promotion terms

1
promotion terms
Sales force promotions Trade shows Consumer
promotions Coupons Premiums Deals Incentives Produ
ct samples Sponsorship Promotional
tie-ins Product placement Loyalty marketing
programs Online loyalty marketing Point-of-purchas
e displays Audience Frequency Impression Advertis
ing Campaign

• promotion
• Product promotion
• Institutional promotion
• Advertising
• Visual Merchandising
• Public relations
• News release
• Publicity
• Promotional mix
• Sales promotions
• Trade promotions
• Promotional allowances
• Cooperative advertising
• Slotting allowances

2
Create 6x6 BINGO board

• 32 words, 4 FREE spaces

3
PROMOTION

• Any form of communication a business or company
  uses to inform, persuade, or remind people about
  products and to improve its image

4
Discussion

• How are promotion and communication similar?

5
Lesson Objectives

• Define promotion
• Identify purposes of promotion
• Define institutional promotion
• Identify 5 types of promotion
• Define promotional mix

6
Purposes of Promotion

• Convince potential customers to buy
• Explain features/benefits of products
• Tell where products are sold
• Advertise sales on products
• Answer customers questions
• Introduce new products
• Create a favorable image of the company or product

7
Institutional Promotion

• Used to create a favorable image of the company,
  rather than to directly sell products

8
Discussion

• Why would an organization promote itself and not
  its products?

9
Types of Promotion

• Advertising
• Sales Promotion
• Personal Selling
• Publicity/ Public Relations
• Visual Merchandising

10
ADVERTISING

• The non-personal
• presentation of
• ideas and
• products by an
• identified sponsor.

PAID FOR
11
Individual Activity

• Create a poster to illustrate how the different
  types of advertising media are used. You may
  print pictures or use the magazines.
• Follow the rubric.

Description Relevant Illustration of each type listed in notes Description of Illustration Points Possible
Print Media 25
Broadcast Media 20
Online Advertising 20
Specialty Media 15
Social Media 20
Mobile Media 20
12
List 2-3 advantages/2-3 disadvantages of each
type of advertising media.

• Fill in chart, 8 in notebook

13
SALES PROMOTION

• stimulate purchases
• increase store traffic

Examples of sales promotions include coupons,
percent off sales, sweepstakes and contests.

• 2 for 1 Sale
• Buy One,Get One Free
• Free P3 tshirt to 1st 20 customers
• Game of the Week Giveaways

Sales promotions work to get the customers in
the store and to make purchases!
14
Sales Promotion

• Incentives that encourage customers to buy
  products or services
• Can be used to encourage customers to try a new
  product, build awareness, increase purchases by
  current customers or reward loyalty
• Either business-to-business (B2B) or
  business-to-consumer (B2C) oriented

15
Business to Consumer Sales Promotions

• Coupons
• Manufacturers use coupons to introduce new
  products, to enhance the sales of existing
  products, and to encourage retailers to stock and
  display both
• How are coupons used today?

16
Business to Consumer Sales Promotions

• Premiums
• Low-cost items given to consumers at a discount
  or for free
• They are designed to increase sales by building
  product loyalty, and attracting new customers.
• They can also persuade nonusers to switch brands
• The concept behind premium marketing is that
  people will be more motivated to buy a product
  when they are offered and added-value gift in
  exchange
• 3 types
• Factory packs, traffic builders, coupon plans

17
Premiums

• Factory packs (or in-packs) are free gifts placed
  in product packages.
• This form of premium is especially popular with
  cereal manufacturers
• Traffic Builders are low cost premiums such as
  pens, key chains, coffee mugs, etc. that are
  given away to consumers for visiting a new store
  or attending a special event
• Coupon plans are ongoing programs offering a
  variety of premiums in exchange for labels or
  coupons obtained from a product or label.
• A customer might send a manufacturer 3 soup can
  labels in exchange for a recipe book

18
Business to Consumer Sales Promotions

• Deals
• Offer short term price reductions that are marked
  directly on the label or package.
• The deal may feature 2 similar products bound
  together for the price of one or two related
  products

19
Business to Consumer Sales Promotions

• Incentives
• Used to create customer excitement and increase
  sales
• Generally higher priced products earned and given
  away through contests, sweepstakes, and rebates
• Contests- games/activities that require the
  participant to demonstrate a skill prizes may
  include scholarship, vacation, money
• Sweepstakes- games of chance (by law in most
  states, no purchase is necessary in order to
  enter a contest or sweepstakes
• Rebates- discounts offered by manufacturers to
  customers who purchase an item during a given
  time period

20
Business to Consumer Sales Promotions

• Product samples
• A free trial size of a product sent through the
  mail, distributed door-to-door, or given away at
  retail stores and trade shows
• Samples are important when promoting new products
• Drug manufacturers frequently give samples to
  doctors so they can let their patients try new
  products

21
Business to Consumer Sales Promotions

• Promotional Tie-IN
• A joint promotion of two or more products or
  services that creates additional sales for each
  partner
• For example, boxes of Post Great Grains cereal
  included a free trial package of Starbucks coffee
  as a value-added item for consumers (premium).
• The tie-in promotion was intended to increase
  sales of both the cereal and the coffee.

