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8/8/2019 MBA2210 MKM 8 Promotion Chapter 10
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Jonathan Groucutt 2006 Foundations of Marketing 1
The Marketing Mix
Week 8 Chapter 10: Promotion
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Jonathan Groucutt 2006 Foundations of Marketing 2
Learning Outcomes
Explain and critically evaluate the variouscommunication models.
Critically evaluate the different types of promotionalactivities organisations can use
Discuss the different models used in persuading aconsumer to purchase a product or service.
Evaluate the concept of integrated marketing
communications. Understand the elements of pricing as it
relates to the marketing mix
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Jonathan Groucutt 2006 Foundations of Marketing 3
4 key Promotional Objectives
Creating a primary demand or market especially when introducingnew product or creating new market
Creating brand awareness tactical re features & benefits especiallyin saturated markets where risk of new entrants is high & competitionfierce
Enhancing attitudes and influencing intentions seeking a positiveview to create the right attitude. Psychologically linking customersneeds, wants and desires to how the product will benefit the customer
Facilitating purchase making it easy to purchase. The more intense
the promotion the higher the risk of failing to meets customersexpectations
The promotional objectives must link effectively & efficientlywith the marketing mix elements to achieve lifecycle equity & brand
awareness. Adapted from Groucott, J
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Jonathan Groucutt 2006 Foundations of Marketing 4
Communication Model (after Schramm, 1955)
Field of experience Field of experience
Sender Encoder Signal Decoder Receiver
Noise
Schramm believed that the communication only occurs whenthe Field of experience of the sender and receiver overlaps,however we communicate with people with little or norequivalent field of experience. Communicating knowledgewhich can be easily understood is critical to the process of
promotion as a marketing tool.
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Jonathan Groucutt 2006 Foundations of Marketing 5
Communication Feedback
Communication feedback provides
A discussion, comment and analysis of the issue(s)
being communicated.
A mechanism for clarification of points and issues
e.g. focus groups.
A critical response to the message, which could be
translated, e.g into a boycott of a product or service.
A positive response to the message, e.g increase in
purchases
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Jonathan Groucutt 2006 Foundations of Marketing 6
Communication Noise:
elements which lead to distortion of thecommunication message
This can be described as the interruptions or distortions thatinfluence the communications process or understanding of themessage. Noise can be:
Physical does the train block your view?
Semantic words linked to culture a risky business!
Competitive often unethical use of tactics by onecompany to distort how customersinterpret messages from other companies
Channel
overload world cluttered by communication signals!
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Jonathan Groucutt 2006 Foundations of Marketing 7
Promotional Strategy & Tactics
Advertising Direct marketing
Sales promotion - Sponsorship Product placement Merchandising
Public relations Word of mouth Exhibitions
Advertising is not a new concept
consider cave drawings!
Promotional strategies andtactics can be stand-alonetactics or part of anintegrated strategy. Thedecision of which to usemust be based on how
best to use the tactic ortactics to achieve thepromotional objectives
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Jonathan Groucutt 2006 Foundations of Marketing 8
Advertising
Advertising can be describedas:
A paid for communication vehicle
that is intended to inform,
influence and/or persuade one or
more individuals (to take action).
2006 Jonathan Groucutt
3 basic functions:
InformPersuade
Sell
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Jonathan Groucutt 2006 Foundations of Marketing 9
AIDA Model (afterLewis 1898)
o itio
Affe t
o atio
Atte tio
I terest
Desire
A tio
Seque i models k owas the Hierar hy of Effe ts(Barry 1987) have beedeveloped over the years.
Early Developme t - 1898
Moder Developme t - 1961
halle e & Defe e Phase
- 1973
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Jonathan Groucutt 2006 Foundations of Marketing 10
Types of Advertising
Primary
Range
Selective
Primary
stimulate demand
Selective product or
service
focus on single brand with
no reference to corporateidentity
Product or service range
highlights the features and
benefits
Institutional
Promoting CorporateIdentity, Image and Values
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Jonathan Groucutt 2006 Foundations of Marketing 11
Types of Advertising Media
Daily newspapers
Local and regional
newspapers Consumer
magazines
Trade and
professionalmagazines
Customer magazines
Television
Cinema
Radio Outdoor billboard
Ambient
Internet - Online
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Jonathan Groucutt 2006 Foundations of Marketing 12
Outdoor or Billboard Advertising
Usually strategically locatednear high-density areas. Thushigh visibility.
Can be static or moving changing from oneadvertisement to another.
Can incorporate lighting andeffects.
