Promotion Strategies This presentation will focus on promotional strategies that are used in marketing.

Promo Video https://www.youtube.com/watch?v=BDcTSTMKfbE

Promotion Defined Communication used by marketers to inform, remind, or persuade potential buyers. Makes people aware of items to increase sales or popularity. Promotion is defined as communication used by marketers to inform, remind, or persuade potential buyers. Promotion takes place to make people aware of something and increase the sales or popularity of that item. What are some promotion strategies that you have experienced? Where did you see these promotional strategies used?

Need to know Target Market – Very specific! Frequency – How often your ad runs? Reach – How many people see your ad? Before we dig deeper into promotion, lets look at some of the basics. As stated before, promotion is intended to inform, remind, and persuade someone. To inform, one could call a number for more information about a product. To remind the consumer, you could think of pitching a catchy slogan such as “EverReady batteries keep going, and going… After the customer has been informed and reminded, focus should be turned to persuading them. A great example of this is telling the customers that they get the best value with this product because…

The Promotion Mix Sales Promotion Advertising Personal Selling The promotion mix is made up of different categories. Those categories are advertising, sales promotion, personal selling, and public relations. These are the four major methods of promotion. Have you heard anything about one of the four categories of the promotion mix? Personal Selling Public Relations

ADVERTISING Any INFORMATIVE or PERSUASIVE message that is: Carried by a non-personal medium Paid for by a sponsor who is identified in the message. Can reach a large number of people quickly The internet has increased the options for customers to provide feedback to the advertising. The first part of the promotional mix we will focus on is advertising. Advertising involves non-personal communication and mostly paid promotions that use mass media outlets to deliver the message. These paid promotions are usually paid for by a sponsor who is featured in the message. Advertising can reach a large number of people quickly. Today, with the use of the internet, customers have more options to provide feedback to the advertisements. In the past, advertising has involved one-way communication with very little feedback opportunity for the customers.

Examples of Advertising Magazines Newspapers Television Websites City Buses Billboards Some examples of advertising that you are probably very familiar with are: magazines, newspapers, television, websites, city buses, and billboards. Can you name any other examples of advertising? Also, think about how often you experience advertisements and how they affect you.

SALES PROMOTION Includes all promotional activities which are NOT personal selling, advertising, or public relations. The purpose of Sales Promotions is to stimulate dealer effectiveness or to increase purchases during a specific time period. Short term techniques are often in the form of incentives. Sales promotion includes all promotional activities which are not personal selling, advertising, or public relations. This is a short term technique used to stimulate dealer effectiveness and increase purchases during a specific time period. Sales promotion usually comes in the form of incentives that encourage customers to respond or undertake some activity. For example, the use of retail coupons with expiration dates requires customers to act while the incentive is still valid.

Major Types of Sales Promotion Consumer Sales Promotions Coupons Premiums Contests Product Samples Trade Promotions Buying and Merchandising Allowance Salesforce Bonus Money Examples of sales promotion can be broken down into three main categories, consumer sales promotions, trade promotions, and within the salesforce. Coupons, premiums, contests, and product samples are all examples of consumer sales promotion. These are targeting the customers. Trade promotions deals with buying and merchandising allowance. The final category, salesforce, involves bonus money and contests within the workplace. You could think of this as the highest selling employee for the month in a department store may get some bonus money. What types of sales promotions have you encountered recently?

PUBLIC RELATIONS Involves information that is: Carried by a non-personal medium Not paid for by a Sponsor The organization being publicized is not identified as the message sponsor. Uses third-party sources. Offers a favorable mention of the marketer’s company or product without direct payment to the publisher. Public relations, which can also be referred to as publicity, involves information that is carried by a non-personal medium and is not paid for by a sponsor. The message sponsor is not the organization that is being publicized. Public relations usually occurs through third-party sources that offer a favorable mention of the marketer’s company or product without direct payment to the publisher. This can be simplified as bringing newsworthy information to the public.

