Unit 3 1. 2 Promotion-one of the 4 Ps Product promotion – promotional method used by businesses to convince prospects to select their goods or services.

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PromotionUnit 3

“THE AIM OF MARKETING IS TO KNOW AND UNDERSTAND THE

CUSTOMER SO WELL THE PRODUCT OR SERVICE FITS HIM AND SELLS

ITSELF.”

PETER DRUCKER

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Promotional Mix

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Promotion-one of the 4 P’s Product promotion – promotional method

used by businesses to convince prospects to select their goods or services instead of the competitor

Institutional promotion – promotional method used to create a favorable image for a business, help to advocate for change or take a stand on a community issue.

Promotional in Marketing

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Promotional Mix is the cost-effective combination of personal selling, advertising, direct marketing, sales promotion and public relations.

Types of Promotion in the Promotional Mix

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Personal Selling – requires a sales representative to generate and maintain direct contact with prospects and customers

Advertising – a form of non-personal promotion in which companies pay to promote ideas, good or services

Direct Marketing – type of promotion that companies use to address individuals directly and not through a third party.

Promotional Mix

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Sales promotion – represents all marketing activities that are directed at business or retail customers to boost sales.

Public relations – activities help an organization to influence a target audience.

Promotional Mix, cont.

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Types of Promotion

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Incentives that encourage customers to buy products or services.

Sales Promotion

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Trade promotions Consumer Promotions

◦ Coupons – certificates that entitle customer to cash discounts

◦ Premiums – giveaways are lost cost items given to consumer at a discount or for free.

◦ Deal – price packs offer short-term price reductions that are marketed directly on the label or package.(For example: T-shirts are $10.50 each or for two or more $6)

Types of Sales Promotions

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Incentives – generally higher-priced products, awards or gift cards given away through contest, sweepstakes, special offers or rebates. (For example: McDonalds monopoly game)

Product samples – a free trial size of a product is given away

Sponsorship – Sponsors offer negotiate the right to use their logo and names on retail products to enhance their corporate image. (For example: Earnhardt Gnassi Racing Team – NASCAR)

Types of Promotions, cont.

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Promotional Tie-Ins, Cross-Promotion, Cross Selling: sales promotions between or more retails or manufactures (For example: When a new animated feature is about to hit theaters, a movie studio will offer ticket discounts in cereal boxes.

Product Placement – consumer promotion that involves the verbal mention or appearance of a band name product in a TV series, move or sporting event. (For example: There is always a Diet Coke by each judge on American Idol).

Types of Promotions, cont.

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Loyalty Marketing Program – also known as frequent buyer programs (For example: ShopRite customers sign up for a loyalty program for discounts)

Online Loyalty Program – Online version of a Loyalty Marketing Program

Point-of-Purchase – displays primarily by manufactures to hold and display their products and are usually in high traffic area to promote impulse purchases.

Types of Promotions, cont.

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Advertising

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Advertising Media

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Advertising – non-personal promotion which promotes ideas, good or services by using a variety of media.

Purpose of Advertising

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Promotional and Institutional Advertising:◦ Promotional Advertising – advertising designed to

increase sales

◦ Institutional Advertising – advertising designed to create a favorable image for a company and foster goodwill in the marketplace.

Mass Advertising◦ enables companies to reach large numbers of people with

their message. TV and radio are often used.

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Media – agencies, means, or instruments used to convey advertising to the public.

Four types of media:1. Print2. Broadcast3. Internet4. Specialty

Types of Media

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Advertising in newspapers, magazines, direct mail, signs, and billboards

Print Media

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Newspaper◦ Daily and weekly newspapers◦ Shoppers and Alternative Newspapers – shoppers contain

minimal editorial content, often delivered to specific areas. ◦ National Newspapers

Advantages:◦ Can target to people living in a certain area◦ Ads and coupon sales are dated and easily tracked

Disadvantages:◦ Limited shelf live◦ Printed in Black and white, less visually appealing,◦ Circulation and daily readership is declining

Types of Print Media

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Magazine◦ Consumer Magazines – Car and Track, Sports Illustrated,

Seventeen, Entertainment Weekly◦ Business-to-Business Magazines – (trade publications):

interest professional in specific fields. Ex: Advertising Age

Advantages:◦ People tend to keep magazines longer◦ Digital color and photography◦ Create powerful more memorable images◦ Variety of presentation (full page, half page, etc.)

Disadvantages:◦ More expensive than newspapers◦ Deadline for submission is weeks or months before print◦ No flexibility if market changes

Types of Print Media

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Direct Mail◦ Printed direct mail◦ Electronic direct mail

Advantages:◦ Highly selective to who receives it◦ Tries to reach new customers◦ Most effective with current customers

Disadvantages:◦ Yields a low level of response◦ Redemption rate is 1% - 3%◦ Image problems- most people consider it junk mail◦ Printing and distributing can be costly

Types of Print Media

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Directory Advertising◦ White Pages◦ Yellow Pages

Advantages:◦ Inexpensive◦ Target all demographic groups

Disadvantages:◦ Printed only yearly

Types of Print Media

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Outdoor Advertising◦ Billboards◦ Digital billboards

Advantages:◦ Highly visible◦ Relatively inexpensive◦ 24/7 message◦ Located to reach a specific area

Disadvantages:◦ Limited viewing time ◦ Increasing government regulations

Types of Print Media

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Transit Advertising – on public transportation◦ Busses◦ Taxi◦ Bus stops◦ Public Benches

Advantages:◦ Reaches a wide and captive audience

Types of Print Media

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Radio◦ Can be heard anywhere◦ Update and change ads daily or hourly◦ Ability to reach a wide audience

TV◦ Ultimate advertising◦ Highly compelling: sight, sound, action and color◦ Highest production cost◦ Expensive

Broadcast Media

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Uses web or email Opt-in email Banner and Search Engine Ads Video Ads Social-media advertising

Internet Advertising

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Known as giveaways Inexpensive Imprinted with logo Limited distribution,

Specialty Media

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In-store Ads◦ Ceiling and floor graphics◦ Electronic shelf ads◦ Supermarket cart displays◦ Instant coupon machine

New Media◦ Cell phones◦ Video games

Other Advertising

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Process of selecting the appropriate advertising media and deciding the time and space in which ads should appear to accomplish marketing objective.

Answer the three basic questions:1. Can the medium present the product and the

appropriate business image?2. Can the descried customers be targeted with

the medium?3. Will the medium get the desired response rate?

Media Planning