Promotion Strategy

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Promotion Strategy

• Chapter 11, 12, 13 (Flatworld textbook)
• WGU E-reserve
• Table 15.2 Comparison of the Six Promotional Mix
  Elements (Contemporary Marketing, pg. 504)
• Table 15.2 Comparison of the Six Promotional Mix
  Elements (Contemporary Marketing, pg. 504)
• Table 15.2 Comparison of the Six Promotional Mix
  Elements (Contemporary Marketing, pg. 504)
• Flash Cards
• The Marketing Mix (http//www.proprofs.com/flashca
  rds/tableview.php?titlemkc1-exam-contemporary-mar
  keting-chapter-11-13-15-19)
•  

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Promotion Communication link between buyers and
sellers the function of informing, persuading,
and influencing a consumers purchase
decision. Marketing communications Messages
that deal with buyer-seller relationships.
Integrated marketing communications (IMC)
Coordination of all promotional activities to
produce a unified, customer- focused promotional
message.
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INTEGRATED MARKETING COMMUNICATIONS
Consumers receive many marketing messages all
day.  Customer is at the heart of marketing
programs. Strategy begins with their wants or
needs and then works backward to product.  IMC
looks at elements of the promotional mix through
the customers eyes.  Must segment market
according to customer demographics and
preferences. Increased media options provide
more ways to communicate with customers but
create danger of overload and stretch
resources.  In 1960, marketer could reach 90
percent of consumers through television ads on
the three major networks.  Today, they account
for 20 percent of viewing hours.
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IMPORTANCE OF TEAMWORK Requires consistent,
coordinated promotional effort at every stage of
customer contact. Involves both in-house
resources and outside vendors.  Marketing
personnel.  Sales force.  Organizational
buyers. Customer services representative.
Example Benefits of a great advertisement can be
undone by unhelpful salespeople who frustrate
customers.
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THE COMMUNICATION PROCESS
Sender seeks to convey a message.  Effective
message does three things  Gains the
receivers attention.  Achieves understanding
by both sender and receiver.  Stimulates
receivers needs and suggests appropriate means
of satisfying them.  Message is encoded by the
sender and decoded by the receiver.  Receiver
decodes, or interprets, the message and send
feedback.  Throughout, noise can interfere with
the transmission of the message over the
channel.  AIDA concept Steps through which an
individual reaches a purchase decision
attention, interest, desire, and action.
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AIDA concept is vital for understanding an
reaching customers.  Example The 2008 Summer
Olympics held in Beijing gave NBC an
extraordinary research opportunity to find out
how consumers watched the games. Noise can be
a particular issue in international
communications, including in the worlds
74English-speaking countries.  Example Term
for police varies from country to country.
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OBJECTIVES OF PROMOTION
PROVIDE INFORMATION  Goal is informing the
market about the availability of a
product.  Example Advertisement about a
musical performance includes information about
time, date, and place. INCREASE DEMAND May
increase primary demand, or desire for a
particular product category.  Example Cotton.
The fabric of our lives.  May increase
selective demand, or desire for a specific brand.
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DIFFERENTIATE THE PRODUCT Differentiation
allows firms more control over marketing
variables such as price. ACCENTUATE THE PRODUCTS
VALUE Greater value helps justify a higher
price in the marketplace. Marketers advise
staying away from these wordsquality, value,
service, caring, and integritybecause they are
overused and vague. STABILIZE SALES  Can help
make demand more consistent throughout the
year.  Example Dunkin Donuts attempt to boost
summertime coffee sales by focusing on its iced
coffee drinks.
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ELEMENTS OF THE PROMOTIONAL MIX
 Promotional mix Subset of the marketing mix in
which marketers attempt to achieve the optimal
blending of the elements of personal and
nonpersonal selling to achieve promotional
objectives.  Personal selling, advertising, and
sales promotion usually account for the bulk of
a firms promotional expenditures. PERSONAL
SELLING  Oldest form of promotion.  A sellers
promotional presentation conducted on a
person-to-person basis with the buyer.  More
than 16 million people in U.S. have careers in
personal sales and related occupations.
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NONPERSONAL SELLING Includes advertising,
product placement, sales promotion, direct
marketing, public relations, and guerrilla
marketing. Advertising Any paid, nonpersonal
communication through various media about a
business firm, not-for-profit organization,
product, or idea by a sponsor identified in a
message that is intended to inform, persuade, or
remind members of a particular audience.  Total
ad spending in U.S. topped 149 billion in a
recent year.  Primarily involves mass media but
also includes electronic and computerized forms
of promotion.
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Product Placement Form of nonpersonal selling
in which the marketer pays a motion picture or
television program owner a fee to display his or
her product prominently in the film or
show.  Also includes placement in video
games. Sales Promotion  Sales promotion
Marketing activities other than personal selling,
advertising, guerrilla marketing, and public
relations that stimulate consumer purchasing and
dealer effectiveness.  Includes displays, trade
shows, coupons, contests, samples, premiums,
product demonstrations, and various nonrecurring,
irregular selling efforts.  Trade
promotionoffering free merchandise and other
incentives to encourage marketing intermediaries
to sell more of certain items or product lines.
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Direct Marketing  Direct marketing Direct
