1. 5.02 Explain the promotional mix and the different forms of promotion.

2. Elements of The Promotional Mix
Any combination of the different forms of promotion to sell goods and services

3. Different Forms of Promotion - Advertising
Any paid, non-personal form of communication by an identified sponsor
Examples include: TV commercials, magazine advertisements, direct mail, and the Internet

4. Different forms of promotion – Sales Promotion
Activities or communications that encourage consumers to purchase products
Example include: giveaways, sweepstakes, free samples, award shows, contests, and coupons

5. Different forms of promotion – Personal Selling
Personal selling is face-to-face, personalized communication between a seller and a buyer
Examples include: presentation of a demo from a recording artist to a record label executive

6. Different forms of promotion – Public or Community Relations
Activities used by a business or organization to gain and maintain a positive relationship between themselves and the community

7. Two types of Public or Community Relations
The internal community includes the employees of the company or organization
For example, Coke holding an annual picnic for employees and their families.

8. Two types of Public or Community Relations
The external community includes people outside of the company or organization
For example, Pepsi donating circus tickets to a Big Brother/Big Sister organization.

9. Different forms of promotion - Sponsorship
The financing of a sports or entertainment entity (athlete, league, team, concert, or event) by a business in return for recognition or affiliation

10. Types of media used in advertising- Print media
Any written form of communication used to inform, persuade, or remind consumers about products or services offered

11. Print Media - Newspaper
The most common and the most cost effective type of print media
Newspapers are most effective for local businesses that are trying to reach a specific geographical market

12. Print Media - Magazines
Likely to be used by advertisers to segment the market based on demographic and behavioral segmentation
For example: men more likely to subscribe to Field and Stream, so this would be cost effective for a brand of men’s razors.

13. Print Media – Direct Mail
Sent directly to customers, or potential customers of a particular store
For example: all Blockbuster Video members would receive a flyer announcing a special sales event

14. Print Media – Outdoor Advertising
Includes any outdoor signs and billboards
Outdoor advertising provides 24-hour advertising

15. Print Media – Transit Advertising
Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages

16. Battery Park in New York City

17. Types of media used in advertising – Broadcast Media
Any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered

18. Broadcast Media - Radio Advertising
Advertisers match their target market to a radio station that segments a particular market.
Has the ability to reach a wide audience.

19. Broadcast Media - TV Advertising
Includes commercials and infomercials
Is the most effective type of broadcast media as well as the most expensive

20. Types of media used in advertising – Online Media
Is the placement of advertising messages on the Internet World Wide Web

21. On-line Media – Banner Ads
Are rectangular boxes at the top or bottom of web sites that are used to promote a web site or business

22. On-line Media – Pop-up Ads
Pop-up advertisements are the advertisements that “pop-up” and interrupt Internet surfing

23. On-line Media – E-mail Ads
Are used to tailor messages to fit individual web surfers
E-marketers compile or purchase customers databases containing information based on sites visited by web surfers

24. Types of media used in advertising – Specialty Media
Include “everyday” items with a company name written on them
Examples include: calendars, pens, magnets, and coffee mugs

25. Types of media used in advertising – Miscellaneous
Many other creative ways of communicating advertising messages to consumers
Examples include: blimps, supermarket carts, hot air balloons, and in-theater advertisements

26. Forms Of Sales Promotions – Annual Awards Shows
Academy Awards (Oscars)
awarded by Academy of Motion
Picture Arts & Sciences
Nomination generates media coverage and increases ticket sales
Producers and studios promote films to Academy members through trade publications and talk-show circuit

27. Forms Of Sales Promotions – Annual Awards Shows
National Academy Of Recording Arts and Sciences (NARAS) award the Grammy Awards
NARAS is an association of more than 13,000 recording professionals
A Grammy might draw attention to an artist, but does not guarantee acceptance in form of sales

28. Forms Of Sales Promotions – Annual Awards Shows
Emmy Awards are awarded by 2 branches of the same organization
Academy of TV Arts and Science awards prime-time Emmy Awards for night time television and Daytime Emmy Awards for daytime television

