Unit 8 Promotion Promotion What are your first impressions of this ad? After glancing at the ad, did it make you want to stop and read it? How.
Download ReportTranscript Unit 8 Promotion Promotion What are your first impressions of this ad? After glancing at the ad, did it make you want to stop and read it? How.
Unit 8 Promotion Promotion What are your first impressions of this ad? After glancing at the ad, did it make you want to stop and read it? How does this ad motivate its target market to action? Unit 8 Vocabulary Advertising Advertising Agencies Advertising Campaign Audience Broadcast Media Consumer Promotions Cost per Thousand (CPM) Coupons Direct Marketing Display Fixtures Frequency Impression Incentives Institutional Advertising Institutional Promotion Kiosk Marquee Media Media Planning News Release Online Advertising Point-of-Purchase Displays Premiums Print Media Product Promotion Promotion Promotional Advertising Unit 8 Vocabulary Promotional Mix Promotional Tie-ins Publicity Public Relations Pull Policy Push Policy Sales Promotion Store Layout Storefront Specialty Media Trade Promotions Transit Media Visual Merchandising Unit 8 Essential Question How is promotional knowledge and skill in communicating information used to achieve a desired marketing outcome? Essential Question 1 Promotion What is the purpose of promotion? What is promotion? Any form of communication used by a business to inform, persuade, or remind people about its products and improve its image. There are two forms of promotion: – Product – Institutional Forms of Promotion Product: – – – – – Creates an interest in the product. Introduces new products and businesses. Explains a product. Supports personal selling efforts. Creates new markets. Institutional: – Creates a favorable impression and goodwill for a business or an organization. – Presents information about the companies role in the community. Essential Question 2 Promotion What are the types of promotion? Types of Promotion Advertising Public Relations Direct Marketing Sales Promotion Personal Selling DR. DIWAKAR NAGULA last week opened Southeast Spine & Rehabilitation at 130 North Gross Road, Kingsland. He specializes in treating chronic pain with traditional medicine as well as chiropractic manipulation and physical therapy. (Tribune & Georgian photo/Renee M. Liss) Types of Promotion Advertising: Paid presentation of ideas, goods, or services directed toward a mass audience Types of Promotion Public Relations: Activities used by an organization to create a favorable image for itself, its products, or its policies. Types of Promotion Direct Marketing: Type of advertising directed to a targeted group of prospects and customers rather than a mass audience. – Snail Mail – E-Mail Types of Promotion Sales Promotion: Marketing activities – other than advertising, public relations, and personal selling – that are used to stimulate purchasing and sales – Usually involves short term activities. – Offers some type of incentive: product earned or given away – Can be successfully used in all channels of distribution. Types of Promotion – Types of Sales Promotions » Trade Promotions: Activities designed to get support for a product from manufactures, wholesalers, and retailers Promotional Allowances Cooperative Advertising Slotting Allowances Sales Force Promotions Trade Shows and Conventions Promotional Mix – Types of Sales Promotions » Consumer Promotions: Strategies that encourage customers to buy a product or service Coupons Premiums Deals Incentives Product Samples Sponsorships Promotional Tie-Ins Product Placement Visual Merchandising Types of Promotion Personal Selling: Oral presentations to one or more potential buyers with the intent of making a sale. The responsibility of sales personnel. – Order - taking personnel – Order - getting personnel The most flexible and individualized type of promotion available. Essential Question 3 Promotion What strategies are used to develop the promotional mix? Promotional Mix Promotional Mix: Combination of promotional strategies and cost-effective allocation of resources Strategies are designed to complement one another – Advertising and direct marketing create awareness of a product – Public relations creates a favorable image and brand recognition – Sales promotions stimulate sales and reinforce advertising and selling efforts – Personal selling builds on the previous by completing the sale Promotional Mix Special promotional mix strategies – Push Policy: Uses a mix of personal selling, advertising, and buying discounts to push a manufactures products onto the retailer in the distribution channel. – Pull Policy: Uses a mix of local and national advertising, in-store displays, sales promotion, and public relations to reach customers to create a demand which will pull the product into the retail outlet. Essential Question 4 Promotion What are the different types of advertising media and associated costs? Advertising (Print Media) Newspaper TIMES Finance News Magazines Advertising (Print Media) Direct Mail Outdoor Advertising Advertising (Print Media) Directories Transit Advertising Advertising (Print Media) Other print media. Advertising (Broadcast Media) Television Advertising (Broadcast Media) Radio Internet Media Costs Newspaper – Classified Ad: Advertise everything from services performed to houses for sale to job openings. – Display Ad: Involve creative illustration of the product being advertised. Media Costs Newspaper – Run-of-Paper Rate: Allows the newspaper to decide where to run the ad in the paper. – Open Rate: Rate charged to businesses that advertise infrequently. – Contract Rate: Discounted rate offered to business that advertise more frequently and for a specified period of time. Media Costs Magazine – Bleed: Ads are printed to the very edge of the page, leaving no white border. Generally costs 15 to 20 percent extra. – Black-and-White Rates: Lowest rates offered and the ads are in black and white. – Color Rates: Rates increase for each color added. – Full-Color: The most expensive rate and all four print colors are used. Media Costs Magazine – Premium Position: Rates determined as to where the ad is placed in the magazine. – Frequency Discounts: Offered to advertisers who run the same ad several times during the year. – Commission: A percentage of sales given by the magazine to the advertising agency for placing the ad for the advertiser. – Cash Discounts: Offered to businesses for paying the bill earlier than its due date. Media Costs Radio – Network Radio Advertising: Broadcast from a studio to all affiliated radio stations. – National Spot Radio Advertising: Used by national firms to advertise on a local station-by-station basis. – Local Radio Advertising: Used by local business for its target market. Television – Vary with time of day. The most expensive is prime time 7 to 11 P.M. Media Costs CPM – Cost Per Thousand – Cost to expose 1000 readers to the ad. CPM = cost of ad X 1000 Circulation Essential Question 5 Promotion What is cooperative advertising? Cooperative Advertising Type of trade promotions where the manufacturer supports the retailer by helping to pay for the cost of advertising its product locally. Essential Question 6 Promotion What are the differences between publicity and public relations? Public Relations Types of Public Relations – News Releases: An announcement sent by a business or organization to media outlets » Feature Articles » Photos » Press Conference Public Relations Types of Public Relations – Publicity: Involves bringing news or newsworthy information to the public’s attention » Builds a business’ image. » Publicity is free. » Not much control over the message being sent to the public. Essential Question 7 Promotion How do the various media impact the public? Media Impact Media: The agencies, means, or instruments used to convey advertising messages to the public. – – – – Print Media Broadcast Media Online Media Specialty Media Media Impact Media Planning: Process of selecting the advertising media and deciding the time or space in which ads should appear To establish the media plan and select the right medium, advertisers address three basic questions: 1. Can the medium present the product and the appropriate business image? 2. Can the desired customers be targeted with medium? 3. Will the medium get the desired response rate? Essential Question 8 Promotion How do ethics and legal issues impact promoting and advertising a product or service?