Transcript Promotional Strategies

Promotional Strategies
Developing a Promotional Mix
Know these key terms
Image
News Releases
Pre-selling
Campaign
Sweepstakes
Promotional Mix
Advertising
Specialty Items
Incentives to buy
Media or Median
Pull Policy
Incentives
Community Relations
Publicity
Public Relations
Premiums
Rebates
Industry Averages
Cooperative Advertising
Agencies
Consumer Pre-tests
Prime Time
Push Policy
Slotting Allowance
Promotional Tie-ins
Press Kits
The media is used to deliver
communication with a Target
Market
This is known as Mass Marketing
Media is the plural form of
Median
TV & Radio are Broadcast media,
Newspapers, Direct Mail and Magazines
are print media, Billboards and posters are
outdoor media.
A Promotional Mix is:
Advertising, Public Relations, Personal Selling,
Internet Marketing or any other Promotional
activity directed at a Target Market (TM).
When selecting a promotional mix,
businesses should consider:
The target market, type of business, cost,
product value, and time frames.
A Campaign is
A series of promotional activities with one
particular theme.
Pre-selling
Is promotional activity before
consumers make a decision.
Pre-selling
Is selling with Public Relations, Publicity and
Advertising, using couponing, low prices,
rebates, sweepstakes, specialty items or
any giveaways, for customers, creating
“incentives to buy” .
Industry Averages
% of advertising and promotion used in a
particular industry can be a method of
determining an advertising budget.
Image
Ideas, beliefs and impressions, (feelings)
that people have regarding a business or
product.
Consumer Pre-tests
Businesses pre-view advertising to
consumers before running an ad
Advertising is
A paid form of communication through a
median.
Agencies, advertising / public
relations
Charge by fee or charge a % of ad $ placed.
Standard advertising commission is 15%. Public
relation firms usually charge a fee on how many
news articles or broadcasts were created. Some
businesses choose an in-house approach by
doing their own advertising or public relations.
Cooperative Advertising
Advertising money supplied by
manufacturers so that retailers can
promote that producer’s products.
Cooperative Advertising
Often, retailers pay for very little advertising.
Cooperative advertising pays for large
portions of retailer’s advertising costs.
Prime Time
Refers to broadcast time, TV & Radio, when
there are usually the most viewers or
listeners, TV: 8pm-10pm, Radio: 4pm6pm (drive time) . Used in advertising as
the most expensive advertising slots
Public Relations is
Unpaid promotional activities in an
effort to create a positive image
and goodwill.
Public Relations deals with:
a variety of publics in which the media is the mass
communications vehicle. These publics include:
Customers, Employees, Stockholders & the
Community. Each want to know how the
business is doing, but have different interests in
the business.
Publicity is:
Placement of news releases in the media in
an effort to create a favorable image. 6080% of all news is created by PR people.
News releases are
Articles created by publicity or public
relations people sent to the media, often
accompanied by a Press Kit
Press Kits are:
Photos, articles, other news releases &
small gifts that make it all memorable.
Press Kits provide information regarding
an event, product, person or the company.
Sweepstakes are:
Games and contests in an effort to promote
attention about a business or product.
Rebates are:
Monetary incentives, after a purchase, sent
to a customer, returning part of the price.
Specialty Items are:
Items such as coffee cups, pens and t-shirts
displaying a company logo, telephone # or
address. This promotional business is
sometimes called the Trinkets and Trash
Trade.
Push or Pull Strategies
A push strategy uses a mix of personal
selling, discounts to wholesales and
retailers (Pushing, selling, products onto
those businesses.
Push or Pull Strategies
A Pull Strategy coupons and advertises to
consumers, so that customers ask
retailers to carry products. Most good
marketers us a blend of Push and Pull.
Slotting Allowances (Fees) are:
paid by producers to retailers for the costs
associated with placing the product on the
retailer’s shelf. The retailers believe this should
be an advertising cost.
Promotional Tie-ins
Are arrangements between two or more producers that
create mutual benefit. An example of this might be a
agreement between, Disney Movie Studios, Fisher-Price
Toy company and McDonalds. Disney created a movie,
Fisher-Price creates a miniature toy and McDonalds
distributes this toy with Happy Meals.
Premiums are
Additions to a sale or a product. These can
be coupons, services or gifts: designed to
attract new customers or to build loyalty
among existing customers.