Promotional strategy Module 8

Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications Factors influencing the promotional mix

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)

Five elements of the promotion mix Direct marketing Advertising Sales promotion Five major elements of promotion mix Personal selling Public relations

Personal selling Oral presentation Aim personal - face-to-face or over the phone Aim gain rapport overcome objections close the sale

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

Sales promotion Short-term incentive Aim Examples: stimulate sale or trial shorter-term strategy - buy now! Examples: competitions 2 for 1 deals price specials premiums

Public relations ‘function that evaluates public attitudes, identifies areas 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

Direct marketing Direct marketing gain an immediate response selective and personalised direct mail, telemarketing, SMS, direct selling, home-shopping etc.

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?

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

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

The communication process Sender Feedback Encoding Message channel Message Response Decoding Receiver

Elements in the communication process Sender (source) company, spokesperson Encoding the message putting ideas into symbols Message set of symbols that are transmitted Message channel (media) channel of communication

Communication process cont. Decoding the message receiver interprets symbols assigns meaning to the message Receiver response - reaction/action feedback - communicated back to sender Noise communication barrier or distortion occurs at all stages

Promotional goals Inform Persuade Remind Refer to exhibit 9.5, p. 319

Example : Inform

Example: Persuade

Example: Remind

Session overview AIDA model Message issues Message appeals

AIDA Model Attention Interest Desire Action

Message issues What will we say? key benefits functional psychological important attributes What is our usp (unique selling proposition)? What response are we seeking? Do we want to support our current positioning strategy or reposition?

Message appeals Rational Emotional Appeals Appeals Three types of Moral Appeals

Rational appeal

Emotional appeals

Moral appeals