Chapters Fourteen, Fifteen and Sixteen Lectures 10,11 & 12.

Chapters Fourteen, Fifteen and Sixteen Lectures 10,11 & 12.
Communicating Customer Value: Integrated Marketing Communications Strategy Promotion Mix

Setting the Total Promotion Budget and Mix
Promotion Mix Strategies Note to Instructor Push strategy involves pushing the product to the consumers by inducing channel members to carry the product and promote it to final consumers. Pull strategy is when the producer directs its marketing activities toward final consumers to induce them to buy the product and create demand from channel members.

Steps in Developing Effective Marketing Communication
Identify the target audience Determine the communication objectives Design the message Choose the media Select the message source Note for Instructor For a message to be effective, the sender’s encoding must mesh with the receiver’s decoding process. Best messages consist of words and other symbols that are familiar to the receiver. Marketers may not share their consumer’s field of experience but must understand the consumer’s field of experience.

Steps in Developing Effective Communication
Identifying the Target market What will be said How it will be said When it will be said Where it will be said Who will say it

Designing a Message AIDA Model Get Attention Hold Interest Arouse Desire Obtain Action

Designing a Message Message content is an appeal or theme that will produce the desired response Rational appeal Emotional appeal Moral appeal Message Format Note to Instructor Other factors to include are message structure. Does the advertiser draw a conclusion or leave it to the audience. Do they present the strongest arguments first or last? Is the message one sided (strengths only) or two-sided? Message format is also important to consider. What will be the color, the text, the copy, the images?

Designing a Message Rational appeal relates to the audience’s self-interest Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase

Choosing Media Personal communication involves two or more people communicating directly with each other Face to face Phone Mail Internet chat Note to Instructor This link is to Lands End—a leading clothing retailer with catalog, online, and sales through Sears stores. On the homepage (often at the bottom) you can see that they have online live chat available to customers with questions. This is a good way to provide personal communication at a reduced cost to the retailer.

Choosing Media Personal communication is effective because it allows personal addressing and feedback Control of personal communication Company Independent experts Word of mouth

Choosing Media Personal Communication Opinion leaders are people within a reference group who, because of their special skills, knowledge, personality, or other characteristics; exerts social influence on others Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities Note to Instructor If you have not had a chance to talk about Tremor yet, this Web link will bring them to your site. The interesting thing to note about Tremor is that it is owned and operated by Procter & Gamble. As such, it focuses extensively on their own brands.

Selecting the Message Source The message’s impact on the target audience is affected by how the audience views the communicator Celebrities Athletes Entertainers Professionals Health care providers Note to Instructor Discussion Question Why is Michael Phelps a good spokesperson for Rosetta Stone? This link to YouTube is a Michael Phelps ad for Rosetta Stone. They might mention his likeability, relevance, and every day guy personality.

Affordable budget method sets the budget at an affordable level Ignores the effects of promotion on sales

Percentage of sales method sets the budget at a certain percentage of current or forecasted sales or unit sales price Easy to use and helps management think about the relationship between promotion, selling price, and profit per unit Wrongly views sales as the cause rather than the result of promotion

Competitive-parity method sets the budget to match competitor outlays Represents industry standards Avoids promotion wars

Objective-and-task method sets the budget based on what the firm wants to accomplish with promotion and includes: Defining promotion objectives Determining tasks to achieve the objectives Estimating costs Note to instructor Objective-and-task method forces management to spell out its assumption about the relationship between outlays and results but is difficult to use.

Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Advertising reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times Note to Instructor Advertising is impersonal, cannot be directly persuasive as personal selling, and can be expensive.

Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, actions, and developing customer relationships

Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Sales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase, and can be used to dramatize product offers and to boost sagging sales

Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events Direct marketing is a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarketing, and online marketing

Media Selection Message objectives Creative decisions
Overall objectives Audience considerations Cost – Production + Space Time constraints Media availability Legal constraints

Types of Media Available
Broadcast - TV & Radio Print – Newspapers & Magazines Outdoor – Billboards & Transit New – CD-ROM, Internet, etc In-Store – POP & packaging Other – Cinema, product placement, exhibitions, etc

Press Newspapers National – Regional – Local
Morning/Daily – Evening – Weekend – Sunday Free versus paid for…. Targeted sections BROADsheets – Tabloids – Red Tops Semi-permanent Colour available – quality

Magazines – Strengths and Weaknesses
Audiences Targeting Not selective Long Life High rates for occasional users Good Production Values Quality issues Detailed Copy Complicated buying for national campaigns Timeliness Changing composition of readers

Newspaper – Strengths and Weaknesses
Audiences positive reception Not selective Mass audience coverage High rates for occasional users Flexibilty Quality issues Detailed Copy Complicated buying for national campaigns Timeliness Changing composition of readers

Press – Magazines Consumer General Interest v Specific
Business to Business Trade Wide choice Informed figures on circulation/readership Production lead times – typically short High impact DPS plus

Press - Magazines Detailed message Permanent Direct response
Advertorial endorsement Kudos from title Noise Ad overload Ad Advoidance

Tesco Magazine 7,221,000 Readers Free available in-store
Analyse content

Direct Marketing Using media to establish a direct and interactivity link with consumers May be see as wasteful – Junk mail Can be highly targeted Database building Measurable Controllable

Direct Marketing Channels
Mail – Post Leaflets Door to door In-store Mail order

T e l e v i s i o n Appeals to most senses Good creative platform
Mass v local v Targeted channels Timing flexible Good image – as seen on TV Intrusive medium Certain groups have low TV exposure Long time scales Expensive Response = limited

R a d i o Reach Campaign flexibility Production lead times short
Relatively low cost Programming defines audience Creative opportunity Message is transient – non permanent Often considered as Wallpaper

Outdoor Good variety – Posters,Transport,OTHER?
Colourful – visible IMPACT National v regional v local High repetition – routing Relatively low cost per thousand Only simple message 50 x 30 Familiarity = ignoring Standards of presentation Good positions at a premiumscarce

C i n e m a Captive audience
Frequency low – long time to develop reach Key targets young/couples + audience discrimination National and local Longer ads IMPACT Lack of noise Some groups never go to the Cinema

Pulling the trigger!!! Getting the sale!!!!!!
Sales Promotion Pulling the trigger!!! Getting the sale!!!!!!

Sales Promotion – Key Term Alert
Speaking the language…Talking the talk…. Above the Line Below the Line…

There are Only Two Ways to Increase Sales!
Existing Customers buy more Sell to new customers

The 4 P’s of Sales Promotion
Push Pull Profile Persuasion of Salesmen

Broad Promotional Objectives
Push Trade Focus Pull Consumer Focus Profile Brand Focus Encourage Sales Force/Channel Focus

Trade Promotion Techniques
Brand Management Objective Generating Trial /Purchase Encouraging Stocking Reinforcing Brand Image Immediate POP Sampling Bulk Discounts Merchandising POP Displays In Store Merchandising Dealer loaders Delayed Over-riding discounts Competitions Hospitality

Personal Selling Oral persuasive presentation to gain sale.
Involves face to face dialogue Gives flexibility of message Immediate feedback gained Very useful in business to business markets Very useful when products and services are complex

Varied Roles of a Salesperson
Prospecting Communicating Selling Servicing Information gathering Allocating Shaping

Varied Subroles in Selling
Order collector Order taker Pre-order caller Order supporter Order getter

Sales Promotion Range of tactical marketing techniques designed to add value to a product or service in order to achieve a specific objective Offers buyers additional inducement to buy Reach new customers Achieve a switch from competitors Increase display space Smooth seasonality Generate a database

Sales Promotion Repeat….
Only two ways to sell more product Get new buyers // customers Get new/lapsed customers to buy.

