Promotion Chapter 15 Promotion Communication to inform persuade

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

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.

Advantages of promotional activities • Society • Promotes economic growth • Adds money to the economy • Creates jobs • Supports mass media

Advantages (cont. ) • Companies • Creates awareness of company and its products • Helps to develop the company’s image

Advantages (cont. ) • To consumers • Encourage higher standard of living • Better educate consumers • Help consumers make more intelligent purchases

Disadvantages of Promotion • • Some promotions are deceptive Can manipulate consumers Some are offensive Some create or reinforce stereotypes • Play upon people’s fears

Communication in Promotion • Interpersonal communication – involves two or more people in an exchange • Mass communication – involves communication to a large audience and communication is one-way

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,

Media • The agencies, means, or instruments to convey messages • Radio • TV • Newspaper • Billboards

SECTION 19. 1 Advertising Media Advertising Expenditures U. S. Advertising Expenditures Advertising is a multibillion-dollar business. Given the figures shown in the pie chart, calculate the total spent on advertising among all types of media. Why do you think television and newspapers bring in the most advertising expenditures?

Broadcast Media • Includes Radio and Television Advertising

Television advertising • Prime time for network stations • 8 p. m to 11 p. m. • What are infomercials? ? ? • 30 minute commercial • Promotes items such as cookware, exercise equipment, and appliances

SECTION 19. 1 Advertising Media Television Advertising Television is the ultimate advertising medium for many businesses because it can communicate a message with sound, action, and color. = Advantages: Can be directed at a specific audience, is timely, takes advantage of holidays and special events. = Disadvantages: Highest production costs, high cost for time, audience is not assured.

Best times for Radio Advertising? • In the morning when going to work or school: 7: 00 a. m. – 9: 00 a. m. • In the afternoon when leaving work or school: 3: 00 p. m. – 6: 00 p. m.

Radio advertisements • Presented in 15, 30, or 60 second slots (longer slots are more expensive) • What are some of your favorite radio commercials? ?

Radio Advertising • Advantages – • Target specific audience • More flexible, can be changed easier • Mobile medium – can be taken with you • Disadvantages – Short life span • Lack of visual involvement (people change channel)

SECTION 19. 1 Advertising Media Newspaper Advertising Newspapers—daily or weekly, local, regional, or national—are the main form of print media for many businesses (especially retailers). = Advantages: Newspapers have large readership and a high level of reader involvement. = Disadvantages: Circulation can be wasted, advertising life is short, and ads are less appealing in black and white.

SECTION 19. 1 Advertising Media Magazine Advertising Both consumer and trade magazines generate a high level of reader involvement. Magazines can target specific regional areas or interest groups. = Advantages: Targeted audience, longer life span, more likely to be remembered, better print quality, variety of formats. = Disadvantages: Less mass appeal within a geographic area, more expensive, not very timely.

SECTION 19. 1 Advertising Media Direct-Mail Advertising Direct-mail advertising is sent by businesses directly through the mail to prospective customers. Types of direct-mail advertising include newsletters, catalogs, coupons, samplers, price lists, and others. = Advantages: Highly selective distribution, variety of sizes and formats, catalogs and coupons can actually make a sale. = Disadvantages: Low response rate, high costs.

SECTION 19. 1 Advertising Media Directory Advertising Telephone directories are the best known directories. They are divided into the White Pages (free alphabetical listings) and the Yellow Pages (paid categorical listings and free alphabetical listings for businesses). = Advantages: Relatively inexpensive, used by all demographic groups, long life span. = Disadvantages: Not timely.

SECTION 19. 1 Advertising Media Outdoor Advertising Outdoor signs are better known as billboards. = Advantages: Broad exposure, highly visible, some can be changed quickly. = Disadvantages: Use is restricted in some areas, limited viewing time, unknown audience.

SECTION 19. 1 Advertising Media Transit Advertising Transit advertising includes printed posters found inside business and commuter trains, exterior posters on taxis and buses, and station posters located near or in subways and in railroad, bus, and airline terminals = Advantages: Reaches a wide and captive audience and is a relatively economical media. = Disadvantages: Unavailable in some areas, restricted to transit routes.

Online advertising • Placing messages on the Internet • Banner Ad – rectangle at top or bottom of page with advertising on it or you can click to get to it • Advantages: A lot of people are on Internet, can keep track of number of “clicks” • Disadvantages: Not high response rate, may consider annoying/distraction

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

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

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

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 • Buy one get one free sale • Factory pack – free gift in package (cracker jacks and cereal) • Sponsorship – local business having signs on our soccer fence (concert)

Sales promotions (examples continued) • Product samples – detergent, cologne, toothpaste (dentists and doctors) • Promotional tie-in – Mc. Donalds having disney characters in their happy meals that go along with their movie “Goofy” movie • Product placement – Pepsi paying Amerian Idol judges to drink their products while on screen

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

A paid form of nonpersonal communication sent through a mass medium is known as a. personal selling b. publicity c. sales promotion d. 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. B. C. D. magazine direct mail newspaper transit advertising

This type of advertising usually has a low response rate and is considered to be “junk” mail: a. b. c. d. Newspaper Direct mail Magazines Billboards

• The prime time for advertising on the television is • • A. B. C. D. 4 p. m. to 7 p. m. 3 p. m. to 8 p. m. 9 p. m. to 12 p. m. 8 p. m. to 11 p. m.

• With this type of advertising media sometimes you are limited to the routes that are available in your area • • A. B. C. D. direct mail billboards transit advertising all of these

• What time slots are radio advertisement slots? • • A. B. C. D. 10, 15, 25, 15, 30, 50, 40, or or 20 60 60 60 seconds

• The ultimate advertising medium is _____ because you can communicate your message with sound, action, and color. • • A. B. C. D. television radio newspaper 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. B. C. D. 4 a. m. 5 a. m. 7 a. m. 9 a. m. - 6 a. m. and 8 p. m. to 11 p. m. - 7 a. m. and 6 p. m. to 10 p. m. – 9 a. m. and 3 p. m. to 6 p. m. – 11 a. m. and 1 p. m. to 3 p. 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. B. C. D. it creates jobs it adds money to the economy it supports mass media all of these

• The means by which advertising can be presented is known as a • a. resource. c. medium. b. banner. d. message.

• 3. Which of the following is the chief advertising medium for most retail stores? • a. newspaper • b. television • c. radio • d. magazines

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

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

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

Sales Promotion • Activities or materials that offer consumers a direct incentive to buy a good or service • Coupons • Rebates • Buy one get one free

Sales Promotions (cont. ) • Advantages: • Generates immediate, short-term sales • Supports other parts of promotional campaign • Disadvantages: • Costs can be high (coupons, rebates, etc. )

What is the promotional mix? • It is the combination of the promotional elements of: • A. Advertising • B. Personal selling • C. Sales Promotions • D. Publicity

Advertising • Billboards, newspapers, transit, TV, radio, magazines, direct mail, social networking sites, directory advertising

Personal Selling • Face to face interaction with the customer

Sales promotion • • • Buy one get one free sales Coupons Rebates Loyalty reward programs Spirit cards

Public Relations/Publicity • Non- paid • Free publicity • Good deeds/charity special events

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