Post on 29-Mar-2015
CHAPTER 8PROMOTION
part three: the marketing mix
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
• the promotion mix• managing promotional activities• objectives• promotion strategy• marketing communications process• marketing communications tools• regulations• budgets
mixes
MarketingMix
Place
ProductPrice
PromotionMix
advertising
public relations
sales promotion personal selling
packagingdirect marketing
promotion=
marketing communications
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
SMART objectives
target audiences
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
channel
enco
dingdecoding
a simple communications
model: 1se
nderreceiver
message
a simple communications
model: 2se
nderreceiver
distortion distortion
noise
channel
enco
ding
decoding
a simple communications
model: 3se
nder
receiver
feedback
message
(Schramm, 1955)
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
AIDA
attention
interest
desire
action
think
feel
do
AIDA and the promotion mixAQ – re-set figure type
DAGMAR: a hierarchical modelAQ – re-set figure type
promotion tools
• advertising• public relations• sales promotion• personal selling
• direct marketing• packaging• sponsorship
advertising essentialsAQ – re-set figure type
creative executions
• slice of life• animation & CGI• endorsement• celebrity• news-style• fantasy
• 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
• 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
objection handling
following up the call or pitch
closing
a salesperson’s job
• 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/policy-resources/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.