Consumer Promotion Techniques
Brand Management Objective Consumer Reward Generating Trial /Purchase Encouraging Repeat Purchases Reinforcing Brand Image Immediate Samples Instant Coupons In store multibuy -bogof Money-off next Bonus packs With pack premiums Special Packs - containers Delayed Checkout generated coupons Delivered coupons Mail-in Premiums Free – with – purchase premiums Mail-in money back On- pack coupons Rebates/Refunds Loyalty Programmes Collection schemes Self Liquidating Premiums Competitions

Sales Promotion (SP) What do the following SP techniques achieve?
Money off now Money off next Free samples Extra product Competitions Points Linked promotions Cash back Give examples

Sales Promotion Competitions Often low participation
Depends upon prize structure...complexity of mechanic Can offer excitement and PR opportunities / Build brand Entrants can provide insight to the customer

Sponsorship and Endorsement
Week 4 Lecture 2

Origins of Sponsorship
Nobel Peace Prize The origins of Corporate Social Responsibility? Part of corporate image now part of the three P’s Bottom line Planet People Profit

What/Who can be Sponsored
People Events Competitions Teams Television Programmes Television Coverage

Sponsorship Paying for an association with an individual, group or event Used to build awareness, develop customer loyalty and improving image held Generally plays a supporting or secondary role within the overall promotional mix But can provide a platform for other activities

People Successful High Exposure EG Rory McIlroy Tang Ling?

Teams The degree of success of the activity depends upon overall success of team High Exposure over a long period of time with name on the players uniforms. May be “ignored” Formula 1 racing teams Football teams

Competitions Successful High Exposure often over a period of time
Dunhill Masters Golf ??? Dubai Classic Round the World Yacht Race

Venues High Exposure EG Emirates Football stadium The O2 Arena

Events Wide availability Some global have very high exposure
EG Formula 1 Grand Prix racing Often timed for maximum audience exposure Suntori Golf Tournament Played in UK but aimed at Japanese market The Olympic Games Different sponsorship packages available

Anyone for Golf? US Masters 2013 Chinese – Guan Tianlan
14 makes the cut despite having penalties

Public Relations – Publicity
Growth area why? Definitions PR Planning PR Channels & Tools Media Relations

PR Defined Public Relations is
The deliberate, planned and sustained effort to establish and maintain mutual understanding between an organisation and its publics Public relation consists of All forms of planned communication, outwards and inwards between an organisation and its publics for the purpose of achieving specific objectives concerning mutual understanding

IPR Definition The management of reputation:
The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics

Public Relations The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its public. Both reactive and proactive

PR 4 Key Aspects Positive – Active Building an image
Positive – Reactive Protecting an image Audiences Internal External

PR Planning Model Appreciation of the situation/problem
Establish objectives Target publics Messages Devise programme Evaluate results

PR Channels/Tools Press Release Exclusive interview Media alert
Press Conference Press Kit Exclusive interview Seminars Stunts Newletters

More Tools Open Days Factory Visits Giving Public talks Sponsorship

Media Relations Purpose – to achieve publication or broadcasting of ‘news’ in order to create knowledge, awareness or understanding WHAT IS NEWS?

Building Media Relations
Establish name of editor – Willings Press guide + PIMS Keep in touch - regularly Meet editors and journalists at exhibitions Co-operation not conflict Ensure media know of specialists available

Elements of Corporate Identity
Corporate image Corporate personality Culture Overall strategic purpose Products & services Where made and distributed How it communicates with stakeholders How it behaves Influenced by identity Values, beliefs and attitudes held about the organisation

Six main Factors in Articulating ‘Image’
Dynamic Pioneering, attention-getting, active Cooperative Friendly, well-liked, eager to please Business Wise, shrewd, persuasive, well-organised Character Ethical, reputable, respectable Successful Financial-performance, self-confidence Withdrawn Aloof, secretive, cautious

Exhibitions AKA Trade Shows ‘Expos’ Trade Fairs Road shows
Organisers offer space +++ similar to magazines

International Marketing – Exhibitions Ads Uses
Focus Magnet\Marketplace Demonstration Sampling Opportunity Sales opportunity leads Previews Competitor monitoring PR Opportunities Partnering JV

Exhibitions - Downside
Cost ROI Choice of venue/location Reliability of attendance statistics Success dependent on overall exhibition success May be outshone in terms of presentation Security Timewasters Targeting

Chapters Fourteen, Fifteen and Sixteen Lectures 10,11 & 12.

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Chapters Fourteen, Fifteen and Sixteen Lectures 10,11 & 12.

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