1. Promotion Professor Joel Huber BA 360 Marketing Management
Fuqua School of Business
Introduction
Three C’s
Four P’s
Product
Placement
Promotion
Price
Summary

2. Set the stage
Define the core benefit (vision, essence, core communication strategy)
Sell that vision internally
Generate a promotion mix to deliver the message

3. Promotional Mix Promotion mix Product Price Distribution Advertising
Selling
Sales Promotion
Publicity
Direct Marketing
Product
Price
Distribution
Organization works left to right, but planning works backward from goals and target market, to marketing mix to promotion mix

4. Steps in Developing Promotional Plan
1. Identify Target Audience
2. Determine The Communication Objective
3. Design The Message
4. Decide on The Promotional Mix
5. Allocate The Promotional Budget
6. Measure The Results
7. Manage And Coordinate The Process

5. 1. Identify Target Audience
Potential new buyers
Nonusers vs. current competitor’s customers
Current users
Can you increase usage?
Influencers
People who may not buy but influence decisions of those who may
You need to focus on people on the cusp---neither committed customers nor uncommitted customers.
New buyers are win-win—thus Southwest went after the unserved pleasure traveler
Current users: Put a box of Jello out tonight
Example of influencers: Coco-Puffs, LifeScan

6. 2. Set the Objectives Hierarchy of effects model Implies
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Implies
Cognition Affect Action
This is very useful for evaluating how a campaign is doing

7. 2. Set the Objectives IMMEASURABLE Increase awareness
Motivate purchase behavior
MEASURABLE
Increase top-of-mind among year olds by 25% within 3 months
Increase market share among first time purchasers from 2% to 5% within 1 year

8. 3. Design the Message What To Say (Message Content)
- Theme, Idea, Slogan
How To Say It Logically (Message Structure)
- Conclusion Drawing, One vs. Two Sided Messages
- Appeal (Rational, Emotional, Moral)
How To Say It Symbolically (Message Format)
- Print (Color, Headline, Illustration, Demonstration, Testimonial, Payoff, Image); Radio (Voice, Vocalization, Script); TV (All above)
Who Should Say It?
- Source Credibility

9. 3. Who should say it: Viagra
"Courage, something shared by countless Americans. Those that risked their lives. Those that battled serious illness."
A soothing piano can be heard in the background. He goes on telling his worries battling prostate cancer. His second worry was postoperative side effects like E.D., erectile dysfunction or as Bob Dole says,
"Most often called impotence."
Tremendously successful campaign for Viagra—not repositioning from titillating to serious
This clearly helped Viagra…did it help Bob Dole?

10. Step 4 - Decide On Promotional Mix
Advertising
Public, Pervasive, Expressive, Impersonal
Sales
Confronting, Cultivating, Consulting
Sales Promotion
Communication, Incentive, Invitation
Publicity and Public Relations
Credibility, Reach, Dramatization
Direct Marketing
Efficient, targeted, adaptive,

11. AIDAS and the Mix

12. Sampling
An example of a sales promotion: This is the best selling cold remedy. Very successful brand extension by Alka-Seltzer

13. Some Common Communication/Promotion Tools
______________________________________________________
Advertising Sales Publicity Personal
Promotion Selling ____
Print & broadcast ads Contests, games, Press Kits Sales
Packaging-outer sweepstakes Speeches presentations
Packaging inserts lotteries Seminars Sales meetings
Mailings Premiums& gifts Annual reports Telemarketing
Catalogs Sampling Charitable Incentive programs
Motion pictures Fairs/trade shows donations Salesmen samples
House magazines Exhibits Public relations Fairs & trade shows
Brochures & booklets Demonstrations
Posters & leaflets Couponing
Directories Rebates
Reprints of ads Low-interest financing
Billboards Entertainment
Display signs Trade-in allowances
Point of purchase displays Trading stamps
Audiovisual material Tie-ins
Symbols & logos

14. Push v. Pull
LifeSpan’s OneTouch touched off a $25MM revolution as they developed DTC advertising. Most of their activities are pull, however.

15. Consumer v. Industrial

16. Promotional Mix For Business To Business

17. Comparison of Two Most Commonly Used Promotion Tools
Advertising
Builds equity
Benefit emphasis
High marketer control
End-user is target
Pull
Can take a long time to have effect
Trade Promotion
Not much equity built
Price emphasis
Low marketer control
Trade is target
Push
Usually effective immediately
Trade promotions are useful to: 1. generate trial or 2. respond to competition 3. keep out new competitors
The Mela, Gupta and Lehmann article is relevant here. Adv decreases price sensitivity, but increases quality sensitivity.
Dealing increases focus and expectation on price, making it a lose-lose price game.

18. 5. Set the Budget Affordable method Percentage of sales method
Budget what is thought affordable
Percentage of sales method
Competitive parity method
Objective and task method
Define specific objectives
Determine tasks necessary to achieve objectives
Estimate costs of performing these tasks
Share of voice should approximate share of mind
An advantage of the Objective and task method is that you are forced to get feedback on how well you are doing…that can be very painful
It does require you to estimate the cost and benefit of each new customer as you did for Citibank. These may be estimates but they get around the idea of E-trade advertising $500MM for 1.7 new accounts last year. That’s $300 per new account!

19. 6. Measure the Results Attitude and awareness objectives
Simulated test markets (BASES)
Pre-promotion level vs. post-promotion level
Behavioral objectives
Changes in sales (noisy)

20. 7. Manage the process Set and communicate core product value
The internal sell is often more important than the external one
Once communication goals have been set convey the message in as many ways as possible

21. OneTouch Campaign One Look “Surround-Sound” Consumer Print Public
Relations
Television
One Look
“Surround-Sound”
Internet
Direct Mail
Retail
Note: consumer print (reader’s digest and health magazines, and TV) are just a small part of the budget
Detail Aids
Conventions
Professional Print

22. Key Take Aways The promotional mix
7 Steps in developing a promotional plan
Identify target
Set objectives
Design message
Determine promotional mix
Allocate budget
Measure results
Manage the process