Promotion 1 <ul><li>R. van Oorschot </li></ul><ul><li>November 2006 </li></ul><ul><li>IBL- V2 </li></ul>
Promotion <ul><li>Promotion is how marketers communicate with their target markets that include existing customers and pro...
Figure 15.4:  Haagen-Dazs –Providing Information to Consumers
Haagen-Dazs Also Provides Information to  Consumers via Its WWW Site Copyright  ©  2001 by Harcourt, Inc.  All rights rese...
Promotional tools <ul><li>The company’s total marketing communications mix, also referred to as the promotional mix, consi...
Examples? <ul><li>Advertising….. </li></ul><ul><li>Personal selling….. </li></ul><ul><li>Public relations….. </li></ul><ul...
Figure 17.1  The marketing communications system The marketing communications system
Integrated marketing communications <ul><li>The changing needs of the 21st Century consumer have delivered huge challenges...
The changing communications environment <ul><li>Two major forces have changed marketing communications:  </li></ul><ul><ul...
The need for integrated marketing communications Figure 17.2  Integrated marketing communications
Schramm Model of communication Figure 17.3  Elements in the communication process
Steps in developing  effective communication   <ul><li>1. Identifying the target market </li></ul><ul><ul><li>What, how, w...
Steps in developing  effective communication   <ul><li>2. Determining the communications objectives </li></ul><ul><ul><li>...
Objectives…… <ul><li>Provide information </li></ul><ul><li>Increase demand </li></ul><ul><li>Differentiate the product </l...
Steps in developing  effective communication   Ideally the message should get  Attention , hold  Interest , arouse  Desire...
Steps in developing  effective communication   <ul><li>3. Message content </li></ul><ul><ul><ul><li>Rational appeals </li>...
Steps in developing  effective communication   <ul><li>3. Message structure </li></ul><ul><ul><ul><li>How to ‘say’ it. </l...
Steps in developing  effective communication   <ul><li>4.   Choosing media </li></ul><ul><ul><li>Personal communication ch...
Steps in developing  effective communication   <ul><li>5.   Collecting feedback </li></ul><ul><ul><li>Evaluation of every ...
Methods used to set the promotional budget <ul><li>Affordable method </li></ul><ul><ul><li>Setting budget at what the comp...
Promotion mix strategies 1 <ul><li>Push strategy </li></ul><ul><ul><li>Sales force and trade promotion to push the product...
Promotion mix strategies 2 <ul><li>Pull strategy </li></ul><ul><ul><li>Promotion strategy that spends a lot on advertising...
© PhotoDisc PULLING AND PUSHING PROMOTIONAL STRATEGIES <ul><li>Pulling strategy:  promotional effort by a seller to stimul...
Figure 17.6  Push versus pull promotion strategy Push versus pull promotion strategy
Factors in designing promotion mix strategies <ul><li>Type of product/market </li></ul><ul><ul><li>E.g. non-durable goods<...
Factors in designing promotion mix strategies Figure 17.7  Relative importance of promotion tools in consumer versus indus...
 
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Promotions

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Promotions

  1. 1. Promotion 1 <ul><li>R. van Oorschot </li></ul><ul><li>November 2006 </li></ul><ul><li>IBL- V2 </li></ul>
  2. 2. Promotion <ul><li>Promotion is how marketers communicate with their target markets that include existing customers and prospective customers. </li></ul><ul><li>Promotion can build or destroy a brand, it can change attitudes, and it can influence the view that society as a whole has of the company and its products. </li></ul>
  3. 3. Figure 15.4: Haagen-Dazs –Providing Information to Consumers
  4. 4. Haagen-Dazs Also Provides Information to Consumers via Its WWW Site Copyright © 2001 by Harcourt, Inc. All rights reserved.
