Promotion
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TOPIC OUTLINE
• The Promotion Mix
• Integrated Marketing Communications
• A View of the Communications Process
• Steps in Developing Effective Marketing
Communication
• Setting the Total Promotion Budget and Mix
• Socially Responsible Marketing Communication
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PROMOTION
The promotion mix is the specific blend of
advertising, public relations, sales promotion,
personal selling, and direct & digital
marketing tools that the company uses to
persuasively communicate customer value
and build customer relationships
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PROMOTION
Promotion tool Description
Advertising • Reaches masses of buyers at a low cost per exposure
• Builds a long-term image for a product
• Can trigger quick sales
• Has a public nature and is viewed as legitimate
• Very expressive
• Impersonal and lacks the direct persuasiveness of
salespeople
Personal selling • Personal interaction between two or more people
• Allows all kinds of customer relationships to spring up
• Buyer feels a greater need to listen and respond
• Most expensive promotion tool
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PROMOTION
Promotion
Description
tool
Sales promotion • Wide assortment of tools with unique qualities
• Attracts attention and offers incentives to purchase
• Used to dramatize product offers and boost sales
• Invites and rewards quick response but has short-lived
effects
Public relations • Very believable to readers
• Can dramatize a company or product
• Reaches many prospects
• Effective and economical when well thought out
Direct and digital • More targeted and interactive
marketing • Immediate and personalized 5
PROMOTION
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THE PROMOTION MIX
Advertising
Advertising is any paid form of non-personal
presentation and promotion of ideas, goods, or
services by an identified sponsor
• Broadcast
• Print
• Internet
• Outdoor
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ADVERTISING
Major advertising decisions
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ADVERTISING
Setting advertising objectives
An advertising objective is a specific communication
task to be accomplished with a specific target
audience during a specific time
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ADVERTISING
Setting advertising objectives
Informative advertising is used when introducing a new
product category; the objective is to build primary
demand
Persuasive advertising is important with increased
competition to build selective demand
Reminder advertising is important with mature products
to help maintain customer relationships and keep
customers thinking about the product 10
ADVERTISING
Possible advertising objectives
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ADVERTISING
Developing Advertising Strategy
Advertising strategy is the strategy by which the
company accomplishes its advertising objectives
and consists of:
- Creating advertising messages
- Selecting advertising media
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ADVERTISING
Creating the advertising message
Advertisements need to break through the clutter:
- Gain attention
- Communicate well
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ADVERTISING
Creating the advertising message
Advertisements need to be better planned, more
imaginative, more entertaining, and more
rewarding to consumers
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ADVERTISING
Creating the Advertising Message
Message strategy
Creative concept
Message execution
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ADVERTISING
Creating the Advertising Message
Message strategy is the general message that will
be communicated to consumers
• Identifies consumer benefits
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ADVERTISING
Creating the Advertising Message
Creative concept is the idea that will bring the
message strategy to life and guide specific appeals
to be used in an advertising campaign
Characteristics of the appeals include:
• Meaningful
• Believable
• Distinctive 18
ADVERTISING
Creating the Advertising Message
Message execution is when the advertiser
turns the big idea into an actual ad execution
that will capture the target market’s attention.
The creative team must find the best approach,
style, tone, words, and format for executing the
message.
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ADVERTISING
Creating the Advertising Message
Message execution also includes:
• Tone
– Positive or negative
• Attention-getting words
• Format
– Illustration
– Headline
– Copy
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ADVERTISING
Consumer Generated Messages
• Social media videos
• Brand social media contests
• Low expense
– New creative ideas
– Fresh perspective on brand
– Boost consumer involvement
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ADVERTISING
Selecting Advertising Media
Major steps include:
• Deciding on reach-frequency-impact
• Selecting media vehicles
• Deciding on media timing
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ADVERTISING
Selecting Advertising Media
Reach is a measure of the percentage of people in
the target market who are exposed to the ad
campaign during a given period of time
Frequency is a measure of how many times the
average person in the target market is exposed to
the message
Impact is the qualitative value of a message exposure
through a given medium
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ADVERTISING
Selecting Advertising Media
Selecting media vehicles involves decisions
presenting the media effectively and efficiently to
the target customer and must consider the
message’s:
• Impact
• Effectiveness
• Cost 24
ADVERTISING
Selecting Advertising Media
When deciding on media timing,
the planner must consider:
• Seasonality
• Pattern of the advertising
– Continuity—scheduling within
a given period
– Pulsing—scheduling unevenly
within a given period
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ADVERTISING
Selecting Advertising Media
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ADVERTISING
Evaluating the Effectiveness and Return on
Advertising Investment
Return on advertising investment
The net return on advertising investment divided by
the costs of the advertising investment
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ADVERTISING
Evaluating the Effectiveness and Return on
Advertising Investment
Communication effects indicate whether the ad and
media are communicating the ad message well and
should be tested before and after the ad runs
Sales and profit effects compare past sales and profits
with sales and profits after the advertisement.
