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Promotion . Chapter 15. Promotion. Communication to inform, persuade, and/or remind consumers about an organization’s products and services. Inform. When a product is new to the market Introduction stage Let customers know about product. Persuasion.
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Promotion Chapter 15
Promotion • Communication to inform, persuade, and/or remind consumers about an organization’s products and services
Inform • When a product is new to the market • Introduction stage • Let customers know about product
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
Remind • When product been out awhile • Remind them of how good it is • Maturity stage
What is positioning? • How you want the customer to think about your business??? • Low price leader • Best quality • Best value • Most unique
Positioning based on: • Features and benefits: • New Balance shoe based on comfort and style Price/Quality – Lowest price or high price Competition – How you compare with the competition Price or non-price competition
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
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.
Four Main Types of promotions (promotional mix) • Advertising • Publicity • Personal Selling • Sales Promotion
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
Choosing advertising medium? • 1. Cost - fall under business’ budget amount • 2. What medium will reach the business’ target market the best? • 3. What medium will reach the most of your target market for the money?
Personal Selling • Person-to-person communication with potential customers in an effort to inform, persuade, or remind customers
Personal selling • Disadvantages • Per person cost • Advantages: • Personal contact • Can be more informative • Feedback is immediate
Publicity/Public Relations • Non-paid form of business communication about a business organization (news story) • Advantages: typically free and it creates goodwill • Disadvantages: organization has little control over it
Sales Promotion • Activities or materials that offer consumers a direct incentive to buy a good or service – typically short-term
Sales Promotion Short-term incentive offered to encourage buying a good or service. The purpose is to INCREASE DEMAND and STIMULATE SALES
Examples of sales promotions • Coupons • Sponsorship – local business having signs on our soccer fence (concert) • Incentives: Buy one get one free sale • Factory pack – free gift in package (cracker jacks and cereal)
Sales promotions (examples continued) • Product samples – detergent, cologne, toothpaste (dentists and doctors) • Loyalty Marketing programs – If they buy so many sandwiches, they get one free • Promotional tie-in – McDonalds having disney characters in their happy meals that go along with their movie “Goofy” movie
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
Sales Promotions (cont.) • Advantages: • Generates immediate, short-term sales • Supports other parts of promotional campaign • Disadvantages: • Costs can be high (coupons, rebates, etc.)
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
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
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
A paid form of nonpersonal communication sent through a mass medium is known asa. personal sellingb. publicityc. sales promotiond. advertising.
An important objective of promotion is to __________ buyers. a. deceive b. manipulate c. inform d. delude
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
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
This type of advertising usually has a low response rate and is considered to be “junk” mail: • Newspaper • Direct mail • Magazines • Billboards
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.
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
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
The ultimate advertising medium is _________ because you can communicate your message with sound, action, and color. • A. television • B. radio • C. newspaper • D. magazine
An advantage of this advertising media is that almost every home has one. • A. radio • B. newpaper • C. phone book (directory advertising) • D. magazine
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.
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.
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
The means by which advertising can be presented is known as a • a. resource. b. banner. c. medium. d. message.
3. Which of the following is the chief advertising medium for most retail stores? • a. newspaper • b. television • c. radio • d. magazines
Public Relation Specialist • Publicize the good news about a company • Control negative damage done by negative news
News Release • News release – prewritten story about a company sent to the media • New Principals • Press conference – meeting in which a business invites media to hear a newsworthy announcement • War • Economic disaster
What is the promotional mix? • It is the combination of the promotional elements of: • Advertising • Personal selling • Sales Promotions • Publicity
What is the promotional mix based on? • Marketing Mix – product, price, promotion, place • Target market • Policy and objectives for advertising campaign • Company’s financial situation
Five steps to promotional planning • Analyze the market – market research • Identify the target market – market segmentation • Develop promotional objectives – identify purpose or result of promotional objectives
Promotional objectives (continued) • Develop a promotional budget – should be in line with objectives • Select the promotional mix – advertising, publicity, etc.. • Implement the promotional plan – Have a schedule and people responsible, keep in line with budget