Decisions+ +Session+2

8/14/2019 Decisions+ +Session+2

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Promotion DecisionsPromotion Decisions

Presented byM S BalajiIcfai BusinessSchool


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RecapRecap

Promotion Informing, persuading, & reminding.Promotion Informing, persuading, & reminding.

The new elements in promotional mix The new elements in promotional mix

events/experiences and direct marketing.events/experiences and direct marketing.

The macromodel of communication process.The macromodel of communication process.

The micromodels of consumer response AIDAThe micromodels of consumer response AIDA


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Promotion - EffectivenessPromotion - Effectiveness

Big TV1Big TV1

Big TV2Big TV2

Big TV3Big TV3


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Effective CommunicationsEffective Communications

Step 1. Identifying the Target Audience

Step 1. Identifying the Target Audience

Brand Purchase intention

Brand Attitude

Brand Awareness

Category Need

Step 2. Determining the Communication Objectives

Step 2. Determining the Communication Objectives


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Message Source

Expertise,

Trustworthiness,

Congruity

Step 3. Designing the Message

Step 3. Designing the Message

Message Format

Headline, Layout,

Words, & Sounds,

Body Language

Message Content

Rational Appeals

Emotional Appeals

Moral Appeals


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Step 4. Select Communications Channel

Step 4. Select Communications Channel

Nonpersonal Communication

Channels

Personal Communication

Channels


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Step 5. Establish the BudgetStep 5. Establish the Budget

Competitive-

Parity

Objective-and-

Task

The All-

You-Can-

Afford

Percent-of-

Sales Method

Cooperative

Promotional

Program

The Marginal

Approach


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Step 7. Measure ResultsStep 7. Measure Results

Step 8. Manage the IMC ProcessStep 8. Manage the IMC Process

Step 6. Decide on the Communication MixStep 6. Decide on the Communication Mix


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IMCIMC

A planning process designed to assure thatA planning process designed to assure that

allall brand contacts received by a customer orcontacts received by a customer or

prospect for a product, service, or organizationprospect for a product, service, or organization

are relevant to that person and consistent overare relevant to that person and consistent over

time.time.


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10

Factors affecting Promotional MixFactors affecting Promotional Mix

Nature of ProductNature of Product

Stage in PLCStage in PLC

Target Market FactorsTarget Market Factors

Type of Buying DecisionType of Buying Decision

Promotion FundsPromotion Funds

Push or Pull StrategyPush or Pull Strategy

FactorsFactors

AffectingAffecting

Choice ofChoice of

Promotional MixPromotional Mix

FactorsFactors

ffectingffecting

Choice ofhoice of

Promotional MixPromotional Mix


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11

Nature of the ProductNature of the Product

Product characteristicsProduct characteristics Business product vs. consumer productBusiness product vs. consumer product

Product complexityProduct complexity

Social risk Melina Gates Foundation + BBCSocial risk Melina Gates Foundation + BBC

Factors that influence promotional mixFactors that influence promotional mix


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PLC and the Promotional MixPLC and the Promotional Mix

LightAdvertisi

ng, pre-introductionPublicity

Heavy useof

advertising,PR forawareness

;sales

AD/PRdecrease

LimitedPromotion,Personal

Sellingfor

Adsdecrease.

SalesPromotion,PersonalSelling

Reminder&

Advertising,PR, Brand

loyaltyPersonalSelling fordistribution

IntroductionIntroductionGrowthGrowth MaturityMaturity

DeclineDecline

Sales

($)

S

ales

($)

TimeTime

SaturationSaturation


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13

Target Market CharacteristicsTarget Market Characteristics

FOR:

