Understanding business 11th by mchugh nickels chap016

CHAPTER 16 Using Effective Promotions McGraw-Hill/Irwin Copyright © 2015 by the McGraw-Hill Companies, Inc All rights reserved LEARNING OBJECTIVES Identify the new and traditional tools that make up the promotion mix Contrast the advantages and disadvantages of various advertising media, including the Internet and social media Illustrate the steps of the B2B and B2C selling processes 16-2 LEARNING OBJECTIVES Describe the role of the public relations department, and show how publicity fits in that role Assess the effectiveness of various forms of sales promotion, including sampling Show how word of mouth, viral marketing, blogging, podcasting, e-mail marketing, and mobile marketing work 16-3 CHRIS HARDWICK Nerdist Industries • Hardwick broke into entertainment after graduating from UCLA • After his career hit a low, he started following his nerd passions and created The Nerdist • Entered a partnership with Peter Levin and expanded the Nerdist franchise 16-4 NAME that COMPANY This company put its product into the hands of Spiderman Viewers watched as the superhero used the product throughout his latest movie Name that company! 16-5 PROMOTION in an ORGANIZATION LO 16-1 • Promotion Mix The combination of promotional tools an organization uses The traditional mix includes: 16-6 INTEGRATED MARKETING COMMUNICATION (IMC) LO 16-1 • Integrated Marketing Communication (IMC) -Combines the promotional tools into one comprehensive strategy IMC is used to: - Create a positive brand image - Meet the needs of consumers - Meet the strategic marketing and promotional goals of the firm 16-7 STEPS in a PROMOTIONAL CAMPAIGN LO 16-1 Identify a target market Define objectives Determine a promotional budget Develop a unifying message Implement the plan Evaluate effectiveness 16-8 CLASSIC CAMPAIGNS LO 16-1 Brilliant Marketing Ideas Source: Entrepreneur, www.entrepreneur.com, accessed November 2014 16-9 ADVERTISING in the FIRM LO 16-2 • Advertising Paid, nonpersonal communication through various media by organizations and individuals who are in some way indentified in the message • Major goals of advertising: - Inform - Persuade - Remind 16-10 USING PUBLIC RELATIONS in PROMOTION LO 16-4 • Public Relations (PR) Evaluates public attitudes, changes policies and procedures in response to the public, and executes a program of action and information to earn public understanding and acceptance • steps of a good PR program: 1) Listen to the public 2) Change policies and procedures 3) Inform people you’re responsive to their needs 16-35 PUBLICITY LO 16-4 • Publicity Any information about an individual, product or organization that’s distributed to the public through the media and is not paid for or controlled by the seller • Advantages of Publicity: - Free - Reaches people who would not look at an advertisement - More believable than advertising 16-36 DISADVANTAGES of PUBLICITY LO 16-4 • No control over whether the media will use a story or when they may release it • It can be good or bad • Once a story has been run, it is not likely to run again 16-37 SALES PROMOTIONS LO 16-5 • Sales Promotion The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities • Categories of Sales Promotions: B2B Sales Promotions Consumer Sales Promotions 16-38 SALES PROMOTION TECHNIQUES LO 16-5 16-39 SOME KEY CONSUMER PROMOTIONS LO 16-5 • Coupons • Demonstrations • Sampling • Sweepstakes • In-store Displays • Contests 16-40 CLIP THESE LO 16-5 Most Visited U.S Coupon Clearing Sites • Coupons, Inc • EverSave • RetailMeNot • CouponCabin 16-41 TEST PREP • What are the three steps in setting up a public relations program? • What are the sales promotion techniques used to reach consumers? • What sales promotion techniques are used to reach businesses? 16-42 USING WORD-of-MOUTH PROMOTION LO 16-6 • Word-of-Mouth Promotion People tell others about products they have purchased • Word-of-Mouth is important for products like: - Restaurants - Daycare and Eldercare - Car Repair Shops - Hair Stylists - Hotels 16-43 WHAT ARE COMPANIES YELPING ABOUT? • Many companies have a website, Facebook page or some online presence • However, on review sites like Yelp, they cannot control their public image • The Federal Trade Commission has received over 2,000 complaints about Yelp • Companies can respond to reviews But often the damage is already done 16-44 EMERGING PROMOTIONAL TOOLS LO 16-6 • Viral Marketing Paying customers to say positive things on the Internet or setting up multiple selling schemes whereby consumers get commissions • People who promote through viral marketing often receive SWAG which can include free tickets, shirts, and other merchandise 16-45 BLOGS, PODCASTS, and E-MAILS LO 16-6 • Blogs are a great way to interact with customers and improve the company’s website ranking • Podcasting A way to distribute multimedia files via the Internet • Email promotions increase brand awareness among commercial suppliers 16-46 MOBILE MEDIA LO 16-6 • Marketers make use of smartphones to text customers about product offers and other company information 16-47 PUSH, PULL, AND PICK PROMOTIONAL STRATEGIES LO 16-6 • Push Strategy Producers use advertising, personal selling, sales promotion, and other tools to get their products stocked on shelves • Pull Strategy Directs heavy advertising and sales promotions efforts towards consumers and gets the public to request their products from retailers • Pick Economy Refers to consumers who pick out their products from online outlets 16-48 TEST PREP • What’s viral marketing? • What are blogging and podcasting? • Describe a push strategy and a pull strategy 16-49 ... ADVERTISING in the FIRM LO 16-2 • Advertising Paid, nonpersonal communication through various media by organizations and individuals who are in some way indentified in the message • Major goals of... because production costs of TV programs, radio programs, newspapers and magazines are paid for by advertisers • Marketers choose ad media that will reach the target market 16-11 MAJOR CATEGORIES... on different sites Mobile Ads that reach consumers on cell phones 16-13 ADVERTISING EXPENDITURE by MEDIA in $ MILLIONS LO 16-2 16-14 DEAR MR POSTMAN… LO 16-2 Steps in Launching a Direct-Mail Campaign