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Using Effective Promotional

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Presentation on theme: "Using Effective Promotional"— Presentation transcript:

1 Using Effective Promotional
Techniques 1-1

2 Traditional Promotional Mix
Personal Selling Sales Promotion Public Relations Advertising Product See Learning Goal 1: Define promotion and list the four traditional tools that make up the promotion mix. See text pages: 432

3 Steps In A Promotional Campaign
Identify the target market Define the objectives Determine the promotional budget Develop a unifying message Implement the plan Evaluate effectiveness See Learning Goal 1: Define promotion and list the four traditional tools that make up the promotion mix. See text pages: 432

4 Objectives of Integrated Marketing
Build Brand Equity Provide Information Manage Demand & Build Sales Differentiate Products Influence Perceptions, Attitudes, & Buyer Behavior Also available on a Transparency Acetate See Learning Goal 1: Define promotion and list the four traditional tools that make up the promotion mix. Objectives of Integrated Marketing This slide provides the students information regarding the goals of integrating the various marketing tools to reach the consumer. All objectives within an integrated marketing strategy should include the following: Significantly increase the number of people to experience the message at nominal incremental cost. Leverage the media’s ability to deliver an integrated marketing message. Deliver an entertaining segment that elicits emotional response. Utilize all medium to effectively elicit a response to your promotion. Demonstrate the importance of each and every person reached by your message.

5 Advertising Advertising media: Newspaper, television, radio, magazines, outdoor, direct mail, yellow-pages, Internet The growing use of Infomercials Moving to the Internet Global advertising See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. See text pages:

6 Century’s Top Ad Jingles
“You deserve a break today” “Be all you can be” “Pepsi-Cola hits the spot” “Mm Mm good!” “See the USA in your Chevrolet” “I wish I were an Oscar Mayer wiener” “A little dab’ll do ya” “Double your pleasure, double your fun” “It’s the real thing” “Winston tastes good like a cigarette should” Also available on a Transparency Acetate See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. Century’s Top Ad Jingles This slide represents some of the most recognized jingles in the U.S. It will be interesting to see just what percent of the class recognizes any of the jingles. Ask students if they know what products these jingles represent? Jingles are very important to a companies marketing message. Companies want people to respond to their message, therefore these jingles must tell an individual how it benefits them. Some major companies have changed to new jingles to improve responsiveness: McDonald’s “I’m luving-it” was just introduced worldwide to increase profits. The U.S. Army is spending $150 million on a new jingle: “An Army of one” to replace “Be all you can be.” Pepsi-Cola introduced a new jingle in the late 1990’s, “Twice as much fun for a nickel too.” Students should note that jingles will change to meet the marketing needs of different cultures. Coke products are sold in over 200 countries worldwide. This type of diversity requires Coca-Cola to tailor their jingles to represent the needs of each country. Source: Advertising Age

7 Do Blatantly Sexy Ads Turn You Off?
See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. Source: USA Today

8 Total Direct Advertising Expenditures
Also available on a Transparency Acetate See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. Total Direct Advertising Expenditures This slide presents the total advertising expenditures. This slide goes well with total advertising expenditures by media. Total advertising expenditures has almost doubled since 1996. Ask the students – which media do they believe receives the top three expenditures by advertisers? (Network TV, Local newspapers, and magazines were the top three media choices for all advertisers’ spending combined.) Source: The Direct Marketing Association, Advertising Age (accessed August 10, 2006)

9 Money Spent to Place Products
In Billions Also available on a Transparency Acetate See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. Money Spent to Place Products This slide shows the growth in money spent to place products. Ask the students how is this money spent on product placement different from advertising? With technology such as TiVo, viewers are skipping ads or they change the channel, advertisers are finding creative ways to place the products in shows, music, and movies. Ask the students – Do they recall seeing an actor or actress taking a soft drink or eating a particular ice cream or candy or cereal, etc? Are these products there or picked up by chance? (These are the ones referred to as product placements.) Product placements have grown from about $2 billion in 2001 to over $4 billion in 2005. Source: PQ Media

10 Total Advertising Expenditures By Media
Also available on a Transparency Acetate See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. Total Advertising Expenditures By Media This slide shows the total advertising expenditures of the top 100 advertisers in the country by media. This slide goes well with the total direct advertising expenditures. For the top 100 national advertisers, network TV, magazines, and cable TV are the top three choices. For all advertisers combined, Network TV, Local Newspapers, and Magazines are the top three choices. Obviously, for a small local business, advertising in local newspaper is more appropriate than in Network TV or a trade/business magazines. Expenditures of 100 Leading National Advertisers Source: Advertising Age, 2005

