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• 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

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

From Glamour magazine

From Rolling Stone magazine

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

From Glamour magazine

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

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 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 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 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

• 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 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 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 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

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 Appeals

From Glamour magazine

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 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

From Maxim magazine

From Glamour magazine

From Glamour magazine

• 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

Advertising Appeals

From Maxim magazine

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 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 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”

From Glamour and Maxim magazines

From Glamour magazine

From Glamour magazine

From Glamour magazine

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

• 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 - 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

• 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 – 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 – TV

• Infomercials– Tell customer about the product using 30

minute (some 60 minute) commercials• Tae Bo• Turbo Cooker

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 – Radio

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

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 – 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

• Advantages– Good reach– Printed daily, current events– Good for local retailer, can be selective

geographically

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

• 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 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

• 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 – 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

• Billboards, scoreboards

• Advantages– Good reach and frequency– Low cost– Can use for well-known product– Can be flexible with creativity

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 – 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 – 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

• Place-based media is ads in nontraditional outlets– Airports, bathrooms, gas pumps, elevators

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 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 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

• 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 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