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![Page 1: Unit 11 Promotion Promotion n What are your first impressions of this ad? n After glancing at the ad, did it make you want to stop and read it? n How.](https://reader035.fdocuments.us/reader035/viewer/2022081520/56649cca5503460f949920fd/html5/thumbnails/1.jpg)
Unit 11Unit 11PromotionPromotion
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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?
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Unit 11 VocabularyUnit 11 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 11 VocabularyUnit 11 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 11 Essential QuestionUnit 11 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?
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Essential Question 1 Essential Question 1
PromotionPromotion
What is the role of promotion as a What is the role of promotion as a marketing function?marketing function?
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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
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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.
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Essential Question 2 Essential Question 2
PromotionPromotion
What are the types of promotion?What are the types of promotion?
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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)
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Types of PromotionTypes of Promotion
Advertising: Paid presentation of ideas, goods, or services directed toward a mass audience
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Types of PromotionTypes 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 PromotionTypes of Promotion
Direct Marketing: Type of advertising directed to a targeted group of prospects and customers rather than a mass audience.– Snail Mail
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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.
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Types of PromotionTypes 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 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
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Types of PromotionTypes 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 Essential Question 3
PromotionPromotion
What are the elements of the What are the elements of the promotional mix?promotional mix?
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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
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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.
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Essential Question 4 Essential Question 4
PromotionPromotion What are the different promotional What are the different promotional
channels used to communicate with channels used to communicate with targeted audiences?targeted audiences?
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Promotional ChannelsPromotional Channels Promotional Channel: Method or
means of communication used inform customers about products. They include:– Advertising media (Newspaper, TV, etc.)
– Social media (Twitter, Facebook, etc.)
– Digital media (CDs, DVDs, etc.)
– Word-of-mouth
– Direct marketing (Postal mail, Email)
– Sales promotion (Coupons, Samples, etc.)
– Trade-show/exposition participation
– Public relations activities
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Essential Question 5 Essential Question 5
PromotionPromotion
What are the different types of What are the different types of advertising media and associated advertising media and associated costs?costs?
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Advertising Advertising (Print Media)(Print Media)
Newspaper
Finance News
Magazines
TIMES
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Advertising Advertising (Print Media)(Print Media)
Direct Mail
Outdoor Advertising
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Advertising Advertising (Print Media)(Print Media)
Directories
Transit Advertising
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Advertising Advertising (Print Media)(Print Media)
Other print media.
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Advertising Advertising (Broadcast Media)(Broadcast Media)
Television
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Advertising Advertising (Broadcast Media)(Broadcast Media)
Radio
Internet
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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.
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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.
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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.
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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.
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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.
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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
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Media CostsMedia Costs Facebook Twitter LinkedIn
All use CPM rates on clicks, pass-through rates, likes, comments, retweets, etc.
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Essential Question 6 Essential Question 6
PromotionPromotion
What are the components of What are the components of advertisements?advertisements?
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Advertisement ComponentsAdvertisement Components
Border: Separates the ad from the surrounding type
Heading: The key part of the sales message, may also contain subheads that either clarify or amplify the thought in the headline
Illustrations: Most effective way to draw the reader’s attention, illustrations that takes up 50 percent or more of the ad space increases readership by as much as 37 percent
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Advertisement ComponentsAdvertisement Components
Price: Price is presented in several ways:• As part of the heading• The core the ad is built around• Preceding the copy• In the text space.
White space: Use as much as possible to minimize distractions and draw attention to what matters most• Does not have to be white – just absent of
illustrations and text.
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Advertisement ComponentsAdvertisement Components
Body copy: Expands benefits offered in the headline and should be written as though you were making friendly, personal conversation
Signature: Is often a company logo or logotype and should not overpower other important aspects of the advertisement
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Advertisement ComponentsAdvertisement Components
The one second test: A way of determining whether a reader can tell at a glance what the advertiser is selling
Color: Achieve contrast in layout by effective use of different size type, bold type and color
Creativity: Simplicity, focal point and sequence in mind, will make the ad more visually appealing
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Visual
Headline
Company’s logo(Signature)
Body copy
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Essential Question 7 Essential Question 7
PromotionPromotion
What are the various public What are the various public relations activities?relations activities?
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Public RelationsPublic Relations
Public Relations: The establishment and maintenance of a good image for the company, its products and services.
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 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.
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Essential Question 8 Essential Question 8
PromotionPromotion
What are the differences between What are the differences between internal and external audiences for internal and external audiences for public relations activities?public relations activities?
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Internal Public RelationsInternal Public Relations
Internal public relations activities are activities designed to keep groups within a company informed about various activities in order to maintain a good image for the company, its products and services.
Internal audiences may include:– Staff / Employees– Top Management– Board of Directors
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External Public RelationsExternal Public Relations
External public relations activities are activities designed to keep groups outside a company informed about various activities in order to maintain a good image for the company, its products and services.
External audiences may include:– General Public / Customers– Partner Organizations– Donors / Funders
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Essential Question 9 Essential Question 9
PromotionPromotion
What is the nature of a promotional What is the nature of a promotional plan?plan?
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Promotional PlanPromotional Plan
Contents of the Promotional Plan– Objectives: Have a clear starting position;
awareness of opinions, behavior and knowledge of the target audience; and available time and resources.
– Market Targets: Decide who exactly is to be the audience. Targeting the promotional activities and communications message to a specific audience guarantees a higher rate of success or return on investment.
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Promotional PlanPromotional Plan
Contents of the Promotional Plan– The Message: There are three principles that
should be remembered when developing the communications or promotional message:
» 1. The KISS Principle (Keep It Simple Stupid)
» 2. The AIDA Principle (Attention/Interest/Desire/Action)
» 3. Communication objectives: • to be received (heard or read) • to be understood • to be accepted • to get action (change of behavior or attitude)
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Promotional PlanPromotional Plan
Contents of the Promotional Plan– Estimated Budget: Determine a preliminary
promotions budget. This initial estimate will be modified as the planning process proceeds and formal quotations are obtained.
– Promotional Elements (Tactics): Among the various elements of promotions are advertising, personal selling, reseller support, publicity, sales promotion and supplemental activities such as public relations.
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Essential Question 10 Essential Question 10
PromotionPromotion
How are activities coordinated in a How are activities coordinated in a promotional plan?promotional plan?
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Coordinating Promotional MixCoordinating Promotional Mix
Ensure all the communication channels used will be good exposure for whatever is being promoted
Ensure the communication channels used will appeal to the target market
– Younger demographics are not going to read the newspaper as much as a social networking
– The mix should reflect who it is supposed to appeal to
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Coordinating Promotional MixCoordinating Promotional Mix
Ensure all strategies send the same message about the product or business
Ensure strategies chosen fit the product or business
– Free samples work for food/beverage products but not major clothing wear such as shirts/pants