22
Promotional Tie-ins
Involve sales promotional arrangements between
one or more retailers or manufacturers.
Ex Doritos and the game developers of Halo are
using promotional tie-ins by offering free xp in
Halo if you buy Doritos.
Ex Dr. Pepper and marvel are promoting their
iron man movie.
Ex The Dark Knight is using Mtn DEW to promote
their new movie.
Ex Star Wars is using Cheerios to promote their
new movie by putting toys in the cereal.
Ex Star Wars is using Pepsi to promote their
movie.
23
Sponsorships

• Sponsorship is not the same as advertising
• Sponsorships provide a lateral partnership
  between 2 parties
• It is a form of marketing in which companies
  attach their name, brand, or logo to an event for
  the purpose of achieving future profits
• For example, major corporations sponsored the
  NCAA college football bowl games recently

24
Product Placement

• The majority of us are getting tired of ads.
  Today's consumer sees advertising everywhere
  tv, radio, billboards, magazines, buses,
  newspapers, the Internet...
• More and more ad-space is popping up every day.
  From people walking down the street wearing
  signs, to flyers on our cars and in our
  mailboxes, to ads on the ATM screen as we wait
  for it to dispense our cash -- we see ads all
  day, every day.
• When is an ad not an ad? When it's a product
  placement. Once mainly found only on the big
  screen, product placement has been making quite a
  few appearances on TV -- not to mention in video
  games and even books. 
• New Superman movie (most commercialization ever),
  Ad-free 24

25
Point of Purchase Displays

• The customer is thinking about a particular
  product but often they are drawn to the one which
  is displayed in a more prominent fashion without
  knowing.
• Well done point of purchase (POP) displays will
  draw consumers to one product over another, or
  give one store a better image (visual
  merchandising).
• POP display often carry impulse purchases that
  have a higher markup !
• Usually near the checkout counter
• Gum, drinks

26
Loyalty Marketing Programs

• BUILD A RELATIONSHIP WITH YOUR CUSTOMER!
• Customer loyalty is all about attracting the
  right customer, getting them to buy, buy often,
  buy in higher quantities and bring you even more
  customers.
• VIP and loyalty program members are 70 more
  likely to spread the word about your business.
• 65 want stores they want to frequent to email
  them coupons and promotions.
• The probability of making an additional sale or
  upselling to loyal customers is 60-70.
• Compared with loyal customers, new ones are more
  price-conscious. The chances of getting a sale
  from a new person is 5 to 20. And actual sales
  from promotions sent to them is less than 1.
• JOIN from web or mobile. Connect via Facebook or
  Twitter. Get ready to be rewarded for your brand
  loyalty. Being Social has its advantages!

27
Bellringer

• The last consumer sales promotion activity that
  we talked about yesterday was loyalty marketing
  programs.
• Write 1 example of a loyalty program from 5
  different stores that you are a customer at.

28
Loyalty Marketing Program

• Def A marketing approach in which companies
  focus on growing clientele through incentives.

5 Examples of Loyalty Marketing 1.) Coupons-
Discounts on certain items 2.) Reward Points
Card- What they scan when you purchase an item to
gain reward points 3.) Reward Points- Going to
the internet and buying things with reward points
for shopping there 4.) Premium Membership-
Special discounts when becoming a member of
store 5.) Deals- Buying 3 tires and getting the
4th one free
29
Business 2 Business Sales Promotions (Trade
Promotions)

• Trade promotions are sales promotions activities
  designed to get support for a product from
  manufacturers, wholesalers, and retailers.
• Promotional allowances, cooperative advertising,
  slotting allowances, sales force promotions,
  trade shows and conventions
• More money is actually spent on promoting to
  businesses rather than consumers

30
Promotional Allowances

• Represent cash payments or discounts given by
  manufacturers to wholesalers or retailers for
  performing activities to encourage sales.
• For example
• Stocking a large quantity of a product
• The cash payment or price discount gives
  wholesalers and retailers an incentive to sell,
  so they are more likely to promote to customers.

31
Cooperative Advertising

• A manufacturer supports a retailer by helping to
  pay for the cost of advertising its product
  locally.

32
Slotting Allowance

• Cash premium paid by a manufacturer to a retailer
  to help the retailer cover the costs of placing
  the manufacturers product on the shelves.
• Can range from a few thousand dollars to several
  million dollars per product.
• In addition to buying space in the store,
  slotting allowances also pay for a retailers
  discount specials on a product, charges for store
  shelves, penalties for poor sales, store
  advertising, and display costs.

33
Article Summary
34
Sales Force Promotions, Trade Show Conventions
35
Personal Selling

• The salesperson is used as a vehicle to inform,
  remind and persuade customers about the products
  available to them.
• The personal presentation of a product

36
Publicity/Public Relations

• PUBLICITY
• Creating demand for a business or product by
  placing news about it in the media
• Publicity is similar to institutional advertising
  in that its main purpose is to create a favorable
  image about the company hoping to increase sales
• The difference is that information about the
  company is placed in the media in the form of a
  news release, instead of an advertisement
  (PUBLICITY IS FREE!)
• PUBLIC RELATIONS
• Involves the activities that businesses do to
  create publicity for the company

37
Visual Merchandising

• The coordination of all physical elements in a
  place of business so that it projects the right
  image to its customers
• Arranging merchandise to entice customers to buy
  products

38
The combination of promotion types represents a
products
PROMOTIONAL MIX
39
Quiz

• Describe the promotional mix that would be
  appropriate for our school based enterprise.
• Explain how you would use each type of promotion.
• Tell why you would or would not use each type of
  promotion.

40
Can you name a type of business that

• Uses a lot of advertising and sales promotion,
  but very little personal selling?
• Uses little advertising, but lots of personal
  selling?

41
What types of promotion do you think the
following businesses use?

• Hayes Chrysler/Jeep
• Ruby Tuesday
• Cigarette manufacturers
• Avon Corporation
• ebay

42
Create a Sales Promotion for P3

• List 5 different examples of sales promotions
  from researching online.
• List 3 different sales promotions that P3 could
  utilize during the holiday season. See handout.

43
Activity

• Pick your favorite one and create a post, print
  ad and short video to promote your idea!