MKTG 370 PROMOTION Lars Perner, Instructor 1 Integrated Marketing Communications and Promotion  Elements of promotion  Advertising strategies  Other.

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Presentation transcript:

MKTG 370 PROMOTION Lars Perner, Instructor 1 Integrated Marketing Communications and Promotion  Elements of promotion  Advertising strategies  Other methods of promotion

MKTG 370 PROMOTION Lars Perner, Instructor 2 Elements of the Promotion Mix  Advertising  Sales Promotion Sales Coupons Rebates Premiums  Personal selling  Public relations  Direct marketing

MKTG 370 PROMOTION Lars Perner, Instructor 3 Promotion by Decision Stage  Prepurchase Influence decision, preference Samples to induce trial  Purchase Sales promotion Point-of-purchase (POP) displays  Post-purchase Increase repurchase propensity

MKTG 370 PROMOTION Lars Perner, Instructor 4 Channel strategies  “Push” Make product readily available to buyers “Hard” sell to  Distributors  Consumers Heavy sales promotions  “Pull” Create demand for products  “When you care to send the very best”  “Snapple—made from the best stuff on earth”

MKTG 370 PROMOTION Lars Perner, Instructor 5 Developing the Advertising Program  Identifying the target audience  Specifying advertising objectives  Setting the advertising budget  Designing the advertisement(s) Informational/persuasive Fear appeals Sex appeals Humor appeal

MKTG 370 PROMOTION Lars Perner, Instructor 6 Some Media Alternatives  Television Conventional advertisements Infomercials Sponsorship programming “Placements”  In programming  “Superimposed”  Radio  Magazines  Newspapers  Outdoor  Internet  Point-of-purchase  Other Movie theaters On other products

MKTG 370 PROMOTION Lars Perner, Instructor 7 Executing The Advertising Program  Pre-testing Portfolio test Jury tests Need to test a very large number of tests  Possible redesign  Carrying out advertisement Full service agencies Limited service agencies In-house

MKTG 370 PROMOTION Lars Perner, Instructor 8 Advertising Intensity and Return -- A Typical Relationship Response (e.g., sales, recall) Amount of Advertising Spending The “S”-Shaped Curve Saturation Point Relatively high effectiveness Too little to do much good

MKTG 370 PROMOTION Lars Perner, Instructor 9 Measuring Advertising Effect  Several possible criteria: Increase in sales (but it may be impossible to separate effects of different simultaneous ads) Lab studies:  Recall  Attitude toward product  Preference

MKTG 370 PROMOTION Lars Perner, Instructor 10 Public Relations and Publicity  Advantages of media coverage over advertising: cost credibility attention  Issues “Two-way street”--must provide something of interest to media

MKTG 370 PROMOTION Lars Perner, Instructor 11 Making a News Release--Issues  Properties of a good news release timing--for event and journalist’s schedule brevity--if you can’t say it in two pages, how do you expect the journalist to? Interest to readers content  quotes  facts

MKTG 370 PROMOTION Lars Perner, Instructor 12 Personal selling  Traditional vs. consultative selling  Commission vs. salary