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THE PROMOTION MIX
Public relations
Public relations involves building good
relations with the company’s various
publics by obtaining favorable publicity,
building up a good corporate image, and
handling or heading off unfavorable
rumors, stories, and events
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PUBLIC RELATIONS
Functions of Public Relations (PR)
Departments
• Press relations or press agency
• Product publicity
• Public affairs
• Lobbying
• Investor relations
• Development 30
PUBLIC RELATIONS
• Promotes products, people, ideas, organizations,
and nations
• Builds good relations with consumers, investors,
the media, and communities
• Rebuilds interest in commodities for trade
associations 31
PUBLIC RELATIONS
Burger King’s quirky, ceramic-headed “The King”
mascot pops up in unexpected places—here in
American Pharoah’s owner’s box at the Belmont
Stakes.
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PUBLIC RELATIONS
Role and impact of PR
• Strong impact on public awareness at a lower cost
than advertising
• Power to engage consumers and make them part
of the brand’s story
• Limited use
• Powerful brand-building tool
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PUBLIC RELATIONS
Role and impact of PR
• News
• Special events
• Written materials
• Audiovisual materials
• Corporate identity materials
• Public service activities
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PERSONAL SELLING
Personal selling is the interpersonal part
of the promotion mix and can include:
• Face-to-face communication
• Telephone communication
• Video or Web conferencing
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PERSONAL SELLING
• Personal presentations by a sales force to engage
customers, make sales, and build customer
relationships
• Salesperson: Represents a company to
customers by performing the following activities:
–Prospecting and communicating
–Selling and servicing
–Gathering information and building relationships 36
PERSONAL SELLING
Professional selling takes more than fast talk and a
warm smile to sell expensive GE locomotives.
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PERSONAL SELLING
Role of sales force
• Links the company with its customers
• Coordinates marketing and sales
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PERSONAL SELLING
How salespeople spend their time
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PERSONAL SELLING
Motivating Salespeople
• Encourage salespeople to work hard and
energetically toward sales force goals
• Management can boost sales force morale and
performance through its
–Organizational climate
–Sales quotas
–Positive incentives 40
PERSONAL SELLING
Evaluating Salespeople and Sales Force Performance
• Management gets information about its salespeople
–From sales, call, and expense reports
–By monitoring the sales and profit performance data in
the salesperson’s territory
–Through personal observation, customer surveys, and
talks with other salespeople
• Formal evaluations force management to develop standards
for judging performance.
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PERSONAL SELLING
Social Selling: Online, Mobile, and Social Media Tools
• Provide salespeople with powerful tools for
– Identifying and learning about prospects
– Engaging customers
– Creating customer value
– Closing sales
– Nurturing customer relationships
• Help sales forces to be more efficient, cost-effective, and
productive 42
SALES PROMOTION
Sales promotion consists of short-term
incentives to encourage the purchase or sale
of a product or service.
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SALES PROMOTION
• Sales promotion targets
– Final buyers — Consumer promotions
– Retailers and wholesalers — Trade promotions
– Business customers — Business promotions
– Members of the sales force — Sales force promotions
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SALES PROMOTION
• Many factors have contributed to the rapid growth of sales
promotion.
– Product managers view promotion as an effective short-run
sales tool.
– Competitors use sales promotion to differentiate their
offers.
– Advertising efficiency has declined.
– Sales promotions help attract today’s more thrift-oriented
consumers. 45
SALES PROMOTION
Sales promotion objectives
Consumer promotions
• To urge short-term customer buying or boost customer-brand
engagement
Trade promotions
• To get retailers to carry new items and more inventory, buy ahead,
or promote the company’s products and give them more shelf space
Business promotions
• To generate business leads, stimulate purchases, reward customers.
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SALES PROMOTION
Consumer promotion tools
Tools Description
• Offers of a trial amount of a product
Samples
• Most effective and expensive
• Certificates that save buyers money when they
Coupons
purchase specified products
• Price reduction occurs after the purchase
• Customer sends proof of purchase to the
Rebates (cash refunds)
manufacturer, which then refunds part of the
purchase price by mail
Price packs (cents-off • Offers consumers savings off the regular price
deals) of a product
• Goods offered either free or at low cost as an
Premiums
incentive to buy a product 47
SALES PROMOTION
Consumer promotion tools
Tools Description
Advertising specialties • Useful articles imprinted with an advertiser’s
name, logo, or message that are given as gifts
to consumers
Point-of-purchase (POP) • Displays and demonstrations that take place at
promotions the point of sale
Contests, sweepstakes, • Give consumers the chance to win something
and games
Event marketing • Creating a brand-marketing event or serving as
(or event sponsorships) a sole or participating sponsor of events
created by others 48
SALES PROMOTION
Event marketing
#HappiMess campaign, Delta Faucet shows target consumers
firsthand how well its low-flow showerheads worked under
really tough conditions.
