Transcript Integrated Marketing Communications and Promotion

Promotion Integrated Marketing Communication
Elements of promotion ● Advertising Strategies ●
Other Methods of Promotion
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PROMOTION
Lars Perner, Instructor 1
Learning Objectives
• Understanding the
obstacles that advertising
messages face
• Understanding the
choices facing marketing
managers regarding
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Promotional objectives
Promotional message
Media choice
Advertising and promotion
spending
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Lars Perner, Instructor 2
Elements of the Promotion Mix
• Advertising
• Sales Promotion
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Sales
Coupons
Rebates
Premiums
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• Personal selling
• Public relations
• Direct marketing
Lars Perner, Instructor 3
Promotion by Decision Stage
• Pre-purchase
– Influence
decision,
preference
– Samples to
induce trial
• Purchase
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Sales promotion
Point-of-purchase
(POP) displays
• Postpurchase
– Increase
repurchase
propensity
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Lars Perner, Instructor 4
Developing the Advertising Program
IDENTIFYING THE
TARGET AUDIENCE
DESIGNING THE
ADVERTISEMENT(S)
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PROMOTION
SPECIFYING
ADVERTISING
OBJECTIVES
SETTING THE
ADVERTISING
BUDGET
Lars Perner, Instructor 5
Some Media Alternatives
• Television
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Conventional advertisements
Infomercials
Sponsorship programming
“Placements”
• In programming
• “Superimposed”
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• Radio
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Magazines
Newspapers
Outdoor
Internet
Point-of-purchase
Other
– Movie theaters
– On other products
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Lars Perner, Instructor 6
Reaching the Customer: Encoding,
“Noise,” and “Decoding”
NOISE
Other ads
News articles
Other store displays
SENDER
Mktg mgr
Advertising mgr
Advertising
agency
ENCODING
THE
MESSAGE
Advertisement
Coupon
Sales presentation
Press release
Store display
MESSAGE
CHANNEL
DECODING
THE
MESSAGE
Media, Salesperson
Retail store
News program
Receiver
interpretation of
the message
RECEIVER
Customers
Media audience
News media
Clients
CHANNEL
FEEDBACK
Text, p. 211.
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PROMOTION
Lars Perner, Instructor 7
Some Promotional Objectives
• Brand awareness
– Knowledge of product category
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Existence
Benefits
Functions
Technology
– Knowledge of brand differences
• Brand attitude
– Favorable beliefs about the
brand
• Overall
• Relative to competitors
• Product category or
brand trial
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PROMOTION
• Brand preference
– Willingness to pay a premium
for the brand
– Resistance to competitor
promotions (e.g., sales,
coupons)
– Willingness to buy under less
convenient circumstances
• Increase in product
category or brand usage
– Quantity used
– Frequency used
– Scope of uses
• Increase in short term
sales
Lars Perner, Instructor 8
Promotional Objectives Across the
Product Life Cycle (PLC)
• Introduction
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• Maturity
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Advertising and
public relations 
awareness
Sales promotion 
trial
Personal selling 
distribution
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• Decline
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• Growth
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Text, p. 217
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Advertising
persuasion,
reminder
Sales promotion
 market share
Advertising and PR
 brand loyalty
Less emphasis on
sales promotion
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Reduction in
advertising and
PR
More emphasis
on sales
promotions 
temporary sales
Lars Perner, Instructor 9
Increase in Product Category or Brand
Usage—Product Category Potential Examples
• Scope of uses
– Orange juice: “It isn’t
just for breakfast
anymore”
– Baking soda
– ZipLock™ bags
– WD-40™ (lubrication
and sticker removal)
• Quantity used
– Calcium supplements
– Milk
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PROMOTION
• Frequency used
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Cosmetics
Deodorant
Wine
Greeting cards
Phone calls
• Cell phone minutes
• Call to family/friends
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Hotels, airlines
Conference calls
Car engine oil
Canned soup
Lars Perner, Instructor 10
Communications Objectives
• Informing
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• Persuading
Awareness
Interest
Benefits
Other information
– Preference based on
competitive
advantages
– Brand switching or
prevention of brand
switching
• Reminding
– Trigger memories
– Maintain preference
and buying habits
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PROMOTION
Lars Perner, Instructor 11
Some Advertising Strategies
• Comparative ads
– Illegal in most countries
– Generally very disliked by
U.S. consumers but still
relatively effective
• Humor appeal
– A way to get attention to the
advertisement—but the
consumer may remember
the humor and not what the
product featured was
• Adding beliefs
• Classical conditioning
(association)
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• Fear appeal
– To be effective:
• Feared stimulus must be
of medium intensity—
enough to motivate
action but not so intense
that the individual “tunes
out” the ad
• A clear solution must be
offered—e.g., use
Listerine™ to avoid
tooth loss due to
gingivitis
• Repetition
• Celebrity endorsements
Lars Perner, Instructor 12
The Elaboration Likelihood Model and Likely
Effectiveness of Celebrity Endorsements
Product
important or
expensive?
Low
elaboration
Yes
High
elaboration
No
Yes
No
Celebrity
endorsements
more likely to be
effective
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Is endorser
congruent with
product
endorsed?
Unlikely to be
effective
PROMOTION
More likely
to be
effective
Lars Perner, Instructor 13
Executing The Advertising Program
• Pre-testing
– Several “story boards” or actual ads are created
– Ads are tested on consumers
• Instant response technologies (consumers either rate
approval or have physiological measures taken throughout
an ad duration
– The best performing ad or ads are chosen subject
to constraints imposed (e.g., need to specify a
certain message or use certain types of models)
• Possible redesign
• Carrying out advertisement
– Full service agencies
– Limited service agencies
– In-house
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PROMOTION
Lars Perner, Instructor 14
Advertising Intensity and Return --A
Typical Relationship
Response (e.g., sales, recall)
The “S”-Shaped Curve
1
0.8
Saturation
Point
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0.4
Too little to do
much good
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5
10
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Amount of Advertising Spending
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20
25
Lars Perner, Instructor 15
Sample Exam Question
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Lars Perner, Instructor 16
Measuring Advertising Effect
• Several possible criteria:
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Scanner data
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Individual TV exposure can be
matched against actual purchases
Available only for grocery products
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Increase in sales
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Lab studies:
(but it may be
impossible to separate effects of
different simultaneous ads)
• Recall
• Attitude toward product
• Preference
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Lars Perner, Instructor 17
Japanese Advertising—Use of animation
and cartoon characters
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Lars Perner, Instructor 18
Breaking Through the Clutter
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Lars Perner, Instructor 19