  5. 5. Promotional tools <ul><li>The company’s total marketing communications mix, also referred to as the promotional mix, consists of a blend of marketing tools that include the following five main promotional tools: </li></ul><ul><li>Advertising </li></ul><ul><li>Personal selling </li></ul><ul><li>Sales promotion </li></ul><ul><li>Public relations </li></ul><ul><li>Direct marketing </li></ul><ul><li>Also: sponsoring! </li></ul>
  6. 6. Examples? <ul><li>Advertising….. </li></ul><ul><li>Personal selling….. </li></ul><ul><li>Public relations….. </li></ul><ul><li>Sales promotion….. </li></ul><ul><li>Direct marketing…… </li></ul><ul><li>Sponsoring….. </li></ul>
  7. 7. Figure 17.1  The marketing communications system The marketing communications system
  8. 8. Integrated marketing communications <ul><li>The changing needs of the 21st Century consumer have delivered huge challenges to marketing communications. </li></ul><ul><li>The move is away from the mass marketing message where one message meant the same to the target market. </li></ul><ul><li>Our ‘globalised’ society requires marketers to create different communications for a very diverse consumer base. </li></ul>
  9. 9. The changing communications environment <ul><li>Two major forces have changed marketing communications: </li></ul><ul><ul><ul><li>Mass markets have fragmented and emphasis is focused on building relationships with customers in narrowly defined targeted market segments. </li></ul></ul></ul><ul><ul><ul><li>New technologies have opened opportunities for unique communication methods associated with media fragmentation from CD catalogues to interactive television. </li></ul></ul></ul>
  10. 10. The need for integrated marketing communications Figure 17.2  Integrated marketing communications
  11. 11. Schramm Model of communication Figure 17.3  Elements in the communication process
  12. 12. Steps in developing effective communication <ul><li>1. Identifying the target market </li></ul><ul><ul><li>What, how, when, where and who? </li></ul></ul>
  13. 13. Steps in developing effective communication <ul><li>2. Determining the communications objectives </li></ul><ul><ul><li>What response is sought? !!!!!!!! </li></ul></ul><ul><ul><li>What stage of buyer-readiness is the target audience? </li></ul></ul><ul><ul><ul><li>Awareness </li></ul></ul></ul><ul><ul><ul><li>Knowledge </li></ul></ul></ul><ul><ul><ul><li>Liking </li></ul></ul></ul><ul><ul><ul><li>Preference </li></ul></ul></ul><ul><ul><ul><li>Conviction </li></ul></ul></ul><ul><ul><ul><li>Purchase </li></ul></ul></ul>
  14. 14. Objectives…… <ul><li>Provide information </li></ul><ul><li>Increase demand </li></ul><ul><li>Differentiate the product </li></ul><ul><li>Accentuate the product’s value </li></ul><ul><li>Stabilise sales </li></ul><ul><li>=> “AIDA” </li></ul>
  15. 15. Steps in developing effective communication Ideally the message should get Attention , hold Interest , arouse Desire and obtain Action . The AIDA Model. <ul><li>3. Designing a message </li></ul>
  16. 16. Steps in developing effective communication <ul><li>3. Message content </li></ul><ul><ul><ul><li>Rational appeals </li></ul></ul></ul><ul><ul><ul><ul><li>Relate to audience’s self interest. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Message of quality, economy, value or performance. </li></ul></ul></ul></ul><ul><ul><ul><li>Emotional appeals </li></ul></ul></ul><ul><ul><ul><ul><li>Negative or positive emotions, fear, guilt, love, humour, pride and joy. </li></ul></ul></ul></ul><ul><ul><ul><li>Moral appeals </li></ul></ul></ul><ul><ul><ul><ul><li>Directed to audience’s sense of what is right and proper. </li></ul></ul></ul></ul>
