Transcript Chapter 15 The Promotional Mix

Part 3: The marketing mix
Chapter 15: The marketing
communications mix
Step 5: Design the marketing strategy
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PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
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When we finish this lecture you should
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Understand why a marketing manager should specify
objectives to guide the advertising effort
Know when the various types of advertising are appropriate
and how to select the best advertising medium
Know how to plan the best message or copy strategy
Understand some of the issues relevant to international
advertising
Recognise the role and importance of direct marketing
Understand the nature and variety of sales promotions
Understand the reason for the growth of sponsorship in
Australasia
Know the principles of public relations and publicity
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The marketing communications mix
• Various categories of promotional tools available to
marketers—all contributing to the role of the whole
marketing communications mix—a combination of
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Advertising
Direct-response promotion
Sales promotion
Publicity
Public relations
Personal selling
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Advertising
• Marketing managers must decide
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Who is their target audience
What kind of advertising to use
How to reach customers (via which types of media)
What to say to them (the copy strategy)
Who will do the work (the company’s own advertising
department or an outside agency)
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Figure 15.1 Strategy planning for advertising
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The importance of advertising
• Involves a huge amount of money
• Work is done by relatively few people
• Major expense is for media time/space
• Companies spend only a small percentage of sales
on advertising
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Setting advertising objectives
• Help introduce new products to specific target
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markets
Help position the firm's brand or marketing mix by
informing and persuading target customers or
intermediaries about its benefits
Help obtain desirable outlets (distribution)
Provide ongoing contact with target customers
Prepare the way for the personal selling effort
Get immediate buying action
Help buyers confirm purchasing decisions
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Figure 15.2 Examples of different types of
advertising over adoption process stages
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Types of advertising
• Product advertising—Tries to sell a specific product
to final users or channel members
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Pioneering advertising builds primary demand
Competitive advertising builds selective demand
• Corporate/institutional advertising—Tries to
promote an organisation's image, reputation or
ideas—rather than a specific product
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Coordinating advertising efforts
• Vertical cooperation
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Involves the cooperation of members from different levels
of a distribution channel
Is common in relation to advertising decisions
• Advertising allowances
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Price reductions given to organisations in the channel to
encourage them to advertise or otherwise promote the
supplier’s products locally
• Horizontal cooperation
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Involves cooperation between several members at the
same level of a distribution channel
Often occurs in relation to advertising
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Major advertising media
• Magazine
• Television
• Newspaper
• Yellow Pages
• Radio
• Outdoors
• Cinema
• Internet
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Choosing the ‘best’ advertising
medium
• Promotional objectives
• Target market you need to reach
• Funds available
• Nature of the media
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Who it reaches
With what frequency
At what impact
At what cost
• Overall fit with the rest of the marketing mix
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Figure 15.3 Advantages and disadvantages of
several types of media
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Figure 15.3 Advantages and disadvantages of
several types of media (continued)
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Figure 15.3 Advantages and disadvantages of
several types of media (continued)
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Measuring advertising effectiveness
• Sales
• Direct-response advertising
• Pre-testing advertising
• Attitude research
• Laboratory-type devices
• Split runs of advertisements
• Customer recall
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International aspects of advertising
• Legal aspects of advertising
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In most countries, the government takes an active role in
deciding what kinds of advertising are permitted, what is
considered fair and what is inappropriate
• Global agencies for global advertising
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Many agencies are small, with 10 or fewer employees
Some large agencies have merged, creating megaagencies
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Figure 15.4 Top eight advertising agency
supergroups and examples of products they
advertise
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Direct-response promotion
• Special considerations with ‘direct marketing’
• Direct communication between a seller and the
individual customer using a promotion method
other than face-to-face personal selling
• Started with mail advertising, but has evolved to
include other media
• Distinctive feature—It attempts to evoke a direct
response from the customer
• Closely tied to the use of a database to target
customers
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Direct-response online
• Many promotional mixes now include an
advertiser’s Web site and a viewer can respond by
clicking to obtain more detailed information
• Information might include pictures, videos, sound,
text, order entry and so on
• A small subset of the total number of Web sites
account for a large percentage of the potential
audience
• Portals are Web sites that act as a gateway to the
Internet
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Sales promotion
• Promotion activities (other than advertising,
publicity and personal selling) that stimulate
interest, trial or purchase
• May be focused at channel members, final
customers or users, or employees
• Skill may be difficult to develop inside the
company, since a promotion activity is often
designed and used only once
• Sales promotion spending is increasing and
exceeds advertising spending
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Figure 15.5 Examples of sales promotion
activities
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Figure 15.6 Some possible effects of a sales
promotion on sales
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Sponsorship
• An investment in cash or kind, in an event, sport,
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art, person or idea, in exchange for access to the
commercial potential of that event, sport, art,
person or idea
Not a new concept (traced back to Ancient Rome
and Gladiatorial Games)
Sport sponsorship is by far the most intensive form
of sponsorship
A wide range of possible objectives
A general lack of rigorous evaluation by sponsors
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Public relations and publicity
• Public relations (PR) involves communicating with
several interest groups—Employees, shareholders,
governments and political parties as well as
customers and the general public
• It is aimed at fostering positive publicity and may
be used to counter negative publicity
• Publicity comprises all word-of-mouth (negative or
positive) and media coverage
• There is such a thing as negative publicity
(including rumours and myths)
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Creating synergies
• There is a wide array of tools in the promotional
mix
• There is an unlimited number of possible
combinations
• The aim of marketers is to create synergy and to
ensure that every promotional activity reinforces
the desired image—For example, a sponsorship
program that is not advertised is unlikely to have
the same impact as one which is advertised and
used for PR and sales promotions purposes
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What we will be doing in the next
chapter
• In the following chapter we will be discussing sales
marketing, including
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The importance and nature of personal selling
The elements of the personal selling process
The when and where of using the three types of sales
presentation
The importance of providing good customer service
The importance of long-term customer relationships
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