Standard 6 - Promotion
What you’ll learn:
• Understand the nature and scope of
promotion
• Understand promotional channels
used to communicate with the
targeted audiences
Standard 6 Day 1 – Promotion
Students will be able to:
• Understand the nature and scope of promotion
– Explain the role of promotion as a marketing
function
– Identify elements of the promotional mix
(advertising, public relations, personal selling,
sales promotion)
– Explain the nature of a promotional plan
– Explain the importance of coordinating activities
in the promotional mix
Promotion
• Any form of communication a business or
organization uses to inform, persuade, or
remind people about its products
Promotional Mix
A combination of the different types of
promotion
1. Personal Selling
2. Advertising
3. Public relations
4. Sales promotion
1) Personal Selling
• Any form of direct contact
occurring between a salesperson
and a customer
2) Advertising
• Any paid form of nonpersonal presentation and
promotion of ideas, goods,
or services by an identified
sponsor
– Nationally, businesses spend
about $200 billion annually on
various types of advertising
3) Public Relations and Publicity
• Public Relations – any activity
designed to create a favorable
image toward a business, its
products, or its policies.
– It is designed to influence the
public’s view of a business
4) Sales Promotion
• All marketing activities, other than
personal selling, advertising, and
public relations, that are used to
stimulate consumer purchasing and
sales effectiveness
Promotional Plan
• Promotional Plan outlines how the Promotional Mix
will be utilized
• Set goals and objectives
– Increase awareness, sales, loyalty, etc.
• Establish spending guidelines
– Different Mix elements have very different costs
• Determine Mix elements to reach target market
– Research to determine best methods of Mix.
• Monitoring your Promotional Plan
– E.g. Track sales prior to promotion and sales
after to quantify increase.
Your Promotional Plan
Promotional strategy
How much will this
strategy cost?
Whom do you hope to
reach with this
strategy?
Why did you choose
this strategy?
Standard 6
• Students will be able to:
• Understand promotional channels used to communicate with the
targeted audiences
– Explain types of advertising media used to communicate with
target audiences
– Understand the use of public-relations activities to communicate
with targeted audiences
– Identify methods personal selling is used to communicate with
targeted audiences
– Identify and explain communication methods used in sales
promotions
– Understand the use of social media tools to communicate with
targeted audiences
– Identify metrics used to assess results of promotional efforts
Types of Advertising Media
Media are the agencies, means, or instruments
used to convey advertising messages to the
public.
1.
2.
3.
4.
Print Media
Broadcast Media
Online Advertising
Specialty Media
1) Print Media
Written advertising that may be included in
everything from newspaper and
magazines to direct mail, signs and
billboards. They are among the oldest
and most effective types of advertising.
Direct-Mail Advertising (Print)
• Sent by businesses directly
through the mail
– Sent to a home or business
– Electronic mail
• Includes newsletters, catalogs,
coupons, samplers, price lists,
circulars, invitations, postagepaid reply cards, and letters.
• Mailing lists are assembled
from current customer records
or they may be purchased.
Outdoor Advertising (Print)
• Standardized signs are available to local, regional, or
national advertisers.
• Purchased from outdoor advertising companies in
standard sizes
• Are placed in highly traveled roads, and freeways
where there is high visibility.
• Posters – pre-printed sheets put up like wallpaper on
outdoor billboards.
• Painted bulletins – painted billboards that are
changed about every six months to a year.
• Spectaculars – use lights or moving parts and are in
high traffic areas.
A billboard gets right to the point
Transit Advertising (Print)
• Uses public transportation facilities
• Commuter trains, taxis and buses, station
posters near or in subways and in railroad, bus,
and airline terminals
2) Broadcast Media
• Includes radio and
television
• The average person
will spend nearly ten
years watching TV
and almost six years
listening to the radio
over a 70 year
lifetime.
Television Advertising (Broadcast)
• Communicates with sound, action, and color.
• Prime time is between 8 and 11 p.m.
• Is appealing to large companies with
widespread distribution.
