Download - w01a Promotion Mix 5ms
CHAPTER 1A
PROMOTION MIX
5M’S OF ADVERTISING
(major decisions)
Marketing Communication Mix or Promotion Mix
Product’s Design
Product’s Price
Product’s
Package
Stores that Sell the Product
Advertising Advertising
Personal Selling
Personal Selling
SalesPromotion
SalesPromotion
PublicRelations
PublicRelations
DirectMarketing
DirectMarketing
Reaches Many Buyers, Repeats Message Many Times, Impersonal, Expensive
Reaches Many Buyers, Repeats Message Many Times, Impersonal, Expensive
Personal Interaction, Relationship Building, Most
Expensive Promo Tool
Personal Interaction, Relationship Building, Most
Expensive Promo ToolWide Assortment of Tools, Rewards Quick Response,
Efforts Short-Lived
Wide Assortment of Tools, Rewards Quick Response,
Efforts Short-LivedVery Believable, Dramatize a
Company or Product, Underutilized
Very Believable, Dramatize a Company or Product,
Underutilized
Nonpublic, Immediate, Customized, InteractiveNonpublic, Immediate, Customized, Interactive
Setting the Overall Communication Mix
Push versus Pull Promotion Strategy
What is Sales Promotion?
Sales Promotion Offers Short-Term Incentives to Encourage Purchase or Sales of a Product
or Service.Offers Reasons to Buy NOW.
Rapid Growth of Sales Promotion
• Sales promotion can take the form of consumer promotions, business promotions, trade promotions, or sales force promotions.
• Rapid growth in the industry has been achieved because:– Product managers are facing more pressure to
increase their current sales,– Companies face more competition,– Advertising efficiency has declined,– Consumers have become more deal oriented.
Sales Promotion Objectives
• Consumer Promotions: increase short-term sales or help build long-term market share.
• Trade Promotions: get retailers to:– carry new items and more inventory,– advertise products, – give products more shelf space, and– buy product ahead.
• Sales Force: getting more sales support.• In general, sales promotion should focus on
consumer relationship building.
SampleSample
CouponsCoupons
Cash RefundsCash Refunds
Price PacksPrice Packs
PremiumsPremiums
Advertising Specialties
Advertising Specialties
Trial amount of a productTrial amount of a product
Savings when purchasing specified products
Savings when purchasing specified products
Refund of part of the purchase price
Refund of part of the purchase price
Reduced prices marked on the label or package
Reduced prices marked on the label or package
Goods offered free or low cost as an incentive to buy a
product
Goods offered free or low cost as an incentive to buy a
productArticles imprinted with an advertiser’s name given as
gifts
Articles imprinted with an advertiser’s name given as
gifts
Major Consumer Sales Promotion Tools
Patronage RewardsPatronage Rewards
Point-of-Purchase Point-of-Purchase
ContestContest
SweepstakesSweepstakes
GamesGames
Cash or Other Award Offered for Regular Use of a Product
Cash or Other Award Offered for Regular Use of a Product
Displays or Demonstrations at the Point of Purchase
Displays or Demonstrations at the Point of Purchase
Consumers Submit an Entry to be Judged
Consumers Submit an Entry to be Judged
Consumers Submit Their Names for a Drawing
Consumers Submit Their Names for a Drawing
Consumers Receive Something Each Time They Buy Which May
Help Them Win a Prize
Consumers Receive Something Each Time They Buy Which May
Help Them Win a Prize
Major Consumer Sales Promotion Tools
Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a Brand
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf SpaceGive a Brand Shelf Space
Promote a Brand in Advertising
Promote a Brand in Advertising
Push a Brand to ConsumersPush a Brand to Consumers
Major Trade Sales Promotion Tools
Trade-Promotion Tools
DiscountsDiscounts
AllowancesAllowances
Free GoodsFree Goods
Push MoneyPush Money
Specialty Ad ItemsSpecialty Ad Items
Business-Promotion Objectives
Generate Business LeadsGenerate Business Leads
Stimulate PurchasesStimulate Purchases
Reward CustomersReward Customers
Motivate SalespeopleMotivate Salespeople
Business-Promotion Tools
ConventionsConventions
Trade ShowsTrade Shows
Sales ContestsSales Contests
Major Business Sales Promotion Tools
Decide on the Size of the IncentiveDecide on the Size of the Incentive
Set Conditions for ParticipationSet Conditions for Participation
Evaluate the ProgramEvaluate the Program
Determine How to Promote andDistribute the Promotion Program Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the ProgramDetermine the Length of the Program
Developing the Sales Promotion Program
What is Public Relations?
Public Relations Involves Building Good Relations With the
Company’s Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate
Image, and Handling or Heading Off Unfavorable Rumors, Stories,
and Events.
Press Relations or AgentryPress Relations or Agentry
Product PublicityProduct Publicity
Public AffairsPublic Affairs
LobbyingLobbying
Investor RelationsInvestor Relations
DevelopmentDevelopment
Public Relations Departments May Perform Any or All
of the Following Functions:
Major Public Relations Functions
News
Speeches
Special Events
Written MaterialsAudiovisual
Materials
Corporate Identity
Materials
Public Service
Activities
Web Site
Major Public Relations Tools
Advertising
• Advertising is centuries old.• U.S. advertisers spend in excess of $244
billion each year; worldwide spending exceeds $465 billion.
• Advertising is used by:– Business firms,– Nonprofit organizations,– Professionals, and– Social agencies.