11 Ad Spending Growth Also available on a Transparency Acetate
See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. Ad Spending Growth In the previous slides we have seen Total direct advertising expenditures, how much money is spent on placing products, and total advertising expenditures by media for top 100 national advertisers. This slide presents the Ad expenditure increments from 2004 to 2005 for all US advertisers combined. For all US advertisers taken together, which media outlets are seeing the growth, i.e., increased dollar spending by the advertisers? From 2004 to 2005, local magazine ad spending increased by over 25%, Internet ad spending increased by over 13%, whereas outdoor ad spending saw a growth of 9.8%. Compare these media outlets with the previous slide about ad expenditures by media for the top 100 national advertisers. The top two media outlets for national advertisers were Network TV and Magazine. Ask the students why there is a difference? (For local businesses, network TV and national magazines do not help target as much as local magazines and Sunday magazines.) Source: Advertising Age, 2005

12 Infomercials Grossing Over 1 Billion
In Billions See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. Source: Business 2.0, June 2005

13 U.S. Online Ad Spending Also available on a Transparency Acetate
See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. U.S. Online Ad Spending This slide presents the US online spending on advertising. Ask the student what pattern do they see? There is a steady growth from 1998 to 2000 and then the spending declined for the next two year and started to revive again. What rationale can explain this spending behavior of the advertisers? The dot com era of the late nineties was peaking and everyone was jumping on the bandwagon. Hence, the increment in the Internet ad spending until the year 2000 when the bubble busted with dot com companies and the economy suffered for the next two years which correlated with the declining spending on advertisements. The economy, the business, and the consumer confidence started to revive in and is evidenced by the increased ad spending by the advertisers. Source: Investors.com; Advertising Age, 2005

14 Steps in the Selling Process (B2C)
Follow up Close sale Make presentation See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. See text pages: 442 Start Ask questions Approach

15 Steps in the Selling Process (B2B)
Prospect and Qualify Preapproach Approach Make Presentation Answer Objections Close Sale Follow Up See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. See text pages:

16 Public Relations Steps Publicity Listen to the public.
Change policies and procedures. Inform people that you’re being responsive to their needs. Publicity Free More Effective Than Advertising Believable No Control No Repetition See Learning Goal 4: Describe the role of the public relations department, and tell how publicity fits in that role. See text pages:

17 Sales Promotion Techniques
B2B Trade Shows Portfolios Deals Catalogs Conventions B2C Coupons Cents-off Promotions Sampling Premiums Sweepstakes Contests Bonuses Catalogs Demonstrations Special Events Lotteries In-store Displays See Learning Goal 5: Explain the importance of various forms of sales promotion, including sampling. See text pages:

18 Tips on Issuing Coupons
Coupons can be used as a “Thank you for buying” or a “Stop and try us.” The value must be enough to attract customers. Use coupon promotions sparingly. Get professional help to get maximum exposure. Color-code your coupons for different groups that use them. Also available on a Transparency Acetate See Learning Goal 5: Explain the importance of various forms of sales promotion, including sampling. Tips on Issuing Coupons It’s difficult to imagine the numbers of coupons offered by companies in the U.S. market. Estimates range as high as 1 trillion. What students are not aware of is that coupons are also a significant expense to companies. This slide offers tips to companies considering offering coupons as a form of sales promotions. Students should be able to relate to the information provided in this slide. Ask the students to comment on each of the suggestions given. Share with the class some interesting facts regarding the use of coupons: 90% of all American adults clip and save coupons. 88% of all adults in the U.S. clip and save cents-off coupons. 88% of coupons users cited the Sunday newspaper as the best place to find coupons. The lowest cents-off coupon adults will clip and save is 25 cents. Families with incomes lower than $40,000 per household are more likely to clip and save coupons. Online coupon growth has reached 27% of Internet users.

19 Coupon Statistics Average Face Value Amount saved in 2004
93 cents (2004); 46 cents (1990) Amount saved in 2004 $2.9 billion Number of coupons redeemed in America in 2004 3 billion Coupons rank 2nd as purchase motivators (Largest: Free Samples) Also available on a Transparency Acetate See Learning Goal 5: Explain the importance of various forms of sales promotion, including sampling. Coupon Statistics This slide presents some interesting statistics on coupons. First coupon was distributed in 1894 for Coca-cola. Ask the students – how many of them have clipped and used the coupons? Where did they get the coupons used? Was that the motivation for trying the product? What was their experience? Would they have tried the product without the coupons? This slide also goes well with the previous slide: Tips on Issuing Coupons. The percentage of available coupons redeemed in 2004 was 1 percent only (which was 3 billion coupons). Ask the students – Using coupons would be a Push or Pull strategy, according to the chapter? (Pull strategy) Source: St. Louis Post-Dispatch Everyday, July 2005

20 Sales Promotion Internal & External Sampling Word-Of-Mouth
Viral Marketing/Swag Blogging Podcasting See Learning Goal 6: Give examples of word of mouth, viral marketing, blogging, and podcasting. See text pages:


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