Virtual Business Sports Media Planning Promotion All activities used to inform & persuade consumers to buy products & services. Promotional Mix Any combination of promotional activities, including advertising, sales promotion, personal selling, & publicity a company will do to inform & persuade consumers. 4 Promotional Mix Elements (2)Sales Promotion: Short term incentives used to stimulate customers to buy products. Examples of Sales Promotions: Coupons & Rebates: Offer price reduction or free merchandise Free Samples Premiums: Items that are given away free with purchase of merchandise Contests: Chance of winning a prize if a task is completed by the customer. Sweepstakes: Sign up to win a prize. No purchase or task is necessary. Store Window Displays Free Financing 4 Promotional Mix Elements Cont…. Personal Selling: Direct or personalized communication by employees to potential customers to influence buying decisions & ensure customer satisfaction. 4 Promotional Mix Elements Cont…. Publicity/Public Relations: Publicity: Free & non-personal forms of communication Public Relations: Activities that promote the image and communications a company has with its employees, customers, investors, and public. Examples of Publicity/Public Relations: Press Releases & News Conferences Newspaper Articles T.V. News Stories Radio & T.V. appearances Advertising Any paid & nonpersonal form of communication of an idea, good, or service. Advertising Media The different avenues through which a business can reach its potential customers Types of Advertising Media Television Radio Internet Newspapers Magazines Billboards Successful Media Planning Media planners will seek to reach the largest % of their target market. Target Market – The group of consumers that a business will direct its marketing activities towards. Try to keep advertising spending within a set budget. Strategies for Successful Media Planning Define a specific target market by using Market Segmentation – Breaking down consumers based on their characteristics. Types of Market Segmentations: Demographics – Personal Characteristics – (Age, Income, Gender, Ethnicity, Occupation, Education Level). Psychographics – Hobbies, Lifestyles, & Interests Geographics – Consumers’ locations Strategies for Successful Media Planning Cont… Determine specific media outlets which will best reach the defined target market segments. Example: If you are targeting young males determine media outlets which have a large number of viewers or listeners that are young males. Maximizing Advertising Dollars Determine how well your advertising dollars are being spent with Cost Per Reach. Cost per reach = Total Media Cost / Total Audience Reach Example = Media Cost = $100,000 Audience = 2,000,000 $100,000 / 2,000,000 • Cost per reach = .05 • (It costs .05 cents for every person reached) • The lower the “CPR” the better Media Planning Terms Cost per reach – The cost of an advertising campaign divided by the number of people reached Media – Avenues for communicating a message. Awareness - % of potential customers in a specific target market who are aware of a product’s existence. Demographics – Personal characteristics of a population segment such as gender, age, & income.