Transcript The Promotional Mix

THE TOOLS OF MARKETING
COMMUNICATIONS:
THE PROMOTIONAL MIX
Topic 2
The Communications Process
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An effective promotional message
accomplishes three tasks:
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It gains the receiver’s attention
It achieves understanding by both receiver
and sender
It stimulates the receiver’s needs and
suggests an appropriate method of
satisfying them
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AIDA concept (Attention-InterestDesire-Action) – an explanation of the
steps through which an individual
reaches a purchase decision
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Sender
Encoding
Channel
Decoding
Response
Feedback
Noise
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Table 15.1

Relating Promotion to the Communication Process
THE PROMOTIONAL MIX
TOOL 1: ADVERTISING
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Paid, non personal
communication through
various media by a
business firm, not-forprofit organization, or
individual identified in
the message with the
hope of informing or
persuading members of
a particular audience
ADVERTISING
Three Ways to Add Value to Offerings:
1.
2.
3.
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Innovating
Improving quality
Altering consumer perspectives
Advertising adds value to brands by
influencing consumers’ perceptions.
Good or Effective Advertising:
Extends from sound marketing strategy
 Takes the consumer’s view
 Is persuasive
 Finds a unique way to break through
competitive clutter
 Never promises more than it can deliver
 Prevents the creative idea from overwhelming
the strategy
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THE FORMS OF ADVERTISING
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Television – good mass coverage, low coat per exposure,
appeals to senses. But .... High absolute cost, high clutter,
fleeting exposure
Newspapers – flexibility, timeless, good local dimension, high
believability. But ... Short life, poor reproduction quality,
small audience
Direct Mail – High selectivity, flexibility, no ad competition,
personalisation. But ... High cost per exposure, junk mail
Magazines – geographic and demographic selectivity,
credibility, prestige, good reproduction quality. But ... Long ad
to purchase lead time, high cost
Radio – Local dimension, geographical and demographic
sensitive, low cost. But ..Audio only, low attention, fragmented
Outdoor – Flexibility, repeat exposure, low cost, positional
selectivity. But ... Little audience selectivity, creative limits
Internet – high selectivity, low cost, immediacy, interactive.
But ... Low impact, audience controls exposure
Six Major Activities of Advertising Strategy
4. Planning
Message
Strategy
1. Objective
Setting
2. Budgeting
3. Positioning
Six Major Activities
of Advertising
Strategy
5. Developing
Media
Strategy
6. Assessing
Advertising
Effectiveness
Objective 6A
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
1. Setting Objectives:
a.
b.
c.
agree a course for advertising planning & the
tasks it is to accomplish for a brand.
Guides budgeting, message creation, and
media selection.
Provides standards to measure results
2. Budgeting
 Setting budgets: judgment, experience, rulesof-thumb.
 Percentage-of-sales method
 Objective-and-task method
3. Positioning
 Positioning establishes how the brand is to be
thought of by members of the target market
and how the brand is to be perceived relative
to competitive brands in the product category.
4. Planning Message Strategy
 Several advertising techniques:
Informational ads, emotional ads, sex appeals, and
celebrity endorsements.
5. Developing Media Strategy
 Successful = targeted media
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Target audiences are selected based on:
 Demographic considerations
 Psychographic considerations
 Geographic factors
 Buyographic considerations
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Advertisers have a variety
of media from which to
choose:
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Major mass media
Out-of-home media
“Alternative” media
Online advertising
Point-of-purchase
advertising
TV, Radio, Print, Outdoor
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Four objectives are
fundamental to media
planning:
Reach
2. Frequency
3. Timing
4. Cost
1.
6. Assessing Advertising Effectivness
 Only by evaluating results is it possible to
determine whether advertising objectives have
been accomplished.
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Clipping services- outside vendors track all
advertisements in trade publications that are
directed at potential buyers in a particular line of
business.
Message Strategy:
Objectives and Methods
Promote brand recall
Link a key attribute to
the brand name
• Repetition ads
• Slogan and jingle ads
• Unique selling
proposition (USP) ads
OBJECTIVES OF ADVERTISING
Promote Recall - repetition
 Persuade the Consumers –USP, information,
testiomionials
 Link a key attribute to the brand name
 Affective Association: Feel-Good Ads (Barry’s
Tea), Humour (, Sex Appeal
 Scare Consumer Into Action
 Transform Consumption Experience
 Define Brand Image
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Master Card – Priceless to create Recall
 Defining Brand Image – Guinness
 Humour Ad’s -HSBC
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TOOL 2: SALES PROMOTION
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Sales Promotions are the use of any incentive by
a manufacturer to induce the trade (wholesalers
and retailers) and/or consumers to buy a brand
and to encourage the sales force to aggressively
sell it.
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Marketing activities that
stimulates consumer
purchasing (includes: displays,
trade shows, coupons,
premiums, contests, product
demonstrations, and various
non recurrent selling efforts)
Trade promotion
Big Al’s
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Promotional Activity –
competition for a family
holiday
A Shift from Advertising to Sales Promotion
Pull-oriented
Marketing
Push-oriented
Versus
Marketing
Objective 6B
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Factors accounting for Shift:
3.
