1. Advertising & Promotion

2. Unit Objectives
Objectives:
Understand the difference between advertising and promotion
Understand the various components of advertising and promotion
Understand the value of advertising and promotion

3. What is Advertising?
Paid public announcement to persuade you to buy an item or service.

4. Newspaper: local newspapers target a precise geographic area
Pros:
Newspapers are produced and delivered every day
Low cost in comparison to other media options
Cons:
Consumers discard the paper after reading, Creative limits due to black/white publication

5. Magazines: target consumer interest (sports, fashion, hobbies)
Pros:
Target a specific segment
Creative flexibility
Longer life than a newspaper
Cons:
Costly
Requires lead time of 2-3 months

6. Radio: Pros: Low cost in comparison to TV & Magazine
Reach consumers in their car, at work and at home
Cons:
Listeners do not always listen to background noise
Change stations

7. Television: Best advertising medium
Pros:
Targeted to specific markets
Repeat frequently
Creative freedom
Cons:
COST!!!
Commercials are brief, repetition is necessary
Remote control

8. Yellow Pages: Consumers are ready to purchase when the look up your number.

9. Online Banner Ads www.ESPN.com Personal Emails Company/Team Websites
Excellent advertising medium to reach teens

10. Outdoor Advertising: Signs on buildings
Billboards use color, lighting and special effects to create an image
Walls, benches and vehicles

11. Point-of-Purchase Displays:
Signs, banners, display racks in stores close to the product being sold.
Effective POP displays are located in high traffic areas.
Window displays are effective POP advertising

12. Sponsorship:
Event sponsorship - a business helps fund an event in exchange for displaying a brand name, logo or advertising message at the event.

13. Sales Promotions – Use of incentives to increase the brand value for consumers.
Sales promotions cause immediate purchases, rather than a long-term change of behavior

14. Methods of Sales Promotions:
Coupons – a reduction in price for a buyer
Causes a consumer to change brand loyalties or buy the product again
Flexibility
Premiums – Items that are free or cost less with the purchase of another item.
Ex: Cereal & toy

15. Sales Promotions
Contests: When consumers use a skill to compete for a prize.
Sweepstakes: Winners are determined by chance
McDonalds & Monopoly

16. Sales Promotions
Sampling: Small samples of food purchases intended to persuade consumers to buy the product
Rebates: Money-back offer from the manufacturer to consumer.
Technological products

17. Sales Promotions
Frequency: Regular buyers are rewarded with special deals or offers
Ex: Incentive cards
Season Ticket Holders

18. Direct Marketing: interactive method of marketing designed to generate a measurable response or transaction.
Direct Mail (coupons/samples)
Telemarketing
Magazine/Newspaper Inserts
Flyers