UNIT Promotion ACTIVITY Using note cards, describe your favorite Commercial WITHOUT indicating the product or service. Share your commercial with the class & see how many students: – recognize the ad – can identify the brand, & – got the message. ACTIVITY QUESTION: How did they do that? ASSIGNMENT • Read Chapter 28 • Do questions 6 - 10 in the text on page 380 OBJECTIVE Be able to identify & describe “The Four P’s of Marketing.” The “Four P’s” of Marketing • Product Planning • Pricing • Promotion • Physical Distribution OBJECTIVE Be able to break promotion down into its six components. Define each component & provide examples PROMOTION • Advertising • Publicity • Display • Personal Selling (Visual Merchandising) • Public Relations • Sales Promotion ACTIVITY • With a partner, describe how “Coca - Cola” uses all six of these discussed components in its promotional campaigns: * ADVERTISING * DISPLAY * PUBLICITY * SELLING * PUBLIC RELATIONS * SALES PROMOTION OBJECTIVE Be able to define the phrase “Promotional Mix” Promotional Mix Adver. Display Publicity PR Selling S. Promo. How a company allocates its limited resource called money to the different promotional tools OBJECTIVE Be able to identify two advantages & two disadvantages to each type of promotional method discussed in class ACTIVITY In a small group, identify the advantages & disadvantages of the promotional method given to your group. ACTIVITY In a small group, identify the advantages & disadvantages of the promotional method given to your group. See Handout for Results OBJECTIVE Using the communications model discussed in Level I, be able to identify the role business & consumers play when a company promotes a good or service. The Communications Model • • • • • • The Sender The Message The Receiver Feedback Blocks Distractions The Communications Model The Communications Model (ACTIVITY) • • • • • • The Sender The Message The Receiver Feedback Blocks Distractions __________ __________ __________ __________ __________ __________ ASSIGNMENT • Read Chapter 29, pages 382 - 389. • Do any two of the “Critical Thinking” questions on page 390. • Do workbook pages 139 - 141 Developing a Promotional Campaign PROJECT Promoting the School Store School Store STEP 1 1 ANSWER THE 6 BASIC QUESTIONS OBJECTIVE Be able to identify & answer the six basic questions reviewed at the start of any promotional campaign. ANALOGY If your were told to give a speech, what six basic questions would you want answered before you spoke? The Six Basic Questions • • • • • • What should I promote? Why should I promote? To whom should I promote? Where should I promote? When should I promote? How should I promote? –goals, budget, resource allocation, follow-up evaluation The Six Basic Questions • What should I promote? • • • • • Why should I promote? To whom should I promote? Where should I promote? When should I promote? How should I promote? – goals, budget, resource allocation, follow-up evaluation The Six Basic Questions • What should I promote? • Why should I promote? • • • • To whom should I promote? Where should I promote? When should I promote? How should I promote? – goals, budget, resource allocation, follow-up evaluation The Six Basic Questions • What should I promote? • Why should I promote? • To whom should I promote? • Where should I promote? • When should I promote? • How should I promote? – goals, budget, resource allocation, follow-up evaluation The Six Basic Questions • What should I promote? • Why should I promote? • To whom should I promote? • Where should I promote? • When should I promote? • How should I promote? – goals, budget, resource allocation, follow-up evaluation The Six Basic Questions • • • • What should I promote? Why should I promote? To whom should I promote? Where should I promote? • When should I promote? • How should I promote? – goals, budget, resource allocation, follow-up evaluation The Six Basic Questions • • • • • What should I promote? Why should I promote? To whom should I promote? Where should I promote? When should I promote? • How should I promote? – goals, budget, resource allocation, follow-up evaluation STEP 2 1 2 IDENTIFY WHY PEOPLE BUY OBJECTIVE Be able to define Buying Motives & provide examples when given different products/services & market segments Buying Motives The reasons why people buy products & services Buying Motives The reasons why people buy products & services. EMOTIONAL OR RATIONAL REASONS Buying Motives • EMOTIONAL – love – friendship – sympathy – fear – social approval – pleasure – comfort • RATIONAL – convenience – efficiency – durability – dependability – saving/making $$$ – saving time – investments STEP 3 1 2 3 Distinguish Between Product & Institutional Promotions OBJECTIVE Be able to identify examples of the different types of promotional campaigns presented The School Store (PROMOTIONAL CAMPAIGN) Institutional Product/Service Event Ideas School Store STEP 4 1 2 3 4 Identify a Theme, Slogan, Brand, and/or Trademark OBJECTIVE Be Able to Define the Terms: –Theme –Slogan –Brand –Trademark DEFINITIONS • Theme –Central Idea or Idea of a Promotional Campaign • Slogan –Catchy, Easy to Remember Phrase Summarizing a Theme DEFINITIONS • Brand –Name Given to a Line of Goods • Trademark –A Picture or Symbol Identifying Your Product or Company STEP 5 1 2 3 5 4 Conduct a Marketing Research Project OBJECTIVE Be Able to Define Marketing Research & the Questions it Can Answer For Your Company Marketing Research • Gathering Information About the Consumers Most Likely to Buy My Product/Service – Who are my customers? – Where can I reach them? – When can I reach them? Marketing Research Important Concepts • Market Segmentation – Dividing “The Market” into smaller, easier to reach, easier to satisfy groups based on their . . . • Demographics – The defining characteristics of people that can used to divide large groups into smaller groups Demographics • • • • • • • Age Sex Geographic Location Incomes Occupations Family Size Interests & Hobbies Demographics • • • • • • • Religion Ethnic Background Race Wealth Body Types Education Etc. Etc. Etc. EXAMPLE (AGE) • Freshman • Sophomore • Junior • Seniors 9th 10th 11th 12th EXAMPLE (INTERESTS) • • • • • • • Country Old Rock Metal New Age Classics Jazz Other Country Old Rock Metal New Age Classics Jazz Other Combinations • • • • • Freshman Who Like the Classics Seniors Who Can Line Dance to Country Sophomores & Juniors Who “Head Bang” Seniors Who “Get Down” With Bach Older Students Who “Groove” to the Sound of Hubie Green • Freshman Who “Dig” the Beatles Combinations • Married Couples Living in Four Bedroom Homes With No Children Left at Home • Senior Citizens Living in the South With Incomes Over $100,000 • Young Parents With One Income in the 20 30,000 Range Who Rent Apartments • Single Men Living With Mom/Dad Over the Age of 25 With Incomes Over $50,000 Questions You Need to Ask • • • • • • • What do these people want & need? What kind of problems do they have? What is the most important buying motive? How can I reach them? How much will they spend? What are their alternatives? Etc. etc. etc. EXAMPLE Married Couples Living in Four Bedroom Homes & No Children Left • What do these people want & need? • What kind of problems do they have? • What is the most important buying motive? • How can I reach them? • How much will they spend? For the Answers Do Marketing Research!!! Marketing Research Primary –Research done by the company Secondary –Reviewing information gathered by others ACTIVITY First: Using “A Capital Market Place” article as a guide, make a list of the demographics of the people who live in or near Washington DC ACTIVITY Second: Using your list of demographics as a guide, identify the buying motives and products for each demographic group PROBLEM!!! The demographics and buying behaviors of our populations change constantly & we are expected to keep up if we are to be successful ACTIVITY First: Using “You’ll Know it’s the 21st Century” article as a guide, identify the demographic changes occurring in our country. Each student will be assigned a section to review for the class ASSIGNMENT Using “You’ll Know it’s the 21st Century” article as a guide, identify the buying motives and products that will become important in the future in our country STEP 6 1 2 3 6 5 4 Identify the Advertising Media to Be Used in Your Campaign OBJECTIVE Be Able to Identify the Advantages & Disadvantages of the Various Media Available ASSIGNMENT • Read Chapter 30, pages. • Do two of the “Critical Thinking” questions on page 402. • Do workbook page 145 Advertising Media • Print – Newspaper – Magazines – Directories • Broadcast – TV – Radio • Direct Mail Advertising Media • Specialty (Sales Promo) • “Out of Home” – Billboards, Transit • Other – Telemarketing – Movie Ads – Specialty Items – Etc. Media Evaluation Criteria • Total Cost • Cost Per Capita (Person) • Use of Senses • Targeting Ability • Quality of Graphics • Flexibility • • • • • • Life Span Reach Response time Personalize Competition Measurement of Effect Media Evaluation Activity: Given a specific media identified in class, have a small group list three advantages & three disadvantages of that media. Present your results to the class. Support your opinion with sound reasoning. Media Evaluation Homework Assignment Given a list of the various media available & a chart featuring the important criteria to consider when evaluating media, identify the strengths & weaknesses of each media. OBJECTIVE Be able to describe the 12 techniques used by advertisers to encourage consumers to buy a product, service, or idea. Advertising Techniques • • • • • • Involvement Appeal to Fear Association Timing Repetition Saliency Widget Sales Advertising Techniques • • • • • • Appeal to Emotions Buzz Words Mkt. Segmentation Volume Brand Names Cinderella Syndrome Widget Sales Creating Print Advertisements OBJECTIVE Be able to identify & explain the use of the AIDA Theory in the creation of print ads AIDA Theory • Attention • Interest • Desire • Action Copy OBJECTIVE Be able to design & write copy for a printed advertisement Terms to