Download Unit Notes

Unit 11
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 11 Vocabulary














Advertising
Advertising Agencies
Advertising Campaign
Audience
Broadcast Media
Consumer Promotions
Cost per Thousand (CPM)
Coupons
Customer Acquisition Cost
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
Unit 11 Vocabulary














Promotional Advertising
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 11 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 role of promotion as a
marketing function?
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
are the elements of 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 promotional
channels used to communicate with
targeted audiences?
Promotional Channels

Promotional Channel: Method or
means of communication used to inform
customers about products. They include:
–
–
–
–
–
–
–
–
Advertising media (Newspaper, TV, etc.)
Social media (Twitter, Facebook, etc.)
Digital media (CDs, DVDs, etc.)
Word-of-mouth
Direct marketing (Postal mail, Email)
Sales promotion (Coupons, Samples, etc.)
Trade-show/exposition participation
Public relations activities
Essential Question 5
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
 Customer Acquisition
Cost is the
cost associated in convincing a
customer to buy a product/service. It
plays a major role in calculating the
value of the customer. The calculation
helps a company decide how much of
its resources can be profitably spent
on a particular customer.
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
Media Costs
 Facebook
 Twitter
 LinkedIn
 All
use CPM rates on clicks, passthrough rates, likes, comments,
retweets, etc.
Essential Question 6
Promotion
 What
are the components of
advertisements?
Advertisement Components
Border: Separates the ad from the
surrounding type
 Heading: The key part of the sales message,
may also contain subheads that either clarify
or amplify the thought in the headline
 Illustrations: Most effective way to draw
the reader’s attention, illustrations that takes
up 50 percent or more of the ad space
increases readership by as much as 37
percent

Advertisement Components

Price: Price is presented in several ways:
•
•
•
•

As part of the heading
The core the ad is built around
Preceding the copy
In the text space.
White space: Use as much as possible to
minimize distractions and draw attention to
what matters most
•
Does not have to be white – just absent of
illustrations and text.
Advertisement Components
Body copy: Expands benefits offered in the
headline and should be written as though
you were making friendly, personal
conversation
 Signature: Is often a company logo or
logotype and should not overpower other
important aspects of the advertisement

Advertisement Components
The one second test: A way of determining
whether a reader can tell at a glance what
the advertiser is selling
 Color: Achieve contrast in layout by
effective use of different size type, bold type
and color
 Creativity: Simplicity, focal point and
sequence in mind, will make the ad more
visually appealing

Headline
Body copy
Visual
Company’s logo
(Signature)
Essential Question 7
Promotion
 What
are the various public
relations activities?
Public Relations
Public Relations: The establishment and
maintenance of a good image for the
company, its products and services.
 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 8
Promotion
 What
are the differences between
internal and external audiences for
public relations activities?
Internal Public Relations
Internal public relations activities are
activities designed to keep groups within a
company informed about various activities
in order to maintain a good image for the
company, its products and services.
 Internal audiences may include:

– Staff / Employees
– Top Management
– Board of Directors
External Public Relations
External public relations activities are
activities designed to keep groups outside a
company informed about various activities
in order to maintain a good image for the
company, its products and services.
 External audiences may include:

– General Public / Customers
– Partner Organizations
– Donors / Funders
Essential Question 9
Promotion
 What
plan?
is the nature of a promotional
Promotional Plan

Contents of the Promotional Plan
– Objectives: Have a clear starting position;
awareness of opinions, behavior and knowledge
of the target audience; and available time and
resources.
– Market Targets: Decide who exactly is to be
the audience. Targeting the promotional
activities and communications message to a
specific audience guarantees a higher rate of
success or return on investment.
Promotional Plan

Contents of the Promotional Plan
– The Message: There are three principles that
should be remembered when developing the
communications or promotional message:
» 1. The KISS Principle (Keep It Simple Stupid)
» 2. The AIDA Principle
(Attention/Interest/Desire/Action)
» 3. Communication objectives:




• to be received (heard or read)
• to be understood
• to be accepted
• to get action (change of behavior or attitude)
Promotional Plan

Contents of the Promotional Plan
– Estimated Budget: Determine a preliminary
promotions budget. This initial estimate will be
modified as the planning process proceeds and
formal quotations are obtained.
– Promotional Elements (Tactics): Among the
various elements of promotions are advertising,
personal selling, reseller support, publicity,
sales promotion and supplemental activities
such as public relations.
Essential Question 10
Promotion
 How
are activities coordinated in a
promotional plan?
Coordinating Promotional Mix
Ensure all the communication channels
used will be good exposure for whatever
is being promoted
Ensure the communication channels used
will appeal to the target market


–
–
Younger demographics are not going to read
the newspaper as much as a social networking
The mix should reflect who it is supposed to
appeal to
Coordinating Promotional Mix
Ensure all strategies send the same
message about the product or business
Ensure strategies chosen fit the product or
business


–
Free samples work for food/beverage
products but not major clothing wear such as
shirts/pants