Title: 5.02 Explain the promotional mix and the different forms of promotion.
15.02 Explain the promotional mix and the
different forms of promotion.
2Elements of The Promotional Mix
- Any combination of the different forms of
promotion to sell goods and services
3Different Forms of Promotion - Advertising
- Any paid non-personal form of communication by
an identified sponsor
- Examples include TV commercials magazine
advertisements direct mail and the Internet
4Different forms of promotion Sales Promotion
- Activities or communications that encourage
consumers to purchase products
- Example include giveaways sweepstakes free
samples award shows contests and coupons
5Different forms of promotion Personal Selling
- Personal selling is face-to-face personalized
communication between a seller and a buyer
- Examples include presentation of a demo from a
recording artist to a record label executive
6Different forms of promotion Public or
Community Relations
- Activities used by a business or organization to
gain and maintain a positive relationship between
themselves and the community
7Two types of Public or Community Relations
- The internal community includes the employees of
the company or organization
- For example Coke holding an annual picnic for
employees and their families.
8Two types of Public or Community Relations
- The external community includes people outside of
the company or organization
- For example Pepsi donating circus tickets to a
Big Brother/Big Sister organization.
9Different forms of promotion - Sponsorship
- The financing of a sports or entertainment entity
(athlete league team concert or event) by a
business in return for recognition or affiliation
10Types of media used in advertising- Print media
- Any written form of communication used to inform
persuade or remind consumers about products or
services offered
11Print Media - Newspaper
- The most common and the most cost effective type
of print media
- Newspapers are most effective for local
businesses that are trying to reach a specific
geographical market
12Print Media - Magazines
- Likely to be used by advertisers to segment the
market based on demographic and behavioral
segmentation
- For example men more likely to subscribe to
Field and Stream so this would be cost effective
for a brand of mens razors.
13Print Media Direct Mail
- Sent directly to customers or potential
customers of a particular store
- For example all Blockbuster Video members would
receive a flyer announcing a special sales event
14Print Media Outdoor Advertising
- Includes any outdoor signs and billboards
- Outdoor advertising provides 24-hour advertising
15Print Media Transit Advertising
- Uses public transportation such as buses bus
stands taxicabs and subways to post advertising
messages
16Types of media used in advertising Broadcast
Media
- Any visual and/or auditory form of communication
used to inform persuade or remind consumers
about goods or services offered
17Broadcast Media - Radio Advertising
- Advertisers match their target market to a radio
station that segments a particular market.
- Has the ability to reach a wide audience.
18Broadcast Media - TV Advertising
- Includes commercials and infomercials
- Is the most effective type of broadcast media as
well as the most expensive
19Types of media used in advertising Online Media
- Is the placement of advertising messages on the
Internet World Wide Web
20On-line Media Banner Ads
- Are rectangular boxes at the top or bottom of web
sites that are used to promote a web site or
business
21On-line Media Pop-up Ads
- Pop-up advertisements are the advertisements that
pop-up and interrupt Internet surfing
22On-line Media E-mail Ads
- Are used to tailor messages to fit individual web
surfers
- E-marketers compile or purchase customers
databases containing information based on sites
visited by web surfers
23Types of media used in advertising Specialty
Media
- Include everyday items with a company name
written on them
- Examples include calendars pens magnets and
coffee mugs
24Types of media used in advertising Miscellaneous
- Many other creative ways of communicating
advertising messages to consumers
- Examples include blimps supermarket carts hot
air balloons and in-theater advertisements
25Forms Of Sales Promotions Annual Awards Shows
- Academy Awards (Oscars)
- awarded by Academy of Motion
- Picture Arts Sciences
- Nomination generates media coverage and increases
ticket sales
- Producers and studios promote films to Academy
members through trade publications and talk-show
circuit
26Forms Of Sales Promotions Annual Awards Shows
- National Academy Of Recording Arts and Sciences
(NARAS) award the Grammy Awards
- NARAS is an association of more than 13000
recording professionals
- A Grammy might draw attention to an artist but
does not guarantee acceptance in form of sales
27Forms Of Sales Promotions Annual Awards Shows
- Emmy Awards are awarded by 2 branches of the same
organization
- Academy of TV Arts and Science awards prime-time
Emmy Awards for night time television and Daytime
Emmy Awards for daytime television
28Forms Of Sales Promotions Annual Awards Shows
- Emmy Awards draws monumental attention to TV
shows
- Increases viewing because of winning
actors/actresses
29Forms Of Sales Promotions Annual Awards Shows
- Tony Awards are awarded to theater professionals
for outstanding achievement
30Forms Of Sales Promotions Annual Awards Shows
- ESPY Awards by ESPN and are awarded for
excellence in sports performance
- Nominating committee consists of sports
executives journalists and retired athletes
31Forms Of Sales Promotions Annual Awards Shows
- Besides athletes and coaches many actors and
musicians attend and participate in event
- ESPY Awards make contributions to the V
Foundation established by ESPN in honor of the
late NCSU Basketball Coach Jim Valvano
32Forms Of Sales Promotions Trade Shows
Conventions
- Provide promotional opportunities for
manufacturers wholesalers retailers and movie
producers to learn about and support new products
in the industry
33Forms of Sales Promotions - Incentives
- Used to generate awareness interest and
increase sales.
