A.Describe the elements of the promotional mix. B. Explain factors affecting the selection of a promotional mix. C. Different Promotional Techniques used on Airports D. Message Effectiveness

Describe the elements of the promotional mix.

To tell consumers about a company’s … Goods ServicesImages Ideas

To persuade consumers to buy

Promotion’s Recipe for Success: Mix various communication activities together and serve to potential customers until desired outcome is achieved.

The Top 5 Airlines! Traveler MagazineFlynn The bikes the pros use. 25% Off Coupon AdvertisingAdvertising Personal sellingPersonal selling PublicityPublicity Sales promotionSales promotion

Any paid form of nonpersonal presentation of ideas, images, goods, or services The most visible element of the promotional mix

The New Barchetta Actual cost of advertisement is quite high.Actual cost of advertisement is quite high. Since many people receive the message, the per contact cost is very low.Since many people receive the message, the per contact cost is very low.

Goods Services Images Ideas The Vet for Your Pet At Techco, we’re friendly to our customers and the environment. Say No to Drugs. Diamonds from Desmond’s Jewelers are a girl’s best friend.

Messages can be delivered by: TelevisionTelevision RadioRadio NewspapersNewspapers MagazinesMagazines Direct mailDirect mail Outdoor advertisementsOutdoor advertisements DirectoriesDirectories The InternetThe Internet

Determines client needs/wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities Are you planning on replacing all of your computers at once? My budget won’t allow me to replace them all at once, but I want them to be compatible. You might want to consider leasing computers. You can get free service and upgrade to a newer model whenever you want!

Immediate feedbackImmediate feedback FlexibilityFlexibility I like the sound of this stereo, but I think it’s a little large for my dorm room. We do carry a bookshelf model with similar sound quality. Selling Disadvantage On a per contact basis, selling is the most expensive form of promotion.

* Any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual which benefits from or is harmed by it Many consumers pay close attention to publicity.Many consumers pay close attention to publicity. –Feel publicity has more credibility because it is not a commercial message –View publicity as news Example: Mention of a company’s charitable activities in print or broadcast media

A company web site can be used to obtain and display positive feedback. “Tae-Bo has really changed my life. I’ve lost weight, toned-up, and feel better than ever.” -Susie Wells, CA

A business’s goods, services, or web site might be mentioned in an Internet newsgroup. OnlineNews.com Car shopping on the web Buying a car on the web just got easier! Autobytel.com will help you get the financing, pick out the model, color and extras. Then they provide a quote from a local dealer. All at the touch of a keypad.

A company might agree to provide a link to another business’s web site in exchange for the same consideration. LINK TO ACME.COM

* Promotional activities other than advertising, personal selling, and publicity which stimulate purchases * Sales promotion activities include: Visual merchandising or displays Coupons Product demonstrations Instant rebates Free samples Fashion shows Contests Novelty items Trade shows Exhibits

* Plays a key role in obtaining and keeping customers * Enables businesses to communicate effectively with customers * Informs consumers about goods/services and persuades them to buy

Explain factors affecting the selection of a promotional mix.

Marketers Try To Create the Ideal Blend of Promotional Activities for Their Businesses. Must decide which methods will best reach potential customers and communicate desired message Advertising Personal selling Publicity Sales promotion Hard to determine effectiveness of the different promotional methods No magic formula that marketers use to help design promotional mix

Product’s target market Good, service, image, or idea Distribution channels Product’s company Must be carefully analyzed before marketers decide when and where to invest promotional funds

* Type of product Convenience goods Shopping goods Specialty goods

vs. ConsumerMarketIndustrialMarket Type of Consumer Advertising Sales Promotion Publicity Personal Selling Number of Consumers FewConsumers ManyConsumers Geographical Location Close Together Spread Over a Wide Area

Dioramas - the first and most commonly utilized - located throughout the terminals in arrivals, departures, ticketing and baggage claim areas - Wall, shelter, and king-size dioramas

Wraps - The most widely used form of U.S. - Applied to flat surfaces (walls, windows, and floors) - Flexible in size and shape - For short or long term campaign

Cylinder Showcases - Highly visible units - Display products and services - Secure setting for products such as perfume, jewelry, fashions, and ceramics

Interactive Courtesy Phone Centers - Located near baggage claim areas - Information about local hospitality and transportation services - Consist of a unit backdrop with color advertisements and special direct-line telephones located on the front of each unit

SkyScreens (Plasma) - Provide digital advertising and information - At high-traffic passenger cluster areas - Catch the eyes of people

Exhibition / Promotion Areas - Located throughout airport terminals - Communicate directly with the audience - Live promotions and open-space - Boost brand awareness - Encourage international travelers to visit the duty free shops and buy

Baggage Cart Sponsorships - Deliver total audience coverage - Message frequency

Others Bus shelter Leaflet dispensers Kiosks

Message Effectiveness High recall rates for airport advertising Traveler arrive at airport 57 minutes Prior to departure On average Passengers spend 93 minutes at the airport

Message Effectiveness: research by Leslie Brody flyers are aware - 56% of frequent flyers are aware of wrap advertising on buses, walls, windows or floors they liked - 92% of those who noticed airport wrap said they liked the wraps has an impact - 90% agreed that wrap advertising has an impact correctly recalled - 81% correctly recalled the advertised product or service

How We Measure? 1. Overall airport traffic Ex) World airport ranking by total passengers 1999 Atlanta – 78,092,940 (Rank #1) JFK, NY – 31,700,604 (Rank #20) Orlando – total passengers 29,203,755 (Rank #24) 2. The number of brochures or leaflets taken from displays

Example: Nissan’s baggage claim ads Nissan advertising on airport baggage claim areas October - December, 1999 Promoting the new Frontier Crew Cab and 2000 Maxima Nissan potentially reached millions of flyers flyers wait an average of 15 to 20 minutes for their luggage CPM: only about $ 2