Public Relations Examples A campaign to encourage businesses to donate computers to schools Donating to hospitals Donating to a cause or an organization Some examples of public relations are a campaign to encourage businesses to donate computers to schools, donating to hospitals, or donating to a cause or an organization. Can you think of anymore examples of public relations or publicity?

PERSONAL SELLING Basic Objectives Convert potential customers to actual customers. Keep customers satisfied and loyal. “Help” current customers to buy more products. Provide market information to the firm. Helps customers understand needs and decision processes Involves personal contact Personal selling has four basic objectives. The first is to convert potential customers to actual customers in order to build the customer base or sell more products. The second objective is to keep customers satisfied and loyal so they will return to your business and possibly refer others. The third is to help current customers to buy more product. An example of this is when someone encourages you to try a second form of their product. The final objective is to provide market information to the firm. If this information is not provided, the marketing strategies devised may not be useful. Personal selling involves understanding the customer’s needs and decision processes. It always involves personal contact.

Personal Selling Examples Personal Meeting Telemarketers Emails Correspondence Some examples of personal selling are personal meeting, telemarketers, emails, and correspondence. What do you think is most effective example of personal selling?

Case Study http://www.slideshare.net/fullscreen/monikagvt09/ promotional-mix-3675309/8

Advertising Decisions HOW MUCH? Percent of Sales Per-unit Expenditure All you can Afford Competitive Parity Research Based Task Based

Ad Vehicles T.V. – Expensive, great for stimulating most of the senses. Many get fast forwarded now. Radio – Very intimate. Cheaper. Easier to select a more targeted market. Digital music and satellite radio is making this less desirable. Magazine – Higher quality images than newspaper or direct mail. Magazines target a specific market. Kept longer than newspapers. Can be very expensive.

Newspaper Newspaper – Very inexpensive, no creative costs (newspaper can create it for you), enormous flexibility in design, placement, and frequency. Most papers are only black and white, newspaper stats are plummeting. With younger demographic. Short shelf life. Ad clutter.

Internet Internet – Consumers use internet to assist them in nearly every aspect of life. Reach more people at a fraction of the cost compared to traditional advertising. Through social media blogs, specialized websites and forums, ads can reach a very specific target market. Users are starting to ignore internet ads because of ad clutter and viruses.

Internet Continued Complaints about your product are easily posted. And viewed by others. Allows for interactive marketing.

Billboard 3-5 seconds to capture attention Pictures are powerful Guaranteed audience Too many ads on the roads today Can be very selective with ad placement Can’t change channel on a billboard !

Direct Mail Junk mail Able to do coop advertising! 10% or less response rate If you have a large budget and a product that most common folks would purchase if they had the money, this may be the way to go!

Let’s practice Create (or discuss) a billboard ad for a product Create a magazine ad for the same product What are the differences in your strategy?

Assignment –Promotional Plan Write a promotional plan for any wearable technology device and choose 3 vehicles to advertise the product. Discuss competition and budget considerations as well. Show an example of one of the ads!

Assignment –Promotional Plan Write a promotional plan for any wearable technology device and choose 3 vehicles to advertise the product. Discuss competition and budget considerations as well. Show an example of one of the ads!

DAY 2 Communication and Strategies

The Communication Process NOISE NOISE Source Encoding Message Channel Decoding Receiver FEEDBACK

Hierarchy of Communication Effects Model PURCHASE The Objectives of Advertising CONVICTION PREFERENCE LIKING KNOWLEDGE AWARENESS BRAND IGNORANCE

Push Strategies Promote to intermediaries to push the product through the channel Promotes to Promotes to Promotes to PRODUCER WHOLESALER RETAILER CONSUMER

Pull Strategy Promote to consumers to stimulate demand and pull the product through the channel Promotes To PRODUCER WHOLESALER RETAILER CONSUMER Orders it Orders it Asks for it