Download 5.02 Explain the promotional mix and the different forms of promotion.

5.02 Explain the promotional
mix and the different forms of
promotion.
Elements of The
Promotional Mix
„ Any
combination of the
different forms of promotion
to sell goods and services
Different Forms of
Promotion - Advertising
„ Any
paid, non-personal form of
communication by an identified
sponsor
„ Examples include: TV
commercials, magazine
advertisements, direct mail, and
the Internet
Different forms of promotion –
Sales Promotion
„ Activities
or communications
that encourage consumers to
purchase products
„ Example include: giveaways,
sweepstakes, free samples,
award shows, contests, and
coupons
Different forms of promotion
– Personal Selling
„ Personal
selling is face-to-face,
personalized communication
between a seller and a buyer
„ Examples include: presentation
of a demo from a recording
artist to a record label
executive
Different forms of promotion –
Public or Community Relations
„ Activities
used by a business or
organization to gain and
maintain a positive relationship
between themselves and the
community
Two types of Public or
Community Relations
1.
„
The internal community
includes the employees of the
company or organization
For example, Coke holding an
annual picnic for employees
and their families.
Two types of Public or
Community Relations
2.
„
The external community
includes people outside of the
company or organization
For example, Pepsi donating
circus tickets to a Big
Brother/Big Sister
organization.
Different forms of
promotion - Sponsorship
„ The
financing of a sports
or entertainment entity
(athlete, league, team,
concert, or event) by a
business in return for
recognition or affiliation
Types of media used in
advertising- Print media
„ Any
written form of
communication used to
inform, persuade, or remind
consumers about products or
services offered
Print Media - Newspaper
„ The
most common and the
most cost effective type of print
media
„ Newspapers are most effective
for local businesses that are
trying to reach a specific
geographical market
Print Media - Magazines
„ Likely
to be used by advertisers to
segment the market based on
demographic and behavioral
segmentation
„ For example: men more likely to
subscribe to Field and Stream, so
this would be cost effective for a
brand of men’s razors.
Print Media – Direct Mail
„ Sent
directly to customers, or
potential customers of a
particular store
„ For example: all Blockbuster
Video members would receive a
flyer announcing a special sales
event
Print Media – Outdoor
Advertising
„ Includes
any outdoor signs
and billboards
„ Outdoor advertising provides
24-hour advertising
Print Media – Transit
Advertising
„ Uses
public transportation,
such as buses, bus stands,
taxicabs, and subways to
post advertising messages
Types of media used in
advertising – Broadcast Media
„ Any
visual and/or auditory form
of communication used to
inform, persuade, or remind
consumers about goods or
services offered
Broadcast Media - Radio
Advertising
„ Advertisers
match their target
market to a radio station that
segments a particular market.
„ Has the ability to reach a wide
audience.
Broadcast Media - TV
Advertising
„ Includes
commercials and
infomercials
„ Is the most effective type of
broadcast media as well as
the most expensive
Types of media used in
advertising – Online Media
„ Is
the placement of
advertising messages on the
Internet World Wide Web
On-line Media – Banner Ads
„ Are
rectangular boxes at
the top or bottom of web
sites that are used to
promote a web site or
business
On-line Media – Pop-up Ads
„ Pop-up
advertisements are
the advertisements that
“pop-up” and interrupt
Internet surfing
On-line Media – E-mail Ads
„ Are
used to tailor messages to
fit individual web surfers
„ E-marketers compile or
purchase customers databases
containing information based
on sites visited by web surfers
Types of media used in
advertising – Specialty Media
„ Include
“everyday” items
with a company name
written on them
„ Examples include: calendars,
pens, magnets, and coffee
mugs
Types of media used in
advertising – Miscellaneous
„ Many
other creative ways of
communicating advertising
messages to consumers
„ Examples include: blimps,
supermarket carts, hot air
balloons, and in-theater
advertisements
Forms Of Sales Promotions –
Annual Awards Shows
Academy Awards (Oscars)
awarded by Academy of Motion
Picture Arts & Sciences
„ Nomination generates media
coverage and increases ticket sales
„ Producers and studios promote
films to Academy members through
trade publications and talk-show
circuit
Forms Of Sales Promotions –
Annual Awards Shows
„ National
Academy Of Recording
Arts and Sciences (NARAS) award
the Grammy Awards
„ NARAS is an association of more
than 13,000 recording
professionals
„ A Grammy might draw attention to
an artist, but does not guarantee
acceptance in form of sales
Forms Of Sales Promotions –
Annual Awards Shows
„ Emmy
Awards are awarded by
2 branches of the same
organization
„ Academy of TV Arts and
Science awards prime-time
Emmy Awards for night time
television and Daytime Emmy
Awards for daytime television
Forms Of Sales Promotions –
Annual Awards Shows
„ Emmy
Awards draws
monumental attention to TV
shows
„ Increases viewing because of
winning actors/actresses
Forms Of Sales Promotions –
Annual Awards Shows
„ Tony
Awards are awarded to
theater professionals for
outstanding achievement
Forms Of Sales Promotions –
Annual Awards Shows
„ ESPY
Awards by ESPN and are
awarded for excellence in sports
performance
„ Nominating committee consists
of sports executives, journalists
and retired athletes
Forms Of Sales Promotions –
Annual Awards Shows
„ Besides
athletes and coaches,
many actors and musicians
attend and participate in event
„ ESPY Awards make contributions
to the V Foundation, established
by ESPN in honor of the late
NCSU Basketball Coach Jim
Valvano
Forms Of Sales Promotions –
Trade Shows & Conventions
„ Provide
promotional
opportunities for manufacturers
wholesalers, retailers, and movie
producers to learn about and
support new products in the
industry
Forms of Sales Promotions Incentives
„ Used
to generate awareness,
interest, and increase sales.
