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Promotions Any activity designed to stimulate interest in, awareness of, and purchase of a product Method to convey information about the place, price, and product Critical in the positioning of a product in the mind of the consumer
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11Promotions
Objectives
• To recognize the complexity of promotion with respect to the various forms it can assume as part of the marketing mix
• To identify integral elements of promotion and the various approaches used in advertising
• To understand promotion in a historical context and consider how that context has evolved as a result of the importance of media and sponsorship relationships
• To recognize the key characteristics of effective promotional programs and campaigns aimed at expanding existing consumer bases and at increasing the frequency of consumption
Promotions
• Any activity designed to stimulate interest in, awareness of, and purchase of a product
• Method to convey information about the place, price, and product
• Critical in the positioning of a product in the mind of the consumer
Types of Promotions
• Advertising is any paid, nonpersonal (not directed to individuals), clearly sponsored message conveyed through the media.
• Personal selling is any face-to-face presentation in which the seller has an opportunity to persuade the consumer.
• Publicity is any form of exposure in the media not paid for by the beneficiary or within the beneficiary's control or influence.
• Sales promotion involves a variety of activities including displays, trade shows, sampling, coupons, premium items, exhibitions, and performances.
Goals of Promotions
Promotions should include the following steps:
• A: Increase awareness• I: Attract interest• D: Arouse desire• A: Initiate action
Advertising
Advertising should do the following:• Create awareness• Communicate information about attributes
and benefits• Develop, change, and enhance an image• Associate brand or product with emotions• Precipitate behavior
Keys to Effective Ad Campaign
• Knowing the product • Knowing the consumers
Batra, Myers, and Aaker Modelof the Advertising Communication System
• Source • Message • Channel• Receiver • Destination
Assessing Effectiveness of Advertising
• Wasted circulation • Cost per exposure• Determining the creative approach• Measurement
(continued)
Assessing Effectiveness of Advertising (continued)
• Based on– Ability to reach target market– Ability to maximize cost per exposure– Appropriateness of creative message
• Measuring– Impact on sales– Impact on image– Impact on consumer awareness
Advertising Media For Sport
• Signage• Endorsements and sponsorships• Print media
– Magazine – Newspaper– Schedule cards– Handouts and brochures– Posters – Information packages– Direct mail
• Electronic media– TV– Radio– Internet
• Billboards, blimps, and buses
Benefits of LED Signage
• Higher resolution and clarity• Movement• Animation• Sound• Portability: Can be updated by simply
programming; no hard production costs or delays• Flexibility: Variety of sizes and shapes• Real-time alterations• Life cycle• Increased inventory: No space
Television Commercials: Structures
• Story • Problem solution • Chronology • Special effects • Testimonial • Satire • Spokesperson
• Demonstration • Suspense • Slice-of-life • Analogy • Fantasy • Personality
Sales Promotions: Price
• Attract new consumers.• Increase frequency of purchases.• Reward loyalty.• Prevent defection.
Promotional Components
• Theme• Giveaways• Product sampling• Open house• Coupons• Bundling• Contests and sweepstakes• Premiums and redemptions • Street promotions
Game Promotions
• Motivate customers to attend• Increase the perceived value of the event
Game promotions should do either of the following:
Those Who Do Not Attend the Games
• Aware nonconsumers• Unaware nonconsumers• Misinformed nonconsumers• Media consumers
Promotional Progression Planning Model
• Level 1: Nonpattern attenders (light users)• Level 2: Multiple attenders (medium users) • Level 3: Frequent attenders (heavy users) • Level 4: Defectors (descending the
escalator)
Frequency Escalator
Sales Promotions
• Mailings• Outbound calls: Telemarketing• E-mail blasts• Personal sales calls• Hospitality• Table• Trade shows• Retail outlet• Kiosk
Effective Use of Promotions
• Promotions can increase perceived value at same price. Give them more!
• Value is increased by using a giveaway:– Costs less than a price discount– Keeps price integrity– Draws customers from competitor