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MarketingPlanning
Week 8 - Lecture728/02/2014
Tayo AbinusawaMont Rose College
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Learning Outcomes
By the end of this session, students will be ableto: Discuss promotion and its various objectives Analyse distinctions between above and below
the line promotion formats Critically evaluate various forms of above and
below the line media Describe the Promotions Mix Critically discuss various factors affecting choice
of advertising media
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Promotion!An attempt to draw attention to a
business or product to secure new
customers or maintain existing ones.
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Promotion Models
AIDA Awareness; Interest; Desire; Action =consumer purchase
DAGMAR (Defining Advertising Goals forMeasures Advertising Results) to measureadvertising effect. Measurement scales Unawareness Awareness Comprehension
Conviction Action
Awareness Knowledge Liking Preference Conviction Purchase
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Objectives ofPromotions
Obtaining and retaining customers. Specifically: Create or increase consumer awareness Reach a specific audience e.g. adverts for visiting
Scotland (to residents outside Scotland?) Remind customers of products existence Demonstrate a products superiority and
encourage switching customer loyalty Create and enhance business (or product) image Reassure consumers after product purchase e.g.
advertising warranties/service/Genius Bar?
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Communication Mix
Communication or Promotions mix is used todescribe the set of tools that a business canuse to communicate effectively the benefits of
its products or services to its customers. The promotional mix includes:
Advertising
public relations sales promotions direct marketing personal selling
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Advertising
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Advertising
Advertising is any paid form of non-personalpresentation and promotion of ideas, goods orservices by an identified sponsor.
Promotion can occur in various formats: Above-The-Line: through independent media
like television or newspapers. A wide audienceis easily reached most popular
Below-The-Line: advertising using methods thata firm controls directly e.g. branding and directmailing
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Types of Above The LinePromotion
Informative Advertising to increase awareness e.g.classified ads in newspapers. May be most effectivewith new products. (+) Empowers consumers by providing choices
Persuasive Advertising convincing consumers to buy= emphasises superiority or desirability. (-) Might distort or unfairly coerce consumers
Reassuring Advertising to persuade existingconsumers they made the right choice. Banks andbuilding societies. (+) May enhance perception of security
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Types of (Above TheLine) Advertising Media
Television often used to market consumer goods to massmarkets. Cable Television might be watched by higher incomegroups.
Newspapers and magazines advertising mass market products.Consumers may be targeted e.g. typical readers of Sports Weekly,Slimming World, magazines etc.
Cinema may have the strongest impact on the audience. Why?
Radio increase with growth of independent digital and Internet
radio stations may have a lasting impact on the audience e.g.catchy phrases/jingles
Posters or billboards short messages due to limited attentiontimeframe from audience. Large, attractive and visible strategically placed
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Interactive Marketing (+) Can be accessed by potential and existing
consumers all over the world. (+) Businesses own websites and may design it
to communicate the desired brand image; thisalso may be changed to suit changes in strategy
(+/-) Allows and promotes e-commerce consumer convenience; deception; fraud
(+/-) Allows mutual access between business(entrepreneurs and consumers
(+) Lower overhead costs e.g. lighting, water,heating, wages compared to stores. E.g. ASOS.
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BELOW THE LINE Unlike above the line which may be seen by many,
these methods are aimed at people who areknown to be interested or chosen in advance e.g.Boat Shows, The UK Wedding Expo, The Britishand International Franchise Exhibition 16-17th March
(-) Expensive e.g. trade fair fees for businessesand travel costs/effort for consumers
(-) Not held regularly so impact maybe temporary
(-) Direct mail (leaflets, etc.) and selling (e.g.phone calls from salespeople e.g. Sky) may be
disliked by consumers
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Public Relations A non-paid form of communication PRs job is to make sure that
the company responds promptly to unflattering media reports or controversies gets its side of the story told
A variety of programmes designed to promote or protect a companys image orits individual market offerings.
A business aiming to communicate with its public which may includegovernment, employees, consumers (male/females/senior citizens)
Motive: better image = higher sales Methods PR activity by a business itself or through the media (may be
believed by consumers)
Publicity managers may be appointed to communicate positive messages and
prevent negative ones.
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Methods of PR Press conferences free products and presentations to
journalists; may be used to launch a new product.
Press releases accounts of noteworthy information e.g.
amount of money raised by/for a charity Donations businesses may make the anonymously or
publicly; think back to ethics
Sponsorship Coca-Cola and other brands on footballpitches and the 2012 Olympics. Also funds in museums,theatre, etc.
Company visits business open to consumer visits e.g.
Jaguar, Palaces in the UK, New Look new launch
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Personal Selling This involves face-to-face interaction with one or
more prospective customers for the purpose ofmaking presentations, answering questions orprocuring orders.
Seen as the most effective form of promotionbecause it allows a tailored approach to the needsof an individual customer.
It involves having a constructive dialogue withcustomers to listen to their needs, promoteproduct and company benefits on an individualbasis, answer any questions, resolve any problemsand get their feedback before closing a sale.
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Sales Promotions A variety of short-term incentives to encourage trial or
purchase of a product or services.
Incentives/rewards offered to consumers to buygoods and services.
Motive: short term sales boost vs. brand recognition.
Why use these methods? Introduce new products, extend product life cycle Samples may encourage further sales e.g. magazines Rewarding consumers for custom; loyalty May provide feedback on returns on promotion
expenditure e.g. coupons used, surveys completed
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Direct Marketing Promotion by sales team through personal contact or
directly through telephone, emails, mails, fax, or doorknocking.
Suitable for technical or individual products where personalattention may be beneficial. Focus on a specialist (ratherthan typical) consumer who might have personal needs. Functions may be explained/demonstrated Orders taken, deliveries made Feedback from consumer to business via sales representative
Product trials and test marketing; recall product life cycle Creating awareness
(-) Can be expensive, disliked by consumers, ethics
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Exhibitions and TradeFairs
Motive: to promote products to industrial andindependent consumers. Advantages: Product demonstration e.g. new technology
Specialist staff can also assist consumers Consumer feedback prior to release. Recall the
product life cycle International marketing overseas trade fairs Press coverage advertise new products Consumers can discuss with business owners Staff can answer questions about products
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Conclusions There are various objectives for promotional activity which
usually focus on informing consumers about products (andsuperiority)
Above the line promotion usually involves a range ofadvertising media whilst below the line promotion usuallydoes not involve direct advertising
There are various advantages and disadvantages associatedwith any advertising medium or promotion format
There are various factors, such as cost, that affect thechoice of advertising medium or promotion format
Organisations should advertise responsibly in a manner thathas little or no negative impact on consumers
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References Blythe, J., (2008) Consumer Behaviour, Thomson
Learning, London
Gomez-Mejia, L.R., Balkin, D.B., & Cardy, R.L.,(2008), Management: people, performance,change. McGraw Hill, New York
Kotler, P., Keller, K.L., Goodman, M., & Hansen,Torben (2009) Marketing Management, Prentice
Hall, England Kotler, Armstrong, Wong, and Saunders (2008)
Principles of Marketing , Prentice Hall, USA
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