unit 8 promotion promotion n what are your first impressions of this ad? n after glancing at the ad,...

Unit 8Unit 8PromotionPromotion

PromotionPromotion

What are your firstWhat are your first impressions impressions of this ad?of this ad?

After glancing at the ad,After glancing at the ad, did did it make you want toit make you want to stop stop and read it?and read it?

How does this ad motivateHow does this ad motivate its target market to action? its target market to action?

Unit 8 VocabularyUnit 8 Vocabulary

Advertising Advertising Agencies Advertising Campaign Audience Broadcast Media Consumer Promotions Cost per Thousand (CPM) Coupons Direct Marketing Display Fixtures Frequency Impression Incentives

Institutional Advertising Institutional Promotion Kiosk Marquee Media Media Planning News Release Online Advertising Point-of-Purchase Displays Premiums Print Media Product Promotion Promotion Promotional Advertising

Unit 8 VocabularyUnit 8 Vocabulary

Promotional Mix Promotional Tie-ins Publicity Public Relations Pull Policy Push Policy Sales Promotion Store Layout Storefront Specialty Media Trade Promotions Transit Media Visual Merchandising

Unit 8 Essential QuestionUnit 8 Essential Question

How is promotional How is promotional knowledge and skill in knowledge and skill in communicating information communicating information used to achieve a desired used to achieve a desired marketing outcome?marketing outcome?

Essential Question 1 Essential Question 1

PromotionPromotion

What is the purpose of promotion?What is the purpose of promotion?

What is promotion?What is promotion?

Any form of communication used by a business to inform, persuade, or remind people about its products and improve its image.

There are two forms of promotion:– Product

– Institutional

Forms of PromotionForms of Promotion

Product:– Creates an interest in the product.

– Introduces new products and businesses.

– Explains a product.

– Supports personal selling efforts.

– Creates new markets.

Institutional:– Creates a favorable impression and goodwill for a

business or an organization.

– Presents information about the companies role in the community.


PromotionPromotion

What are the types of promotion?What are the types of promotion?

Types of PromotionTypes of Promotion

Advertising

Public Relations

Direct Marketing

Sales Promotion

Personal SellingDR. DIWAKAR NAGULA last week opened Southeast Spine & Rehabilitation at 130 North Gross Road, Kingsland. He specializes in treating chronic pain with traditional medicine as well as chiropractic manipulation and physical therapy. (Tribune & Georgian photo/Renee M. Liss)


Advertising: Paid presentation of ideas, goods, or services directed toward a mass audience


Public Relations: Activities used by an organization to create a favorable image for itself, its products, or its policies.


Direct Marketing: Type of advertising directed to a targeted group of prospects and customers rather than a mass audience.– Snail Mail

– E-Mail

Types of PromotionTypes of Promotion Sales Promotion: Marketing activities –

other than advertising, public relations, and personal selling – that are used to stimulate purchasing and sales– Usually involves short term activities.– Offers some type of incentive: product earned

or given away– Can be successfully used in all channels of

distribution.


– Types of Sales Promotions» Trade Promotions: Activities designed

to get support for a product from manufactures, wholesalers, and retailers

Promotional Allowances Cooperative Advertising Slotting Allowances Sales Force Promotions Trade Shows and Conventions

Promotional MixPromotional Mix

– Types of Sales Promotions» Consumer Promotions: Strategies that

encourage customers to buy a product or service

Coupons Premiums Deals Incentives Product Samples Sponsorships Promotional Tie-Ins Product Placement Visual Merchandising


Personal Selling: Oral presentations to one or more potential buyers with the intent of making a sale.

The responsibility of sales personnel.– Order - taking personnel– Order - getting personnel

The most flexible and individualized type of promotion available.


PromotionPromotion

What strategies are used to develop What strategies are used to develop the promotional mix?the promotional mix?

Promotional MixPromotional Mix Promotional Mix: Combination of

promotional strategies and cost-effective allocation of resources

Strategies are designed to complement one another– Advertising and direct marketing create awareness

of a product– Public relations creates a favorable image and brand

recognition– Sales promotions stimulate sales and reinforce

advertising and selling efforts– Personal selling builds on the previous by

completing the sale

Promotional MixPromotional Mix Special promotional mix strategies

– Push Policy: Uses a mix of personal selling, advertising, and buying discounts to push a manufactures products onto the retailer in the distribution channel.