Radio Advertising
Radio (Broadcast)
• Radio reaches 96 % of people over 12 yrs
which makes it very effective
• Best times are “drive times” – morning and
late afternoon/early evening
3) Online Advertising
• Placing advertising messages
on the Internet
• Banner ads – created with
rich media technology that
uses the strategy of popping
up and interrupting the
readers search
• Social Media uses
customers to place
product pictures in social
networking pages.
4) Specialty Media
• Relatively inexpensive, useful items with an
advertisers name printed on them
• Given away with no obligation attached
• Calendars, magnets, pens, pencils, memo pads,
and key chains
Specialty Media
• Businesses are constantly creating innovative
means of transmitting their messages
• Sports arena billboards, ads in movie theaters,
hot air balloons and blimps, skywriting, etc.
Public Relations
• Write News
Releases -- a
prewritten story
about a company
that is sent to the
various media
Writing News Releases (Public Relations)
• First paragraph should answer Who, What, When,
Where, and Why questions.
• Develop important facts in next few paragraphs.
• Less important information can follow but should be
edited.
• Include the full name and position of any people
mentioned.
• Include the name, address, and phone number of
the contact person.
• Be brief – only one or two pages. “###” at the bottom
of the last page signifies the end.
Selling
• Personal Selling – any form of direct
contact between a salesperson and a
customer
• Retail Selling – customers come to
the store
• Business-to-business Selling – takes
place in a manufacturer’s or
wholesaler’s showroom or a
customer’s place of business
• Telemarketing – selling over the
telephone
Sales Process (Selling)
1.
2.
3.
4.
5.
6.
7.
Approaching the customer
Determining needs
Presenting the product
Overcoming objections
Closing the sale
Suggestion selling
Relationship building
Sales Promotions
Designed to encourage customers
to buy a product
1.
2.
3.
4.
5.
Coupons
Premiums
Incentives
Product Samples
Sponsorship
6. Promotional Tie-in
7. Product
Placement
8. Loyalty Marketing
Program
9. Point of Purchase
Display
Types of Promotion (Sales Promotion)
• Coupons –
certificates
that entitle
customers
to cash
discounts
on goods or
services.
Types of Promotion (Sales Promotion)
• Premiums – low-cost items given
to consumers at a discount or for
free – Should:
– be low-cost
– provide added value
– negate the target audience’s price
issue
– effectively differentiate the product
from the competition
– create an immediate need to buy
Types of Premiums (Sales Promotion)
• Factory packs (in-packs) – free gifts placed in
product packages
Types of Premiums (Sales Promotion)
• Traffic builders –
pen, calendar, keychain given free for
visiting or attending
event
Types of Premiums (Sales Promotion)
• Coupon plans – ongoing program
offering a premium in exchange for labels,
coupons or other tokens from one or more
purchases.
Incentives (Sales Promotion)
Generally higher-priced products earned and
given through contests, sweepstakes, and
rebates
• Contests – activities that require
demonstration of a skill
• Sweepstakes – game of chance
Incentives (Sales Promotion)
• Rebates – discounts offered to customers who
purchase
Product Samples (Sales Promotion)
• Free, trial-size sample
• Distributed through mail, door-to-door,
or at a retail or trade show
• Especially important with new products
Sponsorship (Sales Promotion)
• The sponsoring company pays a fee for the right
to promote itself and its products or services at
or on a set location
• May negotiate the right to use logos and names
on retail products
Promotional Tie-In (Sales Promotion)
• Involves arrangements between one or more
retailers or manufacturers.
Ex: McDonald’s and Fisher-Price Toys
Product Placement (Sales Promotion)
• Featuring a product at a
special event, on television,
or in the movies
Click on the “Pieces Icon”
to learn about the history
of product placement.
Loyalty Marketing Programs
(Sales Promotion)
• Frequent buyer programs
• Reward customers for making multiple
purchases
Social Media
• Facebook
– Company website Version 2.0
• Twitter
– Info blasts of community service, sales, or
general information
• YouTube
– Tutorials and self-help, reduces product
returns and lost sales
• LinkedIn
– Employee and business community
networking
Measuring Promotion Results
• Market Research must be done to determine
effectiveness of all Promotional activities.