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Promotion. Promotion. The coordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods and services or promote an idea. Promotion. Promotional Mix The basic tools used to accomplish an organization’s communication objectives Advertising

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Promotion1
Promotion

  • The coordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods and services or promote an idea.


Promotion2
Promotion

  • Promotional Mix

    • The basic tools used to accomplish an organization’s communication objectives

      • Advertising

      • Direct Marketing

      • Sales Promotion

      • Publicity/Public Relations

      • Personal Selling



Advertising
Advertising

  • Advertising is any paid form of nonpersonal communication about an organization, a good, a service, or any idea by an identified sponsor (tv, radio, magazine, newspaper).

  • Best-known form of promotion


Advertising types product advertisements
Advertising Types Product Advertisements

These focus on selling a good or service

  • Pioneering ads provide information. They tell what the product is, the features, and where customers can buy. Used mainly during introductory stage of product life cycle.

    • Goal is to inform the target market




Advertising types product advertisements1
Advertising Types Product Advertisements

These focus on selling a good or service

  • Competitive ads promote a specific brand’s features and benefits.

    • Goal is to persuade target market to buy your brand over a competitor’s brand



Advertising types product advertisements2
Advertising Types Product Advertisements

These focus on selling a good or service

  • Reminder ads reinforce previous knowledge of a product, used mainly when products are in the mature phase of their life cycle. These ads assure current users they’ve made the correct buying choice.

    • Goal is to keep brand in consumers’ minds

    • Valentine’s ad


Advertising types institutional advertisements
Advertising Types Institutional Advertisements

Wants to build goodwill or an image for an organization rather than promote a specific good or service

  • Builds confidence

  • Counters negative publicity


Advertising types institutional advertisements1
Advertising Types Institutional Advertisements

Wants to build goodwill or an image for an organization rather than promote a specific good or service

  • Advocacy ads state company’s position on an issue

    • Cigarette no smoking ads, Red Cross give blood ads, alcohol drink responsibly ads


Advertising types institutional advertisements2
Advertising Types Institutional Advertisements

Wants to build goodwill or an image for an organization rather than promote a specific good or service

  • Pioneering ads tell about the company, what they do, or where it is located


Advertising types institutional advertisements3
Advertising Types Institutional Advertisements

Wants to build goodwill or an image for an organization rather than promote a specific good or service

  • Competitive ads promote product class over competing brand classes

    • Got Milk?

  • Reminder ads bring company’s name to attention of target market again

    • “Today’s military”


Advertising appeals
Advertising Appeals

  • Appeals refer to the approaches used to attract the attention of consumers and to influence their feelings toward the product, service, or cause.

    • Should move people, speak to their wants or needs, and excite their interest

  • Broken into two types

    • Informational/Rational appeals

    • Emotional appeals


Advertising appeals1
Advertising Appeals

Informational/Rational Appeals

  • Focus on consumers’ practical, functional, or utilitarian need for the product or service and emphasize features of a product or service and/or the benefits or reasons for owning or using a particular brand

  • Comfort, convenience, economy, health, quality, dependability, durability, efficiency, performance are all motives that could be used in informational/rational appeals.


Advertising appeals2
Advertising Appeals

Informational/Rational Appeals

  • Comparative Advertising

    • Directly or indirectly naming competitors in an ad and comparing one or more specific attributes

    • Gives information about both products, allowing consumers to make a more rational decision

    • Not effective for creating brand recognition

    • Good for new brands


Advertising appeals3
Advertising Appeals

Emotional Appeals

  • Relate to the customers’ social and/or psychological needs for purchasing a product or service.

  • Most purchase decisions are emotional

  • Apple

  • AT&T


Advertising appeals4
Advertising Appeals

Emotional Appeals

  • Fear appeals try to make the consumer think something bad will happen if they don’t buy a certain product, don’t change a particular behavior they have, or quit/reduce usage of a product

  • Ex: Deodorant, dandruff shampoo



Advertising appeals5
Advertising Appeals

Emotional Appeals

  • Are more effective with nonusers of a product than users

    • Fear would be better at keeping nonsmokers from starting than getting smokers to stop

  • All-State


Advertising appeals6
Advertising Appeals

Emotional Appeals

  • Sex appeals try to make the audience think that by using a certain product, they will be more attractive

    • Gains consumer attention, but does it really make consumers buy?

