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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 24hour 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