Standard 6 - Promotion What you’ll learn: Understand the nature and scope of promotion Understand promotional channels used to communicate with the targeted audiences

Standard 6 Day 1 – Promotion Understand the nature and scope of promotion –Explain the role of promotion as a marketing function –Identify elements of the promotional mix (advertising, public relations, personal selling, sales promotion) –Explain the nature of a promotional plan –Explain the importance of coordinating activities in the promotional mix Students will be able to:

Promotion Any form of communication a business or organization uses to inform, persuade, or remind people about its products

Promotional Mix A combination of the different types of promotion 1.Personal Selling 2.Advertising 3.Public relations 4.Sales promotion

1) Personal Selling Any form of direct contact occurring between a salesperson and a customer

2) Advertising Any paid form of non- personal presentation and promotion of ideas, goods, or services by an identified sponsor –Nationally, businesses spend about $200 billion annually on various types of advertising

3) Public Relations and Publicity Public Relations – any activity designed to create a favorable image toward a business, its products, or its policies. –It is designed to influence the public’s view of a business

4) Sales Promotion All marketing activities, other than personal selling, advertising, and public relations, that are used to stimulate consumer purchasing and sales effectiveness

Promotional Plan Promotional Plan outlines how the Promotional Mix will be utilized Set goals and objectives –Increase awareness, sales, loyalty, etc. Establish spending guidelines –Different Mix elements have very different costs Determine Mix elements to reach target market –Research to determine best methods of Mix. Monitoring your Promotional Plan –E.g. Track sales prior to promotion and sales after to quantify increase.

Your Promotional Plan Promotional strategy How much will this strategy cost? Whom do you hope to reach with this strategy? Why did you choose this strategy?

Standard 6 Students will be able to: Understand promotional channels used to communicate with the targeted audiences –Explain types of advertising media used to communicate with target audiences –Understand the use of public-relations activities to communicate with targeted audiences –Identify methods personal selling is used to communicate with targeted audiences –Identify and explain communication methods used in sales promotions –Understand the use of social media tools to communicate with targeted audiences –Identify metrics used to assess results of promotional efforts

Types of Advertising Media 1.Print Media 2.Broadcast Media 3.Online Advertising 4.Specialty Media Media are the agencies, means, or instruments used to convey advertising messages to the public.

1) Print Media Written advertising that may be included in everything from newspaper and magazines to direct mail, signs and billboards. They are among the oldest and most effective types of advertising.

Direct-Mail Advertising (Print) Sent by businesses directly through the mail –S–Sent to a home or business –E–Electronic mail Includes newsletters, catalogs, coupons, samplers, price lists, circulars, invitations, postage- paid reply cards, and letters. Mailing lists are assembled from current customer records or they may be purchased.

Outdoor Advertising (Print) Standardized signs are available to local, regional, or national advertisers. Purchased from outdoor advertising companies in standard sizes Are placed in highly traveled roads, and freeways where there is high visibility. Posters – pre-printed sheets put up like wallpaper on outdoor billboards. Painted bulletins – painted billboards that are changed about every six months to a year. Spectaculars – use lights or moving parts and are in high traffic areas.

A billboard gets right to the point

Transit Advertising (Print) Uses public transportation facilities Commuter trains, taxis and buses, station posters near or in subways and in railroad, bus, and airline terminals

2) Broadcast Media Includes radio and television The average person will spend nearly ten years watching TV and almost six years listening to the radio over a 70 year lifetime.

Television Advertising (Broadcast) Communicates with sound, action, and color. Prime time is between 8 and 11 p.m. Is appealing to large companies with widespread distribution.

Radio Advertising Radio reaches 96 % of people over 12 yrs which makes it very effective Best times are “drive times” – morning and late afternoon/early evening Radio (Broadcast)

3) Online Advertising Placing advertising messages on the Internet Banner ads – created with rich media technology that uses the strategy of popping up and interrupting the readers search Social Media uses customers to place product pictures in social networking pages.

4) Specialty Media Relatively inexpensive, useful items with an advertisers name printed on them Given away with no obligation attached Calendars, magnets, pens, pencils, memo pads, and key chains

Specialty Media Businesses are constantly creating innovative means of transmitting their messages Sports arena billboards, ads in movie theaters, hot air balloons and blimps, skywriting, etc.

Public Relations Write News Releases -- a prewritten story about a company that is sent to the various media

Writing News Releases (Public Relations) First paragraph should answer Who, What, When, Where, and Why questions. Develop important facts in next few paragraphs. Less important information can follow but should be edited. Include the full name and position of any people mentioned. Include the name, address, and phone number of the contact person. Be brief – only one or two pages. “###” at the bottom of the last page signifies the end.

Selling Personal Selling – any form of direct contact between a salesperson and a customer Retail Selling – customers come to the store Business-to-business Selling – takes place in a manufacturer’s or wholesaler’s showroom or a customer’s place of business Telemarketing – selling over the telephone

Sales Process (Selling) 1.Approaching the customer 2.Determining needs 3.Presenting the product 4.Overcoming objections 5.Closing the sale 6.Suggestion selling 7.Relationship building

Sales Promotions Designed to encourage customers to buy a product 1.Coupons 2.Premiums 3.Incentives 4.Product Samples 5.Sponsorship 6.Promotional Tie-in 7.Product Placement 8.Loyalty Marketing Program 9.Point of Purchase Display

Types of Promotion (Sales Promotion) Coupons – certificates that entitle customers to cash discounts on goods or services.

Types of Promotion (Sales Promotion) Premiums – low-cost items given to consumers at a discount or for free – Should: –be low-cost –provide added value –negate the target audience’s price issue –effectively differentiate the product from the competition –create an immediate need to buy

Types of Premiums (Sales Promotion) Factory packs (in-packs) – free gifts placed in product packages

Types of Premiums (Sales Promotion) Traffic builders – pen, calendar, key- chain given free for visiting or attending event

Types of Premiums (Sales Promotion) Coupon plans – ongoing program offering a premium in exchange for labels, coupons or other tokens from one or more purchases.

Incentives (Sales Promotion) Generally higher-priced products earned and given through contests, sweepstakes, and rebates Contests – activities that require demonstration of a skill Sweepstakes – game of chance

Incentives (Sales Promotion) Rebates – discounts offered to customers who purchase

Product Samples (Sales Promotion) Free, trial-size sample Distributed through mail, door-to-door, or at a retail or trade show Especially important with new products

Sponsorship (Sales Promotion) The sponsoring company pays a fee for the right to promote itself and its products or services at or on a set location May negotiate the right to use logos and names on retail products

Promotional Tie-In (Sales Promotion) Involves arrangements between one or more retailers or manufacturers. Ex: McDonald’s and Fisher-Price Toys

Product Placement (Sales Promotion) Featuring a product at a special event, on television, or in the movies Click on the “Pieces Icon” to learn about the history of product placement.

Loyalty Marketing Programs (Sales Promotion) Frequent buyer programs Reward customers for making multiple purchases

Social Media Facebook – Company website Version 2.0 Twitter – Info blasts of community service, sales, or general information YouTube – Tutorials and self-help, reduces product returns and lost sales LinkedIn – Employee and business community networking

Measuring Promotion Results Market Research must be done to determine effectiveness of all Promotional activities.