DO NOW On the internet research how Oprah Winfrey made million of dollars in one day. How did this happen? Why did it happen? http://www.forbes.com/sites/nathanvardi/2015/10/19/oprah-winfrey-makes-70- million-in-one-day/#78cdb8fc79d1

DO NOW Which ad do you remember? Why?

KEY TERMS Promotion is any form of communication used to inform, persuade, or remind. Sales Promotions include games, contests and give-aways http://smallbusiness.chron.com/top-ten- promotional-strategies-10193.html

Communicating through promotion Promotion is an important form of communication. A business needs to provide information to consumers in order to persuade them to make a purchase. As the sender, the business decides what information to provide. The consumer is the receiver. The information is encoded in the form of a promotional message such as an advertisement.

Communicating through promotion cont. Choosing target markets and studying their needs and decision-making process can make promotion more effective. When the focus of a business is a target market, communication can be very specific to the needs of that group using media that are familiar to and trusted by those consumers.

Two Types of Promotion Personalized Promotion communicates directly with each customer using information tailored to that person. Mass Promotion communicates with many people at the same time with a common message.

Personalized Promotion Personal Selling is direct, individualized communication with prospective customers to assess their needs and assist them in satisfying those needs with appropriate products and services. Customer visits the business to meet with salesperson Telephone calls to customers This type of selling is used for expensive and complex products and services May require several contacts between sales person and customer (Examples of personal selling?)

Mass Promotion Directed to many people at the same time (Why are Super Bowl commercials so expensive?) Advertising is any paid form of communication through mass media directed at identified consumers to provide information and influence their actions. Ads are often tested before they are placed through focus groups Why was this campaign effective? . https://www.youtube.com/watch?v=PYS_AamN7Ko

Mass Promotion (cont’d) Publicity – non paid promotional communication presented by the media rather by the business or organization (Ex – sponsorship, someone’s testimonial) (Example of a publicity you have seen?) Sales promotion – activities and materials designed to reinforce a company’s brand and image (Ex. Contests/games/give aways) (Examples of sales promotion you have seen?)

Mass Promotion (cont’d) Merchandising – promotional activities designed to generate sales in the retail setting. Visual merchandising – visual signals such as signs/displays/shelf labels Displays are used to display a product. (Ex. Product displays in front of store to entice customers to come in) (Example of merchandising?)

Merchandising Strategies Visual merchandising uses visual signals to communicate in a retail setting. Visual merchandising allows a retailer to use visual signals to replace a salesperson for information. Retailers will also set up a display to exhibit a product at the point of sale.

Mass Personalization Mass personalization begins with promotion through mass media such as newspapers, mass mailings, or the Internet. Prospective customers see the advertisement and become interested in the product or service. The company then provides an easy-to-use method for the consumer to gather more personalized information. How is the internet used to accomplish this?

Mass Personalization cont. a survey or a set of links will then take customers with specific questions to other web pages. The links can help them choose a specific product and complete an online purchase. This process combines both mass promotion and personalized promotion

Closing activity http://kwhs.wharton.upenn.edu/2011/07/ret ail-visionary-warby-parker%e2%80%99s- online-eyeglass-strategy-focuses-on-the- consumer/ With a partner analyze the promotional strategies used by Warby Parker.

Restaurant project activity For your restaurant: what type of promotion will you use? Explain why that type will work for your restaurant? Create an ad for your restaurant to be placed in a local newspaper/internet/other types of social media.