Transcript Promotional Planning Session - University of Missouri

Promotional Planning
B2B BA 303 C 16-18
Session
Lindell Phillip Chew
University of Missouri- St. Louis, College of
Business Administration
DEFINITION
Promotion is a persuasive communications mix.
It is a deliberate

attempt to communicate information which
presents a company and its

products to prospective customers in a
manner persuasive enough to

induce the kind of acceptance, reaction, or
response desired.

THIS IS A CONTROLLED AND
INTEGRATED PROGRAM OF
COMMUNICATION METHODS AND
MATERIALS.

THE
PROMOTIONAL
(COMMUNICATIONS) PLANNING
PROCESS
[email protected]
FUNCTIONS
The basic purpose of promotion is to
present a business and its products and services
to prospective customers, to communicate the
need/want satisfying attributes of those
products/services, to facilitate sales, and to
contribute positively to the long ran
performance of the business.
 HOW TO SELL PRESENT CUSTOMERS
ADD1T1ONAL UNITS.
 GET NON CUSTOMERS TO BECOME
CUSTOMERS.

FIRST REVIEW YOUR
MARKETING PLAN & ITS

OBJECTIVE AND THEN
PURSUE THE STEPS of the
PROMOTIONAL
(COMMUNICATIONS)
PLANNING PROCESS
Our corporate objective is to
increase earnings per share
from $6.71 per share to
$7.71 per share
OUR
MARKETING OBJECTIVE
IS TO INCREASE MARKET
SHARE FROM 23% TO 25%,
ALSO IN ONE YEAR
STEPS
SITUATIONAL ANALYSIS
ESTABLISHING
PROM0TIONAL OBJECTIVES

JUSTIFICATONS
DETERMINING BUDGET
PLANNING, MANAGING, BLENDING THE
COMMUNICATIONS
EVALUATION MEASURING EFFECTIVENESS
FOLLOW ON AND FUTURE PLANNING
STEPS

SITUATIONAL ANALYSIS
MARKET TARGETS DEFINITION
Current Market
Additional or Potential Customer Franchises
COMPETITION
ENVIRONMENTAL FACTORS
Internal (policies, profit inhibitors, financial and
personnel resources)
External (legal/ethical, business/economic
conditions,cultural/social)
STEPS
SITUATIONAL ANALYSIS
CRITICAL QUESTIONS
Are
you familiar with the strengths

& weaknesses of various promotional
efforts?
Is outside technical/financial
assistance available to enhance
promotional efforts?
TYPES OF
PROMOTION
(EXPLICIT TOOLS)
TYPES OF PROMOTION
(EXPLICIT TOOLS)
ADVERTISING
PERSONAL
SELLING
SALES PROMOTION
PUBLIC RELATIONS / PUBLICITY
The Marketing
Communications Mix
Advertising
Any Paid Form of Nonpersonal
Presentation by an Identified
Sponsor.
Sales Promotion
Short-term Incentives to
Encourage Trial or Purchase.
Public Relations
Personal Selling
Direct Marketing
Protect and/or Promote
Company’s Image/products.
Personal Presentations.
Direct Communications
With Individuals to Obtain
an Immediate Response.
TYPES OF PROMOTION
(EXPLICIT TOOLS)
 PLEASE NOTE THAT RESELLER
SUPPORT OBJECTIVES AND
PROGRAMS MAY ALSO BE ADDED
PURPOSE TO……..
IMPROVE
SUPPLEMENT
CONTROL
TYPES OF PROMOTION
(EXPLICIT TOOLS)
 ADVERTISING
paid, nonpersonal
communication regarding goods, services,
organizations, people, places, and ideas
that is transmitted through various media
by business firms, government and other
nonprofit organizations, and individuals
who are identified in the advertising
message as the sponsor.
TYPES OF PROMOTION
(EXPLICIT TOOLS)
PERSONAL
SELLING
involves oral communication
with one or more prospective
buyers by paid representatives
for the purpose of making
sales.
TYPES OF PROMOTION
(EXPLICIT TOOLS)
 SALES
PROMOTION
Involves…paid….marketing
communication activities
(other than advertising, publicity, or
personal selling) that are intended to
stimulate consumer purchases and
dealer effectiveness.
TYPES OF PROMOTION
(EXPLICIT TOOLS)
 PUBLIC
RELATIONS / PUBLICITY
 . Publicity is nonpersonal public relations that is
transmitted Public relations includes any
communication to foster a favorable image for
goods, services, organizations, people, places,
and ideas. It may be personal or nonpersonal,
paid or nonpaid, and sponsor controlled or not
controlled through media but not paid for by an
identified sponsor.
TYPES OF PROMOTION
(EXPLICIT TOOLS)
NOW LET’S PURSUE THE
OTHER STEPS
Elements in the
Communication Process
SENDER
(source)
Encoding
Message
Media
Decoding
Noise
Feedback
Response
RECEIVER(s
Decide on Explicit Communications Mix
Advertising
Public, Pervasive, Expressive, Impersonal
Sales Promotion
Communication, Incentive, Invitation
Public Relations & Publicity
Credibility, Surprise, Dramatization
Personal Selling
Personal Confrontation, Cultivation, Response
Direct Marketing
Nonpublic, Customized, Up-to-Date, Interactive
Factors in Developing
Promotion Mix Strategies
Type of
Product/
Market
Buyer/
Readiness
Stage
Push vs. Pull
Strategy
Product LifeCycle Stage
Push Versus Pull Strategy
Marketing
activities
Producer
Intermediaries
Demand
Marketing
activities
End users
Push Strategy
Marketing activities
Producer
Demand
Intermediaries
Demand
End users
Pull Strategy
PROMOTION PLANNING
STEP
OBJECTIVE SETTING
The objectives of promotion may be categorized as
stimulating demand and enhancing company
image.

