Warm-Up

• What is your favourite promotion?

• What is your favourite Advertisement on TV right now? Why do you like it?

Promotion Topics:

Advertising

– Goals of Ads– Selecting the Appeal– Types of Media

Sales Promotion– Contests & Sweepstakes

– Refunds & Rebates

– Coupons

– Premiums & Self-Liquidators

– Samples

– Special Sales

– Point of Purchase / Sale (POP/S)

– ADD: Co-promotion

Advertising Goals

Goals of Advertising:

1. Brand Awareness & Positioning

2. Brand Trial

3. Brand Preference

4. Brand Reminder

5. Brand Repositioning

Advertising Appeal

Appealing to consumers using one of the four motivational areas:

1.Biological – need for health and securityExamples: Health foods, home security,

pharmaceutical brands, automobiles

Doesn’t work for: Airlines, toxic household cleaners

Advertising Appeal

Four motivational areas:

1. Biological

2. Emotional – focus on consumer’s feelings; love for children, feelings of romance or pride

Examples: Downey fabric softener, Perfume, Canadian Armed Forces

Advertising Appeal

Four motivational areas:

1. Biological

2. Emotional

3. Rational – Consumer reasoning; stresses convenience, cost savings, warranties, logical reason to buy

Examples: Honda for mileage, Minute Rice, Guaranteed Trials

Advertising Appeal

Four motivational areas:1. Biological 2. Emotional3. Rational 4. Social – focus on social pressures

influencing consumer behaviour, including body shape, appropriate behaviour, social acceptance.

Examples: Acne face wash, Axe deodorant

Group Activity

• On the given sheet of paper, list 5 ads in the source you were provided

• For each ad, name:– Advertising Goal– Advertising Appeal / Motivation– Explanation for why

Brainstorm: Types of Media

Magazines Newspaper Television

Radio Out-of-HomeDirect-to-

Home

Internet Specialty

1 2 3

4 5 6

7 8

Types of Media

1. Magazines

Opportunity to link with specific audience / interests.Several readers – passed on form of media.

Types of Media

1. Magazines

2. Newspapers

Geographic flexibility for specific cities.Link ads to relevant content / sections of the paper.

Types of Media

1. Magazines

2. Newspapers

3. Television

Expensive but capable to broadcast nationally to many

viewers.Dynamic and changing media with rise of PVRs and internet viewing.

Types of Media

1. Magazines

2. Newspapers

3. Television

4. RadioGeographic flexibility for specific cities or regions.Link ads to relevant stations for your target or day

parts.

Types of Media1. Magazines

2. Newspapers

3. Television

4. Radio

5. Out-of-Home

Difficult to ‘break through’, Not targeted (except washroom

stalls). Must be very brief,mostly visual.

Types of Media

1. Magazines

2. Newspapers

3. Television

4. Radio

5. Out-of-Home

6. Direct-to-Home

Geographic targeting. Relatively cheaper than TV or Radio.

Not “durable”, often thrown away or discarded.

Types of Media

1. Magazines

2. Newspapers

3. Television

4. Radio

5. Out-of-Home

6. Direct-to-Home

7. Internet

Source: www2.sims.berkeley.edu/.../internet.htm

Websites, banner ads & email advertising.

Permission-based email is when consumers have given their address to the company.

Types of Media

1. Magazines

2. Newspapers

3. Television

4. Radio

5. Out-of-Home

6. Direct-to-Home

7. Internet

8. Specialty

Also known as premium & incentive marketing. Company

logo/message is put on merchandise, then given away.

Promotion Topics:

Advertising

– Goals of Ads– Selecting the Appeal– Types of Media

Sales Promotion– Contests & Sweepstakes

– Refunds & Rebates

– Coupons

– Premiums & Self-Liquidators

– Samples

– Special Sales

– Point of Purchase / Sale (POP/S)

– ADD: Co-promotion

Reasons for Promotion

Why do you think businesses use Sales Promotion?

• Build traffic in store• Create extra interest in product• Increase sales during down-period or heavy competition

• Motivate staff• Introduce new product, generate trial

• Stock clearance

Contests & Sweepstakes

• Award prize to select participant

• Can be used with other aspects of promotion

• Incentive to provide information

Refunds & Rebates

• Great for data collection because consumers supply information

• Low redemption rates = lower cost than straight discounts

• Common with electronics, i.e. Best Buy

Coupons

• Entitles you to a reduction in price of product or service

• Obtained from internet, mail, print ads, store register, other locations in store

• Redemption rate = % of coupons used – Measures effectiveness of

promotion– Avg redemption for direct mail

~3.5% vs. in-store ~6.5%

Premiums & Self-Liquidators

• Allow consumers to get something by purchasing something else– Premium = free product/service, often

called “Gift with Purchase”– Self-Liquidator = product or service at

substantially reduced price

Samples

• One of the most effective, yet most expensive promotional activities is sampling

• Instant trial• Good example execution of

samples with displayed product for purchase is Costco

Special Sales

• Special events:– Introduce new product /

service– Clear out old stock– Generate store traffic– To be competitive

during seasonal events (i.e. NOW!)

Point of Sale (POS)

• Special racks, cases, shelves and temporary displays all called POP or POS

• Displays set up in store or right at cash

• Increase “impulse” purchases

Co-Promotions

• Companies partner to raise awareness and reach of each respective brand

• Classic examples: movies, hot new products, sports teams, charity/cause marketing

THANK YOU!

• Next Class:– New Project on PROMOTIONS

• In pairs, bring in 3 promotions that are currently in the market (if on-line, bring print out)

• Assignment questions will be provided tomorrow, along with in-class time to work on them

• IF you forget your promotions, some will be assigned to you… but don’t forget, it’s easier to do a project on something that INTERESTS YOU.