Promotion
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Transcript of Promotion
Promotion
MKTG 201Semester 1, 2010Sandy Bennett
Overview• The Marketing Communication process• Compare/Contrast the Promotional Mix elements• Push & Pull Promotion• Integrated Marketing Communications• Promotion over the PLC
Promotion• Promotion
– The creation and maintenance of communication with target markets.
• Marketing communication– A term for promotion that refers to
communicating a message to the marketplace.Objectives:
The marketing communication process
Elements of the Communication Process • Source - the sender of a message
• Encoding - the source deciding what to say and translating it into words or symbols that convey meaning
• Message channel - the carrier of the message
• Decoding - the receiver translating the message
• Receiver - the potential customer
• Noise - any distraction that reduces the effectiveness of the communication process
The Promotion Mix• Combinations of methods used to
promote a product (includes ideas)– Advertising– Public Relations– Sales Promotion– Personal selling
Advertising• Advertising
– The transmission of paid messages about an organisation, brand or product to a large audience.
• Benefits: Reaches many people at relatively low cost per person
• Limitations: Difficult to measure effectiveness, and can be very expensive depending on the medium
Greater Building Society
Jerry Seinfeld Greater Building Society Commercial
Creating an advertising campaign• Key steps in creating an advertising
campaign:1. Understand the market environment2. Know the target market (audience)3. Set specific objectives4. Create the message strategy5. Allocate resources6. Select media7. Produce the advertisement8. Place the advertisement9. Evaluate the campaign.
Public relations• Public relations
– Communications aimed at creating and maintaining relationships between the marketing organisation and its stakeholders.
– Effective PR messages are timely, engaging, accurate and in the public interest.
• Benefits: Credibility, resulting word-of-mouth, low or no-cost, may effectively combat negative perceptions or events.
• Limitations: May be difficult to control
Public relations• Marketers can generate good public relations
through:– Publicity (e.g. Gaining news coverage)– Written communications with stakeholders
(e.g. annual reports)– Sponsorship (e.g. ASB is a Polyfest
sponsor)– Involvement in charitable donations or
acts.• Another role of PR is to be reactive,
countering negative publicity. In an economic downturn, many organisations become more subject to negative media coverage.
Mattel
Product recall and public relations
Tourism Queensland
Queensland government and local tourism industry public relations campaign
Sales promotion• Sales promotion
– Offers of extra value to resellers, salespeople and consumers in a bid to increase sales.
– Used irregularly to smooth demand– Rewards the sale of company’s
products• Limitations: Can lose effectiveness if
overused, easily copied, public becoming increasingly cynical about whether they are being offered real value.
Sales Promotion - Types of Sales PromotionCONSUMER ORIENTED
– Free samples– Premium offers– Loyalty programs– Coupons– Rebates– Discounts– Samples– Contests– Point of purchase
promotions
TRADE ORIENTED– Trade allowances– Price deals– Gifts and premium
money– Cooperative
advertising– Dealer listings– Trade shows etc
Personal selling• Personal selling
– Personal communication efforts that seek to persuade consumers to buy products.
– Expensive, high-involvement or industrial products favour personal selling
• Benefits: Can be specifically tailored to individuals, so has greater influence than advertising, sales promotions and PR strategies.
• Limitations: Expensive, limited reach, labour intensive, time-consuming, lack of uniformity.
How important is personal selling to your organization?
Story Bridge Adventure Climb
Personal selling model
INPLCF:– Information– Needs– Product– Leverage– Commitment/close– Following up
Push and pull policies• Push policy
– An approach in which a product is promoted to the next institution in the marketing channel.
• Pull policy– An approach in which a product is
promoted to consumers to create demand through the marketing channel.
Telstra Bigpond, Patrick and Daniel campaign
Push or Pull?
Additional forms of promotion
• Ambush marketing – The presentation of marketing
messages at an event that is sponsored by an unrelated business or a competitor.
• Product placement– The paid inclusion of products in
movies, television shows, video games, songs and books.
• A plug– When the media overtly promotes a
product within a program rather than as a separate advertisement.
Additional forms of promotion
• Guerrilla marketing– The use of an aggressive and
unconventional marketing approach.• Viral marketing
– The use of social networks to spread a marketing message.
What promotion methods do you use for a B2B manufacturing product?
Simon Bottomley, General Manager, HaveStock Manufacturing
Promoting a hotel
Neil Paterson, Director of Sales and Marketing, Sofitel Gold Coast
Integrated marketing communications• Integrated marketing
communications (IMC)– The coordination of promotional
efforts to _________the communication effect.
– The goal is the _________ send the most effective possible message to the target market
A consistent advertising platform: Virgin Blue
Virgin Blue’s television advertising campaign
Integrating promotion mix elements• Marketing organisations have different
promotional needs and finite financial and other resources, so must choose from options in the promotion mix.
• Those with ______ promotion budgets usually use ______ strategies.
• ______ budgets will rely on ______, simpler strategies.
• The promotion mix should change over time (PLC).
Promotion and the PLC• Introduction
– Objective:
• Growth Stage– Objective:
Promotion and the PLC• Maturity Stage
– Objective:
• Decline– Objective:
Looking Back• The Marketing Communication process• Compare/Contrast the Promotional Mix elements• Push & Pull Promotion• Integrated Marketing Communications• Promotion over the PLC