Transcript Promotion Concepts (1)

Promotion
Concepts
What is Promotion?
Informing Reminding
Target
Audience
Persuading
Communication by
marketers that
informs, persuades,
and reminds
potential buyers of a
product in order to
influence an opinion
or elicit a response.
The Evolution of Advertising
• Fragmentation
– Av HH has 150+ channels; 17,000 magazines
(5,000 consumer); 400,000 highway billboards;
30,000 plastered buses
• Clutter
– 330 ads per day (21 ads/hour)
• Alienation
– 65% believe they are constantly bombarded with
too much advertising
– 69% are interested in products that would help
them skip or block marketing
The Evolution of Advertising
• The death of network TV?
– Where did males 18-34 go? They are not coming
back…
• The death of the :30 TV spot?
– The power of TiVo:
– 2005: 10 million HH PVR
– 2007: 20% of HH PVR
• Online block out
• Media Zone out
– Multitasking
Communication Solutions
• Advertising yields to communication solutions
• Reaching the target audiences with relevant
communications based on central brand
based creative idea that is delivered through
optimal mix of consumer touch points;
tracking results for continuous optimization
and ROI analysis
• Other terms: Media neutral planning; channel
neutral planning
Developing Effective Marketing
Communications
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Identify the target audience
Determine Communication objectives
Design the message
Select the communication channels
Budget
Determine the media mix
Measure the results
Manage the IMC process
Promotional Mix
Advertising
Elements
of the
Promotional
Mix
Public Relations
Personal Selling
Sales Promotion
How the money gets divided…
Communication Objectives
• Cognitive, Affective or Behavioral
response
• Some of these tend to be qualitative in
nature -
Design the Message:
ADIA Concept
Action
Desire
Interest
Attention
ADIA and the
Promotional Mix
Awareness
Interest
Desire
Action
Advertising
Very
effective
Very
effective
Somewhat
effective
Not
effective
Public
Relations
Very
effective
Very
effective
Very
effective
Not
effective
Sales
Promotion
Somewhat
effective
Somewhat
effective
Very
effective
Very
effective
Personal
Selling
Somewhat
effective
Very
effective
Very
effective
Somewhat
effective
Designing the Message
• Message content
– Rational appeals, moral appeals, emotional
appeals
• Message structure
– One sided vs. two sided messages
• Message format
• Message source
– Source credibility
Select Communication
Channels
• Personal communication channels
• Nonpersonal communication channels
(which is what we will focus on for this
class)
Establishing the Budget
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Affordable method
Percentage of sales method
Competitive parity method
Objective and task method
Determining the Promotional
Mix
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Advertising
Sales Promotion
Public relations and publicity
Direct marketing
Personal selling
Factors Affecting the
Promotional Mix
Nature of Product
Stage in PLC
Target Market Factors
Factors
Affecting
Choice of
Promotional Mix
Type of Buying Decision
Promotion Funds
Push or Pull Strategy
Sales ($)
Product Life Cycle and the
Promotional Mix
Maturity
Introduction
Growth
Decline
Time
Light
Heavy use of
Advertising, advertising,
prePR for
introduction awareness;
Publicity
sales
promotion
for trial
Advertising,
PR, Brand
loyalty
Personal
Selling for
distribution
Ads
decrease.
Sales
Promotion,
Personal
Selling
Reminder &
Persuasive
AD/PR
decrease
Limited
Sales
Promotion,
Personal
Selling for
distribution
Push and Pull Strategies
PUSH STRATEGY
Manufacturer
promotes to
wholesaler
Wholesaler
promotes to
retailer
Retailer
promotes to
consumer
Consumer
buys from
retailer
Orders to manufacturer
PULL STRATEGY
Manufacturer
promotes to
consumer
Consumer
demands
product
from retailer
Retailer
demands
product
from wholesaler
Orders to manufacturer
Wholesaler
demands
product from
manufacturer
Measuring the Results
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Recognize
Recall
Behavioral responses
Sales & market share
Word of mouth