Warm-Up What is your favourite promotion? What is your favourite Advertisement on TV right now? Why do you like it?

Promotion Topics: Advertising –Goals of Ads –Selecting the Appeal –Types of Media Sales Promotion –Contests & Sweepstakes –Refunds & Rebates –Coupons –Premiums & Self- Liquidators –Samples –Special Sales –Point of Purchase / Sale (POP/S) –ADD: Co-promotion

Advertising Goals Goals of Advertising: 1.Brand Awareness & Positioning 2.Brand Trial 3.Brand Preference 4.Brand Reminder 5.Brand Repositioning

Advertising Appeal Appealing to consumers using one of the four motivational areas: 1.Biological – need for health and security Examples: Health foods, home security, pharmaceutical brands, automobiles Doesn’t work for: Airlines, toxic household cleaners

Advertising Appeal Four motivational areas: 1.Biological 2.Emotional – focus on consumer’s feelings; love for children, feelings of romance or pride Examples: Downey fabric softener, Perfume, Canadian Armed Forces

Advertising Appeal Four motivational areas: 1.Biological 2.Emotional 3.Rational – Consumer reasoning; stresses convenience, cost savings, warranties, logical reason to buy Examples: Honda for mileage, Minute Rice, Guaranteed Trials

Advertising Appeal Four motivational areas: 1.Biological 2.Emotional 3.Rational 4.Social – focus on social pressures influencing consumer behaviour, including body shape, appropriate behaviour, social acceptance. Examples: Acne face wash, Axe deodorant

Group Activity On the given sheet of paper, list 5 ads in the source you were provided For each ad, name: –Advertising Goal –Advertising Appeal / Motivation –Explanation for why

Brainstorm: Types of Media MagazinesNewspaperTelevision RadioOut-of-Home Direct-to- Home InternetSpecialty

Types of Media 1.Magazines Opportunity to link with specific audience / interests. Several readers – passed on form of media.

Types of Media 1.Magazines 2.Newspapers Geographic flexibility for specific cities. Link ads to relevant content / sections of the paper.

Types of Media 1.Magazines 2.Newspapers 3.Television Expensive but capable to broadcast nationally to many viewers. Dynamic and changing media with rise of PVRs and internet viewing.

Types of Media 1.Magazines 2.Newspapers 3.Television 4.Radio Geographic flexibility for specific cities or regions. Link ads to relevant stations for your target or day parts.

Types of Media 1.Magazines 2.Newspapers 3.Television 4.Radio 5.Out-of-Home Difficult to ‘break through’, Not targeted (except washroom stalls). Must be very brief, mostly visual.

Types of Media 1.Magazines 2.Newspapers 3.Television 4.Radio 5.Out-of-Home 6.Direct-to-Home Geographic targeting. Relatively cheaper than TV or Radio. Not “durable”, often thrown away or discarded.

Types of Media 1.Magazines 2.Newspapers 3.Television 4.Radio 5.Out-of-Home 6.Direct-to-Home 7.Internet Source: www2.sims.berkeley.edu/.../internet.htmwww2.sims.berkeley.edu/.../internet.htm Websites, banner ads & advertising. Permission-based is when consumers have given their address to the company.

Types of Media 1.Magazines 2.Newspapers 3.Television 4.Radio 5.Out-of-Home 6.Direct-to-Home 7.Internet 8.Specialty Also known as premium & incentive marketing. Company logo/message is put on merchandise, then given away.

Promotion Topics: Advertising –Goals of Ads –Selecting the Appeal –Types of Media Sales Promotion –Contests & Sweepstakes –Refunds & Rebates –Coupons –Premiums & Self- Liquidators –Samples –Special Sales –Point of Purchase / Sale (POP/S) –ADD: Co-promotion

Reasons for Promotion Why do you think businesses use Sales Promotion? Build traffic in store Create extra interest in product Increase sales during down- period or heavy competition Motivate staff Introduce new product, generate trial Stock clearance

Contests & Sweepstakes Award prize to select participant Can be used with other aspects of promotion Incentive to provide information

Refunds & Rebates Great for data collection because consumers supply information Low redemption rates = lower cost than straight discounts Common with electronics, i.e. Best Buy

Coupons Entitles you to a reduction in price of product or service Obtained from internet, mail, print ads, store register, other locations in store Redemption rate = % of coupons used –Measures effectiveness of promotion –Avg redemption for direct mail ~3.5% vs. in-store ~6.5%

Premiums & Self-Liquidators Allow consumers to get something by purchasing something else –Premium = free product/service, often called “Gift with Purchase” –Self-Liquidator = product or service at substantially reduced price

Samples One of the most effective, yet most expensive promotional activities is sampling Instant trial Good example execution of samples with displayed product for purchase is Costco

Special Sales Special events: –Introduce new product / service –Clear out old stock –Generate store traffic –To be competitive during seasonal events (i.e. NOW!)

Point of Sale (POS) Special racks, cases, shelves and temporary displays all called POP or POS Displays set up in store or right at cash Increase “impulse” purchases

Co-Promotions Companies partner to raise awareness and reach of each respective brand Classic examples: movies, hot new products, sports teams, charity/cause marketing

THANK YOU! Next Class: –New Project on PROMOTIONS In pairs, bring in 3 promotions that are currently in the market (if on-line, bring print out) Assignment questions will be provided tomorrow, along with in-class time to work on them IF you forget your promotions, some will be assigned to you… but don’t forget, it’s easier to do a project on something that INTERESTS YOU.