Major Decisions in Advertising
Informative AdvertisingInform Consumers or Build Primary Demand
i.e DVD Players
Comparative AdvertisingCompares One Brand
to Anotheri.e. Avis vs. Hertz
Persuasive AdvertisingBuild Selective Demandi.e Sony DVD Players
Reminder AdvertisingKeeps Consumers
Thinking About a Producti.e. Coca-Cola
Advertising ObjectiveSpecific Communication Task Accomplished with a Specific
Target Audience During a Specific Period of Time
Setting Advertising Objectives
Affordable Based on What the Company Can Afford
Objective-and-Task Based on Determining
Objectives & Tasks, Then Estimating Costs
Objective-and-Task Based on Determining
Objectives & Tasks, Then Estimating Costs
Percentage-of-SalesBased on a Certain
Percentage of Current or Forecasted Sales
Percentage-of-SalesBased on a Certain
Percentage of Current or Forecasted Sales
Competitive-ParityBased on the Competitors’
Promotion Budget
Competitive-ParityBased on the Competitors’
Promotion Budget
Methods of Setting the Advertising Budget for Each Product and Market.
Setting the Advertising Budget
Selecting the Advertising Media
Advertising Strategy Consists of Two Major Elements and Companies are Realizing the
Benefits of Planning These Two Elements Jointly.
Developing Advertising Strategy
Creating the Advertising
Messages
Creating the Advertising Message:Message Strategy
Advertising AppealsMeaningful, Believable
& Distinctive
Develop a Message Focus on
Customer Benefits
Creative Concept“Big Idea”
Visualization or Phrase
TypicalMessage
ExecutionStyles
Testimonial EvidenceTestimonial Evidence Slice of LifeSlice of Life
Scientific EvidenceScientific Evidence LifestyleLifestyle
Technical ExpertiseTechnical Expertise FantasyFantasy
MusicalMusical
Personality SymbolPersonality Symbol Mood or ImageMood or Image
Developing Advertising Strategy: Message Execution
Advertising Strategy:Selecting Advertising Media
• Deciding on reach, frequency, and impact.• Choosing among the major media types.
– Media habits of target customers,– Nature of the product,– Types and costs of messages.
• Selecting specific media vehicles.– Specific media within each general media type.
• Deciding on media timing.– Scheduling advertising over the course of a year.
Communication Effects(Copy Testing)
Is the Ad Communicating Well?
Communication Effects(Copy Testing)
Is the Ad Communicating Well?
Advertising Program Evaluation
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
Evaluating Advertising
Sales Departments inSmall Companies
Advertising Departments in Larger Companies
Advertising Agency
Firm that Assists Companiesin the Planning, Creation, &
Implementation of TheirAdvertising Programs
Other Advertising Considerations
Advertising Management: Key Questions
• What is my target audience
• How do they make decisions?
• What should be my brand positioning?
• How do I build brand equity?
• What motivates behaviour?
• How do I best communicate?
• have an opportunity to see or hear the message
• pay attention to the message
•understand what is presented
• act upon the message in the
desired manner
How does advertising work?
Someone must:
The Mandate for effectiveness
• Today advertising is in a bind– A down economy– Tragedy of 9/11– New technologies that threaten how
advertising works• Advertisers expect specific results that
lead to sales• Advertising must be effective
What Makes an Ad Effective?
• Effective ads work on two levels: with consumers and with advertisers.
– Consumers • View ads for entertainment or out of curiosity• May then learn the ad relates to a need• May receive an incentive to risk change• May find reinforcement for product decisions
– Advertisers• Ads must gain consumers’ attention• Ads must hold attention long enough to change
consumer purchasing behavior
What Makes an Ad Effective?
Strategy
• Advertisers develop ads to– Meet specific objectives– Target a certain audience– Speak to that audience’s most important concerns– Appear in media that will reach the audience most
effectively
Creativity
• The creative concept is the ad’s central idea– Grabs your attention– Sticks in your memory
• Creativity drives the entire advertising field– Planning strategy– Conducting research– Buying and placing ads
Lancer
Execution
• Effective ads are well-executed
– Details, photos, printing, production values have been finely tuned
– How you say it is as important as what you say
Ads Must Be Goal - Directed
• The intended effects of advertising are important for evaluating effectiveness
• These goals include– Perception
• Will the ad be attended to and remembered?
– Learning• Will the audience understand the message and make correct associations?
Ads Must Be Goal -Directed
• These goals include (cont.)– Persuasion
• Does the ad change attitudes and touch emotions?
– Behavior• Will the audience try the product?
A Model of Key Effects
• Integrated marketing communications (IMC)– Unifying all marketing communications tools to send a
consistent persuasive message
• Consumer Power– Technology has given consumers greater leverage
Current Advertising Issues
Current Advertising Issues
• Interactive advertising– Will technology change the
face of advertising?– Is the promise of technology
exaggerated?– Implications of the failure
of banner ads
• Globalization– Trade barriers have fallen in Europe– Formerly communist nations have partially opened
markets– Should advertisers practice global or local advertising?
• Niche marketing– Advertisers target market segments– New technologies make targeting groups possible
Current Advertising Issues
2 Factors
are Changing the Face of Today’s
Marketing Communications:
Improvement in Information Technology
Has Led to Segmented MarketingMore Narrowcasting
Marketers Have ShiftedAway From Mass
MarketingLess Broadcasting
Mark
et
Fragm
enta
tion
Led
to
Med
ia F
rag
men
tati
on
The Changing Communications Environment
The Five Ms of Advertising