Balance of power transfer
Increased brand parity and price sensitivity
Reduced brand loyalty
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Rising costs of advertising and advertising “clutter”
1.
2.
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Increased impulse purchasing
Respectability
Competitor activity
Measurability
ROLES AND OBJECTIVES
OF SALES PROMOTIONS
1.
2.
3.
4.
5.
Facilitating the
introduction of new
products to the trade.
Obtaining trial purchases
from consumers.
Stimulating sales force
enthusiasm for new,
improved, or mature
brands.
Invigorating sales of a
mature brand.
Increasing on- and offshelf merchandising
space.
6. Neutralizing competitive
advertising and sales
promotion.
7. Holding current users by
encouraging repeat
purchases.
8. Increasing brand usage
by loading consumers.
9. Preempting competition
by loading consumers.
10. Reinforcing advertising.
TYPES OF SALES PROMOTIONS
a. Trade Promotions: are directed at wholesalers,
retailers, and other marketing intermediaries,
and represent the first step in any promotional
effort.
OBJECTIVES FOR USING TRADE-ORIENTED
SALES PROMOTIONS:
1.
2.
3.
4.
5.
6.
7.
8.
9.
To introduce new or revised products
To increase distribution of new packages or sizes
To build retail inventories
To maintain or increase the manufacturer’s share of
shelf space
To obtain displays outside normal shelf locations
To reduce excess inventories and increase turnover
To achieve feature space in retailers’ advertisements
To counter competitive activity
To sell as much as possible to final consumers
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Trade Allowances
Off-invoice Allowance- by using off-invoice
allowances, manufacturers hope to increase retailers’
purchasing of the manufacturer’s brand and increase
consumers’ purchasing from retailers.
 Forward buying
 Diverting
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Trade Shows- a temporary forum for sellers of
a product category to exhibit and demonstrate
their wares to present and prospective buyers.
b. Consumer Promotions encourage consumers to
purchase one brand over another, to purchase a
particular brand more often, and to purchase in
larger quantities through activities such as
sampling, couponing, sweepstakes, and contests.
DANGERS OF SALES PROMOTIONS
Short lived (“Top hat” effect)
 Erosion of brand loyalty
 Downward spiral
 Erosion of brand image
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TOOL 3: PUBLIC RELATIONS
PR is the MarCom tool that is uniquely suited to
fostering goodwill between a company and its
various publics.
 It can also increase brand awareness, build
favorable attitudes toward a company and its
products, and encourage purchase behavior.
 Publicity: stimulation of demand for good,
service, place, idea, person, or organization by
unpaid placement of commercially significant
news or favorable media presentations
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Proactive MPR is another MarCom tool in
addition to advertising and sales promotion
that can give a brand additional exposure,
newsworthiness, and credibility.
 Reactive MPR is undertaken as a result of
external pressures and challenges brought by
competitive actions, changes in consumer
attitudes, changes in government policy, or
other external influences.
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HARRY POTTER
TOOL 4: SPONSORSHIP
Sponsorships range from supporting athletic
events to throwing corporate weight behind a
worthy cause.
 Event Marketing:
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companies invest in some sort of event sponsorship.
 incorporates elements from all of the promotional
tools.
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Cause Related marketing
Four Factors account for the growth in
sponsorships:
1.
2.
3.
4.
Enables companies to avoid the clutter
inherent in advertising media
Helps companies respond to consumers’
changing media habits
Helps companies gain the approval of various
constituencies
Enables marketers to target their
communication and promotional efforts to
specific regions or groups
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How Sponsorship Differs from Advertising
Sponsor’s degree of control
 Nature of the message
 Audience reaction
 Ambush marketing
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TOOL 5: PERSONAL SELLING
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See Topic Personal Selling and Sales
Management
Examples of IMC
Jameson IMC in New York
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Coordinated St. Patrick’s Day promotional
radio news push
international distribution of a Video News Release
feature articles in leading beverage trade
publications
Hired Celebrity Party Planner to endorse and
deliver brand message
media exposure on national and local television,
radio, print and online media
national media tour to key markets
Sponsorship of the New York Underground Film
Festival - 70% increase in the trial of Jameson
among 25 to 35’s Developed relationships with
leading New York City nightclubs.
THE MATRIX IN ASIA
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TV, Print
Samsung & Matrix
Reloaded
Bought all signage in
train stations for 2 days
in Tokyo
Wrapped a 10 storey
building in Singapore
Online sweepstakes
Merchandising – free
gifts etc
Total budget $100 (TV,
Print, Outdoor, online)
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http://bravia.sony.eu/balls/welcome_balls.html
http://video.google.com/videoplay?docid=7187335
191952779612
http://www.aglassandahalffullproductions.com/#/
home/
http://www.utalkmarketing.com/Pages/CreativeS
howcase.aspx?ArticleID=12888&Filter=0&Keywo
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'250_Years'