Product Promotion 2 Product Promotion Is a form

Product Promotion 2

Product Promotion • Is a form of communication which uses various methods to reach an audience with a specific message in order to achieve organizational objectives • Refers to decisions regarding advertisement, personal selling, publicity, discounts, etc. 3

Product Promotion • Has the following goals: – build product awareness – create customer interest – provide information about the product – stimulate demand – reinforce a positive product image 4

Product Promotion The AIDA Model • Is used by many in product promotion • Is an acronym which stands for attention/awareness, interest, desire, action • Describes the common events needed for successful promotion • States consumers respond to marketing messages by thinking, feeling and doing 5

Product Promotion The AIDA Model A Attention or Awareness attract the attention of a potential customer I Interest raise the customer’s interest by appealing to their senses D Desire convince customers they want your product A Action customers will take action 6

Product Promotional Objectives • Include: – to inform – to persuade – to remind 7

Product Promotion Informational Promotion • Educates consumers about the product • Is used to introduce new products • Provides technical information, instructions or reasons for buying • Introduces or describes a product with which a customer is unfamiliar 8

Product Promotion Persuasive Promotion • Is designed to stimulate action • Occurs when the target market already has information about the product • Emphasizes real and perceived advantages over the competitors • Encourages brand switching • Appeals to a customer’s emotional needs 9

Product Promotion Reminder Promotion • Is needed to maintain the product or brand name in the public’s mind • Attempts to trigger a positive response to a product • Occurs with established brands • Occurs when customers are already familiar with a product • Usually features a company’s logo or slogan 10

Product Promotion Types of Product Appeal • Used in promotion include: – sex appeal – health appeal – emotional appeal – esteem or status appeal 11

Product Promotion • Is influenced by the following factors: – the type of product – the nature of the product – the stage of the product life cycle the product is in 12

Product Promotion The Product Life Cycle • Is the natural process all products go through • Consists of introduction, growth, maturity and decline 13

Product Promotion Types of Promotion • Include: – product promotion § is promoting a specific item or type of product § for example, Ford® Explorer XLT, chunky vegetable soup or Frosted Flakes® – institutional promotion § is promoting a company, brand or store § for example, Ford Motor Companies®, Campbell’s® soup or Kellog’s® cereal 14

Product Promotion Types of Advertising • Include: – image advertising § is directed at the creation of a specific image or brand reputation § is often used to reinforce a company’s status § is used to influence customer perceptions – price advertising § is aimed at promoting a special price or onetime sales offer § is used to attract specific types of customers § is a popular form of product promotion 15

Promotional Mix The Promotional Mix 16

Promotional Mix The Promotional Mix • Consists of the following elements: – personal selling – sales promotions – advertising – public relations 17

Promotional Mix Personal Selling • Consists of direct contact with potential customers • Is one of the most expensive forms of promotion • Includes the following: – telemarketing – personal meetings – door-to-door sales 18

Promotional Mix Sales Promotions • Consist of special events, activities and discounts which stimulate sales • Include the following: – coupons and rebates – games and sweepstakes – product samples – prizes and premiums – special events or activities – promotional tie-ins – customer loyalty programs 19

Promotional Mix Coupons & Rebates • Entitle customers to specific discounts or refunds • Support advertising and sales objectives • Are used to motivate buying • Are not always redeemed 20

Promotional Mix Games & Sweepstakes • Are used to attract customers in a creative way • Include activities such as: – scratch and win games – instant win cards – match games – radio contests – drawings and raffles 21

Promotional Mix Product Samples • Consist of a free trial or miniature size sample • Are especially important when introducing new products • Can be distributed through the mail or in person • Are popular in grocery stores and during large conferences 22

Promotional Mix Prizes & Premiums • Are low cost items given to customers at little or no cost • Are traffic builders used to remind consumers about a specific brand • Include the following: – – – pens or pencils key chains miniature toys or organizers magnets coffee mugs, cups, etc. 23

Promotional Mix Special Events & Activities • Attract large audiences and potential news coverage • Are expensive, but memorable – include the following: § charity events § school assemblies or half-time shows § publicity stunts § concerts 24

Promotional Mix Promotional Tie-Ins • Are also known as cross promotion campaigns • Include an arrangement between one or more businesses • Require multiple companies to combine their promotional efforts – examples include: § using Disney® toys in kids’ meals § Target® and Tide® sharing an advertisement § advertising Coca-Cola® products during Cinemark® movies 25

Promotional Mix Customer Loyalty Programs • Are also called frequent buyer or reward programs • Increase overall product sales due to brand loyalty • Include the following: – frequent flyer airline programs – restaurant punch-cards – frequent shoppers discount programs – credit card reward points 26

Promotional Mix Advertising • Consists of any paid form of nonpersonal promotion • Is used to attract customer’s attention • Is implemented through multiple channels or “media” • Is used to inform, persuade or remind customers about a specific product, company or idea 27

Promotional Mix Advertising Media • Include: – print § includes newspapers, magazines and trade publications, journals and newsletters, and direct mail – broadcast § includes radio and television – the Internet – outdoor and transit – product § includes on product and product placement 28

Promotional Mix Public Relations • Consists of the methods and activities used to establish and promote a positive relationship with the public • Is used to create a favorable image or reputation in the community • Includes activities such as: – creation and distribution of press kits and news releases – sponsorships – media and employee relations – community relations and philanthropy 29

Promotional Mix Press Kits • Are promotional packages submitted to news stations and other organizations • Include news releases, pictures, contact information, background information, etc. • Include supporting and appealing materials useful to reporters • Are used to inform media outlets about the business or product and encourage them to report on it 30

Promotional Mix News Releases • Are official news statements directed at members of the media • Are used to announce something of value or attract positive news attention • Are a common communication method in public relations • Are intended to be used by news outlets either as articles or assistance in writing articles 31

Promotional Mix Sponsorships • Involve a business contributing money, goods or services to an organization or event in order to gain the publicity related to it • Build brand recognition and increase positive association • Can be used to reach specific groups of current or potential customers 32

Promotional Mix Community Relations & Philanthropy • Improve or benefit a community • Build goodwill and a positive image • Include: – charity events – community donations – service projects Philanthropy: an act done or gift given due to the concern for the welfare of others 33

Promotional Mix Public Relations • Impacts sales – most companies name public relations as the highest factor in increased sales • Impacts image – corporate or product image can often be directly attributed to public relations • Aids in launching and informing the public of new products • Can be used as a strategic marketing and promotion tool 34