34Forms Of Sales Promotions - Incentives
- Contests
- Prizes are awarded based on contestant skill
and/or ability
- Examples include American Idol Fear Factor and
Dog Eat Dog
35Forms Of Sales Promotions - Incentives
- Sweepstakes
- Prizes awarded based on the chance or luck of the
contestant
- Examples include winning concert tickets from a
local radio station
36Forms Of Sales Promotions - Incentives
- Rebates
- Discounts offered by manufacturer when consumer
purchases a sports entertainment good or service
during specified time period
- For example mail-in rebates for purchasing two
DVDs at a time
37Forms Of Sales Promotions - Premiums
- Low cost items given away with the sponsors
product as part of a sales promotion
- For example Powerade gives away a cooler with a
purchase of a case of powdered drink mix
38Forms Of Sales Promotions - Premiums
- Coupons
- Offer price reductions and found in print
advertisements inserted inside packaging
incorporated as part of the product package or
mailed to consumers - For example Blockbuster coupons on popcorn
packaging or coupons inserted in Sunday newspaper
39Forms Of Sales Promotions - Premiums
- Traffic-builders
- Low cost items given to customers for attending
an event or visiting a store
- For example first 200 customers to attend grand
opening of new Sports Authority receive a Sports
Authority key chain
40Forms Of Sales Promotions - Sampling
- Sampling
- Refers to giving consumers a taste for
sporting event or concert
- For example fan participation at a track and
field event and Faith Hill selecting member of
the concert audience to stand with her on stage
41Analyze the steps of promotional planning
- Determine strategy for reaching target market
42Analyze the steps of promotional planning
- Push strategies
- Used by manufacturer to convince or push
retailers to carry and promote products
- Relies heavily on personal selling and sales
promotion
43Analyze the steps of promotional planning
- Pull strategies
- Directed towards customers to increase their
interest and demand for products
- Customers will pull or convince retailers to
carry sports or entertainment products.
- Relies heavily on advertising
44Analyze the steps of promotional planning
- Determine the objectives of the promotional
activity
- For example is the objective to increase sales
increase market share or create brand awareness
45Analyze the steps of promotional planning
- Establish a promotional budget
- No exact science exists for establishing a
promotional budget
46Analyze steps of promotional planning - Budgets
- Common methods of determining budgets include
- Percentage of expected sales.
- Based on a percentage of past or expected sales
to determine budget
- Advantages include limited financial risk.
Disadvantages include sales may decrease reducing
promotional budget
47Analyze steps of promotional planning - Budgets
- Objective and task method
- Company determines promotional goals steps
needed to meet goals and calculates cost for
promotional activities
- Most cost effective method for it takes into
account what company wants to accomplish
48Analyze steps of promotional planning - Budgets
- Competitive equivalence
- Involves matching competitors promotional outlay
- Weakest method because it takes into account
competitors objective only
49Analyze steps of promotional planning - Budgets
- Whimsical allocation
- All money available after expenses is allocated
as promotional budget
- Short-term method used to increase sales by
building reputation
50Analyze the steps of promotional planning
- Develop promotional mix
- Specific mix chosen should take into
consideration the target market promotional
goals promotional budget
- Care should be given to aligning national and
local promotional efforts