Chapter 17 Promotional Concepts and

Strategies

Chapter 17 Promotional Concepts and

Strategies • Section 17.1 Promotion and Promotional Mix

• Section 17.2 Types of Promotion

• Section 17.1 Promotion and Promotional Mix

• Section 17.2 Types of Promotion

Promotion and Promotional Mix

Objectives

Explain the role of promotion in business and marketing

Identify the various types of promotion

Distinguish between public relations and publicity

Write a news release

Describe the concept of the promotional mix

Marketing Essentials Chapter 17, Section 17.1

Graphic Organizer

In a chart like this one, take notes about the five elements of the promotional mix and give examples for each.

Marketing Essentials Chapter 17, Section 17.1

The Concept of Promotion

Promotion is persuasive communication.

The goals of promotional activities are summarized by the phrase AIDA:

• Attract Attention

• Build Interest and Desire

• Ask for Action

Marketing Essentials Chapter 17, Section 17.1

An attempt to inform, persuade or remind to buy goods & services

Personal Selling

Advertising

Direct Marketing

Public Relations

Sales Promotions

Personal Selling• Hired salespeople actually promote the

business, product, or service themselves

• Typically takes place as a result of other

promotional activities

Advertising Non-personal promotions that are:

• Paid for

• Hits a Mass Media

• One-way communication

Direct Marketing

• Directed to targeted group of

prospects (rather than to mass)

1. Printed mail

2. Electronic direct mail

Public Relations• Efforts to influence public opinion

• Cultivate media relations with reporters

Publicity• Tactic – that PR professionals use to bring news to public’s

attention

• Advantages: free and news is more trusted source than

advertisement

• Disadvantages: content is not easily controlled

Sales Promotions

• Trade Shows,

Displays, Games,

Samples, Give-

Away’s, Coupons

etc...

Writing News Releases

• An announcement that is sent to the

appropriate media outlets

• About products, operations,

earnings, employees, events etc

1st!!! Pick a Theme (or

Slogan)

AT&T =

US Army =

7 Up =

1st!!! Pick a Theme or Slogan

AT&T = “Reach out and touch someone”

US Army = “Be all you can be”

7 Up = “Make 7 - up yours”

Combination of strategies Use more than 1 type of promotion Which mix will be effective? Elements of mix must be coordinated

Promotional Budget

Dictated by revenue & includes operating costs

Generally a percentage of sales

Demographics:Characteristics that we use

to find our target market

Age Gender Race

Income Level Geographic Location

Interest/ Hobbies Religion

Nationality

A Paid Public Announcement

TYPES OF ADVERTISING:

1. Brand…. Focus on remembering the brand, not a specific product2. Informative…. Teach about the benefits (Commercials for medicine)3. Comparative…. Comparing 2 similar products (Tide vs. Era)4. Defensive…. In response to comparative (Our Brand is better

because…)5. Persuasive…. Rely on emotional appeal (celebrities…feed the

children)

CONSUMER NEEDS vs WANTS

CONSUMER…. Someone who uses the product

NEED…. Something you can’t live without

WANT…. Something you would like BUT you CAN live without it!

CONSUMER BEHAVIOR: “What’s in it for me?”Can be functional OR emotional

* AMERICAN’S SPEND 98% OF THEIR AFTER-TAX DOLLARS* BANKRUPCY IS AT IT’S HIGHEST RATE SINCE THE DEPRESION!

HOW DO YOU LOOK?Women are tall & thin -- Men are tall & athletic

Avg Female Mannequin= 6’ 2”Avg female= 5’ 4” Avg man= 5’ 9”

Models weigh 23% less than the average womanDisabled people are rarely seen although 43 million disabled Americans

HOW DO YOU LIVE?Houses are large, sunny, spotless -- Neighborhoods have huge lawns, friendly

neighbors

HOW DO YOU THINK?Stereo Typing… Women & Racial Minorities

IMAGE… WHAT DO YOU SEE IN ADVERTISMENTS?As you are OR as you WISH YOU WERE!!!

EDUCATES THE CONSUMER VS. BIASED INFO!

RAISES STADARD OF LIVING VS. NOT FOR ALL – could ruin it

PROMOTES THE GOOD LIFE VS. Contributes to MATERIALISM

SUPPORTS THE MEDIA VS. INFLUENCED/distorted MESSAGE

PRO’s CON’s

Pricey Super Bowl advertising can lead to a wealth of exposure for companies and their products. This past year, (2007) the average 30-second

Super Bowl commercial cost roughly $2.8 million but reached 95 million U.S. viewers.”

