Unit 8 Promotion

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Unit 8Promotion
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Promotion

• What are your first impressions of this ad?
• After glancing at the ad, did it make you
  want to stop and read it?
• How does this ad motivate its target
  market to action?

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Unit 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

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Unit 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

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Unit 8 Essential Question

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

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Essential Question 1 Promotion

• What is the purpose of promotion?

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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

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Forms 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.

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Essential Question 2 Promotion

• What are the types of promotion?

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Types of Promotion

• Advertising
• Public Relations
• Direct Marketing
• Sales Promotion
• Personal Selling

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Types of Promotion

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

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Types of Promotion

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

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Types of Promotion

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

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Types 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.

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Types of Promotion

• 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

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Promotional 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

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Types of Promotion

• 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.

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Essential Question 3 Promotion

• What strategies are used to develop the
  promotional mix?

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Promotional 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

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Promotional 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.

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Essential Question 4 Promotion

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

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Advertising (Print Media)

• Newspaper

TIMES
Finance News

• Magazines

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Advertising (Print Media)

• Direct Mail

• Outdoor Advertising

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Advertising (Print Media)

• Directories

• Transit Advertising

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Advertising (Print Media)

• Other print media.

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Advertising (Broadcast Media)

• Television

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Advertising (Broadcast Media)

• Radio

• Internet

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Media 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.

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Media 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.

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Media 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.

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Media 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.

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Media 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.

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Media Costs

• CPM
• Cost Per Thousand
• Cost to expose 1000 readers to the ad.
• CPM cost of ad X 1000
• Circulation

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Essential Question 5 Promotion

• What is cooperative advertising?

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Cooperative Advertising

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

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Essential Question 6 Promotion

• What are the differences between publicity and
  public relations?

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Public Relations

• Types of Public Relations
• News Releases An announcement sent by a business
  or organization to media outlets
• Feature Articles
• Photos
• Press Conference

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Public Relations

• Types of Public Relations
• Publicity Involves bringing news or newsworthy
  information to the publics attention
• Builds a business image.
• Publicity is free.
• Not much control over the message being sent to
  the public.

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Essential Question 7 Promotion

• How do the various media impact the public?

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Media Impact

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

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Media 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
• Can the medium present the product and the
  appropriate business image?
• Can the desired customers be targeted with
  medium?
• Will the medium get the desired response rate?

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Essential Question 8 Promotion

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