Advertising & Promotion

Unit Objectives Objectives: Understand the difference between advertising and promotion Understand the various components of advertising and promotion Understand the value of advertising and promotion

What is Advertising? Paid public announcement to persuade you to buy an item or service.

Newspaper: local newspapers target a precise geographic area Pros: Newspapers are produced and delivered every day Low cost in comparison to other media options Cons: Consumers discard the paper after reading, Creative limits due to black/white publication

Magazines: target consumer interest (sports, fashion, hobbies) Pros: Target a specific segment Creative flexibility Longer life than a newspaper Cons: Costly Requires lead time of 2-3 months

Radio: Pros: Low cost in comparison to TV & Magazine Reach consumers in their car, at work and at home Cons: Listeners do not always listen to background noise Change stations

Television: Best advertising medium Pros: Targeted to specific markets Repeat frequently Creative freedom Cons: COST!!! Commercials are brief, repetition is necessary Remote control

Yellow Pages: Consumers are ready to purchase when the look up your number.

Online Banner Ads www.ESPN.com Personal Emails Company/Team Websites www.nfl.com Excellent advertising medium to reach teens

Outdoor Advertising: Signs on buildings Billboards use color, lighting and special effects to create an image Walls, benches and vehicles

Point-of-Purchase Displays: Signs, banners, display racks in stores close to the product being sold. Effective POP displays are located in high traffic areas. Window displays are effective POP advertising

Sponsorship: Event sponsorship - a business helps fund an event in exchange for displaying a brand name, logo or advertising message at the event.

Sales Promotions – Use of incentives to increase the brand value for consumers. Sales promotions cause immediate purchases, rather than a long-term change of behavior

Methods of Sales Promotions: Coupons – a reduction in price for a buyer Causes a consumer to change brand loyalties or buy the product again Flexibility Premiums – Items that are free or cost less with the purchase of another item. Ex: Cereal & toy

Sales Promotions Contests: When consumers use a skill to compete for a prize. Sweepstakes: Winners are determined by chance McDonalds & Monopoly

Sales Promotions Sampling: Small samples of food purchases intended to persuade consumers to buy the product Rebates: Money-back offer from the manufacturer to consumer. Technological products

Sales Promotions Frequency: Regular buyers are rewarded with special deals or offers Ex: Incentive cards Season Ticket Holders

Direct Marketing: interactive method of marketing designed to generate a measurable response or transaction. Direct Mail (coupons/samples) Telemarketing Magazine/Newspaper Inserts Flyers