HOW MUCH DO COMPANIES SPEND?AVERAGE OF 10% OPERATING BUDGET

U.S. BUSINESSES SPEND $200 BILLION/ YEARWORLD BUSINESSES SPEND $425 BILLION/ YEAR

PRICES

BRAND RECALL

REPETITIONS, SLOGANS & JINGLES

BRAND PREFERENCES…. FEEL GOOD & HUMOR

EFFECTIVENESS

Advertising Colors

Best Colors

Best colors are those that make people comfortable or stimulate their senses.

Warm colors encourage people to linger, leading restaurants to choose deep burgundy, burnt orange, and similar colors.

When people relax over dinner, they are more likely to enjoy a leisurely dessert or a nice cup of coffee, thus spending more money.

Hot Colors

Commonly used in fast food Bright red and yellow are hot colors,

indicative of fire, and they stimulate excitement.

Warm and hot colors will encourage people to eat more, which translates to revenue.

Virtually all logos, advertisements and menus of fast food chains feature these colors, which is no accident.

Cool Colors

Colors like green and blue are some of the best colors for advertising when it comes to over the counter medicines and other health products.

Blue is associated with tranquility, and also represents water, a life force.

The color blue can actually slow a person's heart rate, and it reduces appetite

B & W

Two of the best colors for advertising Used to signify power and create a

sense that the company is highly professional

Often a splash of color, such as red, is included to accent the starkness, but the main colors are black and white.

ColorsColors and Women

Women tend to be at ease with and trust those who wear blue.

Send red roses to a lady as a sign of love and passion.

Use yellow as a warning that it's a "just friends" relationship.

Paint one of your living room walls a bold, rich shade like deep red to give your lady friends the impression that you are strong.

Dark green walls in the bedroom can suggest youthfulness and nature.

Color in your homeCool shades for your bed sheets can

help create a calming, stress-free zone and improve your sleep patterns.

Deep purple cushions on a neutral couch will give the impression of strength and wealth and can also stimulate the imagination.

Color & clothes For casual wear that commands attention,

choose red or green shirts. Wearing a dark blue shirt or sweater may

denote dependability. Scrap your gloomy all-gray sweatsuit and

choose a sweatshirt in a darker or lighter color to boost your mood.

Dressing all in brown may look stylish but could be perceived as drab and boring. Add warm or cool colors like yellow, gold or green to brighten up your image and your thought processes.

Color & carsA black car suggests a desire for

anonymity.Certain shades of blue and red suggest

a showy driver. Yellow and orange demonstrate that

you're a sporty person. Choosing a silver or gold car can give

the impression of wealth.

COLOR IN YOUR PROFESSIONAL LIFE

Wear a power suit in dark gray, black or deep navy, and you'll be perceived as successful, knowledgeable and serious.

A crisp, white shirt commands respect and gives the impression of formality.

A beige or off-white shirt gives a less conservative look.

Business cards and letterheads are best in neutral colors. White or beige is always easier to read than colored stock.

Pale blue walls are more inviting and relaxing than stark white. Rich burgundy or deep-purple upholstery can conjure up visions

of richness and royalty.

RED Red is the color of fire and blood, so it is associated with energy, war, danger, strength, power, determination as well as passion, desire, and love.

Red is a very emotionally intense color. It enhances human metabolism, increases respiration rate, and raises blood pressure. It has very high visibility, which is why stop signs, stoplights, and fire equipment are usually painted red.

Light red represents joy, sexuality, passion, sensitivity, and love. Pink signifies romance, love, and friendship. It denotes feminine

qualities and passiveness. Dark red is associated with vigor, willpower, rage, anger,

leadership, courage, longing, malice, and wrath. Brown suggests stability and denotes masculine qualities. Reddish-brown is associated with harvest and fall.

Orange

Orange combines the energy of red and the happiness of yellow. It is associated with joy, sunshine, and the tropics.

Orange represents enthusiasm, fascination, happiness, creativity, determination, attraction, success, encouragement, and stimulation.

Dark orange can mean deceit and distrust. Red-orange corresponds to desire, sexual passion,

pleasure, domination, aggression, and thirst for action. Gold evokes the feeling of prestige. The meaning of

gold is illumination, wisdom, and wealth. Gold often symbolizes high quality.

Yellow

Yellow is the color of sunshine. It's associated with joy, happiness, intellect, and energy.

