* A. Describe the elements of the promotional mix. B. Explain factors affecting the selection of a promotional mix. C. Different Promotional Techniques used on Airports D. Message Effectiveness * * Describe the elements of the promotional mix. * To tell consumers about a company’s … Ideas Services Images Goods * To persuade consumers to buy Promotion’s Recipe for Success: Mix various communication activities together and serve to potential customers until desired outcome is achieved. * • Advertising • Personal selling • Publicity • Sales promotion Flynn The bikes the pros use. Traveler Magazine The Top 5 Airlines! 25% Off Coupon * * Any paid form of nonpersonal presentation of ideas, images, goods, or services The most visible element of the promotional mix • Actual cost of advertisement is quite high. • Since many people receive the message, the per contact cost is very low. The New Barchetta Diamonds from Desmond’s Jewelers are a girl’s best friend. Say No to Drugs. Services Ideas Images Goods At Techco, we’re friendly to our customers and the environment. The Vet for Your Pet * Messages can be delivered by: • • • • • • • • Television Radio Newspapers Magazines Direct mail Outdoor advertisements Directories The Internet * Determines client needs/wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities My budget won’t allow me to replace them all at once, but I want them to be compatible. You might want to consider leasing Are you planning computers. You can on replacing all get free service of your computers and upgrade to a at once? newer model whenever you want! Selling * Disadvantage I like the sound of this stereo, but I think it’s a little large for my dorm room. We do carry a bookshelf model with similar sound quality. On a per contact basis, selling is the most expensive form of promotion. • Immediate feedback • Flexibility * *Any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual which benefits from or is harmed by it • Many consumers pay close attention to publicity. – Feel publicity has more credibility because it is not a commercial message – View publicity as news Example: Mention of a company’s charitable activities in print or broadcast media * “Tae-Bo has really changed my life. I’ve lost weight, toned-up, and feel better than ever.” -Susie Wells, CA A company web site can be used to obtain and display positive feedback. * OnlineNews.com Car shopping on the web Buying a car on the web just got easier! Autobytel.com will help you get the financing, pick out the model, color and extras. Then they provide a quote from a local dealer. All at the touch of a keypad. A business’s goods, services, or web site might be mentioned in an Internet newsgroup. * LINK TO ACME.COM A company might agree to provide a link to another business’s web site in exchange for the same consideration. * * Promotional activities other than advertising, personal selling, and publicity which stimulate purchases * Sales promotion activities include: Visual Product merchandising Novelty Free Fashion Instant Trade Contests Coupons demonstrations Exhibits samples rebates items shows shows or displays * * Plays a key role in obtaining and keeping customers * Enables businesses to communicate effectively with customers * Informs consumers about goods/services and persuades them to buy * Explain factors affecting the selection of a promotional mix. Marketers Try To Create the Ideal Blend of Promotional Activities for Their Businesses. Publicity Personal selling Sales promotion Must decide which methods will Advertising No magic formula that marketers best reach potential customers and communicate use to help design promotional mix desired message Hard to determine effectiveness of the different promotional methods * Must be carefully analyzed before marketers decide when and where to invest promotional funds Good, Distribution Product’s service, image, Product’s company channels or idea target market * * Type of product Convenience goods Shopping goods Specialty goods * Geographical Number Type ofofConsumer Consumers Location Consumer Close Few Together Market Consumers vs. Advertising Sales Promotion Publicity Personal Selling Spread Industrial Many Over a Consumers Market Wide Area Dioramas - the first and most commonly utilized - located throughout the terminals in arriv departures, ticketing and baggage claim a - Wall, shelter, and king-size dioramas Wraps - The most widely used form of U.S. - Applied to flat surfaces (walls, windows, and floors) - Flexible in size and shape - For short or long term campaign Cylinder Showcases - Highly visible units - Display products and services - Secure setting for products such as perfume, jewelry, fashions, and ceramics Interactive Courtesy Phone Centers - Located near baggage claim areas - Information about local hospitality a transportation services - Consist of a unit backdrop with color advertisements and special direct-lin telephones located on the front of each unit SkyScreens (Plasma) - Provide digital advertising and information - At high-traffic passenger cluster area - Catch the eyes of people Exhibition / Promotion Areas - Located throughout airport terminals - Communicate directly with the audienc - Live promotions and open-space - Boost brand awareness - Encourage international travelers to vis the duty free shops and buy Baggage Cart Sponsorships - Deliver total audience coverage - Message frequency Others Bus shelter Kiosks Leaflet dispensers Message Effectiveness On average Traveler arrive at airport 57 minutes Prior to departure On average Passengers spend 93 minutes at the airport High recall rates for airport advertising Message Effectiveness: research by Leslie Brody - 56% of frequent flyers are aware of wrap advertising on buses, walls, windows or floors - 92% of those who noticed airport wrap said they liked the wraps - 90% agreed that wrap advertising has an impact - 81% correctly recalled the advertised product or service How We Measure? 1. Overall airport traffic Ex) World airport ranking by total passengers 1999 Atlanta – 78,092,940 (Rank #1) JFK, NY – 31,700,604 (Rank #20) Orlando – total passengers 29,203,755 (Rank #24) 2. The number of brochures or leaflets taken from displays Example: Nissan’s baggage claim ads Nissan advertising on airport baggage claim areas • October - December, 1999 • Promoting the new Frontier Crew Cab and 2000 Maxima Nissan potentially reached millions of flyers flyers wait an average of 15 to 20 minutes for their luggage CPM: only about $ 2