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chapter 11

chapter 11. Promotions. Objectives. To recognize the complexity of promotion with respect to the various forms it can assume as part of the marketing mix To identify integral elements of promotion and the various approaches used in advertising

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chapter 11

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  1. chapter11 Promotions

  2. Objectives • To recognize the complexity of promotion with respect to the various forms it can assume as part of the marketing mix • To identify integral elements of promotion and the various approaches used in advertising • To understand promotion in a historical context and consider how that context has evolved as a result of the importance of media and sponsorship relationships • To recognize the key characteristics of effective promotional programs and campaigns aimed at expanding existing consumer bases and at increasing the frequency of consumption

  3. Promotions • Any activity designed to stimulate interest in, awareness of, and purchase of a product • Method to convey information about the place, price, and product • Critical in the positioning of a product in the mind of the consumer

  4. Types of Promotions • Advertising is any paid, nonpersonal (not directed to individuals), clearly sponsored message conveyed through the media. • Personal selling is any face-to-face presentation in which the seller has an opportunity to persuade the consumer. • Publicity is any form of exposure in the media not paid for by the beneficiary or within the beneficiary's control or influence. • Sales promotion involves a variety of activities including displays, trade shows, sampling, coupons, premium items, exhibitions, and performances.

  5. Goals of Promotions Promotions should include the following steps: • A: Increase awareness • I: Attract interest • D: Arouse desire • A: Initiate action

  6. Advertising Advertising should do the following: • Create awareness • Communicate information about attributes and benefits • Develop, change, and enhance an image • Associate brand or product with emotions • Precipitate behavior

  7. Keys to Effective Ad Campaign • Knowing the product • Knowing the consumers

  8. Batra, Myers, and Aaker Modelof the Advertising Communication System • Source • Message • Channel • Receiver • Destination

  9. Assessing Effectiveness of Advertising • Wasted circulation • Cost per exposure • Determining the creative approach • Measurement (continued)

  10. Assessing Effectiveness of Advertising (continued) • Based on • Ability to reach target market • Ability to maximize cost per exposure • Appropriateness of creative message • Measuring • Impact on sales • Impact on image • Impact on consumer awareness

  11. Advertising Media For Sport • Signage • Endorsements and sponsorships • Print media • Magazine • Newspaper • Schedule cards • Handouts and brochures • Posters • Information packages • Direct mail • Electronic media • TV • Radio • Internet • Billboards, blimps, and buses

  12. Benefits of LED Signage • Higher resolution and clarity • Movement • Animation • Sound • Portability: Can be updated by simply programming; no hard production costs or delays • Flexibility: Variety of sizes and shapes • Real-time alterations • Life cycle • Increased inventory: No space

  13. Story Problem solution Chronology Special effects Testimonial Satire Spokesperson Demonstration Suspense Slice-of-life Analogy Fantasy Personality Television Commercials: Structures

  14. Sales Promotions: Price • Attract new consumers. • Increase frequency of purchases. • Reward loyalty. • Prevent defection.

  15. Promotional Components • Theme • Giveaways • Product sampling • Open house • Coupons • Bundling • Contests and sweepstakes • Premiums and redemptions • Street promotions

  16. Game Promotions • Motivate customers to attend • Increase the perceived value of the event Game promotions should do either of the following:

  17. Those Who Do Not Attend the Games • Aware nonconsumers • Unaware nonconsumers • Misinformed nonconsumers • Media consumers

  18. Promotional Progression Planning Model • Level 1: Nonpattern attenders (light users) • Level 2: Multiple attenders (medium users) • Level 3: Frequent attenders (heavy users) • Level 4: Defectors (descending the escalator)

  19. Frequency Escalator

  20. Sales Promotions • Mailings • Outbound calls: Telemarketing • E-mail blasts • Personal sales calls • Hospitality • Table • Trade shows • Retail outlet • Kiosk

  21. Effective Use of Promotions • Promotions can increase perceived value at same price. Give them more! • Value is increased by using a giveaway: • Costs less than a price discount • Keeps price integrity • Draws customers from competitor

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