Principles of Marketing L8

7/23/2019 Principles of Marketing L8

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Principles of Marketing L8Dr. Norman Peng

Sr. Lecturer in MarketingPromotion (IMC)


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Last week

Last week, we discussed Product and Pricing strategy. This week we talk about promotion

Promotion (IMC)

Promotion

(IMC)

AdvertisingSales

Promotion

DirectMarketing& Oter


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IMC

Integrated Marketing ommunications is the philosophy and practice of carefullycoordinatinga brand!s sundry marketingcommunications elements."

## Terrence $himp

Promotion (IMC)


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Old Perception

BOVE THE LINE(ADVERTISING)

BELOW THE LINEES PROMOTION & OTHER)

Through the line

Promotion (IMC)


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New Reality

I M

Pu!li"it#

Vir$lM$r%eting

S$lePro'otio

n

Sonorhi

Peron$lSelling

A*ertiing

Pu!li"Rel$tion

PR

Point+o,+Pur"h$e

Promotion (IMC)


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on%entional strengths of the communications &Mi'!

(d%ertising raises awareness

P) e%inces con%iction

$ales promotion causes purchase Personal selling causes purchase

*ragmentation and media channel

Promotion (IMC)


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Promotion (IMC) Advertising


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$uper bowl +-+

http//www.youtube.com/watch0%1#234*

56lo

Promotion (IMC)
http://www.youtube.com/watch?v=0-9EYFJ4Clohttp://www.youtube.com/watch?v=0-9EYFJ4Clohttp://www.youtube.com/watch?v=0-9EYFJ4Clohttp://www.youtube.com/watch?v=0-9EYFJ4Clo


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7efinition

(ny paid form of non#personal communication of ideas or products in the prime media Paid

on#personal

Identifiable sponsor

Intention to persuade9

Promotion (IMC)


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Promotion (IMC)

Ma:or Mass (d%ertising Media

$pending percentages by media type ;


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Media channels for (d%ertising

Channel Strength Limitation

National TV Large reach/sound!isual

"#pensi!e

Ca$le Precise/largereach/sound !isual "#pensi!e

Newspaper "#plain %uality/short li!ed

Maga&ine "#plain/synergy Not i''ediate

(ill$oard/outdoor "ye catching/cheaper )eographic restriction

Radio Inti'ate/i'agination Only has sound

Promotion (IMC)


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(d%ertising appeals

Talking head/straight sell

Press conference style

7ocumentary elebrity endorsement

Testimonial

egati%e/comparati%e


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Media planning

)each > of audiences

*re?uency > of times

ost#per#thousand > of audiences/cost

Promotion (IMC)


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)ole of ad%ertising# $trong theory $hort term as in bought the product withi

n @ days after saw the ad

$uccessi%e campaign 3ntertaining and amusing

Aisual rather than %erbal

Promotion (IMC)


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)ole of ad%ertising# $trong Theory (I7( ;high in%ol%ement=#

(ttentioninterestdesire action

(I(7 ;low in%ol%ement=# (ttentioninterestaction desire

Promotion (IMC)


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)ole of ad%ertising# Beak theory

$trong theory!s problem 3'posure and action

onstruct

Beak not as ineffecti%e but )epeat#purchase and mature market (dding information

Beak theory!s problem Measurement

Promotion (IMC)


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hallenges with ad%ertising

(d saturation

$electi%e e'posure

redibility

I know half of my ad%ertising dollars are

wastedC I :ust don!t know which half ;5ohn Banamaker=

Promotion (IMC)


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$ales Promotion

Promotion (IMC)


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*ales pro'otion de+inition

D&a direct inducement that offers an e'tra%alue or incenti%e for the product to the

sales force, distributors, or the ultimate consumer with the primary ob:ecti%e of creating an immediate sale!;Eelch and Eelch, +@=

Promotion (IMC)


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Pro'otions C,N-

$timulate sales force performance In%igorate a mature brand *acilitate new product introduction to tra

de eutraliFe competiti%e ad%/sp 3fforts Gbtain trial purchases H 3ncourage repea

t purchases )einforce ad%ertising

Promotion (IMC)


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Pro'otions C,N.T-

ompensate for poor sales force ompensate for ineffecti%e ad%ertising

Pro%ide long#term loyalty Permanently e'tend declining sales )e%erse negati%e brand/product attitudes

Promotion (IMC)


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Promotion (IMC)

Price#Gffs

Price#Gffs! Marketing Gb:ecti%es To promote trial

To get consumers to purchase larger ?ua

ntities than normal

To pro%ide the sales force with incenti%es

)elati%ely positioning and price/?uality trade#off


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Promotion (IMC)

Eonus Packs

Eonus Packs

(re e'tra ?uantities of a product that are offered for the same price

Gffer an alternati%e to price#off deals

Load current users thereby remo%ing them from the market


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Promotion (IMC)

James

Promotional James

Pro%ide an instant reward

reate e'citement, stimulate brand interest,and reinforce brand loyalty

(%oid direct price reduction and ha%e bettercontrol of the results


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Promotion (IMC)

)ebates and )efunds

)ebate ;also )efund=

)efers to the practice in which manufacturersgi%e cash discounts or reimbursements to consumers who submit proofs of purchase

7elay

phantom rebate

an attract switchers from competiti%e brand

s


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7M, Product Placement, P), a

nd $ponsorship

Promotion (IMC)


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7efinition ;7irect Marketing=

The distribution of products, informationand promotional benefits to target consumers through interacti%e communicationi

n a way that allows responses to be measured;5obber, p.K6@=

Promotion (IMC)


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Promotion (IMC)

&Modern! 7irect (d%ertising %ia Postal Mail

Postal Mail ;p#mail= (d%ertising

Letters, postcards, programs, calendars, folders, catalogs, %ideos, blotters, order blanks, pri

ce lists, and menus.

Bhy


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Promotion (IMC)

atalogs

3ffects of atalogs Two#thirds of recipients %isit cataloguer!s web

site

$ales to catalog recipients are -K greater atalog recipients buy more items and spend

more money


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atalogs ;continued=

(d%antages of


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Erand/product Placements

$trength and Beakness

*actors time, conte't, role

Promotion (IMC)


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Public )elations and IM

7efinition The planned and sustained effort to establish

and maintain goodwill and understanding bet

ween an organisation and its publics ;arrison, -22K, p. + in ackley, +K, p. -K=.

risis Management

Promotion (IMC)


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Toyota!s crisis +-

tt!"##$$$.to%ota.co.uk#recall#inde.tml'Promotion (IMC)


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$tories about risis Management $tories of failure

EP ;oil leak=

*irestone and *ord 3'plorer

$uccessful stories Tylenol ;-28+= and Mattel ;+@=

Promotion (IMC)


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Bord#of#Mouth Influence

7efinition BGM refers to unmediated communication

;strictly speaking=. ;ackely, +K, p.-+2=

(im creating buFF

Promotion (IMC)


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$ponsorship Marketing

$ponsorship Is an e'change between a sponsor Nsuch as a

brandO and a sponsee Nsuch as a sporting e%e

ntO whereby the latter recei%es a fee and the former obtains the right to associate itself with the acti%ity sponsored

Promotion (IMC)


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e't week

Lecture 7istribution strategy and 3#marketing

$eminar

Promotion (IMC)


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)eference

$himp, T.(. ;+-=. Integrated Marketingommunications in (d%ertising and Promotion International 3dition ;8thed=. G,


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Thank you

An% +uestions'

P ti (IMC)

Documents

Principles of Marketing L8