Know • Copy • Art (Graphics) • Logotype – Trademark – Font • Layout • White space COPY • Headline – Usually the largest, boldest words on the page Sub Head – Just below headline in a medium font Copy – The majority of the printed message COPY • Headlines – Get the reader’s attention by: • Asking a question • Suggesting an action • Stating an interesting fact • Stating a benefit COPY • Sub-heads – Builds on the headlines, draws attention to the content, & brings the reader into the copy COPY The Copy – Must create interest – Must be accurate/truthful – Must develop desire for the product – Must ask for an action COPY • Building Interest: – ID a problem – Relate it to the customer’s problem • Create Desire: – Offer to solve their problems – Offer benefits – Be absolutely clear • Ask For a Buying Action GRAPHICS • Illustrations Can: – Get attention – Have sales appeal – Communicate benefits • Types: – Pictures, drawings, designs, backgrounds, holographs, etc. General Guidelines for Advertising Copy • • • • Be Human Be Simple Be Sincere Be Specific • • • • Be Informative Be Enthusiastic Be Clear Be Believable Steps in Advertisement Design • Copywriters – Do rough drafts • Artists – Do a Thumbnail Sketch OBJECTIVE Be able to write effective radio copy (Know 8 of the 10 rules for writing radio copy) Writing Radio Copy • The opening must grab attention • Talk to only one person • Write the way you talk, not the way you write • Stress a benefit Writing Radio Copy • Use “power words” or active verbs • You don’t need complete sentences • Use the company name a lot • Make sure your copy is “correct” (wording) Writing Radio Copy • Don’t begin with a question • Limit your ad to two main points • Be honest (Don’t overstate your case) • Ask for an action OBJECTIVE Be able to define the terms associated with media expense calculations Media Expense Factors • • • • • • • Circulation (Audience) Production Costs Preferred Space Location Discounts Prestige & Credibility of Media Reproduction Quality How Specific You Want the Target Market Newspaper Advertising • Production Costs are low • Special requests add to cost – color – Inserts • Most ads are “Run of Paper” (ROP) • Special locations add to the expense • “Split runs” add to the expense Newspaper Advertising • Advertising is sold using “Rate Cards” • “Flat Rate” refers to a price per line inch (Found on Rate Card). • “Sliding Scale” refers to discounts available for frequent or large ads • A “Combination Rate” refers to the price given for advertising in various media owned by the same company Magazine Advertising • Similar to newspaper advertising • Allows for “secondary circulation” • Production expense varies, but is usually much higher than newspapers (+30% for color) • Preferred locations cost more (back cover) • “Bleed Pages” are ads without borders (15 - 20 % surcharge is added) Magazine Advertising • “Gatefolds” are ads with bi- or tri- folds and cost extra • “Spreads” are ads on two facing pages and cost extra • “Split-runs” are similar to newspaper ads • Size, dollar, & frequency discounts available Television Advertising • Expense is high, but the reach is great • Expense varies with audience size, season of the year, time of day, preferred location of ad, length, & production expense. • Time of day is broken into parts called “Day-parts”: – “Prime Time” 7:30 pm - 11:00 pm – “Day-time” 10:00 am - 4:30 pm Television Advertising • TV viewing is highest in winter, low in summer • Program quality & popularity effect expense • “Run of Program” (ROP) is done on TV • TV rates are set by “Gross Rating Points” (GRPs) representing 1% of the potential market Radio Advertising • Similar to TV except that production expense is lower • “Dayparts” – Drive time5:30 am - 10:00 am 3:00 pm - 7:00 pm – Day time 10:00 am - 3:00 pm – Evenings 7:00 pm - 12:00 pm – Overnight 12:00 pm - 5:30 am Calculating Media Expense • Absolute vs. relative expense of advertising • Numbers based on marketing research – CPM Cost per thousand – CPRP Cost per rating point • Rating Systems – Neilson – Arbitron Audit Bureau of Circulation Traffic Audit Bureau OBJECTIVE Be able to calculate the expense of advertising in the various media Calculating Media Expense Math Problem Example PROGRAM # OF X SPOTS COST PER SPOT = TOTAL Friends Veronica’s The Nanny Voyager TOTAL 3 per wk. $8,000 $9,000 $10,000 $12,000 -------- = = = = = 3 per wk. 3 per wk. 3 per wk. 12 per wk. X X X X X $24,000 $27,000 $30,000 $36,000 $117,000 Calculating Media Expense Math Problem Example Week 1 2 3 4 Summary # OF X SPOTS 3 3 3 3 12 X X X X X Reach (Rating) = GRPs 18% 19% 22% 21% 20% Avg. = 54 = 57 = 66 = 63 = 240 GRPs Calculating Media Expense Cost Per GRP Cost Per GRP = Budget / = 117,000 / # of GRPs 240 = X = $487.50 Per GRP Cost Per GRP Cost Per GRP Math Problem Example = Budget / = 117,000 / # of GRPs 240 = X = $487.50 Per GRP Calculating Media Expense Math Problem Sample Cost Per GRP Cost Per GRP = Budget / = 117,000 / # of GRPs 240 = X = $487.50 Per GRP SEE HANDOUTS VISUAL MERCHANDISING Display Building