Can vary in size.
Can be restricted by localgovernment location, size andsubject.
2006 Jonathan Groucutt
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Jonathan Groucutt 2006 Foundations of Marketing 13
Using a celebrity as aBrand Ambassador
Clarity needed of what
own brand is and whichcharacteristics thecelebrity stands for
Synergies need to beachieved
Which characteristics isthe celebrity going toadvertise?
David Beckham has deals with:Adidas,Gillette, Got Milk?, Marks &Spencer, Pepsi, Snickers, TBCCosmetics,Vodafone
Celebrity endorsements
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Jonathan Groucutt 2006 Foundations of Marketing 14
Ambient Media
Aerial - e.g. airships, balloonsGiveaway cards e.g featuring an event, product or service
Maps e.g. tourist maps carry adverts for local products & services
Taxis e.g exterior and interior advertisements
Tickets e.g cinema ticket with soft drink advert on the reverse
Trolleys e.g airport, supermarket & train trolleys carry adverts
Washrooms e.g one of the fastest growing forms of ambient advertising
Others carrier bags, pavements, rubbish bins, lamp posts, petrol pumps,fast-food cartons, etc.
But beware Guerilla fly-posting!
Sony & BMG both engaged in fly-posting in 2004 saving an estimated totalof 8m in advertising costs by using unauthorised poster sites ASBOS!
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Jonathan Groucutt 2006 Foundations of Marketing 15
Online Concerns
Credit card fraud
Cloning of sites
Data protection
Quality and delivery of goodspurchased
Trust in suppliers
Spamming (US 9 million per month
2003)
Viruses worms and Trojan horses Hackers
Pop-ups
Failure of computing networks
Internet
sales by UK
businesses
rose to163bn in
2007 (Office
of National
Statistics
SO
whats the
problem?
Banner
Button
Button
Banner
Pop - up
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Jonathan Groucutt 2006 Foundations of Marketing 16
Shock Advertising
(shockvertising)
The inclusion of frightening, visceral, offensive,
taboo an emotion-provoking imagery and words to
promote a product, service, concept or idea.(Groucott, J)
BENEFIT: Can be used to cut through thecommunication clutter.
DANGER: But society can become immune toissues and offensive media advertising.Or Society can raise complaints againstthe advertisers
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Jonathan Groucutt 2006 Foundations of Marketing 17
Direct Marketing
Tapp (1998) suggest that:
Direct marketing focuses on using a
database to communicate (andsometimes distribute) directly tocustomers so as to attract a directresponse.
An example ofdistribution cited above isonline airline tickets.
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Jonathan Groucutt 2006 Foundations of Marketing 18
Advantages of Direct Marketing
Organizations have the opportunity to
track single and/or segmented groupsof customers via their database
Opportunity for a dialogue
Opportunity for enhancedcustomization
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Jonathan Groucutt 2006 Foundations of Marketing 19
Direct Marketing Techniques
Door drops (door-to-door distribution)
Door-to- door selling Inserts
Newspapers
Magazines
Bills/invoices Bank/credit card
statements
Direct mail
Physical mail
Telemarketing
Outbound
Inbound
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Word of Mouth =Viral or contagion Marketing
people like to share their experiences with one another..and when those are favourable, the recommendations cansnowball, resulting in runaway success..[this can be dubbed]
self-generating demand.Dye, R. (2000) The buzz on buzz. Harvard Business Review, Vol 78 No 6. pp:139 148.
these viral ambassadors can be valuable, low-cost avenues
for building existing relationships, recruiting new customers andkeeping old customers happy for life
Blackshaw, P. (2001) Viral consumers. Executive Excellence. July Vol 18 No 7. p: 20.
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Jonathan Groucutt 2006 Foundations of Marketing 21
Product Placement
This is where a product or service appearswithin a television programme or movie
It is also known as: Alternative Advertising
Entertaining Marketing
Product or Brand Integration
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Jonathan Groucutt 2006 Foundations of Marketing 22
Product Placement Objectives
Overcome Noise attempts to break throughthe clutter
Local and global reach
Cost-effectiveness andfrequency
Helps to build a brands
awareness exposurefor new brands.Reinforces currentbrands
Positive association think of wearing the sameOmega watch as JamesBond?
Helps to build brandloyalty develops fromthe positive association.Buy the watch and
become loyal to thebrand.
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Jonathan Groucutt 2006 Foundations of Marketing 24
A New Version of Product Placement
Product Parody Companies are increasingly
working with TV and moviecompanies on brand parodies. It
is believed that this might be away to find a niche within thegrowing product placementmarket.
