Promotion managment slides

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Promotion

ManagementUNIT 5

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Chapter Questions

y What is the role of marketing communications?

y How do marketing communications work?

y Whatarethe major steps in developing

effective communications?y What is the communications mix and how

should it be set?

y What is an integrated marketing communication

y program?

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MarketingCommunications/Promotion

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The means by which firms attemptto

inform,persuade, and remind

consumers, directly or indirectly, about

theproducts and brands they sell.


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Steps in Developing Effective

Communications/Promotion

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Identify targetaudience

Determine objectives

Design communications

Select channels

Establish budget

Decide on media mix

Manage IMC


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Elements in the Communication

Process

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SENDEREncoding Decoding

RECEIVER

Media

Message

Feedback Response

Noise


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Message Problems

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Selective Attention

Selective Distortion

Selective Retention


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CommunicationObjectives

Category need

Brand awareness

Brand attitude Purchase intention

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Category Need

Category Need

Establishing aproduct or service category as necessary to

remove or satisfy theperceived gaps between a current

motivational stateand desired emotional state.

A New to the world product would generally do that.

Electric cars

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What is the

need for

lifebuoy to

do this????

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Brand Awareness

Ability to Recognize or Recall the brand within the

category in sufficient detail to makethepurchase.

Brand Recall important outsidethe store

Brand Recognition important insidethe store.

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Purchase Intention

Self instructions to

purchasethe brand ortotakethepurchase related

action.

Coupons

Two for one deals.

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Brand Attitude

Evaluating a brand with respectto its

perceived ability to meet currently relevant

need, which might be:-

Problem removal Problem avoidance

Incomplete satisfaction

Normal depletion

Sensory gratification Social approval.

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Designing theCommunications

Message strategy

Creative strategy

Message source

Personal communication channels

Non-personal communication channels

Integration

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Designing theCommunications

Message strategy

Creative strategy

Message source

Personal communication channels

Nonpersonal communication channels

Integration

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Creative Strategy

Informational and transformational appeals

Positiveand negativeappeals

Fear Guilt

Shame

Humor

Love

Pride

Joy

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The Importance of

TaglinesBrand Theme Ad TaglineOur hamburgers are

bigger.

Wheres the Beef?

Our tissue is softer. Please Dont Squeeze

the Charmin.

No hard sell, just a good

car.

Drivers Wanted

We dont rent as many

cars, so we have to do

more for our customers.

We Try Harder

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Message Source

Celebrity Characteristics

Expertise

Trustworthiness

Likeability

Principle of Congruency

Drawbacks of Celebrity Endorsements

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Step 4:Select Communications

Channel

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Nonpersonal Communication

Channels

Personal Communication

Channels

Lets Two or Moreperson

Communicate faceto

face, Person

To audience, overthetelephone orthrough

emailCommunications

Directed to morethan

onePerson.


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Personal Communications Channels

1. Advocate Channels2. Expert Channels

3. Social Channels

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PersonalCommunications

One Influentialperson can:-

Affectthepurchaseattitude of 2 peoplethroughWOM

8 PPL throughOnline.

Important in expensive, risky orproducts

purchased infrequently. Peopleask recommendation for doctor, hotel ,

lawyer ,accountant , architect, insuranceagent,

financial consultant ,decorator,plumber.

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Stimulating Personal Influence Channels

Identify influential individuals and devoteextra

attention to them

Create opinion leaders

Use community influential in testimonial advertising

Developadvertising withhigh conversation value

DevelopWOM referral channels

Establishan electronic forum Useviral marketing

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NonpersonalCommunication Channels

Media

Sales Promotion

Events and Experiences Public Relations

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Integration ofCommunication channels

Two step from Ideato Opinion leaders

Opinion leaders to Less media involved

group.

Mass communications should direct messages

specially to Opinion leaders.

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The Marketing Communications Mix

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Advertising

Personal Selling

Any Paid Form of Non-personalPresentation by an Identified

Sponsor.

Any Paid Form of Non-personalPresentation by an Identified

Sponsor.

Sales PromotionShort-term Incentives to

Encourage Trial or Purchase.

Public Relations

Direct MarketingDirect Communications With

Individuals to Obtain ImmediateResponse.

Protect and/or PromoteCompanys Image/products.

Personal Presentations.


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Step 5: Establish the

Budget

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CompetitiveParity

Objective& Task

Affordable % OfSales


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Establishthe market share goal

Determinethepercentagethat should be reached

Determinethepercentage ofawareprospects that

should bepersuaded to try the brand

Determinethe number ofadvertising impressionsper

1%trial rate

Determinethe number of gross ratingpoints that wouldhaveto bepurchased

Determinethe necessary advertising budget on the basis

oftheaverage cost of buying a GRP

Objective-and-Task

Method


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Table 17.1 Promotion

PlatformsEvents/Experiences Sports

Entertainment

Festivals

Arts

Causes

Factory tours

Company museums

Streetactivities

Public Relations

Press kits

Speeches Seminars

Annual reports

Charitable donations

Publications

Community relations

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Table 17.1CommunicationPlatforms

Advertising

Printand broadcastads

Packaging inserts

Motionpictures

Brochures and booklets

Posters

Billboards POP displays

Logos

Videotapes

Sales Promotion

Contests, games, sweepstake

Premiums Sampling

Trade shows, exhibits

Coupons

Rebates

Entertainment

Continuityprograms17-31


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Table 17.1Communication

PlatformsPersonal Selling

Salespresentations

Sales meetings

Incentiveprograms

Samples

Fairs and trade shows

Direct Marketing

Catalogs

Mailings

Telemarketing

Electronic shopping

TV shopping Fax mail

E-mail

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Step 6: Decide on

Communications Mix

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Advertising

Public, Pervasive, Expressive, Impersonal

Sales PromotionCommunication, Incentive, Invitation

Public Relations & PublicityCredibility, Surprise, Dramatization

Personal Selling

Personal Confrontation, Cultivation, Response

Direct MarketingNonpublic, Customized, Up-to-Date, Interactive


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Characteristics ofCommunications

Advertising

Pervasiveness

Amplified

expressiveness Impersonality

Sales Promotion

Communication

Incentive

Invitation

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Public Relations and

Publicity High credibility

Ability to catch

buyers off guard

Dramatization

Events andExperiences

Relevant

Involving Implicit

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Direct Marketing

Customized

Up-to-date

Interactive

Personal Selling Personal interaction

Cultivation

Response

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Factors in Developing Promotion MixStrategies

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Product

Life-CycleStage

Type of

Product/Market

Push vs.Pull

Strategy

Buyer/Readiness

Stage


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Figure 17.5Cost Effectiveness by Buyer

Readiness StageCopyright 2009Pearson Education, Inc. Publishing as Prentice Hall

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Push Versus Pull StrategyPush Versus Pull Strategy

Producer

Producer

Interme-diaries

Marketingactivities

End users

Marketingactivities

Demand Interme-diaries

Demand

Push Strategy

Pull Strategy

End users

Marketing activities

Demand


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Step 7. Measure Results

Step 8. Manage the IMC Process


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Figure 17.6Current Consumer States for

TwoBrands


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Integrated Marketing CommunicationsCompany Carefully Integrates and

Coordinates Its Many CommunicationChannels to Delivera Clear, Consistent,Compelling Message.

Advertising

Personal

Selling

Public

Relations

Sales

Promotion

Direct

Marketing

Packaging

Event

MarketingMessage

Documents

Promotion managment slides