PRO - Promotion [OVERVIEW]

Promotion

Introduction

Businesses promote themselves and their products to potential customers. They have to decide what activities they will choose to promote themselves and their products, create a favorable image, build product awareness, and create sales. Think of all the different ways you have seen businesses do this, from giving back to a worthy cause, to Super bowl commercials.

Chick-fil-a has done a great job building a brand that resonates with people using promotions discussed in this unit. Let's take a look:

  • Advertising – Outdoor Advertising
  • Public Relations – Cow Appreciation Day
  • Sales Promotions – Cow Calendars with coupons
  • Social Media – Chick-fil-a's Facebook page

The Chick-fil-a cows are advertising hogs, or cows I should say! They take promotion to a whole new level by creating a universal campaign that is an integral part of the company. In everything Chick-fil-a does the cows are a part of it.

Essential Questions

  1. What is the role of promotions in marketing function?
  2. What are the types of promotion?
  3. What are the elements of the promotional mix?
  4. What are the different channels used to communicate with targeted audiences?
  5. What are the different types of advertising media and associated costs, including social media?
  6. What are the components of advertisements?
  7. What are the various public relations activities?
  8. What are the differences between internal and external audiences for public relations activities?
  9. What is the nature of a promotional plan?
  10. How are activities coordinated in a promotional plan?

Key Terms

  • Advertising - Persuasive messages purchased to inform, persuade and remind a target market about products, services, organizations, or ideas.
  • Advertising Agencies - An organization that provides a variety of advertising related services to clients, specifically advertising campaigns.
  • Advertising Campaign - A group of advertisements, commercials, and related promotional materials and activities that are designed to be used during the same period of time as part of a coordinated advertising plan to meet the specified advertising objectives of a client.
  • Audience - The number and/or characteristics of the persons or households who are exposed to a particular type of advertising media or media vehicle.
  • Cost per Thousand (CPM) - A method of comparing the cost effectiveness of two or more alternative media vehicles. It is the cost of using the media vehicle to reach 1,000 people or households. CPM is calculated by dividing the cost of placing a specific ad or commercial in the media vehicle by the vehicle's audience size and multiplying the result by 1,000.
  • Coupons - A printed certificate entitling the bearer to a stated price reduction or special value on a specific product, generally for a specified period of time.
  • Direct Marketing - form of advertising that allows businesses to communicate straight to the customer, using text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.
  • Display - A special exhibit of a product at the point of sale, generally over and above standard shelf stocking.
  • Frequency - The number of times a person, household, or member of a target market is exposed to a media vehicle or an advertiser's media schedule within a given period of time.
  • Impression - One view or display of an ad. Ad reports list total impressions per ad, which tells you the number of times your ad was served by the search engine when searchers entered your keywords
  • Incentives - An inducement (money, premiums, prizes) offered by sellers to reward or motivate consumers to purchase their products or services.
  • Institutional Advertising - An advertising message or advertising campaign that has the primary purpose of promoting the name, image, personnel, or reputation of a company, organization, or industry.
  • Media - The various mass media that can be employed to carry advertising messages to potential audiences or target markets for products, services, organizations, or ideas. These media include newspapers, magazines, direct mail advertising, Yellow Pages, radio, broadcast television, cable television, outdoor advertising, transit advertising, and specialty advertising
  • Media Planning - Determination of advertising objectives, advertising strategies, and advertising tactics relating to the advertising media to be used by specific clients. A media plan includes a statement of objectives, target market definition, types of advertising media to be used, and the amount of resources to be allocated to each (the media mix), and a specific time schedule for the use of each media vehicle.
  • News Release - a written or recorded communication directed at members of the news media for the purpose of announcing something newsworthy.
  • Point-of-Purchase Displays - Promotional materials placed at the contact sales point designed to attract consumer interest or call attention to a special offer.
  • Premiums - An item of value, other than the product itself, given as an additional incentive to influence the purchase of a product.
  • Promotional Advertising - Advertising intended to inform prospective customers of special sales. It announces the arrival of new and seasonal goods, and it features, creates, and promotes a market for the merchandise items in regular stock.
  • Promotional Mix - The various communication techniques such as advertising, personal selling, sales promotion, and public relations/product publicity available to a marketer that are combined to achieve specific goals.
  • Publicity - The non-paid-for communication of information about the company or product, generally in some media form.
  • Public Relations - Use of publicity and other nonpaid forms of promotion to influence the feelings, opinions, or beliefs about the company, its products or services, or about the value of the product or services.
  • Pull Policy - The communications and promotional activities by the marketer to persuade consumers to request specific products or brands from retail channel members
  • Push Policy - The communications and promotional activities by the marketer to persuade wholesale and retail channel members to stock and promote specific products.
  • Sales Promotion - The media and nonmedia marketing pressure applied for a predetermined, limited period of time at the level of consumer, retailer, or wholesaler in order to stimulate trial, increase consumer demand, or improve product availability.
  • Specialty Advertising - The placement of advertising messages on a wide variety of items of interest to the target market such as calendars, coffee cups, pens, hats, note paper, paper weights, T-shirts, watches, etc. In contrast to premiums, specialty advertising items are usually given to members of the audience.

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