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- [Teacher] Hi, everyone.

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Welcome to the video lecture on Promotion.

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Here's an overview.

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So we'll start with a
framework of how to think

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about the three kinds of
promotion that you may do:

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paid, owned and earned then the three aims

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that each start with the letter A,

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walk through a few types

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and then go through smart objectives

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with an objective being
what you hope to achieve

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with your promotional activities.

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So here is your final homework

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that I want you to
discuss the promotion plan

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and, specifically list each media type

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and then answer for each one,

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so what's your smart objective?

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What is your target audience
and desired outcome?

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Why does your objective
meet the smart criterion?

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And what's the central
message and how is it tied

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to your position and your brand?

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And finally, how much will you
spend on promotion and why?

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Here is the definition our
esteemed textbook author,

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Frederick Crane gives for promotion.

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So it's ways that you
communicate with your customers.

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It's a very general but
descriptive way to describe it.

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So one framework I want
to bring to your attention

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is to think about promotion in terms

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of paid, owned and earned.

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So paid means things where you are paying

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to get your message out there.

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This is often a variable cost.

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So if you are buying an ad in Seven Days,

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pushing your message on
Facebook or social media,

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a radio advertisement, a
billboard, you're paying money,

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and that's clearly paid.

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Owned are things that you
keep and maintain yourself,

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maybe a sandwich sign, maybe your website.

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These tend to be more fixed costs.

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And then finally, maybe the more elusive

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but most valuable is earned.

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It's your good name and reputation.

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And I think brand plays
very closely into this too.

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It's maybe an award that you win

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or just your brand being foremost

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in the minds of your customers,

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that you are the very best at what you do,

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you're the go-to, those are all things

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that you earn that you
can't buy and own or buy

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and have someone say about
you, but you absolutely,

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you earn them through doing good work

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and being true to yourself
and really creating value

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for customers.

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So this is just another slide,

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which has a bunch of examples

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and each of these paid,
owned, earned framework.

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Promotion has a three step process

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or three goals that build on each other.

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First, you wanna create brand awareness.

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You want people to know you exist.

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Hey, this is what this problem,

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these folks are available,
this is what they sell.

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When I have this problem or need,

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this is where I can go.

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Next is to build favorable attitudes.

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So they think, hmm, I like this.

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This works, this can solve a problem.

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This is something I'm interested in.

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I have a favorable view.

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And then last is the
action, usually sales.

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They come to you, they seek
out, they find your product,

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they buy it.

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And hopefully, they keep
doing it over and over again.

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Because as we've said,
keeping old customers

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is extremely important.

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And having regulars that for whom you are

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the go-to and they come to
you time and time again,

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that's one of the really important goals

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of any marketing effort.

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Another way of thinking
of this is a funnel

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and anybody who's had me in class know

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that I love the metaphor of the funnel.

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So first, at the top, there'll be folks

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that there's more folks who will be aware.

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And then once they're
aware, a smaller number

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are then considering you so they know

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a large amount will know you,

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a smaller number will like you.

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And then the third is to
trust you and to say, yes,

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I'm going to spend my
money or time or effort

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or whatever on this
business, on this product,

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on this organization.

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And then that yields leads or customers.

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So again, at the bottom
are your core consumers

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that you really hone in on that really

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are the backbone of your revenue stream.

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So I'll walk through a number of examples

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of the four types of
promotion that you might do.

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Now, they're not mutually exclusive,

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but I think there are four main dimensions

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or types that are worth
spending some time on.

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First is public relations.

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So this is, basically, you do it to create

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a positive image of yourself,

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to paint a halo over your
head, I am a good person.

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This is a good business,
this is worthwhile,

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really good for brand awareness

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and also for creating publicity

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and just a sense of goodwill.

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And this can be things like
donations or sponsorships.

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So we learned about the
example of Cookies for Good,

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a partnership between Cabot
Creamery and Sugarsnap,

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where they formed a partnership

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and for every cookie they sell,

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a proportion of it goes to COTS,

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which is the organization
that helps homeless folks.

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Another clear example is
sponsoring a little league team.

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It gets your name out there.

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All the parents and fans
and everyone else sees,

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oh, this business is a sponsor.

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Both now, I've heard of them

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and oh, they're supporting a cool thing.

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I'm aware of them and maybe I like them.

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And eventually, hopefully,
I will trust them.

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Advertising is probably the most familiar.

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It is and many times when
people think marketing,

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this might be the first
thing that they think to.

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And this is basically paying
some media organization

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to communicate information
about your product or service.

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It has some upsides,

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it can reach a lot of people.

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It can grab attention.

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In most cases, it does cost money

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that you're paying them to do this.

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And I think that we're
seeing more and more

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that the internet is
really good at honing in

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on tight target markets that
are really likely consumers.

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And you can really hone advertising

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to reach who are your core targets.

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But a lot of advertising is thinking

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about who is my target market

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and what's the best media to reach them.

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How am I going to best
get their attention?

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Sales promotion is offering
some kind of a deal.

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It's buy my stuff, it's try this.

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It's a way to get it into their hands,

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folks who maybe aren't already buying it.

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In some cases it's related
to the hurdle model

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of price discrimination.

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If they have to send in
a coupon or get a rebate

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or buy one, get one free
that they do have to go over

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a hurdle in some cases, but it's offering

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a really good deal.

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Try this, buy two, get one free,

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really trying to get it into the hands

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of those who aren't already consuming it,

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have them try it and like it and say, yes!

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This is a great thing.

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It can be overused though.

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So there is a danger.

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If the only time when folks buy your thing

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is when it's on sale,

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then they're gonna wait
and they're gonna wait

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until it's on sale.

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And they might undervalue
it if, as we learned,

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sometimes price is a signal of quality.

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And if you are always positioning yourself

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as the buy it cheap, then
they might undervalue it,

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think that you're not
a high quality product.

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And finally, usually,
especially with sales,

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like a 50% off sale, it is
you who pays the difference.

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So if your product is on a
store shelf, they run a sale

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yes, they wanna sell it;

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they wanna get your name out there,

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but it's not like the
store is taking a hit.

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You take that hit for most
examples that I know of.

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The store is getting the same margin

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or the same proportion as they would

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if it were full price and the sale price,

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it's you that makes it up.

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Next, I'm gonna talk a little
bit about social media,

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which is obviously a really
dominant player in our

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marketing space right now.

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Social media can play a very large role

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in the promotion of your
business organization.

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It can do a lot of things.

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It can create a buzz, a viral campaign.

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It enables fans to promote.

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So it gives fans and
customers a vote and a voice,

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and the ability to do promotion for you.

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You can facilitate online conversations.

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It can build trust and loyalty,

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and it also establishes your expertise.

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Remember that social media should be

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as much a stethoscope as a megaphone.

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It's as much listening to what others

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are saying than screaming
out your message.

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And this is really important
for trust building.

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And as well, it's not about control

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that if you're listening
and letting others speak

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and initiating a conversation
about your product

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or even about the space in
which your product is operating,

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it allows others to contribute.

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And it really builds trust in you

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that you are a credible voice.

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And thinking back to
how important trust is

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in the funnel that I showed
you a little while ago.

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This can really be an
important part of that.

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There are many, many, many social media

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and online resources that we use now.

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Here's a few, I'm sure that I missed some,

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but you can tell me more about it

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when we discuss it in class.

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This is the end of part one.

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Please go to part two.