Widely scatteredmarket

Informed buyers

Repeat buyersAdvertisingSales Promotion

Less Personal Selling


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14

Type of Buying DecisionType of Buying Decision

Advertising

Sales PromotionType ofType of

Buying DecisionBuying Decisionaffectsaffects

PromotionalPromotional

Mix ChoiceMix Choice

Type ofType of

Buying DecisionBuying Decisionaffectsaffects

PromotionalPromotional

Mix ChoiceMix Choice

ComplexComplexComplexComplex

RoutineRoutineRoutineRoutine

Personal Selling

Not RoutineNot Routineor Complexor Complex

Not RoutineNot Routineor Complexor Complex

Advertising

Public Relations


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15

Available FundsAvailable Funds

Trade-offs with funds availableTrade-offs with funds available

Number of people in target marketNumber of people in target market

Quality of communication neededQuality of communication needed

Relative costs of promotional elementsRelative costs of promotional elements


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16

Push and Pull StrategiesPush and Pull Strategies

ManufacturerManufacturer

promotes topromotes to

wholesalerwholesaler



wholesalerwholesaler

WholesalerWholesaler


retailerretailer



retailerretailer

RetailerRetailer


consumerconsumer

RetailerRetailer


consumerconsumer

ConsumerConsumer

buys frombuys from

retailerretailer

ConsumerConsumer

buys frombuys from

retailerretailer

Orders to manufacturer

ManufacturerManufacturerpromotes topromotes to

consumerconsumer



consumerconsumer

ConsumerConsumer

demandsdemandsproductproduct

from retailerfrom retailer

ConsumerConsumer


from retailerfrom retailer

RetailerRetailer


from wholesalerfrom wholesaler

RetailerRetailer


from wholesalerfrom wholesaler


demandsdemandsproduct fromproduct from

manufacturermanufacturer


demandsdemandsproduct fromproduct from

manufacturermanufacturer

Orders to manufacturer


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Identify the Target AudienceIdentify the Target Audience

Profile the target audience or the target segment.Profile the target audience or the target segment.

Who are they? What experiences do they have? WhatWho are they? What experiences do they have? What

do they want to accomplish?do they want to accomplish?

Product usage - light/moderate/heavy userProduct usage - light/moderate/heavy user

Brand loyalty loyal or switcherBrand loyalty loyal or switcher

New to category or current userNew to category or current user

Image Analysis Assess the current image of theImage Analysis Assess the current image of the

company, its products, and its competitorscompany, its products, and its competitors


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Communication ObjectiveCommunication Objective

Category Need:- Establish a product or serviceCategory Need:- Establish a product or service

category to remove or satisfy a perceivedcategory to remove or satisfy a perceived

discrepancy between a current motivationaldiscrepancy between a current motivational

state and a desired emotional state e.g.state and a desired emotional state e.g.

Reliance Net Connect.Reliance Net Connect.

Brand Awareness:- Ability to identify (recall orBrand Awareness:- Ability to identify (recall or

recognize) the brand within the category inrecognize) the brand within the category in

sufficient detail to make a purchase.sufficient detail to make a purchase.
http://images.google.com/imgres?imgurl=http://media.nowpublic.net/images/ff/d/ffd953e8465699d34af15f10b8537e7d.jpg&imgrefurl=http://www.nowpublic.com/hutch_a_k_a_fat_dog__&h=476&w=635&sz=117&hl=en&start=19&um=1&usg=__d-tp1FdtzZ5mXqDdcN2Ap9GnfAs=&tbnid=HdEHxWHn_ZSHZM:&tbnh=103&tbnw=137&prev=/images?q=Hutch+dog&um=1&hl=en&rlz=1T4TSHB_enUS239US239http://images.google.com/imgres?imgurl=http://media.nowpublic.net/images/ff/d/ffd953e8465699d34af15f10b8537e7d.jpg&imgrefurl=http://www.nowpublic.com/hutch_a_k_a_fat_dog__&h=476&w=635&sz=117&hl=en&start=19&um=1&usg=__d-tp1FdtzZ5mXqDdcN2Ap9GnfAs=&tbnid=HdEHxWHn_ZSHZM:&tbnh=103&tbnw=137&prev=/images?q=Hutch+dog&um=1&hl=en&rlz=1T4TSHB_enUS239US239http://images.google.com/imgres?imgurl=http://media.nowpublic.net/images/ff/d/ffd953e8465699d34af15f10b8537e7d.jpg&imgrefurl=http://www.nowpublic.com/hutch_a_k_a_fat_dog__&h=476&w=635&sz=117&hl=en&start=19&um=1&usg=__d-tp1FdtzZ5mXqDdcN2Ap9GnfAs=&tbnid=HdEHxWHn_ZSHZM:&tbnh=103&tbnw=137&prev=/images?q=Hutch+dog&um=1&hl=en&rlz=1T4TSHB_enUS239US239


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Communication ObjectiveCommunication Objective

Brand Attitude:- Evaluation of the brand withBrand Attitude:- Evaluation of the brand with

respect to its perceived ability to meet a currentrespect to its perceived ability to meet a current

relevant need. E.g. Anacinrelevant need. E.g. Anacin

Brand Purchase Intention:- Self-instructions toBrand Purchase Intention:- Self-instructions to

purchase the brand or to take purchase relatedpurchase the brand or to take purchase related

action. E.g. couponsaction. E.g. coupons

Promotional offer (coupon)of 15-25% off on the

Electrolux range of productsreceived from Westside.


