Transcript Sales Promotion and Public Relations File

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Integrated Marketing Communication
Advertising
Personal Selling
Sales Promotion
Public Relations
Reference point:
◦ Armstrong et.al. Principles of Marketing
Chapter 11 and 12
◦ Digital and Direct Selling is taught as a
separate component.
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Marketing Activities that are usually for a
specific time, place or customer group.
◦ Encourages a direct response from consumers or
marketing intermediaries (trade) by offering
additional benefits – value-added incentives.
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Examples:
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Sales incentive schemes; Competitions
Loyalty programmes
Product trials; Sampling retail displays
Demonstrations
Tie-ins with sponsorships/events and advertising
campaigns
 E.g. Nelson’s first “splash” competition
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Traditional boundaries between advertising,
personal selling, sales promotion and public
relations are often very blurred due to the
adoption of the IMC Concept
◦ E.g. Sports Sponsorship: Vodafone – the Warriors
◦ TV Adverts plus product sales plus audience
competitions plus player events and public
appearances
◦ http://www.vodafone.co.nz/about/sponsorship/wa
rriors/
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Useful alternative to advertising; overcome media
clutter problem. Appeals to a slice of interest,
motivated, high involvement consumers who are
most likely to “take action” fast.
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Consumers are more price sensitive: sales
promotion can address this by providing valueadded promotions and price discounts
In other words...
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How do you break your product out from others?
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Very attractive to the trade. Helps to keep their
foot traffic volumes up and creates interest in
their stores. Usually paid for by the marketer so
it’s a big win for retailers.
“Smart Shoppers” respond well to sales
promotion: rewards them for their brand support
Means of optimising brand profitability where:
◦ A) There is a price discrimination between segments
AND
◦ B) There is brand proliferation (increase)
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Sales promotion allows you to compete with
cheaper brands and at the same time to
defend market segments
Does this sound like “stretching”? Why?
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Ideal for a firm whose strategy emphasises
gaining and holding market share
As in-store sales staffing levels have declined
in favour of shopper self-service, sales
promotion has become almost indispensable
to induce consumer purchase behaviour
Sales promotion effectiveness has grown as
its methods have improved. It is now
relatively easy to measure how successful a
sales promotion campaign has been
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Like an addictive drug; it is the fastest growing
element of modern promotion
Competitive sales promotion poker is running
almost out of control in some sectors e.g.
Supermarket retailing
Self-fulfilment; individual brands cannot be
omitted from aggressive sales promotion:
therefore how effective is it at promoting strong
brand values and a clear marketing positioning?
Does it destroy brand value?
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Can be difficult to forecast product demand;
therefore increasing reliance on using sales
promotion to balance inventories. Slow moving
products can always be eliminated by running a
sales promotion campaign
Many brand marketers contend that unbridled
use of sales promotion undermines long-term
brand values and positions
Consumer Expectations: consumers now take
sales promotion for granted and thus tend to
structure their purchases not around brand
values so much as “what’s on special today?”
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Primarily non-personal: providing news or
information that creates or maintains a
favourable company or product image.
Wide potential audience of stakeholders
Share-of-mind concept: a favourable image and
associations linked to widespread awareness
translates into an increased chance of spurring
brand behaviour
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Ideally should be newsworthy....’free advertising’
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PR often has credibility where advertising does
not
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Important in case of high-profile firms and
brands having well defined stakeholder
categories
Well suited to the needs of small enterprises who
lack promotion resources. Any motivated
intelligent person can write up a media release.
Veracity and credibility: carried by independent
media, therefore have a ring of trust that is
lacking in the case of ‘paid’ promotion
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Ability to reach many potential buyers if
decision influencers whilst they are in a nonjudgemental mode, reading a media article.
Dramatic impact is possible by careful
campaign design e.g. Richard Branson’s
Virgin empire. Very evident in NZ sports
sponsorship (All Blacks Roadtrips)
As often useful ‘general support’ component
of the promotion mix. Gets public buy-in and
awareness of what the firm is and what it
stands for...brand perceptions
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Can involve high front end costs in the case of
major campaign (not always though)
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Uneven quality of PR expertise: very easy to do it
incredibly badly!
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Rising audience sophistication; ability to ‘see’
through a media article to the vested interest
behind it e.g. Motoring magazines
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Best suited for general image and positioning of
the firm
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Difficult in measuring effectiveness and results
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Integration with the rest of the marketing mix
is not always easy and direct; often tend to be
prompted by situational factors e.g.
Opportunity for media coverage
PR activities increasingly have to be
innovative and impactive to achieve media
support: ordinary media releases lose interest
and get binned
So... BE BALANCED & BE INNOVATIVE!
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Sensitivity to ‘getting the small details right’:
these are things that audiences will quickly pick
up on if they are handled poorly
Be careful of linking PR events or campaigns to
particular host personalities or celebrities; They
can fall off the boil e.g. Achievements wane,
suffer from personal problems, fall into illegal
activities, generally become controversial.
What are some examples that you can think of?
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Question: is it all bad for the companies
involved?
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What do you want to get to do what?
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What’s the promotion opportunity?
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What’s the fundamental purpose of this
campaign/
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What environment is this campaign going
into?
Marketing objectives: positioning, target
market, target audience, distribution
channels, brand values, competitors.....we
need information
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What are you trying to achieve?
Inform? Remind? Persuade?
Brand values? Call to action? New product?
Special event? Attract new business?
Relations with distributors?
Benchmarking, target audience, time period
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What is it that you want to say?
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Reward-Experience Relationship:
◦ Experience: Outcome – During – Incidental
◦ Reward: Functional – Sensory – Social – Ego
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Desirability, exclusiveness, credibility,
continuity
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How do we want to get your message across?
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Style, Tone, Words, Format etc
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What media do you want to use? (what media
mix can you afford?)
Cover – impact – time - frequency
On a fixed budget, more of one means less of
the other three
Four common methods used to set the total
budget for advertising:
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Affordable method
Percentage‐of‐sales method
Competitive‐parity method
Objective‐and‐task method
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Cover: the number of media used
Impact: media communications strength e.g.
National TV versus community hall posters
Time: duration of the campaign and when it
runs (media schedule)
Frequency: how often ad will run in the media
schedule
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Branding
Marketing Management
 IN
MKT 671!