Transcript File - Northside Marketing Education

promotion terms
promotion
Product promotion
Institutional promotion
Advertising
Visual Merchandising
Public relations
News release
Publicity
Promotional mix
Sales promotions
Trade promotions
Promotional allowances
Cooperative advertising
Slotting allowances
Sales force promotions
Trade shows
Consumer promotions
Coupons
Premiums
Deals
Incentives
Product samples
Sponsorship
Promotional tie-ins
Product placement
Loyalty marketing programs
Online loyalty marketing
Point-of-purchase displays
Audience
Frequency
Impression
Advertising Campaign
Create 6x6 BINGO board
• 32 words, 4 FREE spaces
PROMOTION
Any form of communication a
business or company uses to
inform, persuade, or remind
people about products and to
improve its image
Discussion
• How are promotion and
communication similar?
Lesson Objectives
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Define promotion
Identify purposes of promotion
Define institutional promotion
Identify 5 types of promotion
Define promotional mix
Purposes of Promotion
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Convince potential customers to buy
Explain features/benefits of products
Tell where products are sold
Advertise sales on products
Answer customers’ questions
Introduce new products
Create a favorable image of the company
or product
Institutional Promotion
Used to create a
favorable image of the
company, rather than
to directly sell products
Discussion
• Why would an organization
promote itself and not its
products?
Types of Promotion
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Advertising
Sales Promotion
Personal Selling
Publicity/ Public
Relations
• Visual
Merchandising
ADVERTISING
The non-personal
presentation of
ideas and
products by an
identified sponsor.
**PAID FOR**
Individual Activity
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Create a poster to illustrate how the different types of
advertising media are used. You may print pictures or
use the magazines.
Follow the rubric.
Description
Relevant
Illustration of
each type listed
in notes
Description of
Illustration
Points Possible
Print Media
25
Broadcast Media
20
Online Advertising
20
Specialty Media
15
Social Media
20
Mobile Media
20
List 2-3 advantages/2-3
disadvantages of each type of
advertising media.
Fill in chart, #8 in notebook
SALES PROMOTION
• stimulate purchases
• increase store traffic
Examples of sales promotions include coupons, percent off sales, sweepstakes and contests.
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2 for 1 Sale
Buy One,Get One Free
Free P3 tshirt to 1st 20 customers
Game of the Week Giveaways
*Sales promotions work to get the customers in
the store and to make purchases!
Sales Promotion
• Incentives that encourage customers to buy
products or services
• Can be used to encourage customers to try a
new product, build awareness, increase
purchases by current customers or reward
loyalty
• Either business-to-business (B2B) or businessto-consumer (B2C) oriented
Business to Consumer
Sales Promotions
• Coupons
– Manufacturers use coupons to introduce new
products, to enhance the sales of existing
products, and to encourage retailers to stock and
display both
– How are coupons used today?
Business to Consumer
Sales Promotions
• Premiums
– Low-cost items given to consumers at a discount or for
free
– They are designed to increase sales by building
product loyalty, and attracting new customers.
– They can also persuade nonusers to switch brands
– The concept behind premium marketing is that people
will be more motivated to buy a product when they
are offered and added-value gift in exchange
– 3 types
• Factory packs, traffic builders, coupon plans
Premiums
• Factory packs (or in-packs) are free gifts placed in product
packages.
– This form of premium is especially popular with cereal
manufacturers
• Traffic Builders are low cost premiums such as pens, key
chains, coffee mugs, etc. that are given away to consumers
for visiting a new store or attending a special event
• Coupon plans are ongoing programs offering a variety of
premiums in exchange for labels or coupons obtained from
a product or label.
– A customer might send a manufacturer 3 soup can labels in
exchange for a recipe book
Business to Consumer
Sales Promotions
• Deals
– Offer short term price reductions that are marked
directly on the label or package.
• The deal may feature 2 similar products bound together
for the price of one or two related products
Business to Consumer
Sales Promotions
• Incentives
– Used to create customer excitement and increase
sales
– Generally higher priced products earned and given
away through contests, sweepstakes, and rebates
• Contests- games/activities that require the participant to
demonstrate a skill; prizes may include scholarship, vacation,
money
• Sweepstakes- games of chance (by law in most states, no
purchase is necessary in order to enter a contest or
sweepstakes
• Rebates- discounts offered by manufacturers to customers
who purchase an item during a given time period
Business to Consumer
Sales Promotions
• Product samples
– A free trial size of a product sent through the mail,
distributed door-to-door, or given away at retail
stores and trade shows
– Samples are important when promoting new
products
– Drug manufacturers frequently give samples to
doctors so they can let their patients try new
products
Business to Consumer
Sales Promotions
Promotional Tie-IN
• A joint promotion of two or more products or
services that creates additional sales for each
partner
• For example, boxes of Post Great Grains
cereal included a free trial package of
Starbucks coffee as a value-added item for
consumers (premium).
• The tie-in promotion was intended to increase
sales of both the cereal and the coffee.
Promotional Tie-ins
Involve sales promotional
arrangements between one or
more retailers or manufacturers.
Ex: Dr. Pepper and
marvel are
promoting their
iron man movie.
Ex: Star
Wars is
using
Cheerios to
promote
their new
movie by
putting
toys in the
cereal.
Ex: The Dark Knight is using
Mtn DEW to promote their
new movie.
Ex: Star
Wars is
using Pepsi
to promote
their
movie.
