1. Promotional strategy
Module 8

2. Session overview The role of promotion in the marketing mix
Elements in the promotional mix
Integrated marketing communications
Factors influencing the promotional mix

3. Role of promotion in the marketing mix
Promotion is the communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinion (toward the product) or elicit a (favourable) response
Focus on differential advantages
unique selling proposition (USP)
reason to buy our brand (selective demand)

4. Five elements of the promotion mix
Direct marketing
Advertising
Sales promotion
Five major elements of promotion mix
Personal selling
Public relations

5. Personal selling Oral presentation Aim
personal - face-to-face or over the phone
Aim
gain rapport
overcome objections
close the sale

6. Advertising Impersonal, one-way mass communication
wide reach, low CPM (cost per thousand reached)
Paid by an identified sponsor or company
Aim
build brand image
longer-term strategy
Examples:
broadcast media (TV, radio)
print media (newspapers, magazines, brochures)
yellow pages, cinema and outdoor

7. Sales promotion Short-term incentive Aim Examples:
stimulate sale or trial
shorter-term strategy - buy now!
Examples:
competitions
2 for 1 deals
price specials
premiums

8. Public relations
‘function that evaluates public attitudes, identifies areas that the public may be interested in, and executes a program of action to earn public understanding and acceptance’ (Summers et al. 2006, p. 312)
Aim
monitor attitudes and build good relations
build corporate image
good corporate citizen
Examples:
sponsorship
McDonalds, BlueScope
publicity, press releases

9. Direct marketing Direct marketing gain an immediate response
selective and personalised
direct mail, telemarketing, SMS, direct selling, home-shopping etc.

10. Factors affecting the promotional mix
Nature of the product
consumer versus business products
cost and risks associated with using the product
Stage in product life cycle
exhibit 9.7, p.324
Target market characteristics
how informed/knowledgeable?
how brand loyal?
what are their media habits?
how can we reach them?

11. Factors affecting the promotional mix cont….
Type of buying decision
complex versus routine
high versus low involvement
Promotional budget
cost of media
absolute versus relative costs (CPM)
Push v pull strategies
exhibit 9.8, p.327

12. Integrated marketing communications
‘Method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused’
Consistency
consistent theme, message, jingle, colour scheme etc.
examples
Commonwealth Bank ‘which bank’
Toyota ‘Oh what a feeling’
Synergy
all elements of the IMC mix work together to deliver a more powerful message than the sum of the individual elements.
each element has its role, its advantages and disadvantages

13. The communication process
Sender
Feedback
Encoding
Message channel
Message
Response
Decoding
Receiver

14. Elements in the communication process
Sender (source)
company, spokesperson
Encoding the message
putting ideas into symbols
Message
set of symbols that are transmitted
Message channel (media)
channel of communication

15. Communication process cont.
Decoding the message
receiver interprets symbols
assigns meaning to the message
Receiver
response - reaction/action
feedback - communicated back to sender
Noise
communication barrier or distortion
occurs at all stages

16. Promotional goals
Inform
Persuade
Remind
Refer to exhibit 9.5, p. 319

17. Example : Inform

18. Example: Persuade

19. Example: Remind

20. Session overview
AIDA model
Message issues
Message appeals

21. AIDA Model
Attention
Interest
Desire
Action

22. Message issues What will we say?
key benefits
functional
psychological
important attributes
What is our usp (unique selling proposition)?
What response are we seeking?
Do we want to support our current positioning strategy or reposition?

23. Message appeals Rational Emotional Appeals Appeals Three types of
Moral
Appeals

24. Rational appeal

25. Emotional appeals

26. Moral appeals