Promotion. Copyright 2007, Prentice-Hall Inc.12-2 The Promotional Mix Advertising Public Relations...

Promotion

The Promotional Mix

AdvertisingAdvertising

Public Public RelationRelation

Sales Sales PromotionPromotion

Personal Personal SellingSelling

Direct Direct MarketinMarketin

• Mass market fragmentation– Shift away from mass marketing– More narrowcasting, less broadcasting

• Improvements in information and communication technology– The rise of segmented promotion

• Increased Measurement of Promotional Effectiveness & Accountability

Changing Promotional Landscape

Integrated Marketing Communications

Advertising

• Reaches large masses of geographically dispersed buyers – “mass media”

• Best for achieving repetition of message

• Is impersonal, one-way communication.

• Can be very costly (i.e. Superbowl or Prime Time tv commercials)

Personal Selling

• Personal interaction between two or more people.

• Relationship building

• Most effective way for preferences, convictions, and actions to be influenced.

• Most expensive promotion tool; requires long-term commitment.

• Most commonly used in B-2-B settings.

Sales Promotion

• Offers strong incentives to buy now.

• Usually very good at attracting consumer attention.

• Dangers of SP – Effects are often short-lived– Forward Buying– “Couponing” the brand– Production Inefficiencies

Public Relations

• Highly credible source of information (journalists)

• Reaches people who typically avoid or ignore advertising

• Is cheaper than other forms of promotion, but never “free”

Direct Marketing

• Characteristics– Micromarketing– Customized– Immediate Responses– Driven by Lists

• Biggest promotional expenditure in U.S.

Direct mail is the most popular form of direct

marketing.

Push Vs. Pull Promotion Strategy

Major Decisions in Advertising

Setting Advertising Objectives

• Advertising Objective:– Specific communication task to be accomplished with

a specific target audience during a specific period of time.

– Example: Make 20% of U.S. males ages 20-50 aware of our new razor blade within 6 months.

• Classified by Purpose:– Inform– Persuade– Remind

Fulfilling Objectives

INFORM, PERSUADE OR REMIND?

Which function(s) do each of the ads perform?

Question du Jour

Are there times when ads should do something other than trying to sell product or building brand image?

Setting the Advertising Budget

• Affordable method

• Percentage-of-sales method

Competitive-parity method

Objective-and-task method

– Message Strategy (or “Message”)– Execution– “Breaking through the clutter”– Select advertising media

• Set reach, frequency, and impact goals.• Choose among major media types.• Select specific media vehicles.• Decide on media timing.

Developing Advertising Strategy

The Message Strategy

• Develop compelling creative concept — the “Big Idea”.– Examples:

• “Tastes Great, Less Filling.”• “15 Minutes Could Save You 15%...”• “Think Outside the Bun.”• Only Vegas (“What happens in Vegas....)”

• Messages should be meaningful, believable, distinctive and memorable.

Message Execution

• Celebrities

• Scientific Evidence

• Testimonial or Endorsement

• Straight Sell

• Slice of Life• Slice of Death• Lifestyle• Fantasy• Mood Appeal (Humor,

Sadness, Fear)• Personality Symbol• Mascot

Celebrity Endorsements

Celebrity endorsements have been at the heart of the “Got Milk?” milk mustache campaign for years.

Question du Jour

Why are teens less enamored with celebrities nowadays?

Humorous Advertising Appeals

Humorous advertising tones are being used in the marketing of many products, including “boring” products like dictionaries.

Message Execution• Choose a proper tone.

– Consistent with brand and company image

– Consistent with selling proposition

• Use memorable, attention-getting words.

• Lay out the ad– Visuals– Headline– Copy

Absolut print ads attract attention through a compelling visual layout and headline.

Setting Media Objectives

• Reach– Percentage of people exposed to ad.

• Frequency– Number of times a person is repeatedly exposed to

an advertisement.

• Media Impact– How much of an impression an ad’s message

strategy and execution makes on the target audience.

Choosing Media Types & Vehicles

• Media Type– TV, Print, Internet, Outdoor, etc. – Considerations

• Impact and effectiveness• Cost• Reach and frequency potential

• Media Vehicles– Specific media within

each general media type– Examples

• Network TV, HGTV, Food Network• Time Magazine, Sports Illustrated• San Francisco Chronicle

– Considerations• Cost• Audience quality (demographic & psychographic)• Editorial quality• Fit with brand image

Alternative Media

Other examples?

• Scheduling advertising for the year

• Possible ad patterns– Continuous– Pulsing– Flighting– Blasting

Media Timing

Evaluating Advertising

• Advertising accountability and measurement are more important than ever before.

• Evaluation methods– Pre-testing and Post-testing

• Copy Testing• Day After Recall

– Sales Measures vs. Surrogate Measures– Ad/Marketing ROI

Global Advertising Considerations

• Standardization vs. adaptation• Language and cultural norms are not “universal” – avoid

cultural missteps• Costs and media availability vary by country• Advertising regulations vary by country

An example of standardized advertising

Sales Promotion

Short-term incentives to Short-term incentives to encourage sales of a product.encourage sales of a product.

The main purpose is to generate immediate sales.

Pull-Oriented Sales Promotions – FSI Example

Ad Copy & Sales Promotion Call to Action (coupon)

• Why?– More pressure to increase current vs. future sales– Companies face more competition– Advertising efficiency has declined– Much easier to measure effectiveness– Consumers have become more deal-oriented and

less brand-loyal

Rapid Growth of Sales Promotion

Consumer Sales Promotion Tools

• Coupons: money off the purchase price when redeemed.

• Rebates: refund part of the purchase price after the item has been bought.

• Price Packs: offer savings off the regular price of the product; marked on the package.

• Samples: offer a trial amount of the product.

• Premiums: goods offered for free or at a low price as an incentive to buy.

• Giveaways: useful items imprinted with company/brand name or logo given as gifts to consumers.

More(!) Consumer Sales Promotion Tools

• Loyalty Programs / Patronage Rewards: cash or other awards offered for regular use of a brand.

• POP Displays: in-store signs and displays that persuade consumers to buy.

• Demonstrations: food or product in-store sampling.

• Contests, Sweepstakes & Games: can breathe new life and excitement into “stale” products.

Point of Purchase Displays

Point-of-purchase displays draw attention to the brand and stimulate impulse buys.

Why do many retailers resist using POP displays?

• Objectives:– Persuade resellers to carry a brand.– Give a brand “preferable” shelf space.– Promote brand in-store and out-of-store.– “Pushes” brand to customers

• Tools:– Discounts, allowances, free goods, push money,

specialty advertising items.

What is the common problem associated with trade promotion?

Trade Promotion

Public Relations• PR Activities

– Building and maintaining good relations with various publics – Generating favorable publicity– Building and maintaining a favorable corporate image– Handling or heading off unfavorable rumors, stories and events– Crisis Management

• Most PR is practiced reactively instead of proactively

• PR Functions:– Press relations– Public affairs– Lobbying – Investor relations

Public Relations

Scholastic sponsored low-cost sleepovers, games, and costume contests to promote the release of the sixth Harry Potter book.

Promotion. Copyright 2007, Prentice-Hall Inc.12-2 The Promotional Mix Advertising Public Relations...

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