communications, other than personal sales
contacts, between buyer and seller, designed to
generate sales, information requests, or store or
Web site visits.  Includes direct mail,
telemarketing, direct-response advertising,
infomercials, and other strategies. Public
Relations and Publicity  Public relations Firms
communications and relationships with its
various publics. Publics include publics
include customers, suppliers, stockholders,
employees, the government, and the general
public.  Publicitynonpersonal stimulation of
demand unpaid placement of news about it or
through a favorable presentation of it on the
radio or television.
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Bad publicity can damage a companys reputation
and diminish brand equity. Organizations try to
capitalize on good publicity and counteract
negative publicity. Guerrilla Marketing  Guerrill
a marketing Unconventional, innovative, and
low-cost marketing techniques designed to get
consumers attention in unusual ways.  Buzz
marketing through campus ambassadors who create a
buzz about products with their classmates.
Viral marketing.
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DIRECT MARKETING
 Expenditures topped 183 billion in a recent
year.  Despite the economic slowdown, direct
marketers saw sales increase over 5
percent.  Helps increase store traffic. Opens
large new international markets and promotes
goals beyond creating product awareness.  Persua
de people to place an order, request more
information, visit a store, call a toll-free
number, or respond to an e-mail message.  When
successful, prompts consumers to take
action.  Databases are an important tool.
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DIRECT MARKETING COMMUNICATION CHANNELS Direct
mailings such as brochures and catalogs.  Telecom
munications initiated by companies or
customers.  Television and radio through special
offers, infomercials, or shopping
channels.  Internet via e-mail and electronic
messaging.  Print media such as newspapers and
magazines.  Specialized channels such as
electronic kiosks. DIRECT MAIL Many forms,
including sales letters, postcards, brochures,
booklets, catalogs, house organs, DVDs,
videotapes, and audiocassettes.  Allows narrow
targeting, intensive coverage, and other
benefits.  Per reader cost is high and many
consumer view it as junk.
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CATALOGS Popular form of direct mail since late
1800s in U.S.  More than 10,000 different
catalogs fill mailboxes every year.  Companies
adding online catalogs to complement print
catalogs. TELEMARKETING Most frequently used
form of direct marketing.  Provides a high
return on expenditures, an immediate response,
and the opportunity for personalized two-way
conversations.  Outboundsales force uses only
the telephone to contact customers.  Inboundinit
iated by customer, often one calling a toll-free
number for more information or to make a
purchase.  1996 Telemarketing Sales Rule created
Do Not Call Registry and curtailed abusive
telemarketing practices.
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DIRECT MARKETING VIA BROADCAST CHANNELS Brief
direct-response advertisements on television or
radio.  Encourage viewers to respond
immediately by offering a special price or
other incentive.  Home shopping
channels.  Function as on-air catalogs that
prompt customers to place orders by
telephone.  Infomercials.  30-minute or longer
product commercials that resemble regular
television programs.  Generally air on less
expensive cable channels and in late-night time
slots on broadcast stations.
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ELECTRONIC DIRECT MARKETING CHANNELS Equals
more than 8 percent of total advertising
spending.  Includes Web advertising and e-mail
notices.  Online customer acquisition programs
often cost less than traditional ones. OTHER
DIRECT MARKETING CHANNELS  Print media and other
traditional channels are critically
important.  Example Magazine ads with toll
free numbers that enhance inbound telemarketing
campaigns.  Kiosks also provide an outlet for
electronic sales.
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DEVELOPING AN OPTIMAL PROMOTIONAL MIX
NATURE OF THE MARKET  Markets target
audience.  Personal selling can be highly
effective if market has limited number of
buyers.  Markets type of customer. NATURE OF
THE PRODUCT Highly standardized products
usually depend less on personal
selling.  Consumer product sellers rely more on
advertising than business product sellers.
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STAGE IN THE PRODUCT LIFE CYCLE Heavier
emphasis on personal selling in introductory
stages to acquaint marketing intermediaries and
final consumers with product.  Advertising
becomes more important as product moves into
growth and maturity.  Differentiation becomes
more important as competitors enter the
market. PRICE  Advertising dominates for
low-unit-value products. FUNDS AVAILABLE FOR
PROMOTION  Size of the budget influences
promotional mix.
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PULLING AND PUSHING PROMOTIONALSTRATEGIES
 Pulling strategy Promotional effort by the
seller to stimulate final-user demand, which then
exerts pressure on the distribution channel.
Often a reliance on advertising and sales
promotion.  Pushing strategy Promotional effort
by the seller directed to members of the
marketing channel rather than final users.
Relies more heavily on personal
selling.  Advertising creates an environment for
successful personal selling and remains important
as an affirmation of customers
decision.  Example Vehicle sales, in which
advertising creates awareness, personal selling
skills close the sale, and advertising maintains
postpurchase satisfaction.
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VIDEO

• Watch Pepsi Video 1
• Watch Pepsi Video 2
• Watch Pepsi Video 3
• What message is this series of ads for Pepsi
  meant to convey? 
• Look for message consistencies.  To what target
  markets do these Pepsi ads appeal?

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VIDEO

• Watch Levitra Video
• Watch Lays Video
• Identify which parts of the AIDA concept are
  presented in the Levitra and Lays ads.