Warm-Up • What is your favourite promotion? • What is your favourite Advertisement on TV right now? Why do you like it? Promotion Topics: Advertising Sales Promotion – Goals of Ads – Selecting the Appeal – Types of Media – – – – – – – – Contests & Sweepstakes Refunds & Rebates Coupons Premiums & SelfLiquidators Samples Special Sales Point of Purchase / Sale (POP/S) ADD: Co-promotion Advertising Goals Goals of Advertising: 1. Brand Awareness & Positioning 2. Brand Trial 3. Brand Preference 4. Brand Reminder 5. Brand Repositioning Advertising Appeal Appealing to consumers using one of the four motivational areas: 1.Biological – need for health and security Examples: Health foods, home security, pharmaceutical brands, automobiles Doesn’t work for: Airlines, toxic household cleaners Advertising Appeal Four motivational areas: 1. Biological 2. Emotional – focus on consumer’s feelings; love for children, feelings of romance or pride Examples: Downey fabric softener, Perfume, Canadian Armed Forces Advertising Appeal Four motivational areas: 1. Biological 2. Emotional 3. Rational – Consumer reasoning; stresses convenience, cost savings, warranties, logical reason to buy Examples: Honda for mileage, Minute Rice, Guaranteed Trials Advertising Appeal Four motivational areas: 1. Biological 2. Emotional 3. Rational 4. Social – focus on social pressures influencing consumer behaviour, including body shape, appropriate behaviour, social acceptance. Examples: Acne face wash, Axe deodorant Group Activity • On the given sheet of paper, list 5 ads in the source you were provided • For each ad, name: – Advertising Goal – Advertising Appeal / Motivation – Explanation for why Brainstorm: Types of Media Magazines Newspaper 2 Television Out-of-Home Direct-toHome 1 Radio 4 3 5 Internet 7 Specialty 8 6 Types of Media 1. Magazines Opportunity to link with specific audience / interests. Several readers – passed on form of media. Types of Media 1. Magazines 2. Newspapers Geographic flexibility for specific cities. Link ads to relevant content / sections of the paper. Types of Media 1. Magazines 2. Newspapers 3. Television Expensive but capable to broadcast nationally to many viewers. Dynamic and changing media with rise of PVRs and internet viewing. Types of Media 1. 2. 3. 4. Magazines Newspapers Television Radio Geographic flexibility for specific cities or regions. Link ads to relevant stations for your target or day parts. Types of Media 1. 2. 3. 4. 5. Magazines Newspapers Television Radio Out-of-Home Difficult to ‘break through’, Not targeted (except washroom stalls). Must be very brief, mostly visual. Types of Media 1. 2. 3. 4. 5. 6. Geographic targeting. Relatively cheaper than TV or Radio. Magazines Not “durable”, often thrown away or discarded. Newspapers Television Radio Out-of-Home Direct-to-Home Types of Media 1. 2. 3. 4. 5. 6. 7. Magazines Newspapers Television Radio Out-of-Home Direct-to-Home Internet Source: www2.sims.berkeley.edu/.../internet.htm Websites, banner ads & email advertising. Permission-based email is when consumers have given their address to the company. Types of Media 1. 2. 3. 4. 5. 6. 7. 8. Magazines Newspapers Television Radio Out-of-Home Direct-to-Home Internet Specialty Also known as premium & incentive marketing. Company logo/message is put on merchandise, then given away. Promotion Topics: Advertising Sales Promotion – Goals of Ads – Selecting the Appeal – Types of Media – – – – – – – – Contests & Sweepstakes Refunds & Rebates Coupons Premiums & SelfLiquidators Samples Special Sales Point of Purchase / Sale (POP/S) ADD: Co-promotion Reasons for Promotion Why do you think businesses use Sales Promotion? • Build traffic in store • Create extra interest in product • Increase sales during downperiod or heavy competition • Motivate staff • Introduce new product, generate trial • Stock clearance Contests & Sweepstakes • Award prize to select participant • Can be used with other aspects of promotion • Incentive to provide information Refunds & Rebates • Great for data collection because consumers supply information • Low redemption rates = lower cost than straight discounts • Common with electronics, i.e. Best Buy Coupons • Entitles you to a reduction in price of product or service • Obtained from internet, mail, print ads, store register, other locations in store • Redemption rate = % of coupons used – Measures effectiveness of promotion – Avg redemption for direct mail ~3.5% vs. in-store ~6.5% Premiums & Self-Liquidators • Allow consumers to get something by purchasing something else – Premium = free product/service, often called “Gift with Purchase” – Self-Liquidator = product or service at substantially reduced price Samples • One of the most effective, yet most expensive promotional activities is sampling • Instant trial • Good example execution of samples with displayed product for purchase is Costco Special Sales • Special events: – Introduce new product / service – Clear out old stock – Generate store traffic – To be competitive during seasonal events (i.e. NOW!) Point of Sale (POS) • Special racks, cases, shelves and temporary displays all called POP or POS • Displays set up in store or right at cash • Increase “impulse” purchases Co-Promotions • Companies partner to raise awareness and reach of each respective brand • Classic examples: movies, hot new products, sports teams, charity/cause marketing THANK YOU! • Next Class: – New Project on PROMOTIONS • In pairs, bring in 3 promotions that are currently in the market (if on-line, bring print out) • Assignment questions will be provided tomorrow, along with in-class time to work on them • IF you forget your promotions, some will be assigned to you… but don’t forget, it’s easier to do a project on something that INTERESTS YOU.