Promotion

Copyright 2007, Prentice-Hall Inc.12-2 The Promotional Mix Advertising Public Relations Sales Promotion Personal Selling Direct Marketing

Copyright 2007, Prentice-Hall Inc.12-3 Mass market fragmentation –Shift away from mass marketing –More narrowcasting, less broadcasting Improvements in information and communication technology –The rise of segmented promotion Increased Measurement of Promotional Effectiveness & Accountability Changing Promotional Landscape

Copyright 2007, Prentice-Hall Inc.12-4 Integrated Marketing Communications

Copyright 2007, Prentice-Hall Inc.12-5 Advertising Reaches large masses of geographically dispersed buyers – “mass media” Best for achieving repetition of message Is impersonal, one-way communication. Can be very costly (i.e. Superbowl or Prime Time tv commercials)

Copyright 2007, Prentice-Hall Inc.12-6 Personal Selling Personal interaction between two or more people. Relationship building Most effective way for preferences, convictions, and actions to be influenced. Most expensive promotion tool; requires long-term commitment. Most commonly used in B-2-B settings.

Copyright 2007, Prentice-Hall Inc.12-7 Sales Promotion Offers strong incentives to buy now. Usually very good at attracting consumer attention. Dangers of SP –Effects are often short-lived –Forward Buying –“Couponing” the brand –Production Inefficiencies

Copyright 2007, Prentice-Hall Inc.12-8 Public Relations Highly credible source of information (journalists) Reaches people who typically avoid or ignore advertising Is cheaper than other forms of promotion, but never “free”

Copyright 2007, Prentice-Hall Inc.12-9 Direct Marketing Characteristics –Micromarketing –Customized –Immediate Responses –Driven by Lists Biggest promotional expenditure in U.S. Direct mail is the most popular form of direct marketing.

Copyright 2007, Prentice-Hall Inc Push Vs. Pull Promotion Strategy

Copyright 2007, Prentice-Hall Inc Major Decisions in Advertising

Copyright 2007, Prentice-Hall Inc Setting Advertising Objectives Advertising Objective: –Specific communication task to be accomplished with a specific target audience during a specific period of time. –Example: Make 20% of U.S. males ages aware of our new razor blade within 6 months. Classified by Purpose: –Inform –Persuade –Remind

Copyright 2007, Prentice-Hall Inc Fulfilling Objectives INFORM, PERSUADE ORREMIND? Which function(s) do each of the ads perform?

Question du Jour Are there times when ads should do something other than trying to sell product or building brand image?

Copyright 2007, Prentice-Hall Inc Setting the Advertising Budget Affordable method Percentage-of-sales method  Competitive-parity method  Objective-and-task method

Copyright 2007, Prentice-Hall Inc –Message Strategy (or “Message”) –Execution –“Breaking through the clutter” –Select advertising media Set reach, frequency, and impact goals. Choose among major media types. Select specific media vehicles. Decide on media timing. Developing Advertising Strategy

Copyright 2007, Prentice-Hall Inc The Message Strategy Develop compelling creative concept — the “Big Idea”. –Examples: “Tastes Great, Less Filling.” “15 Minutes Could Save You 15%...” “Think Outside the Bun.” Only Vegas (“What happens in Vegas....)” Messages should be meaningful, believable, distinctive and memorable.

Copyright 2007, Prentice-Hall Inc Message Execution Celebrities Scientific Evidence Testimonial or Endorsement Straight Sell Slice of Life Slice of Death Lifestyle Fantasy Mood Appeal (Humor, Sadness, Fear) Personality Symbol Mascot

Copyright 2007, Prentice-Hall Inc Celebrity Endorsements Celebrity endorsements have been at the heart of the “Got Milk?” milk mustache campaign for years.

Question du Jour Why are teens less enamored with celebrities nowadays?

Copyright 2007, Prentice-Hall Inc Humorous Advertising Appeals Humorous advertising tones are being used in the marketing of many products, including “boring” products like dictionaries.

