1. Promotion Integrated Marketing Communication
Elements of promotion ● Advertising Strategies ●
Other Methods of Promotion

2. Learning Objectives
Understanding the obstacles that advertising messages face
Understanding the choices facing marketing managers regarding
Promotional objectives
Promotional message
Media choice
Advertising and promotion spending

3. Elements of the Promotion Mix
Advertising
Sales Promotion
Sales
Coupons
Rebates
Premiums
Personal selling
Public relations
Direct marketing

4. Promotion by Decision Stage
Pre-purchase
Influence decision, preference
Samples to induce trial
Purchase
Sales promotion
Point-of-purchase (POP) displays
Post-purchase
Increase repurchase propensity

5. Developing the Advertising Program
IDENTIFYING THE TARGET AUDIENCE
SPECIFYING ADVERTISING OBJECTIVES
SETTING THE ADVERTISING BUDGET
DESIGNING THE ADVERTISEMENT(S)

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

7. Reaching the Customer: Encoding, “Noise,” and “Decoding”
Other ads
News articles
Other store displays
SENDER
ENCODING
THE
MESSAGE
MESSAGE
CHANNEL
DECODING
THE
MESSAGE
RECEIVER
Media, Salesperson
Retail store
News program
Mktg 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
Text, p. 211.

8. 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
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

9. 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
Text, p. 217

10. Increase in Product Category or Brand Usage—Product Category Potential Examples
Scope of uses
Orange juice: “It isn’t just for breakfast anymore”
Baking soda
ZipLock™ bags
WD-40™ (lubrication and sticker removal)
Quantity used
Calcium supplements
Milk
Frequency used
Cosmetics
Deodorant
Wine
Greeting cards
Phone calls
Cell phone minutes
Call to family/friends
Hotels, airlines
Conference calls
Car engine oil
Canned soup

11. Communications Objectives
Informing
Awareness
Interest
Benefits
Other information
Persuading
Preference based on competitive advantages
Brand switching or prevention of brand switching
Reminding
Trigger memories
Maintain preference and buying habits

12. 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

13. The Elaboration Likelihood Model and Likely Effectiveness of Celebrity Endorsements
Is endorser
congruent with
product
endorsed?
Product
important or
expensive?
Yes
High
elaboration No
Yes
Low
elaboration No
More likely
to be
effective
Unlikely to be
effective
Celebrity
endorsements
more likely to be
effective 7

14. Executing The Advertising Program
Pre-testing
Several “story boards” or actual ads are created
Ads are tested on consumers
Instant response technologies (consumers either rate approval or have physiological measures taken throughout an ad duration
The best performing ad or ads are chosen subject to constraints imposed (e.g., need to specify a certain message or use certain types of models)
Possible redesign
Carrying out advertisement
Full service agencies
Limited service agencies
In-house

15. 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

16. Sample Exam Question

17. Measuring Advertising Effect
Several possible criteria:
Scanner data
Individual TV exposure can be matched against actual purchases
Available only for grocery products
Increase in sales (but it may be impossible to separate effects of different simultaneous ads)
Lab studies:
Recall
Attitude toward product
Preference

18. Japanese Advertising—Use of animation and cartoon characters

19. Breaking Through the Clutter