Promotion Concepts

What is Promotion? Informing Reminding Persuading Target Audience Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. Informing Reminding Persuading Target Audience

The Evolution of Advertising Fragmentation Av HH has 150+ channels; 17,000 magazines (5,000 consumer); 400,000 highway billboards; 30,000 plastered buses Clutter 330 ads per day (21 ads/hour) Alienation 65% believe they are constantly bombarded with too much advertising 69% are interested in products that would help them skip or block marketing

The Evolution of Advertising The death of network TV? Where did males 18-34 go? They are not coming back… The death of the :30 TV spot? The power of TiVo: 2005: 10 million HH PVR 2007: 20% of HH PVR Online block out Media Zone out Multitasking

Communication Solutions Advertising yields to communication solutions Reaching the target audiences with relevant communications based on central brand based creative idea that is delivered through optimal mix of consumer touch points; tracking results for continuous optimization and ROI analysis Other terms: Media neutral planning; channel neutral planning

Developing Effective Marketing Communications Identify the target audience Determine Communication objectives Design the message Select the communication channels Budget Determine the media mix Measure the results Manage the IMC process

Promotional Mix Elements of the Promotional Mix Advertising Public Relations Personal Selling Sales Promotion

How the money gets divided…

Communication Objectives Cognitive, Affective or Behavioral response Some of these tend to be qualitative in nature -

Design the Message: ADIA Concept Attention Interest Desire Action

ADIA and the Promotional Mix Awareness Interest Desire Action Advertising Very effective Somewhat Not Public Relations Sales Promotion Personal Selling

Designing the Message Message content Message structure Message format Rational appeals, moral appeals, emotional appeals Message structure One sided vs. two sided messages Message format Message source Source credibility

Select Communication Channels Personal communication channels Nonpersonal communication channels (which is what we will focus on for this class)

Establishing the Budget Affordable method Percentage of sales method Competitive parity method Objective and task method

Determining the Promotional Mix Advertising Sales Promotion Public relations and publicity Direct marketing Personal selling

Factors Affecting the Promotional Mix Nature of Product Stage in PLC Target Market Factors Type of Buying Decision Promotion Funds Push or Pull Strategy Factors Affecting Choice of Promotional Mix

Product Life Cycle and the Promotional Mix Personal Selling Reminder & Introduction Growth Maturity Decline Sales ($) Time Light Advertising, pre- introduction Publicity Heavy use of advertising, PR for awareness; sales promotion for trial Advertising, PR, Brand loyalty Personal Selling for distribution Ads decrease. Sales Promotion, Personal Selling Reminder & Persuasive AD/PR decrease Limited Sales Promotion, Personal Selling for distribution

Push and Pull Strategies Manufacturer promotes to wholesaler Wholesaler retailer Retailer consumer Consumer buys from PUSH STRATEGY Orders to manufacturer Manufacturer promotes to consumer Consumer demands product from retailer Retailer from wholesaler Wholesaler product from manufacturer Orders to manufacturer PULL STRATEGY

Measuring the Results Recognize Recall Behavioral responses Sales & market share Word of mouth