PROMOTION AND PROMOTIONAL MIX Review for Advanced Marketing.
Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements...
-
Upload
jean-howton -
Category
Documents
-
view
218 -
download
0
Transcript of Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements...
![Page 1: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/1.jpg)
Promotional strategyPromotional strategy
Module 8Module 8
![Page 2: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/2.jpg)
Session overview
The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications Factors influencing the promotional mix
![Page 3: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/3.jpg)
Role of promotion in the marketing mix
Promotion is the communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinion (toward the product) or elicit a (favourable) response
Focus on differential advantages • unique selling proposition (USP) • reason to buy our brand (selective demand)
![Page 4: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/4.jpg)
Five elements of the promotion mix
Sales promotion
Public relationsPersonal selling
Advertising Direct marketing
Five major elements of promotion mix
![Page 5: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/5.jpg)
Personal selling
Oral presentation• personal - face-to-face or over the phone
Aim• gain rapport• overcome objections• close the sale
![Page 6: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/6.jpg)
Advertising Impersonal, one-way mass communication
• wide reach, low CPM (cost per thousand reached) Paid by an identified sponsor or company Aim
• build brand image
• longer-term strategy Examples:
• broadcast media (TV, radio)
• print media (newspapers, magazines, brochures)
• yellow pages, cinema and outdoor
![Page 7: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/7.jpg)
Sales promotion
Short-term incentive Aim
• stimulate sale or trial shorter-term strategy - buy now!
Examples:• competitions• 2 for 1 deals• price specials• premiums
![Page 8: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/8.jpg)
Public relations ‘function that evaluates public attitudes, identifies are
as that the public may be interested in, and executes a program of action to earn public understanding and acceptance’ (Summers et al. 2006, p. 312)
Aim• monitor attitudes and build good relations• build corporate image• good corporate citizen
Examples:• sponsorship
McDonalds, BlueScope• publicity, press releases
![Page 9: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/9.jpg)
Direct marketing
Direct marketing• gain an immediate response• selective and personalised• direct mail, telemarketing, SMS, direct selling, ho
me-shopping etc.
![Page 10: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/10.jpg)
Factors affecting the promotional mix
Nature of the product• consumer versus business products• cost and risks associated with using the product
Stage in product life cycle• exhibit 9.7, p.324
Target market characteristics• how informed/knowledgeable?• how brand loyal?• what are their media habits?• how can we reach them?
![Page 11: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/11.jpg)
Factors affecting the promotional mix cont….
Type of buying decision• complex versus routine
high versus low involvement
Promotional budget• cost of media• absolute versus relative costs (CPM)
Push v pull strategies• exhibit 9.8, p.327
![Page 12: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/12.jpg)
Integrated marketing communications
‘Method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused’
Consistency• consistent theme, message, jingle, colour scheme etc.• examples
Commonwealth Bank ‘which bank’ Toyota ‘Oh what a feeling’
Synergy• all elements of the IMC mix work together to deliver a more powerful
message than the sum of the individual elements.• each element has its role, its advantages and disadvantages
![Page 13: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/13.jpg)
The communication processThe communication process
Message channel
Message
Decoding
Receiver
Response
Feedback Encoding
Sender
![Page 14: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/14.jpg)
Elements in the communication Elements in the communication processprocess
Sender (source)Sender (source)• company, spokespersoncompany, spokesperson
Encoding the messageEncoding the message• putting ideas into symbolsputting ideas into symbols
MessageMessage• set of symbols that are transmittedset of symbols that are transmitted
Message channel (media)Message channel (media)• channel of communicationchannel of communication
![Page 15: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/15.jpg)
Communication process cont.Communication process cont.
Decoding the messageDecoding the message• receiver interprets symbolsreceiver interprets symbols
assigns meaning to the messageassigns meaning to the message ReceiverReceiver
• response - reaction/actionresponse - reaction/action• feedback - communicated back to senderfeedback - communicated back to sender
NoiseNoise• communication barrier or distortioncommunication barrier or distortion• occurs at all stagesoccurs at all stages
![Page 16: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/16.jpg)
PromotionalPromotional goalsgoals
InformInform PersuadePersuade RemindRemind Refer to exhibit 9.5, p. 319Refer to exhibit 9.5, p. 319
![Page 17: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/17.jpg)
Example : InformExample : Inform
![Page 18: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/18.jpg)
Example: PersuadeExample: Persuade
![Page 19: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/19.jpg)
Example: RemindExample: Remind
![Page 20: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/20.jpg)
Session overviewSession overview
AIDA modelAIDA model Message issuesMessage issues Message appealsMessage appeals
![Page 21: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/21.jpg)
AIDA ModelAIDA Model
Attention
Interest
Desire
Action
![Page 22: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/22.jpg)
Message issuesMessage issues
What will we say?What will we say?• key benefitskey benefits
functionalfunctional psychologicalpsychological
• important attributesimportant attributes What is our usp (unique selling proposition)?What is our usp (unique selling proposition)? What response are we seeking?What response are we seeking? Do we want to support our current positioning Do we want to support our current positioning
strategy or reposition?strategy or reposition?
![Page 23: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/23.jpg)
Message appealsMessage appeals
Moral Appeals
RationalAppeals
Emotional AppealsThree types
ofappeals
![Page 24: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/24.jpg)
Rational appealRational appeal
![Page 25: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/25.jpg)
Emotional appealsEmotional appeals
![Page 26: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.](https://reader035.fdocuments.in/reader035/viewer/2022062417/55171885550346f5558b56ad/html5/thumbnails/26.jpg)
Moral appealsMoral appeals