  17. 17. Steps in developing effective communication <ul><li>3. Message structure </li></ul><ul><ul><ul><li>How to ‘say’ it. </li></ul></ul></ul><ul><ul><li>Message format </li></ul></ul><ul><ul><ul><li>Strong format to gain attention </li></ul></ul></ul><ul><ul><ul><ul><li>Must have practical value to target audience </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Must be interesting </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Must communicate new information about the product or brand </li></ul></ul></ul></ul><ul><ul><ul><ul><li>New products or brands </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Must reinforce or justify the decision to buy. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Must make an impact </li></ul></ul></ul></ul>
  18. 18. Steps in developing effective communication <ul><li>4. Choosing media </li></ul><ul><ul><li>Personal communication channels </li></ul></ul><ul><ul><li>Channels where people communicate directly with each other, including face to face, person to audience, telephone or mail. </li></ul></ul><ul><ul><ul><li>Word of mouth influence </li></ul></ul></ul><ul><ul><ul><li>Buzz marketing </li></ul></ul></ul><ul><ul><ul><ul><li>Cultivating opinion leaders and getting them to spread information </li></ul></ul></ul></ul><ul><ul><li>Non-personal communication channels </li></ul></ul><ul><ul><li>Channels that carry messages without personal contact </li></ul></ul><ul><ul><ul><li>Media </li></ul></ul></ul><ul><ul><ul><li>Atmospheres – designed environments that create or reinforce the buyer’s consumption of the product. </li></ul></ul></ul><ul><ul><ul><li>Events – conferences and grand openings </li></ul></ul></ul><ul><ul><li>Selecting the message source </li></ul></ul><ul><ul><ul><li>Credible sources and brand ambassadors </li></ul></ul></ul>
  19. 19. Steps in developing effective communication <ul><li>5. Collecting feedback </li></ul><ul><ul><li>Evaluation of every campaign is essential so as to measure efficacy of the communication. </li></ul></ul>
  20. 20. Methods used to set the promotional budget <ul><li>Affordable method </li></ul><ul><ul><li>Setting budget at what the company can afford. </li></ul></ul><ul><li>Percentage of sales method </li></ul><ul><ul><li>Setting the budget at a determined percentage of current or forecasted sales, or as a percentage of sales price. </li></ul></ul><ul><li>Competitive parity method </li></ul><ul><ul><li>Matching competitor spend. </li></ul></ul><ul><li>Objective-and-task method </li></ul><ul><ul><li>Defining specific objectives and setting budgets for those objectives to be achieved. </li></ul></ul>
  21. 21. Promotion mix strategies 1 <ul><li>Push strategy </li></ul><ul><ul><li>Sales force and trade promotion to push the product through the channels. </li></ul></ul><ul><ul><li>Producer promotes product to wholesalers, the wholesalers promote to the retailers and retailers promote to the consumers. </li></ul></ul>
  22. 22. Promotion mix strategies 2 <ul><li>Pull strategy </li></ul><ul><ul><li>Promotion strategy that spends a lot on advertising and consumer promotion to create consumer demand. </li></ul></ul>
  23. 23. © PhotoDisc PULLING AND PUSHING PROMOTIONAL STRATEGIES <ul><li>Pulling strategy: promotional effort by a seller to stimulate demand among final users, who will then exert pressure on the distribution channel to carry the good or service, pulling it though the marketing channel </li></ul><ul><li>Pushing strategy: promotional effort by a seller to members of the marketing channel intended to stimulate personal selling of the good or service, thereby pushing it through the marketing channel </li></ul>
  24. 24. Figure 17.6  Push versus pull promotion strategy Push versus pull promotion strategy
  25. 25. Factors in designing promotion mix strategies <ul><li>Type of product/market </li></ul><ul><ul><li>E.g. non-durable goods<-> durable goods </li></ul></ul><ul><li>Buyer readiness stage </li></ul><ul><ul><li>is your target group: innovator, early majority, laggard etc. </li></ul></ul><ul><li>Product life-cycle stage </li></ul><ul><ul><li>Introduction – growth – maturity - decline </li></ul></ul>
  26. 26. Factors in designing promotion mix strategies Figure 17.7  Relative importance of promotion tools in consumer versus industrial markets

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