Promotions

1. Promotions

2. Promotions • Any activity designed to increase sales or promote goodwill (reputation of business). • Hand out business cards • Commercials on t.v. • Sponsor a school basketball tournament

3. Marketing • Any activity that gets a product/service to someone who wants or needs it (target market). • 5 P’s of Marketing Mix: Product, Price, Promotion, Place, People • Marketers typically have control over these. • 3 C’s of Marketing Mix: Customer, Company Capabilities, Competition • Marketers typically do not have control over these.

4. 5 P’s of The Marketing Mix • Product – “what do our customers need/want?” • Price – “what are customers willing to pay?” “What did it cost to produce?” • Promotion- Related to communicating with customers. • “What message do we want to send our customers?” “How can we make our product stand out from the competition?” • Place – Getting the product to the customer. • “What retail outlets should sell our product?” “Will the product be sold locally or internationally?” • People – Customer Service. • “How can we help our customers before, during and after a purchase?”

5. 3 C’s of the Marketing Mix • Customer – person who makes the purchase. • (Consumer is person who uses the item) • “What motivates the customer to buy?” “Who makes the purchasing decisions in the family?” • Company Capabilities – considering budget, people and knowledge. • “Do we have enough money to run this ad?” “Will we be able to launch this product by summer?” • Competitors – “What is the competition doing?” “Why are customers buying from them and not from us?”

6. Read Introduction to Marketing • And answer questions.

7. The Five Categories of the Promotional Mix The five main categories most promotional activities fall under. • Advertising • Direct Marketing • Personal Selling • Publicity/Public Relations • Sales Promotions It is called a “mix” because marketing managers will generally use more than one of these promotional methods to communicate with their target market.

8. 5 Categories of Promotional Mix Explained - Handout Advertising • A paid form of non-personal communication about a business, product, or service through the means of mass media (radio, t.v., internet, etc)

9. Direct Marketing • Designed to carefully target consumers through direct promotional efforts (direct mail (addressed), telephone sales, catalogues, etc)

10. Personal Selling • A promotional method in which the salesperson uses skills and techniques to build personal relationships with the consumer in an attempt to persuade them to buy the product/service (in-store or door-to-door sales).

11. a) Publicity • A form of communication regarding an organization/product/idea not directly paid for or run by an identified sponsor (eg. News coverage, word of mouth, etc.) • Note: publicity can be good or bad.

12. b) Public Relations (PR) • Designed to build good relationships with the general public and create a good “corporate image” by strengthening a business’ credibility or enhancing its image (e.g. speeches, sponsoring special events, etc). • All about communicating who you are, what you do, and how you benefit your customers and the community in which you operate.

13. Sales Promotions • A promotional method designed to increase the sales of products/services by providing extra value or incentives (e.g., price incentives, bonus sizes, free samples, coupons)

14. Promotional Mix Assignment

15. The Evolution of Promotional Strategies • Evolution refers to how something has changed. The world is changing so promotional strategies also have to change in order to be relevant to the customer. Businesses have to change their promotional strategies because of changes in consumer buying behavior, technology, and media choices.

16. Current Trends Affecting Promotions Today

17. Changing Promotional Messages • Ad Clutter – a bombardment of ad messages. • it is estimated that the average Canadian teen is exposed to thousands of advertising messages each day.

18. Ads in an Hour • You will choose an hour of your day (not at school). You should take pictures of every ad message you see, and make a record of any ad you can not take a picture of. • Example: in the morning I would have to take a picture of my Colgate Toothpaste, Beatrice Milk, Kellogg’s Cornflakes, hear an ad for an oil change on the radio, see ads on the buses that drive by…

19. Ad Clutter Collage • You will now make a collage of the pictures and descriptions that you have collected using Photoshop. • Each picture/item must be on a different layer – and named • You must use at least 2 different fonts. • You must use a clipping mask with the title “Ad Clutter”. • You will include a paragraph that explains what ad clutter is and how it is a problem for advertisers.

20. Read…How Target Figured

21. Changing Ad MessagesHandout To cut through the “ad clutter”, marketing managers have to develop new promotional strategies each year. Aggressive Promotional Strategies: • Naming Rights: buying rights to public spaces such as arenas, theatres, parks, schools, etc. The corporation then gets to “name” the public space after the corporation itself. Ex? • MTS Centre in Winnipeg

22. Ambient Advertising: Ads in public places such as on cars, bicycles, taxis, buses, elevators, gas pumps, washroom stalls, park benches – designed to get noticed in places where there is a captive audience.

23. More Ambient Ads Yoga One in Charlette, North Carolina– a card that customers carry in their wallets. A campaign for the Plastic Pollution Coalition in Vancouver.

24. Space Advertising: Businesses are placing ads in outer space that are visible from earth, or placing gigantic ads on earth that can be viewed from space. • Digital or “Virtual” Advertising - Adding products to scenes that were never there to begin with. • Sporting event coverage uses ads that are digitally inserted onto the billboards and playing surfaces in arenas.

25. Stealth Endorsers (covert) • Have celebrities use products or wear merchandise in public appearances or promote them in media interviews. Why?

26. Cross Merchandising - A wave of media mergers over the past decade has produced a handful of powerful conglomerates that now own all the major film studios, TV networks, radio and television stations, cable channels, Internet companies, book and magazine publishing and music companies. These giant conglomerates use their various media holdings to promote products and artists through massive cross-promotional campaigns. • http://mediasmarts.ca/marketing-consumerism/advertising-its-everywhere

27. Targeted Advertising: Marketing businesses are able to identify the users who are surfing specific websites as well as how many hits each website is getting by collecting electronic information about the users. This information is then used to create ads designed to target these individuals specifically.

28. Product Placement: put products on t.v. in movies or video games. • 1982 – ET featured Reese’s Pieces – sales jumped 65%. • http://www.youtube.com/watch?v=AfAzUAxWELU

29. Viral Marketing: A trend that encourages people to pass along a marketing message. Like viruses the message spreads to thousands of people – YouTube, MySpace, Facebook. • In 2007, Dove’s first internet film Evolution was considered one of the most watched viral videos of its time. • Content Marketing/Entvertising: branded entertainment. Where our entertainment is made by advertisers.

30. Pizza Hut/KFC • Do you think space advertising is effective? Why or why not? • Which ad campaign was better? Support your answer with information from the article. • Choose a company you think could use a form of space advertising today. Describe their potential ad in space.

31. Promotional Strategies Assignment • Complete the chart using Word.

32. TEST – be sure to study!