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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=0-9EYFJ4Clo7/23/2019 Principles of Marketing L8
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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)