5.02 Explain the promotional mix and the different forms of promotion.

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5.02 Explain the promotional mix and the
different forms of promotion.
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Elements of The Promotional Mix

• Any combination of the different forms of
  promotion to sell goods and services

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Different 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

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Different 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

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Different 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

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Different 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

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Two 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.

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Two 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.

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Different 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

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Types of media used in advertising- Print media

• Any written form of communication used to inform
  persuade or remind consumers about products or
  services offered

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Print 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

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Print 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.

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Print 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

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Print Media Outdoor Advertising

• Includes any outdoor signs and billboards
• Outdoor advertising provides 24-hour advertising

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Print Media Transit Advertising

• Uses public transportation such as buses bus
  stands taxicabs and subways to post advertising
  messages

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Types 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

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Broadcast 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.

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Broadcast Media - TV Advertising

• Includes commercials and infomercials
• Is the most effective type of broadcast media as
  well as the most expensive

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Types of media used in advertising Online Media

• Is the placement of advertising messages on the
  Internet World Wide Web

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On-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

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On-line Media Pop-up Ads

• Pop-up advertisements are the advertisements that
  pop-up and interrupt Internet surfing
  

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On-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
  

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Types 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

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Types 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

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Forms 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
  

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Forms 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

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Forms 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

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Forms Of Sales Promotions Annual Awards Shows

• Emmy Awards draws monumental attention to TV
  shows
  
• Increases viewing because of winning
  actors/actresses

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Forms Of Sales Promotions Annual Awards Shows

• Tony Awards are awarded to theater professionals
  for outstanding achievement

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Forms 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
  

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Forms 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

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Forms 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

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Forms of Sales Promotions - Incentives

• Used to generate awareness interest and
  increase sales.

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Forms 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

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Forms 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
  
  
  

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Forms 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

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Forms 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

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Forms 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

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Forms 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

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Forms 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

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Analyze the steps of promotional planning

• Determine strategy for reaching target market

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Analyze 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

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Analyze 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

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Analyze 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

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Analyze the steps of promotional planning

• Establish a promotional budget
• No exact science exists for establishing a
  promotional budget

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Analyze 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

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Analyze 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

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Analyze steps of promotional planning - Budgets

• Competitive equivalence
• Involves matching competitors promotional outlay
• Weakest method because it takes into account
  competitors objective only

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Analyze 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

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Analyze 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