MKTG 370 PROMOTION Lars Perner, Instructor 1

Integrated Marketing Communications and Promotion

Elements of promotion

Advertising strategies

Other methods of promotion

MKTG 370 PROMOTION Lars Perner, Instructor 2

Elements of the Promotion Mix

Advertising Sales Promotion

Sales Coupons Rebates Premiums

Personal selling Public relations Direct marketing

MKTG 370 PROMOTION Lars Perner, Instructor 3

Promotion by Decision Stage

Prepurchase Influence decision, preference Samples to induce trial

Purchase Sales promotion Point-of-purchase (POP) displays

Post-purchase Increase repurchase propensity

MKTG 370 PROMOTION Lars Perner, Instructor 4

Channel strategies

“Push” Make product

readily available to buyers

“Hard” sell to Distributors Consumers

Heavy sales promotions

“Pull” Create demand for

products “When you care

to send the very best”

“Snapple—made from the best stuff on earth”

MKTG 370 PROMOTION Lars Perner, Instructor 5

Developing the Advertising Program

Identifying the target audience Specifying advertising objectives Setting the advertising budget Designing the advertisement(s)

Informational/persuasive Fear appeals Sex appeals Humor appeal

MKTG 370 PROMOTION Lars Perner, Instructor 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

MKTG 370 PROMOTION Lars Perner, Instructor 7

Executing The Advertising Program

Pre-testing Portfolio test Jury tests Need to test a very large

number of tests Possible redesign Carrying out

advertisement Full service agencies Limited service agencies In-house

MKTG 370 PROMOTION Lars Perner, Instructor 8

Advertising Intensity and Return --A Typical RelationshipAdvertising Intensity and Return --A Typical Relationship

0

0.2

0.4

0.6

0.8

1

Res

pons

e (e

.g.,

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es,

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0 5 10 15 20 25 Amount of Advertising Spending

The “S”-Shaped Curve

Saturation Point

Relatively

high effecti

veness

Too little to domuch good

MKTG 370 PROMOTION Lars Perner, Instructor 9

Measuring Advertising EffectMeasuring Advertising Effect

Several possible criteria: Increase in sales

(but it may be impossible to separate effects of different simultaneous ads)

Lab studies: Recall Attitude toward

product Preference

MKTG 370 PROMOTION Lars Perner, Instructor 10

Public Relations and Publicity

Advantages of media coverage over advertising: cost credibility attention

Issues “Two-way street”--must

provide something of interest to media

MKTG 370 PROMOTION Lars Perner, Instructor 11

Making a News Release--Issues

Properties of a good news release timing--for event and

journalist’s schedule brevity--if you can’t say it

in two pages, how do you expect the journalist to?

Interest to readers content

quotes facts

MKTG 370 PROMOTION Lars Perner, Instructor 12

Personal selling

Traditional vs. consultative selling

Commission vs. salary