1. Promotion
Chapter 15

2. Promotion
Communication to inform, persuade, and/or remind consumers about an organization’s products and services

3. Inform
When a product is new to the market
Introduction stage
Let customers know about product

4. Persuasion
Used when there is a lot of competition in the market
Want them to buy your product or services versus competitor
Growth/Maturity stage

5. Remind
When product been out awhile
Remind them of how good it is
Maturity stage

6. What is positioning?
How you want the customer to think about your business???
Low price leader
Best quality
Best value
Most unique

7. Positioning based on: Features and benefits:
New Balance shoe based on comfort and style
Price/Quality –
Lowest price or high price
Competition – How you compare with the competition
Price or non-price competition

8. Product promotional
Advertising designed to increase sales of products or services
Examples: Milk Commercials “Got Milk” encouraging consumers to drink milk
Ad convincing consumers to buy a Honda over a Toyota

9. Institutional Advertising
Creates a favorable impression and goodwill for a business
Examples: Ford emphasizes “Quality is Job 1” in their ads
Dow Chemical has ads showing how they hire new college recruits
Gulf Oil promotes wildlife conservation in some of its ads.

10. Four Main Types of promotions (promotional mix)
Advertising
Publicity
Personal Selling
Sales Promotion

11. Advertising
Any paid form of nonpersonal communication sent through a mass medium by an organization about its products and services
Examples: TV, Radio, Newspaper, Internet

12. Choosing advertising medium?
1. Cost - fall under business’ budget amount
2. What medium will reach the business’ target market the best?
3. What medium will reach the most of your target market for the money?

13. Personal Selling
Person-to-person communication with potential customers in an effort to inform, persuade, or remind customers

14. Personal selling Disadvantages Per person cost Advantages:
Personal contact
Can be more informative
Feedback is immediate

15. Publicity/Public Relations
Non-paid form of business communication about a business organization (news story)
Advantages: typically free and it creates goodwill
Disadvantages: organization has little control over it

16. Sales Promotion
Activities or materials that offer consumers a direct incentive to buy a good or service – typically short-term

17. Sales Promotion
Short-term incentive offered to encourage buying a good or service. The purpose is to INCREASE DEMAND and STIMULATE SALES

18. Examples of sales promotions
Coupons
Sponsorship – local business having signs on our soccer fence (concert)
Incentives: Buy one get one free sale
Factory pack – free gift in package (cracker jacks and cereal)

19. Sales promotions (examples continued)
Product samples – detergent, cologne, toothpaste (dentists and doctors)
Loyalty Marketing programs – If they buy so many sandwiches, they get one free
Promotional tie-in – McDonalds having disney characters in their happy meals that go along with their movie “Goofy” movie

20. Advantages/Disadvantages of Sales promotion
Advantages: Generates immediate short-term sales, supports other parts of promotional campaign
Disadvantages: Costs can be very high, promotion may not be effective so may lose money

21. Sales Promotions (cont.)
Advantages:
Generates immediate, short-term sales
Supports other parts of promotional campaign
Disadvantages:
Costs can be high (coupons, rebates, etc.)

22. Specialty advertising
Relatively inexpensive items with advertiser’s name on them (pens, hats, shirts, cups, etc.)
Advantages: reminder to use product
Disadvantages: small size may limit amount of message, might be given to people not interested in product

23. Advertising Campaign
Is coordination of a series of advertisements around a particular theme to promote a product
Geiko – Caveman
Coke – Polar bears
Milk producers – “Got Milk”
Advertising Agents – work with business clients to develop advertising campaigns

24. Cooperative Advertising
Cost-sharing arrangement whereby both a supplier and a local advertiser pay for advertising (both names appear in ad)
Example: Macy’s having an ad promoting Jessica Simpson’s new perfume

25. A paid form of nonpersonal communication sent through a mass medium is known as a. personal selling b. publicity c. sales promotion d. advertising.

26. An important objective of promotion is to __________
buyers.
a. deceive
b. manipulate
c. inform
d. delude

27. Which of the following is an example of outdoor media?
A. A poster in a subway
B. Large cards mounted on a bus
C. Calendars printed with a company’s name
D. Electrical signs on high-traffic area

28. In this type of advertising medium the readership is large and there is a high level of reader involvement
A. magazine
B. direct mail
C. newspaper
D. transit advertising

29. This type of advertising usually has a low response rate and is considered to be “junk” mail:
Newspaper
Direct mail
Magazines
Billboards

30. The prime time for advertising on the television is
A. 4p.m. to 7p.m.
B. 3p.m. to 8p.m.
C. 9p.m. to 12p.m.
D. 8 p.m. to 11p.m.

31. With this type of advertising media sometimes you are limited to the routes that are available in your area
A. direct mail
B. billboards
C. transit advertising
D. all of these

32. What time slots are radio advertisement slots?
A. 10, 15, or 20 seconds
B. 15, 30, or 60 seconds
C. 25, 50, or 60 seconds
D. 25, 40, or 60 seconds

33. The ultimate advertising medium is _________ because you can communicate your message with sound, action, and color.
A. television
B. radio
C. newspaper
D. magazine

34. An advantage of this advertising media is that almost every home has one.
A. radio
B. newpaper
C. phone book (directory advertising)
D. magazine

35. What are the best times for radio advertising?
A. 4a.m. - 6a.m. and 8p.m. to 11p.m.
B. 5a.m. - 7a.m. and 6p.m. to 10p.m.
C. 7a.m. – 9a.m. and 3p.m. to 6p.m.
D. 9a.m. – 11a.m. and 1p.m. to 3p.m.

36. Persuasion is typically used in an advertisement when
A. a product is first introduced.
B. when the product is brand new.
C. when there is growing competition
D. when the sales are declining.

37. An advantage of promotional activities to society is
A. it creates jobs
B. it adds money to the economy
C. it supports mass media
D. all of these

38. The means by which advertising can be presented is known as a
a. resource. b. banner c. medium. d. message.

39. 3. Which of the following is the chief advertising medium for most retail stores?
a. newspaper
b. television
c. radio
d. magazines

40. Public Relation Specialist
Publicize the good news about a company
Control negative damage done by negative news

41. News Release
News release – prewritten story about a company sent to the media
New Principals
Press conference – meeting in which a business invites media to hear a newsworthy announcement
War
Economic disaster

42. What is the promotional mix?
It is the combination of the promotional elements of:
Advertising
Personal selling
Sales Promotions
Publicity

43. What is the promotional mix based on?
Marketing Mix – product, price, promotion, place
Target market
Policy and objectives for advertising campaign
Company’s financial situation

44. Five steps to promotional planning
Analyze the market – market research
Identify the target market – market segmentation
Develop promotional objectives – identify purpose or result of promotional objectives

45. Promotional objectives (continued)
Develop a promotional budget – should be in line with objectives
Select the promotional mix – advertising, publicity, etc..
Implement the promotional plan – Have a schedule and people responsible, keep in line with budget