Promotion - Sage Publications

Report
part three: the marketing mix
CHAPTER 8
PROMOTION
an opening challenge
You run a small, specialist soft drinks firm.
Your marketing budget is a tiny fraction of
your major competitors and you certainly
cannot afford television advertising.
How will you get your brand noticed by
potential customers?
agenda
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•
•
•
•
•
•
•
the promotion mix
managing promotional activities
objectives
promotion strategy
marketing communications process
marketing communications tools
regulations
budgets
mixes
Place
Price
Marketing
Mix
Product
advertising
sales promotion
direct marketing
personal selling
Promotion
Mix
public relations
packaging
promotion management
• setting objectives
• setting budgets
• designing marketing
programmes/campaigns
• implementing campaigns
• checking the results of campaigns
(evaluation and control)
the objectives of promotion
what is it meant to achieve?
• create brand
awareness
• build brand image
• inform
• remind
• educate
• break into new market
• change/reinforce
attitudes
• stimulate trial
• get into purchase
consideration set
• regain lost customers
• obtain information
• re-position
• increase usage
targeted objectives
• key to the organisation’s direction
– strategies are devised to meet objectives
• objectives should be SMART
– specific, measurable, achievable, relevant, timed
• aim at a specific target audience
audience or market?
• markets are customers/consumers
– people who buy or use things
• audiences listen or watch
• so promotional activities are targeted at
audiences
– who may or may not be customers/consumers
promotional strategy
market analysis
target audiences
SMART objectives
strategies
push
pull
promotional strategy
• a subset of overall marketing strategy
• informed by branding and positioning
• overall marketing communications strategy plus
campaign strategies
• overview of how objectives will be achieved
– the details go in the plan
• push strategies
– aimed at the trade
• pull strategies
– aimed at consumers
encoding
message
receiver
channel
decoding
sender
a simple communications
model: 1
a simple communications
model: 2
noise
sender
receiver
distortion
distortion
encoding
channel
message
(Schramm, 1955)
feedback
receiver
decoding
sender
a simple communications
model: 3
the promotional mix
• advertising
– paid for, mass media
• public relations (PR)
– media relations, sponsorship, exhibitions,
hospitality, celebrity endorsement
• sales promotion
– discounts, special offers, competitions
• personal selling
– b2b, retail, telesales
influencing customers
attention
think
interest
desire
action
feel
do
AIDA and the promotion mix
AQ – re-set figure type
DAGMAR: a hierarchical model
AQ – re-set figure type
promotion tools
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•
•
•
advertising
public relations
sales promotion
personal selling
• direct marketing
• packaging
• sponsorship
advertising essentials
AQ – re-set figure type
creative executions
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•
•
•
•
•
slice of life
animation & CGI
endorsement
celebrity
news-style
fantasy
•
•
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•
spoof or parody
demonstration
comedy
audience
participation
• music
media
media class or category,
e.g. television
media
vehicles
e.g.
EastEnders
media
vehicles
public relations (PR)
‘the determined, planned and sustained
effort to establish and maintain mutual
understanding between an organisation
and its publics. Also understood as
reputation management’ (Chartered
Institute of Public Relations, 2010)
PR techniques
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publicity or media relations
publications
corporate communications
community relations
lobbying
sponsorship
product placement
branded content
events management
crisis management
sales promotion
short-term special
offers which add
value to a product
offering
benefits of sales promotion
•
•
•
•
•
•
good at increasing sales
effectiveness can be easily measured
has accurate targeting
can keep budget down
has an almost immediate effect
creates interest in products
typical sales promotion
objectives
• stimulate product trial
– which may lead to regular purchase
• introduce a new product to the market
• combat/spoil a competitor’s campaign
• encourage greater product use
– and so more frequent purchase
personal selling
prospecting
preparing
making the
appointment
the call or
pitch
following up
closing
objection
handling
a salesperson’s job
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buyer/seller team coordinator
customer service provider
buyer behaviour expert
information gatherer
market analyst and planner
sales forecaster
market cost analyst
technologist
direct marketing
‘the planned recording, analysis and
tracking of individual customers’ responses
and transactions for the purpose of
developing and prolonging mutually
profitable customer relationships’
(Institute of Direct Marketing, 2010)
direct marketing
communications
• personal contact
• looking for a direct response
– better feedback
• database marketing
• direct response advertising
DM media selection: AIMRITE
Audience
Impact
Message
Response
Internal Management
The End Result
(Pickton and Broderick, 2004)
UK regulations
• advertising standards code
–
–
–
–
legal
decent
honest
truthful
• similar principles in other codes of practice
– sales promotion, sponsorship
• for up-to-date rules, visit the ASA website at:
http://www.asa.org.uk
setting budgets
• arbitrary method
– judgement call
• affordable method
– tends to result in low budgets
• competitive parity method
– but did the competition get it right?
• objective and task method
– time-consuming but accurate
• percentage of sales method
– commonly used, but which year’s sales?
summary
• clear campaign objectives
• good market understanding
• clearly identified target audience
– and the means to reach them
• originality and creativity
– so the message is correctly received
• a variety of tools to integrate into the
campaign
references
• Chartered Institute of Public Relations (CIPR) (n.d.) CIPR
website. Available at http://www.cipr.co.uk/content/policyresources/jargon-buster (accessed 30/06/10).
• Institute of Direct Marketing (IDM) (n.d.) IDM website. Available
at: http://www.theidm.com/resources/jargon-buster (accessed
15/05/10).
• Pickton, D.W. and Broderick, A. (2004) Integrated Marketing
Communications, 2nd edn. Harlow: FT Prentice Hall.
• Schramm, W. (1955) ‘How communication works’, in W.
Schramm (ed.), The Process and Effects of Mass
Communications. Champaign: University of Illinois Press, pp. 3–
26.

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