5.02 Promotional mix and the different forms of promotion.
Elements of The Promotional Mix
Any combination of the different forms of promotion to sell goods and services AdvertisingSales PromotionPersonal SellingPublic or Community Selling
InternalExternal
Sponsorship
Different Forms of Promotion - Advertising
Any paid, non-personal form of communication by an identified sponsor
EX:
TV commercials, magazine, Internet,
advertisements, and direct mail
Different forms of promotion – Sales Promotion
Activities or communications that encourage consumers to purchase products
EX: giveaways, sweepstakes, free samples, award shows, contests, and coupons
Different forms of promotion – Personal Selling
Personal selling is face-to-face, personalized communication between a seller and a buyer
EX: presentation of a demo from a recording artist to a record label executive
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
TWO TYPES
Internal
External
Two types of Public or Community Relations
1. The internal community includes the employees of the company or organization
EX: Coke holding an annual picnic for employees and their families.
Two types of Public or Community Relations
2. The external community includes people outside of the company or organization
EX: Pepsi donating circus tickets to a Big Brother/Big Sister
organization.
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
Print Media
Newspapers
Magazines
Direct Mail
Outdoor Advertising
Transit Advertising
Broadcast Media
Radio Advertising
TV Advertising
Specialty Media
Online Media
Banner Ads
Pop-up Ads
E-mail Ads
Miscellaneous
Mobile Media
Apps
Commercials
Banners
Miscellaneous Media
Types of media used in advertising
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
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
Print Media - Magazines
Likely to be used by advertisers to segment the market based on demographic and behavioral segmentation
EX: men more likely to subscribe to Field and Stream, so this would be cost effective for a brand of men’s razors.
Print Media – Direct Mail
Sent directly to customers, or potential customers of a particular store
EX: all Blockbuster Video members would receive a flyer announcing a special sales event
Print Media – Outdoor Advertising
Includes any outdoor signs and billboards
Outdoor advertising provides 24-hour advertising
Print Media – Transit Advertising
Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages
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 Radio Advertising
TV Advertising
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.
Broadcast Media - TV Advertising
Includes commercials and infomercials
Is the most effective type of broadcast media as well as the most expensive
Types of media used in advertising – Online Media (E-commerce)
Is the placement of advertising messages on the Internet World Wide Web
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
On-line Media – Pop-up Ads
Pop-up advertisements are the advertisements that “pop-up” and interrupt Internet surfing
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
Types of media used in advertising –Mobile Media (M-Commerce)
Include the use of mobile phones to promote of sell products
EX: Apps, i-tunes, mobile games, and mobile banners
Types of media used in advertising – Specialty Media
Include “everyday” items with a company name written on them
EX: calendars, pens, magnets, and coffee mugs
Types of media used in advertising – Miscellaneous
Many other creative ways of communicating advertising messages to consumers
EX: blimps, supermarket carts, hot air balloons, and in-theater advertisements
Forms Of Sales Promotions
Annual Awards Shows
Trade Shows & Conventions
Incentives
Premiums
Sampling
Forms Of Sales Promotions – Annual Awards Shows
Academy Awards (Oscars)awarded by Academy of MotionPicture 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
Forms Of Sales Promotions –Annual Awards Shows
Grammy Awards -National Academy Of Recording Arts and Sciences (NARAS)
NARAS- association of more than 13,000 recording professionals A Grammy might draw attention to an artist, but does not
guarantee acceptance in form of sales
Forms Of Sales Promotions – Annual Awards Shows
Emmy Awards- Academy of TV Arts and Science awards (2 divisions)Night Time Television AwardsDaytime Emmy Awards
What Do the Emmy Awards do? Draws monumental attention to TV shows
Increases viewing because of winning actors/actresses
Forms Of Sales Promotions – Annual Awards Shows
Tony Awards - theater professionals for outstanding achievement
ESPY Awards - excellence in sports performance (by ESPN) Nominating committee consists of sports
executives, journalists and retired athletesESPY Awards make contributions to the V
Foundation, established by ESPN in honor of the late NCSU Basketball Coach Jim Valvano
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
Forms of Sales Promotions - Incentives
Used to generate awareness, interest, and increase sales.
Forms Of Sales Promotions - Incentives
Contests
Prizes are awarded based on contestant skill and/or ability
EX: American Idol, Fear Factor, and Dog Eat Dog
Forms Of Sales Promotions - Incentives
SweepstakesPrizes awarded based on the chance or
luck of the contestant
EX: winning concert tickets from a local radio station
Forms Of Sales Promotions - Incentives
RebatesDiscounts offered by manufacturer
when consumer purchases a sports entertainment good or service during specified time period
EX: mail-in rebates for purchasing two DVD’s at a time
Forms Of Sales Promotions - Premiums
Low cost items given away with the sponsor’s product as part of a sales promotion
EX: Powerade gives away a cooler with a purchase of a case of powdered drink mix
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
EX: Blockbuster coupons on popcorn packaging or coupons inserted in Sunday newspaper
Forms Of Sales Promotions - Premiums
Traffic-buildersLow cost items given to customers for
attending an event, or visiting a store
EX: first 200 customers to attend grand opening of new Sports Authority receive a Sports Authority
key chain
Forms Of Sales Promotions - Sampling
Sampling
Refers to giving consumers a “taste” for sporting event or concert
EX: fan participation at a track and field event and Faith Hill selecting member of the concert audience to stand with her on stage
Analyze the steps of promotional planning
1. Determine strategy for reaching target market
2. Determine the objectives of the promotional activity
3. Establish a promotional budget
1. Determine strategy for reaching target market- Push strategies
Push strategies
Used by manufacturer to convince or “ push “ retailers to carry and promote products
Relies heavily on personal selling and sales promotion
Pull strategiesDirected towards customers to increase
their interest and demand for productsCustomers will “pull“ or convince
retailers to carry sports or entertainment products.
Relies heavily on advertising
1. Determine strategy for reaching target market- Pull strategies
2. Determine the objectives of the promotional activity
Increase sales
Increase market share
Create brand awareness
3. Establish a promotional budget
Common methods (No exact science)
Percentage of expected salesObjective and task methodCompetitive equivalence “Whimsical” allocation
3. Establish a promotional budget
Common methods (No exact science)
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
3. Establish a promotional budget
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
3. Establish a promotional budget
Competitive equivalence Involves matching competitors
promotional outlay
Weakest method because it takes into account competitors’ objective only
3. Establish a promotional budget
“Whimsical” allocation All money available after expenses is
allocated as promotional budget
Short-term method used to increase sales by building reputation
4. 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