Promotion
Chapter 15
Promotion
•Communication to
inform, persuade,
and/or remind
consumers about an
organization’s
products and
services
Inform
• When a product is new
to the market
• Introduction stage
• Let customers know
about product
Persuasion
• Used when there is a
lot of competition in
the market
• Want them to buy your
product or services
versus competitor
• Growth/Maturity stage
Remind
• When product been out
awhile
• Remind them of how
good it is
• Maturity stage
What is positioning?
• How you want the customer to
think about your business???
•
•
•
•
Low price leader
Best quality
Best value
Most unique
Positioning based on:
• Features and benefits:
• New Balance shoe based on
comfort and style
Price/Quality –
Lowest price or high price
Competition – How you compare
with the competition
Price or non-price competition
Product promotional
• Advertising designed to
increase sales of products or
services
• Examples: Milk Commercials “Got
Milk” encouraging consumers to
drink milk
• Ad convincing consumers to buy a
Honda over a Toyota
Institutional Advertising
• Creates a favorable impression
and goodwill for a business
• Examples: Ford emphasizes
“Quality is Job 1” in their ads
• Dow Chemical has ads showing
how they hire new college recruits
• Gulf Oil promotes wildlife
conservation in some of its ads.
Four Main Types of
promotions (promotional
mix)
• Advertising
• Publicity
• Personal Selling
• Sales Promotion
Advertising
• Any paid form of
nonpersonal
communication sent
through a mass
medium by an
organization about its
products and services
• Examples: TV,
Radio, Newspaper,
Choosing advertising
medium?
• 1. Cost - fall under business’
budget amount
• 2. What medium will reach the
business’ target market the
best?
• 3. What medium will reach the
most of your target market for
the money?
Personal Selling
• Person-to-person
communication with
potential customers in
an effort to inform,
persuade, or remind
customers
Personal selling
• Disadvantages
•Per person cost
• Advantages:
•Personal contact
•Can be more informative
•Feedback is immediate
Publicity/Public
Relations
• Non-paid form of business
communication about a
business organization (news
story)
• Advantages: typically free
and it creates goodwill
• Disadvantages: organization
has little control over it
Sales Promotion
• Activities or materials
that offer consumers a
direct incentive to buy a
good or service –
typically short-term
Sales Promotion
Short-term incentive offered to
encourage buying a good or
service. The purpose is to
INCREASE DEMAND and
STIMULATE SALES
Examples of sales
promotions
• Coupons
• Sponsorship – local business
having signs on our soccer
fence (concert)
• Incentives: Buy one get one free
sale
• Factory pack – free gift in
package (cracker jacks and
cereal)
Sales promotions
(examples continued)
• Product samples – detergent,
cologne, toothpaste (dentists and
doctors)
• Loyalty Marketing programs – If they
buy so many sandwiches, they get
one free
• Promotional tie-in – McDonalds
having disney characters in their
happy meals that go along with their
movie “Goofy” movie
Advantages/Disadvantages
of Sales promotion
• Advantages: Generates
immediate short-term sales,
supports other parts of
promotional campaign
• Disadvantages: Costs can be
very high, promotion may not be
effective so may lose money
Sales Promotions (cont.)
• Advantages:
• Generates immediate,
short-term sales
• Supports other parts of
promotional campaign
• Disadvantages:
• Costs can be high
(coupons, rebates, etc.)
Specialty advertising
• Relatively inexpensive items with
advertiser’s name on them (pens,
hats, shirts, cups, etc.)
• Advantages: reminder to use
product
• Disadvantages: small size may limit
amount of message, might be given
to people not interested in product
Advertising Campaign
• Is coordination of a series of
advertisements around a particular
theme to promote a product
• Geiko – Caveman
• Coke – Polar bears
• Milk producers – “Got Milk”
• Advertising Agents – work with
business clients to develop
advertising campaigns
Cooperative Advertising
• Cost-sharing arrangement
whereby both a supplier and a
local advertiser pay for
advertising (both names appear
in ad)
• Example: Macy’s having an ad
promoting Jessica Simpson’s
new perfume
A paid form of nonpersonal
communication sent through
a mass medium is known as
a. personal selling
b. publicity
c. sales promotion
d. advertising.
