chapter

11Promotions

Objectives

• To recognize the complexity of promotion with respect to the various forms it can assume as part of the marketing mix

• To identify integral elements of promotion and the various approaches used in advertising

• To understand promotion in a historical context and consider how that context has evolved as a result of the importance of media and sponsorship relationships

• To recognize the key characteristics of effective promotional programs and campaigns aimed at expanding existing consumer bases and at increasing the frequency of consumption

Promotions

• Any activity designed to stimulate interest in, awareness of, and purchase of a product

• Method to convey information about the place, price, and product

• Critical in the positioning of a product in the mind of the consumer

Types of Promotions

• Advertising is any paid, nonpersonal (not directed to individuals), clearly sponsored message conveyed through the media.

• Personal selling is any face-to-face presentation in which the seller has an opportunity to persuade the consumer.

• Publicity is any form of exposure in the media not paid for by the beneficiary or within the beneficiary's control or influence.

• Sales promotion involves a variety of activities including displays, trade shows, sampling, coupons, premium items, exhibitions, and performances.

Goals of Promotions

Promotions should include the following steps:

• A: Increase awareness• I: Attract interest• D: Arouse desire• A: Initiate action

Advertising

Advertising should do the following:• Create awareness• Communicate information about attributes

and benefits• Develop, change, and enhance an image• Associate brand or product with emotions• Precipitate behavior

Keys to Effective Ad Campaign

• Knowing the product • Knowing the consumers

Batra, Myers, and Aaker Modelof the Advertising Communication System

• Source • Message • Channel• Receiver • Destination

Assessing Effectiveness of Advertising

• Wasted circulation • Cost per exposure• Determining the creative approach• Measurement

(continued)

Assessing Effectiveness of Advertising (continued)

• Based on– Ability to reach target market– Ability to maximize cost per exposure– Appropriateness of creative message

• Measuring– Impact on sales– Impact on image– Impact on consumer awareness

Advertising Media For Sport

• Signage• Endorsements and sponsorships• Print media

– Magazine – Newspaper– Schedule cards– Handouts and brochures– Posters – Information packages– Direct mail

• Electronic media– TV– Radio– Internet

• Billboards, blimps, and buses

Benefits of LED Signage

• Higher resolution and clarity• Movement• Animation• Sound• Portability: Can be updated by simply

programming; no hard production costs or delays• Flexibility: Variety of sizes and shapes• Real-time alterations• Life cycle• Increased inventory: No space

Television Commercials: Structures

• Story • Problem solution • Chronology • Special effects • Testimonial • Satire • Spokesperson

• Demonstration • Suspense • Slice-of-life • Analogy • Fantasy • Personality

Sales Promotions: Price

• Attract new consumers.• Increase frequency of purchases.• Reward loyalty.• Prevent defection.

Promotional Components

• Theme• Giveaways• Product sampling• Open house• Coupons• Bundling• Contests and sweepstakes• Premiums and redemptions • Street promotions

Game Promotions

• Motivate customers to attend• Increase the perceived value of the event

Game promotions should do either of the following:

Those Who Do Not Attend the Games

• Aware nonconsumers• Unaware nonconsumers• Misinformed nonconsumers• Media consumers

Promotional Progression Planning Model

• Level 1: Nonpattern attenders (light users)• Level 2: Multiple attenders (medium users) • Level 3: Frequent attenders (heavy users) • Level 4: Defectors (descending the

escalator)

Frequency Escalator

Sales Promotions

• Mailings• Outbound calls: Telemarketing• E-mail blasts• Personal sales calls• Hospitality• Table• Trade shows• Retail outlet• Kiosk

Effective Use of Promotions

• Promotions can increase perceived value at same price. Give them more!

• Value is increased by using a giveaway:– Costs less than a price discount– Keeps price integrity– Draws customers from competitor