Yellow produces a warming effect, arouses cheerfulness, stimulates mental activity, and generates muscle energy.

Yellow is often associated with food. Bright, pure yellow is an attention Dull (dingy) yellow represents caution, decay, sickness, and jealousy. Light yellow is associated with intellect, freshness, and joy.

Green

Green is the color of nature. It symbolizes growth, harmony, freshness, and fertility. Green has strong emotional correspondence with safety. Dark green is also commonly associated with money.

Green has great healing power. Dark green is associated with ambition, greed, and

jealousy. Yellow-green can indicate sickness, cowardice,

discord, and jealousy. Aqua is associated with emotional healing and

protection. Olive green is the traditional color of peace.

Blue

Blue is the color of the sky and sea. It is often associated with depth and stability. It symbolizes trust, loyalty, wisdom, confidence, intelligence, faith, truth, and heaven.

Blue is considered beneficial to the mind and body. It slows human metabolism and produces a calming effect. Blue is strongly associated with tranquility and calmness. In heraldry, blue is used to symbolize piety and sincerity.

Light blue is associated with health, healing, tranquility, understanding, and softness.

Dark blue represents knowledge, power, integrity, and seriousness.

Purple

Purple combines the stability of blue and the energy of red. Purple is associated with royalty.

It symbolizes power, nobility, luxury, and ambition. It conveys wealth and extravagance.

Purple is associated with wisdom, dignity, independence, creativity, mystery, and magic.

Light purple evokes romantic and nostalgic feelings.

Dark purple evokes gloom and sad feelings. It can cause frustration.

White

White is associated with light and goodness. It is considered to be the color of perfection. White means safety, purity, and cleanliness. As opposed to black, white usually has a

positive connotation. White can represent a successful beginning. In advertising, white is associated with coolness

and cleanliness because it's the color of snow.

Black

Black is associated with power, elegance, formality, death, evil, and mystery.

Black is a mysterious color associated with fear and the unknown (black holes).

Black denotes strength and authority; it is considered to be a very formal, elegant, and prestigious color (black tie, black Mercedes).

Broadcast Ads: Formats:

Use a SkitUse a NarrativeVoice Over a SongAll action/ Only Text

Components:Use a testimonialRepetition!!! Repeat Main PointsMake Important Info Easy To

RememberUse Sound Effects!

Broadcast Ads Recall/ Retention is Key:

Be Crazy, Excited, Funny, or Serious• But whatever you pick -- Emphasize it!

The element of surprise is priceless!!

Kids & Animals have a tendency to steal the show!

Finish with a Jingle or Trailer!

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Does it have a catchy headline?Does your copy include price, materials, quantity, etc…?Did you include a logo?Is there something in the focal point to draw you in?

Print Media Facts

Five times as many people read the headlines as read the body copyUnless your headline sells your product, you’ve wasted 90% of your money!

Newspapers

Most timely85% of advertising is placed by local mediaSections attract advertisers whose products relate to the editorial content

Two Types of Newspaper Ads

Display AdsRange in size Most include illustrations

Classified/Want AdsAdvertise many thingsOnly a couple lines long and contain no illustrations

Magazines

Consumer MagazinesGeneral interestTV Guide, Time, Newsweek

Trade MagazinesProvide information about a specific, specialized fieldAdvertising Age, Wire Technology

Direct/Junk Mail

Advertising sent through the mailPopular with large and small businessesIncludes letters, postcards, folders, brochures, catalogs, and house organs

Outdoor Ads

Aimed at anyone passing byOnly accounts for about 1% of ad dollars Used for things you buy frequentlyUsed for things that can be shown life-sized (Ex: autos)5-7 words

Outdoor Ads

BillboardsSimilar to large posters

Transit AdvertisingSmaller displaysInside airport/train/bus terminals On vehicles like busses or taxis

Direct/Junk Mail

Most selective form of advertisingFew or millionsExtremely low return rateMeasurable advertising

Direct/Junk Mail

One of the fastest growing areas of advertisingAlmost 20% of ad dollars are spent hereCan be addressed to “Occupant,” “Current Resident,” or be personalized

Does it have a catchy headline?

Does your copy include price, materials, quantity, etc…?

Did you include a logo?

Is there something in the focal point to draw you in?

Short Copy

Short Words

Large/ Legible Type

Forget “White Space”

Use Bold Colors

Use High Contrast

Make small Objects

BIG

Benefits of Transit Ads:

*Varied audience

*Captive audience

* Product Recall