29. Forms Of Sales Promotions – Annual Awards Shows
Emmy Awards draws monumental attention to TV shows
Increases viewing because of winning actors/actresses

30. Forms Of Sales Promotions – Annual Awards Shows
Tony Awards are awarded to theater professionals for outstanding achievement
Michael Crawford in Phantom of the Opera—Best Musical Award

31. Forms Of Sales Promotions – Annual Awards Shows
ESPY Awards by ESPN and are awarded for excellence in sports performance
Nominating committee consists of sports executives, journalists and retired athletes

32. Forms Of Sales Promotions – Annual Awards Shows
Besides athletes and coaches, many actors and musicians attend and participate in event
ESPY Awards make contributions to the V Foundation, established by ESPN in honor of the late NCSU Basketball Coach Jim Valvano

33. Forms Of Sales Promotions – Trade Shows & Conventions
Provide promotional opportunities for manufacturers wholesalers, retailers, and movie producers to learn about and support new products and new technology in the
industry

34. Forms of Sales Promotions - Incentives
Used to generate awareness, interest, and increase sales.

35. Forms Of Sales Promotions - Incentives
Contests
Prizes are awarded based on contestant skill and/or ability
Examples include: American Idol, Fear Factor, and Dog Eat Dog

36. Forms Of Sales Promotions - Incentives
Sweepstakes
Prizes awarded based on the chance or luck of the contestant
Examples include winning concert tickets from a local radio station

37. Forms Of Sales Promotions - Incentives
Rebates
Discounts offered by manufacturer when consumer purchases a sports entertainment good or service during specified time period
For example: mail-in rebates for purchasing two DVD’s at a time

38. Forms Of Sales Promotions - Premiums
Low cost items given away with the sponsor’s product as part of a sales promotion
For example: Powerade gives away a cooler with a purchase of a case of powdered drink mix

39. Forms Of Sales Promotions - Coupons
Offer price reductions and found in print advertisements, inserted inside packaging, incorporated as part of the product package, or mailed to consumers
For example: Blockbuster coupons on popcorn packaging or coupons inserted in Sunday newspaper

40. Forms Of Sales Promotions – Traffic builders
Low cost items given to customers for attending an event, or visiting a store
For example, first 200 customers to attend grand opening of new Sports Authority receive a Sports Authority key chain

41. Forms Of Sales Promotions - Sampling
Refers to giving consumers a “taste” for sporting event or concert
For example: fan participation at a track and field event and Faith Hill selecting member of the concert audience to stand with her on stage

42. Analyze the steps of promotional planning
Determine strategy for reaching target market Push or Pull Strategies

43. Analyze the steps of promotional planning
Push strategies
Used by manufacturer to convince or “ push “ retailers to carry and promote products
Relies heavily on personal selling and sales promotion

44. Analyze the steps of promotional planning
Pull strategies
Directed towards customers to increase their interest and demand for products
Customers will “pull“ or convince retailers to carry sports or entertainment products.
Relies heavily on advertising

45. Analyze the steps of promotional planning
Determine the objectives of the promotional activity
For example, is the objective to increase sales, increase market share, or create brand awareness ?

46. Analyze the steps of promotional planning
Establish a promotional budget
No exact science exists for establishing a promotional budget

47. Analyze steps of promotional planning - Budgets
Common methods of determining budgets include:
Percentage of expected sales.
Based on a percentage of past or expected sales to determine budget
Advantages include limited financial risk.
Disadvantages include sales may decrease reducing promotional budget

48. Analyze steps of promotional planning - Budgets
Objective and task method
Company determines promotional goals, steps needed to meet goals and calculates cost for promotional activities
Most cost effective method for it takes into account what company wants to accomplish

49. Analyze steps of promotional planning - Budgets
Competitive equivalence
Involves matching competitors promotional outlay
Weakest method because it takes into account competitors’ objective only

50. Analyze steps of promotional planning - Budgets
“Whimsical” allocation
All money available after expenses is allocated as promotional budget
Short-term method used to increase sales by building reputation

51. Analyze the steps of promotional planning
Develop promotional mix
Specific mix chosen should take into consideration the target market, promotional goals, promotional budget
Care should be given to aligning national and local promotional efforts