Promotional Strategies Developing a Promotional Mix

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  • 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.