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PROMOTION. By: Priya Lit Marketing 11. What is a promotion?. A special offer that can help increase the average customer loyalty and revenue Promotion is one of the market mix elements Term “promotion” is used by a marketing company but not to the public/market. What does it do?.
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PROMOTION By: Priya Lit Marketing 11
What is a promotion? • A special offer that can help increase the average customer loyalty and revenue • Promotion is one of the market mix elements • Term “promotion” is used by a marketing company but not to the public/market What does it do? • Attracts new customers • Differentiates a product • Creates an image • Increases sales • Creates awareness • Persuades customers into thinking their product is better than others
ADVANTAGES Advertising Public Relations • Control of the message being promoted • It can be used to build brand loyalty • Establishes credibility for a product • Achieved at a very low cost Personal Selling Sponsorship • Opportunity to close the sale • You can create your own message • Promotes a new product • Builds an image Merchandising Direct Marketing • Permits you to advertise your business on a large scale • Enhances your business image • Personalizes the marketing message • Cost-effective Sales Promotion • Persuades customers into trying or switching brands • Quick increase to sales
What is branding? • A way to build an important company asset like having a good reputation • Builds up an expectation about the company or products • Commonly referred to by advertisers and marketing people Why use it? • To target segments • Making a company a brand can spread more respect to a related new product • Get more money for the company when you decide to sell it • People tend to choose brand name suppliers over no name ones • Differentiates the product • Builds loyalty • To promote the product
Well-Branded Products Some people don’t even know that ‘Band-Aid’ is a brand name because we are all used to calling it this. Everyone calls it lip balm or chap stick, even if its not chap stick, the brand is just well known. Brand name for many paper-based products. It’s actual tissue paper but the brand is so well known that most people call it ‘Kleenex’. ‘Frisbee’ is a name brand which and it is actually called a flying disk but everyone calls them Frisbees nowadays. Hula Hoops became famous in the 1950’s and started getting called hula hoops because it was a famous brand.
Types of Advertising Persuasive Advertising: Seeks to influence and encourage consumers to buy a product, which is usually used after a product has been introduced to customers. E.g. TV advertisements such as Proactive and Nair Competitive Advertising: Communicates the unique benefits of a product, and differentiates it from the competition. E.g. Mac vs. PC, Pepsi vs. Coke Pioneer Advertising: Used when a new product is introduced to the market and there is no other product on the market similar to it. E.g. Apple IPhone was the first phone to have a touch screen when it first joined the market.
Five M’s of Advertising The purpose and objective behind advertising. The mission includes sales promotion, information to consumers, and making the products popular and introduces a new product. Mission: Money: The finance provided for advertising purpose. The money provided is used for advertising, media, coverage of advertising, and other funds. Provided through the text of advertisement. The message can be given through pictures, slogans, written words, etc. The message is for the information and guidance of future buyers. Message: Media: Advertiser has to decide which media has to be used for the advertising. Media differs as cost, coverage, and effectiveness. The selection of media depends on the budget, and products to be advertised. Measure: Relates to the effectiveness of advertising, an advertiser makes an evaluation of advertisement in order to judge its effectiveness.
Advertising Medias Television: Print Media: • Advantages • Targets specific groups • High impact color, sound, movement • Big audience • Disadvantages • High overall cost • Might not be watched • Transports a limited message • Advantages • Color printing adds to impact • Targets specific segments • Doesn’t take much time to read • Widely read • Disadvantages • Low impact • High costs • Short life • Not everyone reads newspaper/magazines Radio: • Advantages • Not expensive • Local • Targets specific segments • Disadvantages • Short life • Local rather than national • Listener's attention is limited
Outdoors: (billboards, cars) Cinema: Internet: • Advantages • Visual, sound, movement • Local audience • Specifically targeted • Disadvantages • Probably only seen once • Short lived message • Mostly young audience • Advantages • Fastest growing advertising media • Uses moving images • Can be saved by consumer • Disadvantages • Might be expensive to set up • Problems of connecting • Technical problems • Advantages • Seen a lot • Targets specific area • 24/7 coverage • Disadvantages • Message has to be short/plain • Rarely attracts full attention • Might be seen as a traffic hazard
Commercials http://www.youtube.com/watch?v=3tI4CbCniBI&feature=relmfu This Old Spice commercial is the definition of a good commercial because you can watch it more than once without getting bored. It’s funny and guaranteed every time you watch it, you will laugh. http://www.youtube.com/watch?v=DqUnsKMsRxM The Heineken commercial will catch everyone’s attention with it’s catchy music. It’s a good commercial because it’s different from many other commercials.