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Message ContentMessage Content

Relates to how youRelates to how you

communicate the product orcommunicate the product or

service.service.

Rational appeal elaborates onRational appeal elaborates on

product or service attributeproduct or service attribute

Emotional appeal Non-product

related benefit or image.

Moral appeal Social

responsibility towards the society or

ublic
http://images.google.co.in/imgres?imgurl=http://www.domain-b.com/companies/companies_b/bajaj_allianz/images/bajaj_allianz_logo.gif&imgrefurl=http://www.domain-b.com/people/interviews/20030101_future.htm&h=69&w=100&sz=4&hl=en&start=8&um=1&usg=__vrj8mY84FZj2irVf5v5zTkLnUIk=&tbnid=Qj0OzudjyMRiVM:&tbnh=57&tbnw=82&prev=/images?q=bajaj+allianz+motor+insurance&um=1&hl=en&cr=countryINhttp://images.google.co.in/imgres?imgurl=http://www.newsandreviews.in/media/blogs/insurance/Motor%20Icon.JPG&imgrefurl=http://www.newsandreviews.in/index.php?blog=4&p=292&more=1&c=1&tb=1&pb=1&h=259&w=282&sz=10&hl=en&start=9&um=1&usg=__8KYSR99fpjiXX5CK5DQxX3lucaw=&tbnid=dm2zF6jAbhYCrM:&tbnh=105&tbnw=114&prev=/images?q=bajaj+allianz+motor+insurance&um=1&hl=en&cr=countryIN


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Communication ChannelsCommunication Channels

Personal communication channel involves two orPersonal communication channel involves two or

more persons communicating directly face-to-more persons communicating directly face-to-

face, person-to-audience, over the telephone, orface, person-to-audience, over the telephone, or

through e-mail.through e-mail. Advocate channels, Expert channels or social channelsAdvocate channels, Expert channels or social channels

are examples of personal communication channels.are examples of personal communication channels.

Nonpersonal communication channel areNonpersonal communication channel arecommunication directed at more than one personcommunication directed at more than one person

and includes media, sales promotion, etc.and includes media, sales promotion, etc.
http://images.google.co.in/imgres?imgurl=http://www.tribuneindia.com/2003/20030912/nat2.jpg&imgrefurl=http://www.tribuneindia.com/2003/20030912/nation.htm&h=184&w=276&sz=16&hl=en&start=39&um=1&usg=__QND40dEuyELCVzddMgK4O-Wpg6M=&tbnid=QfAqt3zbHk0I0M:&tbnh=76&tbnw=114&prev=/images?q=Amitabh+bachan+%2B+pulse+polio&start=21&ndsp=21&um=1&hl=en&sa=N


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Personal channelsPersonal channels

Steps to stimulate personal communication channelsSteps to stimulate personal communication channelsto work on the companies behalfto work on the companies behalf

Devote extra effort to influential individuals and

companies e.g. Ms. Sheila Dixit with the pulse polioimmunization.

