketing Programs (Sales Promotion)

• Frequent buyer programs• Reward customers for making multiple

purchases

Social Media

• Facebook– Company website Version 2.0

• Twitter– Info blasts of community service, sales, or

general information• YouTube

– Tutorials and self-help, reduces product returns and lost sales

• LinkedIn– Employee and business community

networking

Measuring Promotion Results

• Market Research must be done to determine effectiveness of all Promotional activities.