Marketing I: Strand 6. Promotion

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1 Marketing I: Strand 6 Promotion

2 So you have a product and have set your price. Will the world come running to your doorstep? Not unless people know about your product - you must promote it. Set the stage for sales with a thoughtfully developed promotion plan.

3 Promotion Any form of communication a business uses to Inform Persuade Remind people about its products

4 Promotion Plan A promotion plan outlines the promotional tools or tactics you plan to use to accomplish your marketing objectives.

5 Promotional Mix A combination of the different types of promotion. Which will be the best combination to persuade customers? Advertising Sales Promotion Public Relations Personal Selling

6 Advertising Any paid form of non-personal promotion of ideas, goods, or services by an identified sponsor. Advertising is everywhere! Media are the agencies, means, or instruments used to convey advertising messages to the public Print Media Broadcast Media Digital Media Specialty Media

7 Print Media Written advertising that may be included in everything from newspaper and magazines to direct mail, signs and billboards. They are among the oldest and most effective types of advertising.

8 Newspaper Advertising Local (Salt Lake Tribune) or National (USA Today) Daily or weekly Advantages Large readership and a high level of reader involvement Advertisers can target certain people The cost is relatively low Ads are timely Disadvantages Wasted circulation Short life Black and white (although many papers are changing to color format)

9 Magazine Advertising Classified as Local, regional, or national Weeklies, monthlies, and quarterlies Consumer or business (trade)

10 Magazine Advertising Advantages Can target audiences Longer life span Print quality is good People keep magazines longer than newspapers Offer a variety of presentation formats Disadvantages Less mass appeal within a geographical area More expensive Deadlines make them less timely

11 Direct-Mail Advertising Sent by businesses directly through the mail Includes newsletters, catalogs, coupons, samplers, price lists, circulars, invitations, postage-paid reply cards, and letters. Mailing lists are assembled from current customer records or they may be purchased.

12 Direct-Mail Advertising Advantages Can be highly selective Controlled timing Can be used to actually make the sale Disadvantages Low response level People think of it as junk mail Dated lists Cost is high

13 Direct Mail According to the United States Postal Service, the average consumer is exposed to approximately 5,980 marketing messages daily. On average, they notice 52 and pay mind to only 4. So how does your message become one of the 4 that gets noticed? 98% of business and households have a Mail Moment every day. 77% do so at the first opportunity. No other marketing medium even comes close to promising the chance for a daily guaranteed marketing touch. 5,980 Market Messages Daily 52 Get Noticed 4 Pay Mind

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21 Outdoor Advertising Standardized signs are available to local, regional, or national advertisers. Purchased from outdoor advertising companies in standard sizes Are placed in highly traveled roads, and freeways where there is high visibility. Posters pre-printed sheets put up like wallpaper on outdoor billboards. Painted bulletins painted billboards that are changed about every six months to a year. Spectaculars use lights or moving parts and are in high traffic areas.

22 Which type of outdoor advertising is this?

23 A billboard gets right to the point

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25 Outdoor Advertising Advantages Highly visible and relatively inexpensive 24-hour a day message and located to reach specific target markets Disadvantages Becoming more restricted increasingly regulated Limited viewing time

26 Transit Advertising Uses public transportation facilities Commuter trains, taxis and buses, station posters near or in subways and in railroad, bus, and airline terminals

27 Transit Advertising Advantages Reaches a wide captive audience Economical Defined market Disadvantages Not available in smaller towns and cities Subject to defacement

28 Broadcast Media Includes radio and television The average person will spend nearly ten years watching TV and almost six years listening to the radio over a 70 year lifetime.

29 Television Advertising Communicates with sound, action, and color. Prime time is between 8 and 11 p.m. Is appealing to large companies with widespread distribution.

30 Television Advertising Advantages Can be directed to an audience with a specific interest Message can be adapted to take advantage of holidays and special events Disadvantages Highest production cost of any media type High dollar cost for the time used Actual audience size is not assured people leave the room or channel surf or DVR

31 Radio Advertising Radio reaches 92 % of people over 12 yrs. which makes it very effective Best times are drive times morning and late afternoon/early evening

32 Radio Advertising Advantages Can select an audience, such as teens by choosing the right station More flexible than print messages can be easily changed It s a mobile medium can be taken just about anywhere Disadvantages Short life span when broadcast, it is over Lack of visual involvement

33 Digital Advertising Placing advertising messages on the Internet/Apps/Social Media Banner ads created with rich media technology that uses the strategy of popping up and interrupting the readers search

34 Specialty Media Relatively inexpensive, useful items with an advertiser s name printed on them Given away with no obligation attached Calendars, magnets, pens, pencils, memo pads, and key chains

35 Other Advertising Media Businesses are constantly creating innovative means of transmitting their messages Sports arena billboards, ads in movie theaters, hot air balloons and blimps, skywriting, etc.

36 Sales Promotion A short term incentive offered to encourage buying a good or service Premiums A low-cost item given to consumers for discount or free Examples: Coupons

37 Premiums Factory packs: free gifts place in product packages Ex: Toys inside cereal boxes

38 Premiums Traffic builders: items given for attending a special event Ex: pens, key chains, calendars, etc.

39 Premiums Coupon plans: programs that offer a premium in exchange for labels, tokens, etc. made with one or more purchases Ex: Three soup can label in exchange for a recipe book

40 Premiums Product Samples A free trial size version of a product Especially important with new products

41 Promotional Tie-ins Promotional arrangements between one or more retailers or manufacturers Ex: McDonald s Happy Meal w/ Monster Jam or Hello Kitty toys

42 Product Placement An organization features its product at a special event or on television or in the movies Ex:?

43 Incentives Higher-priced items earned or given away in through contests, sweepstakes, or rebates Contests: games or activities that require the participant to demonstrate a skill Ex: writing a short essay, creating a new slogan, etc. Sweepstakes: games of chance Ex: receiving a game card from a fast food restaurant Rebates: discounts offered to customers for purchasing with in a certain time period Ex: Auto or appliance dealerships

44 Sales Promotion Cont. Loyalty Marketing Programs Rewarding customers for frequent purchases Ex: Frequent flier miles or points for clothing purchases

45 Public Relations Any activity designed to create a favorable image toward a business, its products or its policies. Customer Relations On-premise restaurants, gift-wrapping, free delivery Employee Relations Tuition reimbursements, Recreational programs, Recognition programs Community Relations Sponsorship of Special Olympics, Providing mentors to students, matching employee s charitable donations

46 Publicity Is the part of Public Relations that s purpose is to gain media attention.

47 Press Release: Prewritten story about a company that is sent to various media Advantage It is free! Disadvantage.. Its contents cannot be controlled by the business Typed Double Spaced On letterhead 1 ½ Margins No spelling errors

48 Personal Selling Requires direct contact with the customer. Final stage of a sale, after the customer has been prompted by advertising, public relations, and sales.