The key is that the consumer can
recognize the the brand that isbeing parodied so that they canbuy into the brand.
Examples:
Shrekand Shrek 2: Farbucks for Starbucks
VERSARCHERY forVersace (clothes)
Basking Robinhood forBaskin Robbins (ice
cream)
Tower of London Recordsfor Tower Records
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Jonathan Groucutt 2006 Foundations of Marketing 25
Sponsorship
Sponsorship is acontribution to anactivity by a commercial
organization in cash, orin kind, with theexpectation of achievingcorporate andmarketing objectives.
Berrett, T.(1993) The sponsorship of amateursport government, national sport organizationand corporate perspectives. Society andLeisure, 16. pp: 323 346.
2006 Jonathan Groucutt
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Jonathan Groucutt 2006 Foundations of Marketing 26
Potential Benefits of Sponsorship
The value of the association itself for
example, arts festivals or acharity.Thus can enhance reputations.
Exposure can be global. Consider,for example, the global audience forFormula 1 racing, football matches, etc
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Jonathan Groucutt 2006 Foundations of Marketing 27
Growth of Sponsorship
Different from traditional advertising and marketing.Can be used to breakthrough the clutter of traditionaltechniques.
Creation of favourable association. The physical andemotional link with the sponsored organization.
Overcomes cultural barriers. Consider Sport, Artsand Music.
Wide and multiple target audience appeal.
Can overcome legal barriers For example,Alcopops!
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Jonathan Groucutt 2006 Foundations of Marketing 28
Types of Sales promotion
Free samples
Money-off coupons
Extra value offers More product for the
same price
Addition products addedto the pack
Buy One Get One Free
Special offer bins or shelves
Bundling Privilege points
SALES PROMOTION can be used to: Promote a new product or service.
Reinvigorate interest in an established product or service.
Discount a product or service due to, for example, overstocking orto increase off-peak sales.
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Jonathan Groucutt 2006 Foundations of Marketing 29
Exhibitions & their value
Can be B2B or B2C
Can be large events
Can be niche markets
Attendees are receptive to what exhibitors have tomarket
Cost of lead generation is relatively low
Target audience Quality audience
Time spent
Launch potential
VALUE
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Jonathan Groucutt 2006 Foundations of Marketing 30
What is PR?
The Chartered Institute of Public Relations (UK) definition
the planned and sustained effort to
establish and maintain goodwill and mutualunderstanding between the organization and its publics.
Image
ReputationInformation
Communication
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Jonathan Groucutt 2006 Foundations of Marketing 31
Public Relations Publics
Direct They have a direct
relationship with the
organization orindividual
Employees
Customers
Suppliers
Competitors Local community
The media
Indirect
Individuals ororganizations thatmay be influenced bythe actions of anorganization orindividual. For
example, proposedregulations.
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Jonathan Groucutt 2006 Foundations of Marketing 32
Scope of Public Relations
Corporate relations
Community relations
Customer relations Employee relations
Industrial relations
Governmentrelations
Issues management
Investor relations
Market or supplychain relations
Media relations
New product andservice launches
Promotion
Public affairs
Publicity
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Jonathan Groucutt 2006 Foundations of Marketing 33
Merchandising & Examples
A university this can beeverything from pens toumbrellas.
A movie consider the Star
Wars sagas. Everythingfrom the book the makingof to toys not onlypromotes the movie but isalso revenue generating.
A City reflects the cityspast and present.
An airline from postcards
of planes to videos. Food manufacturers
Heinz produce a rangefrom watches to footballs. Allwith the distinctive logo.
The creation of a range of products that reflect an organizationsbrand. These are in turn marketing to raise the profile of the
original brand.
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Jonathan Groucutt 2006 Foundations of Marketing 34
Further Readings
Dye, R. (2000) The buzz on buzz. Harvard BusinessReview, Vol 78 No 6. pp:139 148.
L. Percy & R. Elliott (2005) Strategic Advertising
Management, 2nd ed. , Oxford University press.Vaughn, R. (1980) How advertising works: a planningmodel. Journal of Advertising Research 20 (October)pp: 27-33.
Chartered Institute of Public Relations: www.cipr.co.uk
Public Relations Society of America: www.prsa.org
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Jonathan Groucutt 2006 Foundations of Marketing 35
Next Session
Pricing Tactics (ch.11)
People (ch.12)
2006 Jonathan Groucutt
2006 Jonathan Groucutt