5.02 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
 Advertising
 Sales Promotion
 Personal Selling
 Public or Community Selling
Internal
External
 Sponsorship
Different Forms of Promotion
- Advertising
Any paid, non-personal form of
communication by an identified sponsor
EX:
TV commercials, magazine, Internet,
advertisements, and direct mail
Different forms of promotion – Sales
Promotion
Activities or communications that
encourage consumers to purchase
products
EX: 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
EX: 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
Internal
External
Two types of Public or Community
Relations
1. The internal community includes the
employees of the company or
organization
EX: 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
EX: 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
 Online Media
 Newspapers
 Banner Ads
 Magazines
 Pop-up Ads
 Direct Mail
 E-mail Ads
 Outdoor Advertising
 Miscellaneous
 Transit Advertising
 Broadcast Media
 Mobile Media
 Apps
 Radio Advertising
 Commercials
 TV Advertising
 Banners
 Specialty Media
 Miscellaneous Media
Types of media used in advertisingPrint 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
EX: 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
EX: 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
Radio Advertising
TV Advertising
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 (E-commerce)
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 –
Mobile Media (M-Commerce)
Include the use of mobile phones to
promote of sell products
EX: Apps, i-tunes,
mobile games, and
mobile banners
Types of media used in advertising –
Specialty Media
Include “everyday” items with a
company name written on them
EX: calendars, pens, magnets, and
coffee mugs
Types of media used in advertising –
Miscellaneous
Many other creative ways of
communicating advertising messages to
consumers
EX: blimps, supermarket carts, hot air
balloons, and in-theater advertisements
Forms Of Sales Promotions
Annual Awards Shows
Trade Shows & Conventions
Incentives
Premiums
Sampling
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
Grammy Awards -National Academy Of
Recording Arts and Sciences (NARAS)
NARAS- 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- Academy of TV Arts
and Science awards (2 divisions)
Night Time Television Awards
Daytime Emmy Awards
What Do the Emmy Awards do?
 Draws monumental attention to TV shows
 Increases viewing because of winning actors/actresses
Forms Of Sales Promotions – Annual
Awards Shows
Tony Awards - theater professionals for
outstanding achievement
ESPY Awards - excellence in sports
performance (by ESPN)
Nominating committee consists of sports
executives, journalists and retired athletes
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
EX: 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
EX: 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
EX: 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
EX: 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
EX: 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
EX: 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
EX: 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
2. Determine the objectives of the
promotional activity
3. Establish a promotional budget
1. Determine strategy for reaching
target market- Push strategies
Push strategies
Used by manufacturer to convince or “
push “ retailers to carry and promote
products
Relies heavily on personal selling and
sales promotion
1. Determine strategy for reaching
target market- Pull strategies
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
2. Determine the objectives of the
promotional activity
 Increase sales
 Increase market share
 Create brand awareness
3. Establish a promotional budget
Common methods (No exact science)
Percentage of expected sales
Objective and task method
Competitive equivalence
“Whimsical” allocation
3. Establish a promotional budget
Common methods (No exact science)
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
3. Establish a promotional budget
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
3. Establish a promotional budget
Competitive equivalence
 Involves matching competitors
promotional outlay
 Weakest method because it takes into
account competitors’ objective only
3. Establish a promotional budget
“Whimsical” allocation
 All money available after expenses is
allocated as promotional budget
 Short-term method used to increase sales
by building reputation
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