Promotion

1. Promotion

2. 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.

3. Promotion • Promotional Mix • The basic tools used to accomplish an organization’s communication objectives • Advertising • Direct Marketing • Sales Promotion • Publicity/Public Relations • Personal Selling

4. Advertising

5. 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

6. 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

7. From Glamour magazine

8. From Rolling Stone magazine

9. 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

10. From Glamour magazine

11. 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

12. 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

13. 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

14. 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

15. 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”

16. 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

17. 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.

18. 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

19. 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

20. 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

21. From Glamour magazine

22. 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

23. 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

24. From Maxim magazine

25. From Glamour magazine

26. From Glamour magazine

27. 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

28. From Maxim magazine

29. 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

30. 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

31. 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”

32. From Glamour and Maxim magazines

33. From Glamour magazine

34. From Glamour magazine

35. From Glamour magazine

36. 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

37. 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

38. 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

39. 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

40. 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

41. Media Alternatives – TV • Infomercials • Tell customer about the product using 30 minute (some 60 minute) commercials • Tae Bo • Turbo Cooker

42. 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

43. Media Alternatives – Radio • Disadvantages • Can’t see the product • Easy to switch the radio station • XM Satellite Radio and Sirius Satellite Radio

44. 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

45. 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

46. Media Alternatives – Newspaper • Advantages • Good reach • Printed daily, current events • Good for local retailer, can be selective geographically

47. Media Alternatives – Newspaper • Disadvantages • Print quality isn’t great, ads may not look as good • Expensive to print papers • Online editions • Short life span

48. 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

49. 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

50. 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