Ex: Doritos and
the game
developers of
Halo are using
promotional tieins by offering
free xp in Halo if
you buy Doritos.
Sponsorships
• Sponsorship is not the same as advertising
• Sponsorships provide a lateral partnership
between 2 parties
• It is a form of marketing in which companies
attach their name, brand, or logo to an event
for the purpose of achieving future profits
• For example, major corporations sponsored
the NCAA college football bowl games
recently
Product Placement
• The majority of us are getting tired of ads. Today's
consumer sees advertising everywhere: tv, radio,
billboards, magazines, buses, newspapers, the
Internet...
• More and more ad-space is popping up every day. From
people walking down the street wearing signs, to flyers
on our cars and in our mailboxes, to ads on
the ATM screen as we wait for it to dispense our cash -we see ads all day, every day.
• When is an ad not an ad? When it's a product
placement. Once mainly found only on the big screen,
product placement has been making quite a few
appearances on TV -- not to mention in video games and
even books.
• New Superman movie (most commercialization ever),
“Ad-free” 24
Point of Purchase Displays
• The customer is thinking about a particular product but
often they are drawn to the one which is displayed in a
more prominent fashion without knowing.
• Well done point of purchase (POP) displays will draw
consumers to one product over another, or give one
store a better image (visual merchandising).
• POP display often carry impulse purchases that have a
higher markup %!
• Usually near the checkout counter
• Gum, drinks
Loyalty Marketing Programs
• BUILD A RELATIONSHIP WITH YOUR
CUSTOMER!
• Customer loyalty is all about attracting the right
customer, getting them to buy, buy often, buy in
higher quantities and bring you even more
customers.
• VIP and loyalty program members are 70% more likely to spread the word about
your business.
• 65% want stores they want to frequent to email them coupons and promotions.
• The probability of making an additional sale or upselling to loyal customers is
60-70%.
– Compared with loyal customers, new ones are more price-conscious. The
chances of getting a sale from a new person is 5 to 20%. And actual sales from
promotions sent to them is less than 1%.
JOIN from web or mobile. Connect via Facebook or
Twitter. Get ready to be rewarded for your brand
loyalty. Being Social has its advantages!
Bellringer
• The last consumer sales promotion activity
that we talked about yesterday was loyalty
marketing programs.
• Write 1 example of a loyalty program from 5
different stores that you are a customer at.
• Def: A marketing approach in which companies focus on
growing clientele through incentives.
5 Examples of Loyalty Marketing:
1.) Coupons- Discounts on certain
items
2.) Reward Points Card- What
they scan when you purchase an
item to gain reward points
3.) Reward Points- Going to the
internet and buying things with
reward points for shopping there
4.) Premium Membership- Special
discounts when becoming a
member of store
5.) Deals- Buying 3 tires and
getting the 4th one free
Business 2 Business Sales
Promotions (Trade Promotions)
• Trade promotions are sales promotions
activities designed to get support for a
product from manufacturers, wholesalers, and
retailers.
– Promotional allowances, cooperative advertising,
slotting allowances, sales force promotions, trade
shows and conventions
• More money is actually spent on promoting to
businesses rather than consumers
Promotional Allowances
• Represent cash payments or discounts given
by manufacturers to wholesalers or retailers
for performing activities to encourage sales.
• For example:
– Stocking a large quantity of a product
• The cash payment or price discount gives
wholesalers and retailers an incentive to sell,
so they are more likely to promote to
customers.
Cooperative Advertising
• A manufacturer supports a retailer by helping
to pay for the cost of advertising its product
locally.
Slotting Allowance
• Cash premium paid by a manufacturer to a
retailer to help the retailer cover the costs of
placing the manufacturer’s product on the
shelves.
• Can range from a few thousand dollars to several million
dollars per product.
• In addition to buying space in the store, slotting allowances
also pay for a retailer’s discount specials on a product, charges
for store shelves, penalties for poor sales, store advertising,
and display costs.
Article Summary
Sales Force Promotions,
Trade Show & Conventions
Personal Selling
• The salesperson is used as a vehicle to inform, remind
and persuade customers about the products available
to them.
• The personal presentation of a product
Publicity/Public Relations
• PUBLICITY
• Creating demand for a business or product by placing
news about it in the media
• Publicity is similar to institutional advertising in that its
main purpose is to create a favorable image about the
company hoping to increase sales
– The difference is that information about the company is
placed in the media in the form of a news release, instead of
an advertisement (PUBLICITY IS FREE!)
• PUBLIC RELATIONS
• Involves the activities that businesses do to create
publicity for the company
Visual Merchandising
• The coordination of all physical elements in a place of
business so that it projects the right image to its
customers
• Arranging merchandise to entice customers to buy
products
The combination of
promotion types represents
a product’s
PROMOTIONAL MIX
Quiz
Describe the promotional mix that
would be appropriate for our
school based enterprise.
Explain how you would use each
type of promotion.
Tell why you would or would not use
each type of promotion.
Can you name a type of business
that…
• Uses a lot of advertising and sales
promotion, but very little personal
selling?
• Uses little advertising, but lots of
personal selling?
What types of promotion do
you think the following
businesses use?
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Hayes Chrysler/Jeep
Ruby Tuesday
Cigarette manufacturers
Avon Corporation
ebay
Create a Sales Promotion for P3
• List 5 different examples of sales
promotions from researching online.
• List 3 different sales promotions that P3
could utilize during the holiday season.
See handout.
Activity
• Pick your favorite one and create a post,
print ad and short video to promote your
idea!