Copyright 2007, Prentice-Hall Inc Message Execution Choose a proper tone. –Consistent with brand and company image –Consistent with selling proposition Use memorable, attention-getting words. Lay out the ad –Visuals –Headline –Copy Absolut print ads attract attention through a compelling visual layout and headline.

Copyright 2007, Prentice-Hall Inc Setting Media Objectives Reach –Percentage of people exposed to ad. Frequency –Number of times a person is repeatedly exposed to an advertisement. Media Impact –How much of an impression an ad’s message strategy and execution makes on the target audience.

Copyright 2007, Prentice-Hall Inc Choosing Media Types & Vehicles Media Type –TV, Print, Internet, Outdoor, etc. –Considerations Impact and effectiveness Cost Reach and frequency potential Media Vehicles –Specific media within each general media type –Examples Network TV, HGTV, Food Network Time Magazine, Sports Illustrated San Francisco Chronicle –Considerations Cost Audience quality (demographic & psychographic) Editorial quality Fit with brand image

Copyright 2007, Prentice-Hall Inc Alternative Media Other examples?

Copyright 2007, Prentice-Hall Inc Scheduling advertising for the year Possible ad patterns –Continuous –Pulsing –Flighting –Blasting Media Timing

Copyright 2007, Prentice-Hall Inc Evaluating Advertising Advertising accountability and measurement are more important than ever before. Evaluation methods –Pre-testing and Post-testing Copy Testing Day After Recall –Sales Measures vs. Surrogate Measures –Ad/Marketing ROI

Copyright 2007, Prentice-Hall Inc Global Advertising Considerations Standardization vs. adaptation Language and cultural norms are not “universal” – avoid cultural missteps Costs and media availability vary by country Advertising regulations vary by country An example of standardized advertising

Copyright 2007, Prentice-Hall Inc Sales Promotion Short-term incentives to encourage sales of a product. The main purpose is to generate immediate sales.

Copyright 2007, Prentice-Hall Inc Pull-Oriented Sales Promotions – FSI Example Ad Copy & Sales Promotion Call to Action (coupon)

Copyright 2007, Prentice-Hall Inc Why? –More pressure to increase current vs. future sales –Companies face more competition –Advertising efficiency has declined –Much easier to measure effectiveness –Consumers have become more deal-oriented and less brand-loyal Rapid Growth of Sales Promotion

Copyright 2007, Prentice-Hall Inc Consumer Sales Promotion Tools Coupons: money off the purchase price when redeemed. Rebates: refund part of the purchase price after the item has been bought. Price Packs: offer savings off the regular price of the product; marked on the package. Samples: offer a trial amount of the product. Premiums: goods offered for free or at a low price as an incentive to buy. Giveaways: useful items imprinted with company/brand name or logo given as gifts to consumers.

Copyright 2007, Prentice-Hall Inc More(!) Consumer Sales Promotion Tools Loyalty Programs / Patronage Rewards: cash or other awards offered for regular use of a brand. POP Displays: in-store signs and displays that persuade consumers to buy. Demonstrations: food or product in-store sampling. Contests, Sweepstakes & Games: can breathe new life and excitement into “stale” products.

Copyright 2007, Prentice-Hall Inc Point of Purchase Displays Point-of-purchase displays draw attention to the brand and stimulate impulse buys. Why do many retailers resist using POP displays?

Copyright 2007, Prentice-Hall Inc Objectives: –Persuade resellers to carry a brand. –Give a brand “preferable” shelf space. –Promote brand in-store and out-of-store. –“Pushes” brand to customers Tools: –Discounts, allowances, free goods, push money, specialty advertising items. What is the common problem associated with trade promotion? Trade Promotion

Copyright 2007, Prentice-Hall Inc Public Relations PR Activities –Building and maintaining good relations with various publics –Generating favorable publicity –Building and maintaining a favorable corporate image –Handling or heading off unfavorable rumors, stories and events –Crisis Management Most PR is practiced reactively instead of proactively PR Functions: –Press relations –Public affairs –Lobbying –Investor relations

Copyright 2007, Prentice-Hall Inc Public Relations Scholastic sponsored low-cost sleepovers, games, and costume contests to promote the release of the sixth Harry Potter book.