4.04 Understand promotional channels used to communicate

with targeted audiences

What is a promotional channel?

Specific medium used in reaching intended audience such as newspapers, radio stations, and television, etc.

Promotional Channels• Advertising is a promotional

channel used to communicate with targeted audiences.

• There are many forms of advertising

• The media is one channel of advertising.

What is advertising?• Any non-personal paid form of communication

designed to inform, persuade, or remind

customers about a good or service

What is media?• The agencies or means

used by a company to convey an advertising

message

What is cooperative advertising ?

• Occurs when a manufacturer helps a

retailer pay for advertising costs

For example: Kellogg’s gives Harris Teeter money

to help them advertise Kellogg’s cereals

Advertising includes:

• Print Media–Newspapers–Magazines–Direct Mail

–Outdoor Advertising–Directory Advertising

–Transit advertisements

Magazines

Advantages• Color printing is

visually appealing• Ability to target the

desired audience• Higher quality

medium than newspapers

Disadvantage• Higher cost to

create and produce• More lead time

required than for newspapers

Direct Mail

Advantages• Can be highly

selective and flexible with the format and timing

• Inexpensive to create and produce Disadvantages

• Low response rates• Expensive to

distribute • Often viewed as

“junk mail”

Newspaper

Advantages• Low cost• Distribution level of

the newspaper is known

Disadvantages• Limited distribution• Limited life span• Black and white

print is less visually appealing

Directory- telephone books

Advantages• Allows targeting

based on geographic

• Targets all demographics

Disadvantages• Printed frequently,

making changing the ad difficult

• Limited space and quality of advertisement

Outdoor- signs/billboards

Advantages• Relatively

inexpensive• 24/7 visibility

Disadvantages• Limited

viewing time• Increased

government regulations

Transit- Buses, Trains, etc.

Advantages• Wide, captive

audience• Economical

Disadvantages• Subject to

defacement• Inability to

target a specific audience

http://twistedsifter.com/2012/06/50-funny-creative-billboards/

Advertising includes: (con’t)

• Broadcast Media–Television

–Radio

Television

Advantages• Ability to

demonstrate product features and benefits

• Advertisers choose target audience based in time and station programming

Disadvantages• High production

and airtime cost• Short life span• New technology

enables viewers to skip commercials

Radio Advertisements

Advantages• Cost effective • Can be created and

changed quickly• Ability to reach a

target audience through various station formats

Disadvantages• Appeals only to

sense of sound• Short life span• Channel surfing

Advertising includes: (con’t)

• Online Media–Electronic Direct Mail

–Online Ads

Online Ads- banner and pop-ups

Advantages• Inexpensive• Can be interactive

Disadvantages• Viewed as a

nuisance• Often a low

response rate

Electronic Direct Mail- ad messages via email.

Advantages • Ability to target

audience• Inexpensive• Personalized

message

Disadvantages• May be

viewed as a nuisance

• Spam filter can reduce authorized

Advertising includes: (con’t)• Specialty Media

• Giveaways• Contests• Rebates

Specialty Media-Inexpensive, useful items with company’s name and/or logo

Advantages • Company’s name is

visible• Customers enjoy

freebies

Disadvantages• Limited

distribution• Some

recipients never become customers (wasted)

Contests and Rebates

Contests• Promotional

scheme in which (unlike in a sweepstake) participants compete for prizes by accomplishing something that requires skill.

• No fee

Rebates• amount paid by

way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotion marketers use primarily as incentives to product sales.

Advertising Agencies help to…

• Design ads and ad campaigns

Direct Advertising

• Direct-Response: Customer responds to an advertisement

• Intended to motivate the consumer to take action

Word-of-Mouth

• One of the most influential marketing techniques used in business

• Positive: Increases Sales• Negative: Decreases Sales• Amplified WOM: Providing

information to activists to share with others

Public Relations

• Building goodwill among an organization’s target market through communication with the public

• Press releases, company newsletters, annual reports, and companies web sites all are examples of PR

• Crisis Management