- [Teacher] Hi, everyone.
Welcome to the video lecture on Promotion.
Here's an overview.
So we'll start with a framework of how to think
about the three kinds of promotion that you may do:
paid, owned and earned then the three aims
that each start with the letter A,
walk through a few types
and then go through smart objectives
with an objective being what you hope to achieve
with your promotional activities.
So here is your final homework
that I want you to discuss the promotion plan
and, specifically list each media type
and then answer for each one,
so what's your smart objective?
What is your target audience and desired outcome?
Why does your objective meet the smart criterion?
And what's the central message and how is it tied
to your position and your brand?
And finally, how much will you spend on promotion and why?
Here is the definition our esteemed textbook author,
Frederick Crane gives for promotion.
So it's ways that you communicate with your customers.
It's a very general but descriptive way to describe it.
So one framework I want to bring to your attention
is to think about promotion in terms
of paid, owned and earned.
So paid means things where you are paying
to get your message out there.
This is often a variable cost.
So if you are buying an ad in Seven Days,
pushing your message on Facebook or social media,
a radio advertisement, a billboard, you're paying money,
and that's clearly paid.
Owned are things that you keep and maintain yourself,
maybe a sandwich sign, maybe your website.
These tend to be more fixed costs.
And then finally, maybe the more elusive
but most valuable is earned.
It's your good name and reputation.
And I think brand plays very closely into this too.
It's maybe an award that you win
or just your brand being foremost
in the minds of your customers,
that you are the very best at what you do,
you're the go-to, those are all things
that you earn that you can't buy and own or buy
and have someone say about you, but you absolutely,
you earn them through doing good work
and being true to yourself and really creating value
for customers.
So this is just another slide,
which has a bunch of examples
and each of these paid, owned, earned framework.
Promotion has a three step process
or three goals that build on each other.
First, you wanna create brand awareness.
You want people to know you exist.
Hey, this is what this problem,
these folks are available, this is what they sell.
When I have this problem or need,
this is where I can go.
Next is to build favorable attitudes.
So they think, hmm, I like this.
This works, this can solve a problem.
This is something I'm interested in.
I have a favorable view.
And then last is the action, usually sales.
They come to you, they seek out, they find your product,
they buy it.
And hopefully, they keep doing it over and over again.
Because as we've said, keeping old customers
is extremely important.
And having regulars that for whom you are
the go-to and they come to you time and time again,
that's one of the really important goals
of any marketing effort.
Another way of thinking of this is a funnel
and anybody who's had me in class know
that I love the metaphor of the funnel.
So first, at the top, there'll be folks
that there's more folks who will be aware.
And then once they're aware, a smaller number
are then considering you so they know
a large amount will know you,
a smaller number will like you.
And then the third is to trust you and to say, yes,
I'm going to spend my money or time or effort
or whatever on this business, on this product,
on this organization.
And then that yields leads or customers.
So again, at the bottom are your core consumers
that you really hone in on that really
are the backbone of your revenue stream.
So I'll walk through a number of examples
of the four types of promotion that you might do.
Now, they're not mutually exclusive,
but I think there are four main dimensions
or types that are worth spending some time on.
First is public relations.
So this is, basically, you do it to create
a positive image of yourself,
to paint a halo over your head, I am a good person.
This is a good business, this is worthwhile,
really good for brand awareness
and also for creating publicity
and just a sense of goodwill.
And this can be things like donations or sponsorships.
So we learned about the example of Cookies for Good,
a partnership between Cabot Creamery and Sugarsnap,
where they formed a partnership
and for every cookie they sell,
a proportion of it goes to COTS,
which is the organization that helps homeless folks.
Another clear example is sponsoring a little league team.
It gets your name out there.
All the parents and fans and everyone else sees,
oh, this business is a sponsor.
Both now, I've heard of them
and oh, they're supporting a cool thing.
I'm aware of them and maybe I like them.
And eventually, hopefully, I will trust them.
Advertising is probably the most familiar.
It is and many times when people think marketing,
this might be the first thing that they think to.
And this is basically paying some media organization
to communicate information about your product or service.
It has some upsides,
it can reach a lot of people.
It can grab attention.
In most cases, it does cost money
that you're paying them to do this.
And I think that we're seeing more and more
that the internet is really good at honing in
on tight target markets that are really likely consumers.
And you can really hone advertising
to reach who are your core targets.
But a lot of advertising is thinking
about who is my target market
and what's the best media to reach them.
How am I going to best get their attention?
Sales promotion is offering some kind of a deal.
It's buy my stuff, it's try this.
It's a way to get it into their hands,
folks who maybe aren't already buying it.
In some cases it's related to the hurdle model
of price discrimination.
If they have to send in a coupon or get a rebate
or buy one, get one free that they do have to go over
a hurdle in some cases, but it's offering
a really good deal.
Try this, buy two, get one free,
really trying to get it into the hands
of those who aren't already consuming it,
have them try it and like it and say, yes!
This is a great thing.
It can be overused though.
So there is a danger.
If the only time when folks buy your thing
is when it's on sale,
then they're gonna wait and they're gonna wait
until it's on sale.
And they might undervalue it if, as we learned,
sometimes price is a signal of quality.
And if you are always positioning yourself
as the buy it cheap, then they might undervalue it,
think that you're not a high quality product.
And finally, usually, especially with sales,
like a 50% off sale, it is you who pays the difference.
So if your product is on a store shelf, they run a sale
yes, they wanna sell it;
they wanna get your name out there,
but it's not like the store is taking a hit.
You take that hit for most examples that I know of.
The store is getting the same margin
or the same proportion as they would
if it were full price and the sale price,
it's you that makes it up.
Next, I'm gonna talk a little bit about social media,
which is obviously a really dominant player in our
marketing space right now.
Social media can play a very large role
in the promotion of your business organization.
It can do a lot of things.
It can create a buzz, a viral campaign.
It enables fans to promote.
So it gives fans and customers a vote and a voice,
and the ability to do promotion for you.
You can facilitate online conversations.
It can build trust and loyalty,
and it also establishes your expertise.
Remember that social media should be
as much a stethoscope as a megaphone.
It's as much listening to what others
are saying than screaming out your message.
And this is really important for trust building.
And as well, it's not about control
that if you're listening and letting others speak
and initiating a conversation about your product
or even about the space in which your product is operating,
it allows others to contribute.
And it really builds trust in you
that you are a credible voice.
And thinking back to how important trust is
in the funnel that I showed you a little while ago.
This can really be an important part of that.
There are many, many, many social media
and online resources that we use now.
Here's a few, I'm sure that I missed some,
but you can tell me more about it
when we discuss it in class.
This is the end of part one.
Please go to part two.