Transcript DIRECT MARKETING and e

PROMOTION
and
IMC PLANNING
and
STRATEGY
The Promotion Plan
A PROMOTION PLAN IS:
• Direct Extension of Firm’s Marketing Plan
• A Specification of the Analysis, Strategy, and Tasks of the Promotional
Effort
• Needed to Conceive and Implement an Effective Promotional Effort
SIX MAJOR ELEMENTS OF A PROMOTIONAL PLAN ARE:
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Executive Summary and Overview
Situation Analysis
Objectives
Budgeting
Strategy
Evaluation
3.2
•Introduction
•Situation Analysis
•Objectives
Stages in the
Promotional Plan
•Budgeting
•Strategy
•Execution
•Evaluation
The Promotion Plan
EXECUTIVE SUMMARY & OVERVIEW
• Executive Summary-States Most Important Aspects of the Plan
• Overview-What is to be Covered in the Plan in General Terms
SITUATION ANAYLSIS
• Marketers and Agencies Lay Out Most Important Factors Defining the
Situations Facing the Firm, and Include:
– Demographic Trends
– Historical Context
– Industry Analysis
– Market Characteristics
• Type of Consumer
• Geographic Considerations
• Competition
3.4
SITUATION ANAYLSIS
• Product Characteristics
– Category
• Convenience Goods
• Shopping Goods
• Specialty Goods
– Stages in Product Life Cycle
• Characteristics of the Firm
–Push vs. Pull Strategy
–Funds Available
–Size of Sales Staff
–Extent of Firm’s Product Line
SITUATION ANALYSIS
• Characteristics of the Distribution
– Intensity of Distribution
• Intensive Distribution
• Selective Distribution
• Exclusive
– Length of Trade Channel
– Types of Trade Partners
A Situation Analysis Needs to
Consider the Type of Trade
Partners that Will be Promoting
The Marketer’s Brand
3.7
The Promotion Plan
OBJECTIVES
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Lays the Framework for Executions in Promotional Campaign and
Identifies Goals of a Marketer in Concrete, Measurable Terms
 Create & Maintain Image for Brand
 Increase Customer Awareness & Curiosity about a Brand
 Change Consumers’ Beliefs & Attitudes about a Brand
 Belief – Knowledge & Feelings Accumulated about a Brand
 Attitude is Overall Evaluation of Brand Based on
Knowledge/Emotions
 Influence Purchase Intentions
 Stimulate Trial Use
 Convert One-Time Users to Repeat Customers
 Switch Consumers from Competing Brands
 Encourage Brand Loyalty
 Stimulate More Frequent Use
 Increase Sales
Creating Awareness and Curiosity is a
Common Promotional Objective
The Promotion Plan
OBJECTIVES – KEY TERMINOLOGY
Brand Image
 Brand Awareness
 Top-of-the-Mind Awareness
 Beliefs
 Attitude
 Purchase Intent
 Trial Usage
 Repeat Purchase
 Brand Switching
 Brand Loyalty
 Increasing the Frequency of Use
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COMMUNICATIONS vs. SALES OBJECTIVES
– Increase Awareness of Brand Name to 40% of All Consumers in
Western US
– Create Trial Use by 15% of all Teenagers 13-15
– Communicate Superior Brand Performance Features to Target
Audience with Series of Advertisements over Next Six Months
CHARACTERISITICS OF WORKABLE PROMOTIONAL
OBJECTIVES
– Establish Quantitative Benchmark
– Specify Measurement Methods & Criteria or Success
– Specify a Time Frame
BUDGETING - METHODS
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Percentage-of-Sales Approach
Unit-of-Sales Approach
Share of Market/Share of Voice
Funds Available
Objective & Task
BUDGETING FOR ADVERTISING
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Marketing Research
Message Research
Production Costs: Production Companies, Talent,
Site Costs
Media Costs
Agency Commissions/Fees
Account Personnel Travel Expenses
BUDGETING FOR SALES
PROMOTION
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Coupon Value and Dealer Handling Charges
Contest and Sweepstakes Material and Charges
Brochures and Collateral Material
Trade Shows & Exhibits
Trade Channel Partner Meeting & Entertainment
Premiums
Point-of-Purchase Materials
Trade Allowances
Trade Incentives
Trade Training Programs
Refunds/Rebates
3.17
Premiums—Like This One
Offered by Jell-O—Must be
Factored into Budget Planning
for Promotion
3.15
BUDGETING FOR DIRECT
MARKETING
• Uses a Simple Cost-Based Method
• Exact Bids Obtained - Printing, Sorting,
Bundling & Mailing for Print Campaigns
• Bids Obtained for Telemarketing,
Infomercial or Catalog Selling from
External Facilitators
Budgeting for Direct Marketing
Needs to Consider the Cost of
Printing and Mailing Materials
3.17
BUDGETING FOR WEBSITES &
BANNER ADS
• Costs for Web Sites - $30K to $100K
• Costs for Banner Ads - $10 CPM to $30 CPM
BUDGETING FOR PUBLIC RELATIONS
• Most Difficult of All Budgets to Set - Most
Expensive Public Relation Occurs During Crises
• Most PR Firms Work on Retainers - Set on an
Annual Basis
BUDGETING FOR PERSONAL SELLING
Recruiting Costs
• Training Costs
• Travel Expenses
• Promotional Material - Samples, Catalogs, Product
Brochures
• Salaries & Benefits
• Incentive Programs - Bonuses & Rewards
STRATEGY
• Mechanism by which Something is Done
• Account Planner Assists in Strategy
– Works in Advertising Agency & Synthesizes all
Relevant Audience Research to Formulate
Promotional Strategy
EVALUATION
• Marketer Determines How
Promotional Program has Performed
- Factor by Factor
• Main Basis for Evaluation Communications and Sales
Objectives Set for the Program
Evaluation of the IMC Program Will Include the Effect
on Sales of Various Promotional Tools
IMC Management & Planning
STRATEGIC PLANNING OF IMC IS DIFFERENT FROM
TRADITIONAL USE OF MULTIPLE PROMOTIONAL TOOLS
• Outside-in Approach
• IMC Management Planning Requires Comprehensive
& Detailed Knowledge
– Customers
– Prospects
• Knowledge about Customer & Prospects
• IMC Management Plan - Built Around Brand Communications
• Control of IMC Management & Planning - Centralized
– Firms Appointing IMC or Marcom Managers
MODEL OF IMC MANAGEMENT &
PLANNING
• IMC Model Considers Complete Process
– Uses Promotion to Communicate to Target Markets
– Effectively Deploys Promotional Tools
– Corporate & Marketing Plans - Understood and Adopted as
Part of IMC Plan
– Databases - Help Identify & Profile Target Markets
– Promotional Objective - Dictate Mix of Promotional Tools
to Pursue for each Target