PROMOTION

PROMOTION

WHAT IS IT?

Any form of communication a business or organization uses to:INFORM (Tell about a product)

PERSUADE (“buy my brand not my competitor’s”)

REMIND (keep name in the public eye)

Promotional Goals

AIDA

A-First Attract Attention

I-Build Interest

D-Build Desire

A-Ask for ACTION

AIDA and the Hierarchy of Effects

Attention Interest Desire Action

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Promotional Messages

• Can you hear me now? Good.

• Buy it. Sell it. Love it.

• Live in your world, play in ours.

• Just do it.

• I ’m lovin’ it.

• The happiest place on earth.

2 Types of PROMOTION

PRODUCT PROMOTION

VS.

INSTITUTIONAL PROMOTION

PRODUCT PROMOTION

• GOAL: To sell goods and services– Advertisements

– Coupons

– Sales presentations

– ‘Product plugs’ in interviews

• Accomplished by:– Explaining

features/benefits

– Tell where products are sold

– Advertising sales

– Answer questions

– Introduce new products

Features vs. BenefitsFeatures TELL Benefits

SELL

INSTITUTIONAL PROMOTION

• GOAL: Create favorable image of the company

• Does NOT directly sell a certain product

Pepsi Refresh Grant Campaign

INSTITUITIONAL PROMOTION

• Used to:– Change attitudes– Highlight issues– Inform public– Show commitment

Donated $5million in bottled water to hurricane-ravaged New Orleans in 2005

Promotion:ADVANTAGES

• Contributions to economy

• Supports mass media

• Benefits companies

Promotion:DISADVANTAGES

• Deceptive• Manipulative• Offensive• Creates/reinforces

stereotypes• Plays upon fears• Has limited abilities

Promotional Mix

1. ADVERTISING

2. PUBLIC RELATIONS

3. SALES PROMOTION

4. PERSONAL SELLING

5. DIRECT MARKETING

ADVERTISING

• It is advertising if:– The Time or Space devoted to it is

PAID for

– Uses a set format

– Identifies the sponsor of the message

Advertising Example

ADVERTISING: PROs & CONs

• Reaches large # of people

• Costs per customer

• Choose appropriate media

• Control content• Repeat Viewing• “Presell”

• Can’t focus on individual needs

• $$$$$$

• Brief

PUBLIC RELATIONSPlacing newsworthy information about a

company, product or person in the media

• How does Publicity differ from Advertising?– PUBLICITY IS FREE

Public Relations Example

PUBLICITY: PROS & CONS

• FREE• LARGE

AUDIENCE• SEEN AS NON-

BIASED

• GIVE UP CONTROL OF MESSAGE CONTENT AND PRESENTATION

• NEGATIVE PUBLICITY

Kobe Bryant – McDonald’s, Nutella, & Ferrero SpA pulled sponsorship after he was arrested for negative publicity

SALES PROMOTION

Everything else that a company does to get customers to buy their

products and use their services.

(excludes advertising, publicity and personal selling)

Sales Promotion Example

SALES PROMOTIONS

• LOYALTY MARKETING PROGRAMS

• PROMOTIONAL TIE-INS (McDonald’s Monopoly promotion)

• VISUAL MERCHANDISING AND DISPLAYS

• PREMIUMS & INCENTIVES (Buy 1 get one free)

• PRODUCT SAMPLES

• PRODUCT PLACEMENT

Product Placement

PERSONAL SELLING

TO BE COVERED LATER!!

DIRECT MARKETINGType of advertising directed to a targeted

group instead of MASS audience.

• Goal: generate sales/leads

• Incentive: Contains a lead to get a response or to go into the store

• Examples: Junk Mail sent to your home, SPAM to email

Do you ever look at Junk Mail? Who does?