Forms Of Sales Promotions Incentives
Contests
„ Prizes are awarded based on
contestant skill and/or ability
„ Examples include: American
Idol, Fear Factor, and Dog Eat
Dog
Forms Of Sales Promotions Incentives
Sweepstakes
„ Prizes awarded based on the
chance or luck of the
contestant
„ Examples include winning
concert tickets from a local
radio station
Forms Of Sales Promotions Incentives
Rebates
„ Discounts offered by manufacturer
when consumer purchases a sports
entertainment good or service
during specified time period
„ For example: mail-in rebates for
purchasing two DVD’s at a time
Forms Of Sales Promotions Premiums
„ Low
cost items given away with
the sponsor’s product as part of
a sales promotion
„ For example: Powerade gives
away a cooler with a purchase
of a case of powdered drink mix
Forms Of Sales Promotions Premiums
Coupons
„ Offer price reductions and found in
print advertisements, inserted
inside packaging, incorporated as
part of the product package, or
mailed to consumers
„ For example: Blockbuster coupons
on popcorn packaging or coupons
inserted in Sunday newspaper
Forms Of Sales Promotions Premiums
Traffic-builders
„ Low cost items given to customers
for attending an event, or visiting a
store
„ For example, first 200 customers to
attend grand opening of new Sports
Authority receive a Sports Authority
key chain
Forms Of Sales Promotions Sampling
Sampling
„ Refers to giving consumers a “taste”
for sporting event or concert
„ For example: fan participation at a
track and field event and Faith Hill
selecting member of the concert
audience to stand with her on stage
Analyze the steps of
promotional planning
1.
Determine strategy for reaching
target market
Analyze the steps of
promotional planning
Push strategies
„ Used by manufacturer to
convince or “ push “ retailers to
carry and promote products
„ Relies heavily on personal
selling and sales promotion
Analyze the steps of
promotional planning
Pull strategies
„ Directed towards customers to
increase their interest and
demand for products
„ Customers will “pull“ or convince
retailers to carry sports or
entertainment products.
„ Relies heavily on advertising
Analyze the steps of
promotional planning
2.
„
Determine the objectives of the
promotional activity
For example, is the objective to
increase sales, increase market
share, or create brand
awareness ?
Analyze the steps of
promotional planning
3.
„
Establish a promotional budget
No exact science exists for
establishing a promotional
budget
Analyze steps of promotional
planning - Budgets
„
1.
„
„
Common methods of determining
budgets include:
Percentage of expected sales.
Based on a percentage of past or
expected sales to determine
budget
Advantages include limited
financial risk. Disadvantages
include sales may decrease
reducing promotional budget
Analyze steps of promotional
planning - Budgets
2.
„
„
Objective and task method
Company determines promotional
goals, steps needed to meet goals
and calculates cost for promotional
activities
Most cost effective method for it
takes into account what company
wants to accomplish
Analyze steps of promotional
planning - Budgets
3.
„
„
Competitive equivalence
Involves matching competitors
promotional outlay
Weakest method because it
takes into account competitors’
objective only
Analyze steps of promotional
planning - Budgets
4.
„
„
“Whimsical” allocation
All money available after
expenses is allocated as
promotional budget
Short-term method used to
increase sales by building
reputation
Analyze the steps of
promotional planning
4.
Develop promotional mix
„
Specific mix chosen should take
into consideration the target
market, promotional goals,
promotional budget
Care should be given to
aligning national and local
promotional efforts
„