Create opinion leaders by sampling or

other product usage e.g. Film critic Taran

Adarsh

Work through community influentials such as local radio

jockeys, municipal corporators, and presidents of local

business organizations e.g. Melina Gates Foundation + BBC forAIDS awareness with Radio Channels
http://images.google.co.in/imgres?imgurl=http://www.tribuneindia.com/2008/20080106/del2.jpg&imgrefurl=http://www.tribuneindia.com/2008/20080106/delhi.htm&h=187&w=225&sz=21&hl=en&start=9&um=1&usg=__zTvnELeZcaVBUq0B0PCTiJ-zZCk=&tbnid=Z8abg5tPAe1n5M:&tbnh=90&tbnw=108&prev=/images?q=Amitabh+bachan+%2B+pulse+polio&um=1&hl=en&sa=Nhttp://images.google.co.in/imgres?imgurl=http://www.tribuneindia.com/2008/20080106/del2.jpg&imgrefurl=http://www.tribuneindia.com/2008/20080106/delhi.htm&h=187&w=225&sz=21&hl=en&start=9&um=1&usg=__zTvnELeZcaVBUq0B0PCTiJ-zZCk=&tbnid=Z8abg5tPAe1n5M:&tbnh=90&tbnw=108&prev=/images?q=Amitabh+bachan+%2B+pulse+polio&um=1&hl=en&sa=Nhttp://images.google.co.in/imgres?imgurl=http://bp0.blogger.com/_jB8fXOs8gSE/RX5v6R7vd9I/AAAAAAAAAKg/XMIsuPM2Yw0/s320/radiomirchi_logo.jpg&imgrefurl=http://blog.telugu-world.com/2006/12/fm-radio-stations-in-hyderabad-review.html&h=163&w=314&sz=8&hl=en&start=2&um=1&usg=__zi7BXBqRNIOfKuaCovCR9P6t3TA=&tbnid=SvKSKYrCBkFVWM:&tbnh=61&tbnw=117&prev=/images?q=radio+mirchi&um=1&hl=enhttp://images.google.co.in/imgres?imgurl=http://wilsonfu.files.wordpress.com/2007/09/melinda-gates-photo.jpg&imgrefurl=http://wilsonfu.wordpress.com/2007/09/21/whos-alienating/&h=333&w=440&sz=19&hl=en&start=1&um=1&usg=__1LPLGtd7pVzJEsDFqllEqlpcd6k=&tbnid=5ivXF0oZuSLDBM:&tbnh=96&tbnw=127&prev=/images?q=melina+gates&um=1&hl=enhttp://images.google.co.in/imgres?imgurl=http://87.86.149.64/tadworth/file.php/1/bbc_logo_470_470x352.jpg&imgrefurl=http://87.86.149.64/tadworth/&h=352&w=470&sz=16&hl=en&start=2&um=1&usg=__qOdmhLcXNnM-SO8Mnwk1ohRWH9U=&tbnid=Om17QIiNpsluaM:&tbnh=97&tbnw=129&prev=/images?q=BBC&um=1&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.tribuneindia.com/2003/20030912/nat2.jpg&imgrefurl=http://www.tribuneindia.com/2003/20030912/nation.htm&h=184&w=276&sz=16&hl=en&start=39&um=1&usg=__QND40dEuyELCVzddMgK4O-Wpg6M=&tbnid=QfAqt3zbHk0I0M:&tbnh=76&tbnw=114&prev=/images?q=Amitabh+bachan+%2B+pulse+polio&start=21&ndsp=21&um=1&hl=en&sa=Nhttp://images.google.co.in/imgres?imgurl=http://www.tribuneindia.com/2008/20080106/del2.jpg&imgrefurl=http://www.tribuneindia.com/2008/20080106/delhi.htm&h=187&w=225&sz=21&hl=en&start=9&um=1&usg=__zTvnELeZcaVBUq0B0PCTiJ-zZCk=&tbnid=Z8abg5tPAe1n5M:&tbnh=90&tbnw=108&prev=/images?q=Amitabh+bachan+%2B+pulse+polio&um=1&hl=en&sa=Nhttp://images.google.co.in/imgres?imgurl=http://static.flickr.com/68/222188871_c4401afd6c_m.jpg&imgrefurl=http://greatbong.net/2006/08/22/kabhi-aage-kabhi-peeche-the-review/&h=116&w=95&sz=6&hl=en&start=3&um=1&usg=__ohA8WREYf2YoOVbgRDntuy-M2G4=&tbnid=TUO776rjVb8I8M:&tbnh=87&tbnw=71&prev=/images?q=taran+adarsh&um=1&hl=en&sa=N


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Personal channelsPersonal channels

Use influential or believable people in testimonialUse influential or believable people in testimonial

advertisingadvertising

Develop advertising with high conversationDevelop advertising with high conversationvalue.value.

Establish an electronic forumEstablish an electronic forum e.g. Zapake.g. Zapak

Use viral marketing - uses social networks toUse viral marketing - uses social networks to

create and spread brand awarenesscreate and spread brand awareness e.g. Hotmaile.g. Hotmail

signed up 12 million accounts within its first 18 monthssigned up 12 million accounts within its first 18 months


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www.zapak.com/forum_index.zpk

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Decisions+ +Session+2