Promotion Integrated Marketing Communication

1
Promotion Integrated Marketing Communication

• Elements of promotion ? Advertising Strategies ?
• Other Methods of Promotion

2
Learning Objectives

• Understanding the obstacles that advertising
  messages face
• Understanding the choices facing marketing
  managers regarding
• Promotional objectives
• Promotional message
• Media choice
• Advertising and promotion spending

3
Elements of the Promotion Mix

• Advertising
• Sales Promotion
• Sales
• Coupons
• Rebates
• Premiums

• Personal selling
• Public relations
• Direct marketing

4
Promotion by Decision Stage

• Pre-purchase
• Influence decision, preference
• Samples to induce trial
• Purchase
• Sales promotion
• Point-of-purchase (POP) displays
• Post-purchase
• Increase repurchase propensity

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Channel Strategies

• Pull (similar idea to Marketing Concept)
• Create demand for products
• When you care to send the very best
• Snapplemade from the best stuff on earth
• Retailers will want to carry products heavily
  demanded by customers and will then
• Pay higher prices
• Allocate more shelf space and other support

• Push (similar idea to Selling Concept)
• Make product readily available to buyers
• Hard sell to
• Distributors
• Consumers
• Heavy sales promotions
• Retailers are encouraged to carry the product due
  to short term incentives

6
Developing the Advertising Program
IDENTIFYING THE TARGET AUDIENCE
SPECIFYING ADVERTISING OBJECTIVES
SETTING THE ADVERTISING BUDGET
DESIGNING THE ADVERTISEMENT(S)
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Some Media Alternatives

• Television
• Conventional advertisements
• Infomercials
• Sponsorship programming
• Placements
• In programming
• Superimposed
• Radio

• Magazines
• Newspapers
• Outdoor
• Internet
• Point-of-purchase
• Other
• Movie theaters
• On other products

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Reaching the Customer Encoding, Noise, and
Decoding
NOISE
Other ads News articles Other store displays
ENCODING THE MESSAGE
MESSAGE CHANNEL
DECODING THE MESSAGE
RECEIVER
SENDER
Media, Salesperson Retail store News program
Mktg mgr Advertising mgr Advertising agency
Advertisement Coupon Sales presentation Press
release Store display
Receiver interpretation of the message
Customers Media audience News media Clients
CHANNEL FEEDBACK
Text, p. 211.
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Some Promotional Objectives

• Brand awareness
• Knowledge of product category
• Existence
• Benefits
• Functions
• Technology
• Knowledge of brand differences
• Brand attitude
• Favorable beliefs about the brand
• Overall
• Relative to competitors
• Product category or brand trial

• Brand preference
• Willingness to pay a premium for the brand
• Resistance to competitor promotions (e.g., sales,
  coupons)
• Willingness to buy under less convenient
  circumstances
• Increase in product category or brand usage
• Quantity used
• Frequency used
• Scope of uses
• Increase in short term sales

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Promotional Objectives Across the Product Life
Cycle (PLC)

• Introduction
• Advertising and public relations ? awareness
• Sales promotion ? trial
• Personal selling ? distribution
• Growth
• Advertising and PR ? brand loyalty
• Less emphasis on sales promotion

• Maturity
• Advertising? persuasion, reminder
• Sales promotion ? market share
• Decline
• Reduction in advertising and PR
• More emphasis on sales promotions ? temporary
  sales

Text, p. 217
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Increase in Product Category or Brand
UsageProduct Category Potential Examples

• Scope of uses
• Orange juice It isnt just for breakfast
  anymore
• Baking soda
• ZipLock bags
• WD-40 (lubrication and sticker removal)
• Quantity used
• Calcium supplements
• Milk

• Frequency used
• Cosmetics
• Deodorant
• Wine
• Greeting cards
• Phone calls
• Cell phone minutes
• Call to family/friends
• Hotels, airlines
• Conference calls
• Car engine oil
• Canned soup

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Communications Objectives

• Informing
• Awareness
• Interest
• Benefits
• Other information

• Persuading
• Preference based on competitive advantages
• Brand switching or prevention of brand switching
• Reminding
• Trigger memories
• Maintain preference and buying habits

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Some Advertising Strategies

• Comparative ads
• Illegal in most countries
• Generally very disliked by U.S. consumers but
  still relatively effective
• Humor appeal
• A way to get attention to the advertisementbut
  the consumer may remember the humor and not what
  the product featured was
• Adding beliefs
• Classical conditioning (association)

• Fear appeal
• To be effective
• Feared stimulus must be of medium
  intensityenough to motivate action but not so
  intense that the individual tunes out the ad
• A clear solution must be offerede.g., use
  Listerine to avoid tooth loss due to gingivitis
  
• Repetition
• Celebrity endorsements

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The Elaboration Likelihood Model and Likely
Effectiveness of Celebrity Endorsements
Is endorser congruent with product endorsed?
Product important or expensive?
Yes
High elaboration
No
Yes
Low elaboration
No
More likely to be effective
Unlikely to be effective
Celebrity endorsements more likely to
be effective
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Executing The Advertising Program

• Pre-testing
• Several story boards or actual ads are created
• Ads are tested on consumers
• Instant response technologies (consumers either
  rate approval or have physiological measures
  taken throughout an ad duration
• The best performing ad or ads are chosen subject
  to constraints imposed (e.g., need to specify a
  certain message or use certain types of models)
• Possible redesign
• Carrying out advertisement
• Full service agencies
• Limited service agencies
• In-house

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Advertising Intensity and Return --A Typical
Relationship
The S-Shaped Curve
1
0.8
Relatively high effectiveness
Saturation Point
0.6
Response (e.g., sales, recall)
0.4
Too little to do much good
0.2
0
0
5
10
15
20
25
Amount of Advertising Spending
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Sample Exam Question
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Measuring Advertising Effect

• Several possible criteria
• Scanner data
• Individual TV exposure can be matched against
  actual purchases
• Available only for grocery products
• Increase in sales (but it may be impossible to
  separate effects of different simultaneous ads)
• Lab studies
• Recall
• Attitude toward product
• Preference

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Public Relations and Publicity

• Advantages of media coverage over advertising
• Cost
• Credibility
• Attention
• Issues
• Two-way street--must provide something of
  interest to media

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Making a News Release--Issues

• Properties of a good news release
• Timing--for event and journalists schedule
• Brevity--if you cant say it in two pages, how do
  you expect the journalist to?
• Interest to readers
• Content
• Quotes
• May need to invent quotes of organization
  members (subject to their approval)
• Facts

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Japanese AdvertisingUse of animation and cartoon
characters
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Breaking Through the Clutter