Types of Promotion Advantages and Disadvantages Copyright © Texas Education Agency, 2011. All rights reserved. Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1) Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency, 2011. All rights reserved. 2 Examples of Mass Media Advertising • • • • • • • Direct Mail Internet Magazines Newspaper Outdoor Radio Television Copyright © Texas Education Agency, 2011. All rights reserved. 3 Advantages of Advertising • Reach a wide audience—efficient medium in terms of cost-per-viewer • Controllable, repeatable form of promotion • Not limited by geography—can reach people throughout the world Copyright © Texas Education Agency, 2011. All rights reserved. 4 Disadvantages of Advertising • Overall cost can be very expensive • Impersonal nature of advertising • Not always timely by the time it reaches the intended audience • Advertising life-span may be limited • Takes more than one media to reach target market Copyright © Texas Education Agency, 2011. All rights reserved. 5 Advantages of Public Relations • Third-party source is perceived as being more objective than a commercial • Relatively inexpensive or Free Copyright © Texas Education Agency, 2011. All rights reserved. 6 Disadvantages of Public Relations • Hard to control—relies on thirdparty media outlets • Impossible to predict or control the kind of coverage for a product Copyright © Texas Education Agency, 2011. All rights reserved. 7 Advantages of Personal Selling • Personal contact • Feedback from the customer is immediate • Sales presentation is flexible Copyright © Texas Education Agency, 2011. All rights reserved. 8 Disadvantages of Personal Selling • Per-person cost • Only reach one customer at a time Copyright © Texas Education Agency, 2011. All rights reserved. 9 Advantages of Sales Promotion • Generates short-term sales • Sales promotion results are measurable Copyright © Texas Education Agency, 2011. All rights reserved. 10 Disadvantages of Sales Promotion • Functions on the short-term – it does not necessarily result in maintaining loyal customers • Builds customer relationships based upon incentives • Cost of providing incentives Copyright © Texas Education Agency, 2011. All rights reserved. 11 Assignments • Independent Practice Assignment –Team - Up-Selling (National Amusement Park) • Independent Practice Assignment-Individual - Forms of Media Advertisement (Create collage of 7 forms of media advertising) • Extension Assignment – Team - Personal Sales Demonstration Copyright © Texas Education Agency, 2011. All rights reserved. 12