chapter
11
Promotions
Objectives
• To recognize the complexity of promotion with
respect to the various forms it can assume as part
of the marketing mix
• To identify integral elements of promotion and the
various approaches used in advertising
• To understand promotion in a historical context and
consider how that context has evolved as a result
of the importance of media and sponsorship
relationships
• To recognize the key characteristics of effective
promotional programs and campaigns aimed at
expanding existing consumer bases and at
increasing the frequency of consumption
Promotions
• Any activity designed to stimulate interest
in, awareness of, and purchase of a product
• Method to convey information about the
place, price, and product
• Critical in the positioning of a product in the
mind of the consumer
Types of Promotions
• Advertising is any paid, nonpersonal (not directed
to individuals), clearly sponsored message
conveyed through the media.
• Personal selling is any face-to-face presentation in
which the seller has an opportunity to persuade the
consumer.
• Publicity is any form of exposure in the media not
paid for by the beneficiary or within the
beneficiary's control or influence.
• Sales promotion involves a variety of activities
including displays, trade shows, sampling,
coupons, premium items, exhibitions, and
performances.
Goals of Promotions
Promotions should include the following
steps:
• A: Increase awareness
• I: Attract interest
• D: Arouse desire
• A: Initiate action
Advertising
Advertising should do the following:
• Create awareness
• Communicate information about attributes
and benefits
• Develop, change, and enhance an image
• Associate brand or product with emotions
• Precipitate behavior
Keys to Effective Ad Campaign
• Knowing the product
• Knowing the consumers
Batra, Myers, and Aaker Model
of the Advertising Communication System
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Source
Message
Channel
Receiver
Destination
Assessing Effectiveness of
Advertising
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Wasted circulation
Cost per exposure
Determining the creative approach
Measurement
(continued)
Assessing Effectiveness of
Advertising (continued)
• Based on
– Ability to reach target market
– Ability to maximize cost per exposure
– Appropriateness of creative message
• Measuring
– Impact on sales
– Impact on image
– Impact on consumer awareness
Advertising Media For Sport
• Signage
• Endorsements and sponsorships
• Print media
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Magazine
Newspaper
Schedule cards
Handouts and brochures
Posters
Information packages
Direct mail
• Electronic media
– TV
– Radio
– Internet
• Billboards, blimps, and buses
Benefits of LED Signage
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Higher resolution and clarity
Movement
Animation
Sound
Portability: Can be updated by simply
programming; no hard production costs or delays
Flexibility: Variety of sizes and shapes
Real-time alterations
Life cycle
Increased inventory: No space
Television Commercials: Structures
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Story
Problem solution
Chronology
Special effects
Testimonial
Satire
Spokesperson
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Demonstration
Suspense
Slice-of-life
Analogy
Fantasy
Personality
Sales Promotions: Price
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Attract new consumers.
Increase frequency of purchases.
Reward loyalty.
Prevent defection.
Promotional Components
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Theme
Giveaways
Product sampling
Open house
Coupons
Bundling
Contests and sweepstakes
Premiums and redemptions
Street promotions
Game Promotions
Game promotions should do either of the
following:
• Motivate customers to attend
• Increase the perceived value of the event
Those Who Do Not Attend the Games
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Aware nonconsumers
Unaware nonconsumers
Misinformed nonconsumers
Media consumers
Promotional Progression Planning
Model
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Level 1: Nonpattern attenders (light users)
Level 2: Multiple attenders (medium users)
Level 3: Frequent attenders (heavy users)
Level 4: Defectors (descending the
escalator)
Frequency Escalator
Sales Promotions
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Mailings
Outbound calls: Telemarketing
E-mail blasts
Personal sales calls
Hospitality
Table
Trade shows
Retail outlet
Kiosk
Effective Use of Promotions
• Promotions can increase perceived value at
same price. Give them more!
• Value is increased by using a giveaway:
– Costs less than a price discount
– Keeps price integrity
– Draws customers from competitor