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SALES PROMOTION
Trade promotions
• Used to persuade resellers to carry a brand, give it shelf
space, and promote it in ads
• Trade promotion tools:
– Contests, premiums, and displays
– Discounts and allowances
– Free goods
– Push money
– Specialty advertising items 50
SALES PROMOTION
Business promotions
• Used to generate business leads, stimulate purchases,
reward customers, and motivate salespeople
• Business promotion tools:
–Conventions and trade shows
–Sales contests
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THE PROMOTION MIX
Direct and Digital Marketing
Direct and digital marketing involve
engaging directly with carefully targeted
individual consumers and customer
communities to both obtain an
immediate response and build lasting
customer relationships.
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DIRECT & DIGITAL MARKETING
Making the brand a part of the customer’s story
Coca-Cola digital, mobile, and social media campaigns spark
brand conversations, build brand community, and make the
brand a part of consumers’ lives.
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DIRECT & DIGITAL MARKETING
New Direct Marketing Model
• Most companies still use direct marketing as a
supplementary channel or medium.
• For many companies today, direct and digital
marketing constitute a complete model for doing
business.
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DIRECT & DIGITAL MARKETING
Rapid Growth of Direct and Digital Marketing
• Fastest-growing form of marketing
• Direct marketing becoming more Internet-based
• Direct marketing takes a huge part of marketing
spending and sales
Includes online display and search advertising, video,
social media, mobile, email 55
DIRECT & DIGITAL MARKETING
Benefits of Direct and Digital Marketing to Buyers
• Buyers • Sellers
–Convenient, easy, and ‒Low-cost, efficient, and
private speedy
–Easy buyer-seller ‒Build close, personalized,
interaction interactive, one-to-one
–Quick access to products customer relationships
and relevant information ‒Greater flexibility
–Brand engagement and
community 56
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INTEGRATED MARKETING COMMUNICATIONS
The New Marketing Communications Model
• Consumers are changing.
• Marketing strategies are changing.
• Advances in digital technology.
Adidas now uses only digital
channels to engage its younger
consumers. 58
INTEGRATED MARKETING COMMUNICATIONS
The New Marketing Communications Model
As the lines are rapidly blurring between traditional
advertising and new digital content, many marketers
now view themselves more broadly as content
marketing managers who create, inspire and share
marketing content—both their own and that created
by consumers and others.
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INTEGRATED MARKETING COMMUNICATIONS
The New Marketing Communications Model
Integrated marketing communications (I M C)
involves carefully integrating and coordinating the
company’s many communications channels to deliver
a clear, consistent, and compelling message about the
organization and its products.
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INTEGRATED MARKETING COMMUNICATIONS
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THE COMMUNICATION PROCESS
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MARKETING COMMUNICATIONS
Steps in Developing Effective Marketing
Communication
•Identify the target audience
•Design the message
•Choose the media to send the message
•Select message source and collect feedback
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STEPS IN DEVELOPING EFFECTIVE MARKETING
COMMUNICATION
Identify the target audience
•What will be said
•How it will be said
•When it will be said
•Where it will be said
•Who will say it
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STEPS IN DEVELOPING EFFECTIVE MARKETING
COMMUNICATION
Designing a Message
A I DA Model
• Get Attention
• Hold Interest
• Arouse Desire
• Obtain Action
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STEPS IN DEVELOPING EFFECTIVE MARKETING
COMMUNICATION
Message Content – “What to Say”
Rational appeal relates to the audience’s self-interest.
Emotional appeal is an attempt to stir up positive or
negative emotions to motivate a purchase.
Moral appeal is directed to an audience’s sense of what
is right and proper.
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STEPS IN DEVELOPING EFFECTIVE MARKETING
COMMUNICATION
Designing a Message
Message content is “what to say.”
Message structure and format is “how to
say it.”
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STEPS IN DEVELOPING EFFECTIVE MARKETING
COMMUNICATION
Choosing Communication Channels and Media
Personal communication involves two or more
people communicating directly with each other.
• Face-to-face
• Phone
• Mail or email
• Texting or internet chat
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STEPS IN DEVELOPING EFFECTIVE MARKETING
COMMUNICATION
Choosing Communication Channels and Media
Opinion leaders are people whose opinions are
sought by others.
Buzz marketing involves cultivating opinion leaders
and getting them to spread information about a
product or service to others in their communities.
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STEPS IN DEVELOPING EFFECTIVE MARKETING
COMMUNICATION
Choosing Communication Channels and Media
Nonpersonal communication channels are media
that carry messages without personal contact or
feedback, including major media, atmospheres, and
events.
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STEPS IN DEVELOPING EFFECTIVE MARKETING
COMMUNICATION
Collecting feedback
Collecting feedback involves the communicator
understanding the effect on the target audience by measuring
behavior resulting from the content.
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