In a word

The following glossary defines terms commonly used in the planning and execution of value-added promotions.Each listing consists of the term, a generic definition and, where appropriate, an example.The glossary was prepared by Terri Perras, sales promotions manager at ytv.Barter/contraTrading of media...

The following glossary defines terms commonly used in the planning and execution of value-added promotions.

Each listing consists of the term, a generic definition and, where appropriate, an example.

The glossary was prepared by Terri Perras, sales promotions manager at ytv.

Barter/contra

Trading of media (airtime) for products. Often a ratio of the cost of the product(s) is applied to determine the amount (value) of airtime.

Contra is often used to negotiate with a prize supplier for a product/service with no cash exchanging hands. Instead, the prize supplier would receive visibility through airtime.

Cause-related

A cause-related marketing or promotion campaign uses the proceeds from the (net) revenue brought in to go to a (usually predetermined) charity.

For example, YTV Festival of Friends was the spring fundraising event for the Kids Help Phone, put together by ytv, Jumbo Video and Canada’s Wonderland.

A concert organized at Canada’s Wonderland in May was hosted by ytv’s program jockeys (pjs) and Grogs, along with children’s performers Shari Lewis and Lamb Chop, Bob Schneider and the Rainbow Kids, Kideo and others.

The show was taped and then packaged by ytv into a 75-minute video and sold exclusively at all Jumbo Video locations.

All net proceeds of 10,000 units distributed goes to the Kids Help Phone.

Contests

A promotion tactic designed to create an incentive for the consumer to buy the product or service in order to win a prize. Contestants must comply with the rules and regulations in order to be declared a winner.

Enhanced position

An advertiser’s product is showcased through specific program giveaways.

For example, Fan Packs are given to viewers through ytv teen-oriented in-house productions. Once per show, a selected viewer receives an assortment of products.

Fan Packs offer advertisers a chance for enhanced visibility, in-program product placement and sampling within targetted programming.

Event marketing

An advertiser ties its corporate name, specific product, or group of products to a themed activity or event in order to achieve visibility/association.

For example, The YTV Achievement Awards is an annual event whereby nominations in 15 categories are awarded to outstanding youth.

Mass distribution of the nomination forms, together with a cross-Canada search result in a final in April honoring these young Canadians.

Advertisers can sponsor each of the 15 awards and garner exposure by doing so.

Full program sponsorships

An advertiser’s message is featured in custom-designed billboards which run at the beginning and end of the sponsored program.

These opening and closing billboards incorporate the advertiser’s existing creative and are about five seconds in length.

Program sponsorships generally require a minimum of a 26-week commitment.

It provides the advertiser with ownership of the program. In addition, full brand spots run within the body of the show.

For example, Duracell sponsors ytv’s show, The Hit List.

On-set product usage

An advertiser’s product is used or demonstrated within the body of a program.

For example, the ytv program jockeys use various Crayola products to make crafts and artwork with viewers as part of an on-going craft segment.

This integration into the pj segments meets the objective of enhancing product awareness and brand introductions.

It also demonstrates the product benefits, while supplying the pjs with tools for the craft segments.

Promotion objective

A process of setting concise and measurable goals that are desired to achieve an end result.

Promotion strategy

A promotion strategy is the broad and general approach used to meet the stated sales promotion objectives.

Promotion tactics

Promotion tactics are specific approaches used to meet the stated objectives and motivate the consumer to buy the product.

There are two main types of tactic incentives: delayed versus immediate response.

An example of a delayed tactic is a contest, in which an entry form must be completed, mailed out, and the consumer must wait for the draw date.

An example of immediate tactic is an on-pack, peel-off coupon, offering the consumer an immediate discount on the price of a product.

Some tactics include in-pack/on-pack, couponing, trade displays, sampling, value-added promotions, contests, sweepstakes, instant wins, rebates and scratch and win.

Proof of purchase

Evidence that a consumer has bought a product by showing a receipt or portion of a package (such as a box top, label or upc bar code.) Proof of purchase is usually required to enter a contest.

Sales promotion

Incentive designed to stimulate purchase of a product or service.

An effective promotion should integrate with other components of the marketing mix.

Promotion is the key element which motivates the buying decision and closes the sale.

Trade/retail displays supported by tv, plus any other synergistic components, are an ideal way to communicate the promotion incentive.

Sampling

A promotion tactic designed to encourage trial of a product by the target group.

This can be effective for the launch of new products, since it puts the product right into the hands of the consumer.

For example, third-party partners have a chance to sample products directly to their target group through the ytv Kids Night program at Pizza Hut.

This program allows advertisers to sample to a specific, defined demographic in a cost-efficient manner.

Strategic alliance/joint promotion/partnering

Well-targetted, mutually beneficial partnership which enhances the visibility and image of both partners.

For example, Pizza Hut and ytv developed Kids Night, whereby children eat free on Tuesday nights at participating Pizza Hut restaurants across Canada.

This is an example of a mutually beneficial partnership due to the similarity of Pizza Hut’s and ytv’s target group of youngsters and their families.

Pizza Hut benefits from the image and exposure on ytv as the family network, while ytv benefits through exposure in Pizza Hut restaurants.

Universal Product Code (upc)

The majority of products have a special code or number with bar stripes printed on the package. The code is scanned at the checkout counter to record the brand and its price.

Value-added (enhanced value)

A strategic approach to enhance awareness of a product or service through an extension to the media buy.

ytv has developed specific vehicles designed to meet the advertisers’ requests for additional exposure.

These value-added tools are at minimal cost to the advertiser, while providing great incremental exposure.

For example, the YTV Kids Club offers advertisers participation in a direct mail piece targetted to youngsters across Canada.

Quarterly newsletters and a birthday greeting comprise the mailings.

The newsletter, called the ‘Y’s Guy Eye’, is filled with information on fun things to do, safety tips, craft ideas, ytv program highlights and ytv personality profiles.

Advertisers tie into the Kids Club as an extension to a promotion or media campaign through product sampling, couponing and contests.

The database is owned solely by ytv and cumulated from ytv viewers.

Live on-air mentions via the ytv personalities and pjs also provide the advertiser with incremental exposure.