The sequential short-term, intermediate,
and long-term promotion goals for a firm
to pursue.
Primary demand is an objective when seeking
consumer interest for a product category.
Selective demand is a later objective that seeks
consumer interest for a particular brand of a
product.
PROMOTION PLANNING
STEP
BUDGETING
USE OBJECTIVE & TASK



Under the objective-and-task method, a firm sets promotion goals,
determines the activities needed to satisfy them, and then establishes
the proper budget. Most large companies use some form of
objective-and-task technique.
During promotional budgeting, a firm should keep
the concept of the marginal return in mind. This is
the amount of sales each increment of promotion
spending will generate. It is usually highest for
new products.
Step 5. Establish the Budget
Affordable
% Of
Sales
Competitive
Parity
Objective
& Task
PROMOTION PLANNING
STEP
PLANNING, MANAGING,
BLENDING THE
COMMUNICATIONS
•
THE PROMOTION
MIX
PROMOTION PLANNING
STEP
PLANNING, MANAGING, BLENDING THE
COMMUNICATIONS
SELECTING MEDIA

Media are selected on the basis of these criteria:









Advertising media costs.
Reach
Frequency.
Gross Rating Points
Waste
Message permanence.
Persuasive impact
Clutter
Lead time
PROMOTION PLANNING
STEP
PLANNING, MANAGING, BLENDING THE
COMMUNICATIONS
SELECTING MEDIA

Outlays for media time and space.

Total costs are computed first.
Per-reader or viewer costs are
computed second.


Advertising media costs
PROMOTION PLANNING
STEP
PLANNING, MANAGING, BLENDING THE
COMMUNICATIONS
SELECTING MEDIA

Reach—the number of viewers,
readers, or listeners in an audience.


. For TV and radio, reach is the total number of people
who are exposed to an ad.
. For print media, reach has two components: circulation
(the number of copies sold or distributed) and passalong
rate (the number of times each copy is read by another
reader).
PROMOTION PLANNING
STEP
PLANNING, MANAGING, BLENDING THE
COMMUNICATIONS
SELECTING MEDIA

Waste—the part of an
audience not in a firm’s
target market.

Narrowcasting, which presents messages to limited and
well-defined audiences, can reduce audience waste.
PROMOTION PLANNING
STEP
PLANNING, MANAGING, BLENDING THE
COMMUNICATIONS
SELECTING MEDIA

Frequency—how often a medium can
be used.

