Promotional StrategiesDeveloping a Promotional Mix
Know these key termsImage Publicity News Releases Public Relations Pre-selling PremiumsCampaign RebatesSweepstakes Industry AveragesPromotional Mix Cooperative Advertising Advertising AgenciesSpecialty Items Consumer Pre-testsIncentives to buy Prime TimeMedia or Median Push PolicyPull Policy Slotting AllowanceIncentives Promotional Tie-insCommunity Relations Press Kits
The media is used to deliver communication with a Target MarketThis is known as Mass Marketing
Media is the plural form of MedianTV & 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 isA series of promotional activities with one particular theme.
Pre-sellingIs 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.
ImageIdeas, beliefs and impressions, (feelings) that people have regarding a business or product.
Consumer Pre-testsBusinesses pre-view advertising to consumers before running an ad
Advertising is A paid form of communication through a median.
Agencies, advertising / public relationsCharge 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 AdvertisingAdvertising money supplied by manufacturers so that retailers can promote that producers products.
Cooperative AdvertisingOften, retailers pay for very little advertising. Cooperative advertising pays for large portions of retailers advertising costs.
Prime TimeRefers to broadcast time, TV & Radio, when there are usually the most viewers or listeners, TV: 8pm-10pm, Radio: 4pm-6pm (drive time) . Used in advertising as the most expensive advertising slots
Public Relations isUnpaid 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. 60-80% 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 StrategiesA push strategy uses a mix of personal selling, discounts to wholesales and retailers (Pushing, selling, products onto those businesses.
Push or Pull StrategiesA 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 retailers shelf. The retailers believe this should be an advertising cost.
Promotional Tie-insAre 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.