• An important objective of
promotion is to __________
buyers.
a. deceive
b. manipulate
c. inform
d. delude
• Which of the following is an
example of outdoor media?
• A. A poster in a subway
• B. Large cards mounted on a bus
• C. Calendars printed with a
company’s name
• D. Electrical signs on high-traffic
area
• In this type of advertising medium
the readership is large and there
is a high level of reader
involvement
•
•
•
•
A.
B.
C.
D.
magazine
direct mail
newspaper
transit advertising
This type of advertising usually has
a low response rate and is
considered to be “junk” mail:
a.
b.
c.
d.
Newspaper
Direct mail
Magazines
Billboards
• The prime time for advertising on
the television is
•
•
•
•
A.
B.
C.
D.
4p.m. to 7p.m.
3p.m. to 8p.m.
9p.m. to 12p.m.
8 p.m. to 11p.m.
• With this type of advertising
media sometimes you are limited
to the routes that are available in
your area
•
•
•
•
A.
B.
C.
D.
direct mail
billboards
transit advertising
all of these
• What time slots are radio
advertisement slots?
•
•
•
•
A.
B.
C.
D.
10,
15,
25,
25,
15,
30,
50,
40,
or
or
or
or
20
60
60
60
seconds
seconds
seconds
seconds
• The ultimate advertising medium
is _________ because you can
communicate your message with
sound, action, and color.
•
•
•
•
A.
B.
C.
D.
television
radio
newspaper
magazine
• An advantage of this advertising
media is that almost every home
has one.
• A. radio
• B. newpaper
• C. phone book (directory
advertising)
• D. magazine
• What are the best times for radio
advertising?
•
•
•
•
A.
B.
C.
D.
4a.m.
5a.m.
7a.m.
9a.m.
- 6a.m. and 8p.m. to 11p.m.
- 7a.m. and 6p.m. to 10p.m.
– 9a.m. and 3p.m. to 6p.m.
– 11a.m. and 1p.m. to 3p.m.
• Persuasion is typically used in an
advertisement when
• A. a product is first introduced.
• B. when the product is brand new.
• C. when there is growing
competition
• D. when the sales are declining.
• An advantage of promotional
activities to society is
•
•
•
•
A.
B.
C.
D.
it creates jobs
it adds money to the economy
it supports mass media
all of these
• The means by which advertising
can be presented is known as a
• a. resource.
c. medium.
b. banner.
d. message.
• 3. Which of the following is the
chief advertising medium for
most retail stores?
• a. newspaper
• b. television
• c. radio
• d. magazines
Public Relation
Specialist
• Publicize the good news
about a company
• Control negative damage
done by negative news
News Release
• News release – prewritten story
about a company sent to the media
• New Principals
• Press conference – meeting in
which a business invites media to
hear a newsworthy announcement
• War
• Economic disaster
What is the promotional
mix?
• It is the combination of the
promotional elements of:
• Advertising
• Personal selling
• Sales Promotions
• Publicity
What is the promotional
mix based on?
• Marketing Mix – product,
price, promotion, place
• Target market
• Policy and objectives for
advertising campaign
• Company’s financial
situation
Five steps to
promotional planning
• Analyze the market – market
research
• Identify the target market –
market segmentation
• Develop promotional
objectives – identify purpose
or result of promotional
objectives
Promotional objectives
(continued)
• Develop a promotional
budget – should be in line
with objectives
• Select the promotional mix –
advertising, publicity, etc..
• Implement the promotional
plan – Have a schedule and
people responsible, keep in
line with budget