Repetition, repetition, repetition

James Smith 1890’s
PROMOTION PLANNING
STEP
PLANNING, MANAGING, BLENDING THE
COMMUNICATIONS
SELECTING MEDIA
GROSS RATING POINTS
(GRP’S)
GRP’S
=
REACH
X
FREQUENCY

PROMOTION PLANNING
STEP
PLANNING, MANAGING, BLENDING THE
COMMUNICATIONS
SELECTING MEDIA


Message permanence—the number of exposures one
ad generates and how long it remains available to the
audience.
Persuasive impact—the ability of a medium to
stimulate consumers.
PROMOTION PLANNING
STEP
PLANNING, MANAGING, BLENDING THE
COMMUNICATIONS
SELECTING MEDIA


Clutter—the number of ads found in a single
program, issue, etc. of a medium.
Lead time—the period required by a medium for
placing an ad.
PROMOTION PLANNING
STEP
PLANNING, MANAGING, BLENDING THE
COMMUNICATIONS
SELECTING MEDIA

In recent years, there have been many
media innovations, such as online
computer services, regional editions,
special one-sponsor issues, specialized
Yellow Pages, TV ads in supermarkets,
infomercials, etc.
PROMOTION PLANNING
STEP
PLANNING, MANAGING, BLENDING THE
COMMUNICATIONS
SELECTING MEDIA

As of 2004, the typical U.S.
consumer will have access to 44
local radio stations, 200 TV
channels, 2,400 Internet radio
stations, 18,000 magazine titles, and
20 million Internet sites.
PROMOTION PLANNING
STEP
THE PROMOTION MIX


The promotion mix is a firm’s overall and
specific communication program, including its
use of advertising, public relations (publicity),
personal selling, and/or sales promotion.
With an integrated marketing communications
program, each type of promotion has a distinct
function and complements the other types.
PROMOTION PLANNING
STEP
THE PROMOTION MIX


The promotion mix is a firm’s overall and
specific communication program,
A promotion mix varies by type of
company, the product life cycle,
access to media, and channel
member support.
PROMOTION PLANNING
STEP
THE PROMOTION MIX





ADVERTISING
PERSONAL SELLING
SALES PROMOTION
PUBLIC RELATIONS /
PUBLICITY
RESELLER SUPPORT
PROGRAMS
CONSIDERING COOPERATIVE
EFFORTS

With cooperative advertising, two or more firms
share some advertising costs.
A vertical cooperative ad is an
advertising agreement between firms at
different levels of the distribution channel.
 1.
A horizontal cooperative ad is an
advertising agreement among independent
firms at the same stage.
 3. Good agreements clearly state each party’s
costs, functions, and responsibilities; the ads
covered; and the basis for termination.We will
apply SCHNUCKS to both.
 2.
PROMOTION PLANNING
STEP
BUDGET


A budget delineates expenditures by
explicit tool and medium
Considerations in budgeting may include
alternative media costs, the number of
placements needed, cost increases of
media, the status of the economy, channel
member tasks, production costs, and
budget allocation for domestic versus
international ads.
PROMOTION PLANNING
STEP
EVALUATION
MEASURING EFFECTIVENESS

EVALUATING…
SUCCESS OR FAILURE

COMMUNICATION
(PROMOTIONAL) success or failure
depends on how well the company
achieves promotion objectives, which
may range from creating awareness to
expanding sales. Example: R x F= GRP’s
PROMOTION PLANNING
STEP
FOLLOW ON &
FUTURE PLANNING
FEEDBACK
& ADJUST
Summarize

Promotional
Planning
Session
Summarize STEPS

SITUATIONAL ANALYSIS
ESTABLISHING PROM0TIONAL
OBJECTIVES
JUSTIFICATONS
Summarize STEPS

DETERMINING BUDGET
PLANNING, MANAGING,
BLENDING THE
COMMUNICATIONS
Summarize STEPS

EVALUATION MEASURING
EFFECTIVENESS
FOLLOW ON AND
FUTURE PLANNING
Next Steps
OPPORTUNITY
IS NOW
HERE!
JUST
DO IT!!!!!!
[email protected]
Promotional Planning
Session
Lindell Phillip Chew
University of Missouri- St. Louis, College of
Business Administration