    • Most criticized appeal, often thought to be in poor taste





Advertising Appeals

  • Humor appeals try to make the consumer think their product is more fun and/or exciting than competition’s product.

    • Only funny for so long

    • Some cultures might not think the ad is funny

    • Often best remembered advertising

    • Alka-Seltzer

    • Burger King

    • Miller Lite

    • Wendy’s



Celebrity spokespeople
Celebrity Spokespeople

  • Celebrities have “stopping power”

  • Have to consider the following:

    • Overshadowing

      • Will the celebrity overshadow the product?

    • Overexposure

      • Consumers are often skeptical because they know celebrities are being paid

      • If a celebrity endorses too many products, they may not be as credible


Celebrity spokespeople1
Celebrity Spokespeople

  • Advertising Risks

    • Celebrity’s behavior may be a risk to a company

      • Pepsi and Madonna

      • The Beef Industry Council and Cybill Shepherd

      • Often have morals clause in contracts


Celebrity spokespeople2
Celebrity Spokespeople

  • “Meanings” of celebrity endorsers

    • Have to match the celebrity with the product

    • Celebrities images have meanings and can create certain perceptions

      • Bill Cosby is a perfect father, good fit for Jell-O

      • Andre Agassi is a defiant, rebellious tennis star, good fit for the Canon Rebel

      • Sprint and “Murphy Brown”






Advertising media
Advertising Media

  • Advertising media

    • The means by which the message is communicated to the target audience

    • Ex: Television

  • Vehicle (or media vehicle)

    • The alternatives available within each medium to present the message

    • Ex: MTV, ESPN

  • Many times companies use a mix of media forms and vehicles to get the most exposure to their target audience


Advertising media definitions
Advertising Media - Definitions

  • Reach

    • The number of different people or households exposed to an advertisement

  • Rating

    • The percentage of households in a market that are tuned to a particular tv show or radio station


Advertising media definitions1
Advertising Media - Definitions

  • Frequency

    • The average number of times a person in the target audience is exposed to a message or advertisement

  • Cost Per Thousand (CPM)

    • The cost of reaching 1,000 individuals or households with the advertising message in a given medium


Media alternatives tv
Media Alternatives - TV

  • Advantages

    • Uses sight, sound, and motion – Attention Getting

    • Reaches 95% of home in the U.S. – High Reach

    • Good at demonstrating a product

    • Reaches large audiences


Media alternatives tv1
Media Alternatives – TV

  • Disadvantages

    • Very expensive

    • Wasted coverage

      • People outside the target market see the ad

      • Can use specialized channels to reduce this (MTV, OLN)

    • Pay Per View

    • TIVO


Media alternatives tv2
Media Alternatives – TV

  • Infomercials

    • Tell customer about the product using 30 minute (some 60 minute) commercials

      • Tae Bo

      • Turbo Cooker


Media alternatives radio
Media Alternatives – Radio

  • Advantages

    • Segmented market already

      • Country

      • Pop

    • Not as expensive as tv

    • Can change message as often as you like

    • Can easily change message based on local market


Media alternatives radio1
Media Alternatives – Radio

  • Disadvantages

    • Can’t see the product

    • Easy to switch the radio station

    • XM Satellite Radio and Sirius Satellite Radio


Media alternatives magazine
Media Alternatives – Magazine

  • Advantages

    • Segmented market already

      • Teen Cosmo

      • Dog Fancy

      • Men’s Health

    • Long life span (“pass along readership”)

