PROMOTION

LEARNING OBJECTIVES Identify Opportunities to use different elements of the promotion mix Types of media more suitable for different communications tasks Identify and address obstacles to “getting through” to potential customers Identify implications of the S-shaped curve of advertising effectiveness for brand building Identify and address potential promotional objectives Identify and plan for the steps in the professional selling process and the challenges presented by each

PROMOTION Ways to reach and influence potential customers “Triggering” (thoughts about the brand or product) Awareness Behaviors (e.g., trial, brand choice) Beliefs Preference

Elements of the Promotion Mix

Some Media Alternatives Television Generally limited attention Both visual and auditory modality Can target specialized audiences Pre-recording and ad “zipping” Seeing part of an ad through zipping appears to have a greater impact than seeing the complete ad (attention needed to see if you have “arrived”) Radio Can certain people at work Increasing opportunities to “opt out” of ads through paid services Magazines (print or online)—can reach specialty markets Newspapers Increasingly read online Outdoor Internet Can involve animation and interactivity Advertising based on previous online activity Point-of-purchase Other Movie theaters On other products

Reaching the Customer: Encoding, “Noise,” and “Decoding” (Distractors) Note that things can go wrong in steps 2, 3, and 4. The message must compete with other ads and for limited customer attention. Repetition is crucial. Other ads News articles Other store displays SENDER ENCODING THE MESSAGE MESSAGE CHANNEL DECODING THE MESSAGE RECEIVER Media, Salesperson Retail store Marketing mgr Advertising mgr Advertising agency Advertisement Coupon Sales presentation Press release Store display Receiver Interpretation of the message Customers Media audience News media Clients CHANNEL FEEDBACK

Adjusting the Message to the Medium Messages in specialty magazines (print or online) can be more specific and involve more text Billboard messages require very concise messages In a TV ad, the message usually has to get through in thirty seconds or less Radio advertising has to rely entirely on the auditory modality Animation and interaction are possible in online advertising

Involvement and Communication The amount of detail that customers will process will depend on the importance of the product Assuming interest, more information will be absorbed under conditions of low distraction than While driving or being otherwise engaged When access to cell phone or computer is more difficult

Advertising Intensity and Return—A Typical Relationship The “S”-Shaped Curve 1 0.8 high effectiveness Relatively 0.6 Saturation Point Response (e.g., sales, recall) 0.4 0.2 Too little to do much good 5 10 15 20 25 Amount of Advertising Spending

Some Promotional Objectives Brand awareness Knowledge of product category Existence Benefits Functions Technology Knowledge of brand differences Brand attitude Favorable beliefs about the brand Overall Relative to competitors Positive affect (e.g., increased liking, “warm” feeling, personal connection) Intention to use and usage frequency Product category or brand trial Brand preference Willingness to pay a premium for the brand Resistance to competitor promotions (e.g., sales, coupons) Willingness to buy under less convenient circumstances Increase in product category or brand usage Quantity used Frequency used Scope of uses Increase in short term sales Objectives involve what we are trying to achieve rather than the specific methods of accomplishing these goals.

Promotional Objectives Across the Product Life Cycle (PLC) Introduction Advertising and public relations  awareness Sales promotion  trial Personal selling  distribution Growth Advertising and PR  brand loyalty Less emphasis on sales promotion Maturity Advertising persuasion, reminder Sales promotion  market share Decline Reduction in advertising and PR More emphasis on sales promotions  temporary sales

Some Advertising Strategies Comparative ads Illegal in most countries Generally very disliked by U.S. consumers but still relatively effective Humor appeal A way to get attention to the advertisement—but the consumer may remember the humor and not what the product featured was Adding beliefs Classical conditioning (association) Fear appeal To be effective: Feared stimulus must be of medium intensity—enough to motivate action but not so intense that the individual “tunes out” the ad A clear solution must be offered—e.g., use Listerine™ to avoid tooth loss due to gingivitis Repetition Celebrity endorsements

The Personal Selling Process Generate and qualify leads Customer potential will need to be sufficient to justify the cost of a sales call Pre-approach—learning relevant background about the customer; identifying value to offer Sales presentation and overcoming objections Closing the sale Follow-up Satisfaction with immediate purchase and issues experienced Maintaining long term relationship