– Pull Policy: Uses a mix of local and national advertising, in-store displays, sales promotion, and public relations to reach customers to create a demand which will pull the product into the retail outlet.


PromotionPromotion

What are the different types of What are the different types of advertising media and associated advertising media and associated costs?costs?

Advertising Advertising (Print Media)(Print Media)

Newspaper

Finance News

Magazines

TIMES


Direct Mail

Outdoor Advertising


Directories

Transit Advertising


Other print media.

Advertising Advertising (Broadcast Media)(Broadcast Media)

Television

Advertising Advertising (Broadcast Media)(Broadcast Media)

Radio

Internet

Media CostsMedia Costs Newspaper

– Classified Ad: Advertise everything from services performed to houses for sale to job openings.

– Display Ad: Involve creative illustration of the product being advertised.

Media CostsMedia Costs Newspaper

– Run-of-Paper Rate: Allows the newspaper to decide where to run the ad in the paper.

– Open Rate: Rate charged to businesses that advertise infrequently.

– Contract Rate: Discounted rate offered to business that advertise more frequently and for a specified period of time.

Media CostsMedia Costs Magazine

– Bleed: Ads are printed to the very edge of the page, leaving no white border. Generally costs 15 to 20 percent extra.

– Black-and-White Rates: Lowest rates offered and the ads are in black and white.

– Color Rates: Rates increase for each color added.

– Full-Color: The most expensive rate and all four print colors are used.

Media CostsMedia Costs Magazine

– Premium Position: Rates determined as to where the ad is placed in the magazine.

– Frequency Discounts: Offered to advertisers who run the same ad several times during the year.

– Commission: A percentage of sales given by the magazine to the advertising agency for placing the ad for the advertiser.

– Cash Discounts: Offered to businesses for paying the bill earlier than its due date.

Media CostsMedia Costs Radio

– Network Radio Advertising: Broadcast from a studio to all affiliated radio stations.

– National Spot Radio Advertising: Used by national firms to advertise on a local station-by-station basis.

– Local Radio Advertising: Used by local business for its target market.

Television– Vary with time of day. The most expensive is prime

time 7 to 11 P.M.

Media CostsMedia Costs CPM

– Cost Per ThousandCost Per Thousand

– Cost to expose 1000 readers to the ad.Cost to expose 1000 readers to the ad.

CPM = CPM = cost of ad X 1000cost of ad X 1000

CirculationCirculation


PromotionPromotion

What is cooperative advertising?What is cooperative advertising?

Cooperative AdvertisingCooperative Advertising

Type of trade promotions where the manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.


PromotionPromotion

What are the differences between What are the differences between publicity and public relations?publicity and public relations?

Public RelationsPublic Relations

Types of Public Relations– News Releases: An announcement sent by a

business or organization to media outlets» Feature Articles

» Photos

» Press Conference

Public RelationsPublic Relations

Types of Public Relations– Publicity: Involves bringing news or

newsworthy information to the public’s attention» Builds a business’ image.» Publicity is free.» Not much control over the message being

sent to the public.


PromotionPromotion

How do the various media impact How do the various media impact the public?the public?

Media ImpactMedia Impact

Media: The agencies, means, or instruments used to convey advertising messages to the public.– Print Media– Broadcast Media– Online Media– Specialty Media

Media ImpactMedia Impact

Media Planning: Process of selecting the advertising media and deciding the time or space in which ads should appear

To establish the media plan and select the right medium, advertisers address three basic questions:

1. Can the medium present the product and the appropriate business image?

2. Can the desired customers be targeted with medium?

3. Will the medium get the desired response rate?


PromotionPromotion

How do ethics and legal issues How do ethics and legal issues impact promoting and advertising a impact promoting and advertising a product or service?product or service?

unit 8 promotion promotion n what are your first impressions of this ad? n after glancing at the ad,...

Documents

n n institutional

forms of promotion n

essential question n

purpose of promotion

product institutional

liss slide

type of advertising

snail mail email slide