    • Can be flexible with creativity


Media alternatives magazine1
Media Alternatives – Magazine

  • Disadvantages

    • Expensive for national magazines

    • Limited reach and frequency

    • Long lead time

      • From 30 to 90 days

    • A lot of clutter in magazines


Media alternatives newspaper
Media Alternatives – Newspaper

  • Advantages

    • Good reach

    • Printed daily, current events

    • Good for local retailer, can be selective geographically


Media alternatives newspaper1
Media Alternatives – Newspaper

  • Disadvantages

    • Print quality isn’t great, ads may not look as good

    • Expensive to print papers

    • Online editions

    • Short life span


Media alternatives yellow pages
Media Alternatives – Yellow Pages

  • Advantages

    • Everyone with a phone gets a phone book

    • Directional medium – Consumers already know they are interested in the product or service, these ads just tell them where they can purchase

    • Always available, long life span

    • Many size options, affordable


Media alternatives yellow pages1
Media Alternatives – Yellow Pages

  • Disadvantages

    • Only printed once a year

    • More books are starting to appear

    • Very localized readership

    • Lack of creativity

    • Long lead times


Media alternatives internet
Media Alternatives – Internet

  • Banner ads, pop-ups

  • Advantages

    • Visual, can use video and audio to attract attention, entertain

    • Interactive

      • They have drop-down menus, games, or search engines to grab attention

    • Reaches younger audience


Media alternatives internet1
Media Alternatives – Internet

  • Disadvantages

    • Hard to evaluate effectiveness

      • Volvo and Unilever offer points, samples, or access to “users only” parts of website in exchange for viewing an online commercial

    • Annoying to most people, ignore them or close them


Media alternatives outdoor
Media Alternatives – Outdoor

  • Billboards, scoreboards

  • Advantages

    • Good reach and frequency

    • Low cost

    • Can use for well-known product

    • Can be flexible with creativity


Media alternatives outdoor1
Media Alternatives – Outdoor

  • Disadvantages

    • Can’t use a lot of copy (wording)

    • Waste coverage

      • A lot of people see that aren’t in your target market

    • Message wearout

    • Hard to evaluate effectiveness


Media alternatives outdoor2
Media Alternatives – Outdoor

  • Transit advertisements are ads on buses, taxi’s, subways

    • Advantages

      • Can buy ads in certain areas or routes

      • Lots of exposure

      • Shoppers get to stores using mass transit

      • Very inexpensive


Media alternatives outdoor3
Media Alternatives – Outdoor

  • Transit advertisements are ads on buses, taxi’s, subways

    • Disadvantages

      • When crowded, people can’t view as well or they don’t pay attention because they are in a hurry

      • Waste coverage

      • Creative limitations, can’t use a lot of copy


Media alternatives other
Media Alternatives – Other

  • Place-based media is ads in nontraditional outlets

    • Airports, bathrooms, gas pumps, elevators


Advertising schedule
Advertising Schedule

  • Continuous (steady) schedule

    • Running advertisements continuously throughout the year (every day, every week, every month)

      • Good for food products, laundry detergents

      • Don’t use for seasonal products


Advertising schedule1
Advertising Schedule

  • Flighting (intermittent) schedule

    • Periods of advertising are scheduled between periods of no advertising to reflect seasonal demand

    • Sometimes there is heavy advertising, sometimes there is none at all


Advertising schedule2
Advertising Schedule

  • Pulse (burst) schedule

    • Flighting and continuous combined because of increases in demand, heavy periods of promotion, or introduction of a new product

    • There is a continuous schedule, but at certain times advertising efforts are stepped up

    • Car dealerships are a good example

      • Advertise continually throughout year, advertise a lot more when new models come out and when closing out old models


Advertising agencies
Advertising Agencies

  • An ad agency is a service organization that plans and executes advertising program for their clients

  • Why use an agency?

    • Have highly skilled employees who are specialists in the areas of advertising

    • Have no biases toward company, can give an objective viewpoint of the market


Advertising agencies1
Advertising Agencies

  • Full-service agencies

    • Provide most complete range of services; market research, media development, copy development, artwork, and production

  • Limited-service agencies

    • Specialize in one aspect of the advertising process such as providing creative services to develop the advertising copy or buying previously unpurchased space


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