Promotion Integrated Marketing Communication Elements of promotion ● Advertising Strategies ● PROMOTION
Promotion Integrated Marketing Communication Elements of promotion ● Advertising Strategies ● Other Methods of Promotion BUAD 307 PROMOTION Lars Perner, Instructor 1 Learning Objectives • Understanding the obstacles that advertising messages face • Understanding the choices facing marketing managers regarding – – – – BUAD 307 Promotional objectives Promotional message Media choice Advertising and promotion spending PROMOTION Lars Perner, Instructor 2 Elements of the Promotion Mix • Advertising • Sales Promotion – – – – BUAD 307 Sales Coupons Rebates Premiums PROMOTION • Personal selling • Public relations • Direct marketing Lars Perner, Instructor 3 Promotion by Decision Stage • Pre-purchase – Influence decision, preference – Samples to induce trial • Purchase – – Sales promotion Point-of-purchase (POP) displays • Postpurchase – Increase repurchase propensity BUAD 307 PROMOTION Lars Perner, Instructor 4 Developing the Advertising Program IDENTIFYING THE TARGET AUDIENCE DESIGNING THE ADVERTISEMENT(S) BUAD 307 PROMOTION SPECIFYING ADVERTISING OBJECTIVES SETTING THE ADVERTISING BUDGET Lars Perner, Instructor 5 Some Media Alternatives • Television – – – – Conventional advertisements Infomercials Sponsorship programming “Placements” • In programming • “Superimposed” • • • • • • • Radio BUAD 307 Magazines Newspapers Outdoor Internet Point-of-purchase Other – Movie theaters – On other products PROMOTION Lars Perner, Instructor 6 Reaching the Customer: Encoding, “Noise,” and “Decoding” NOISE Other ads News articles Other store displays SENDER Mktg mgr Advertising mgr Advertising agency ENCODING THE MESSAGE Advertisement Coupon Sales presentation Press release Store display MESSAGE CHANNEL DECODING THE MESSAGE Media, Salesperson Retail store News program Receiver interpretation of the message RECEIVER Customers Media audience News media Clients CHANNEL FEEDBACK Text, p. 211. BUAD 307 PROMOTION Lars Perner, Instructor 7 Some Promotional Objectives • Brand awareness – Knowledge of product category • • • • Existence Benefits Functions Technology – Knowledge of brand differences • Brand attitude – Favorable beliefs about the brand • Overall • Relative to competitors • Product category or brand trial BUAD 307 PROMOTION • Brand preference – Willingness to pay a premium for the brand – Resistance to competitor promotions (e.g., sales, coupons) – Willingness to buy under less convenient circumstances • Increase in product category or brand usage – Quantity used – Frequency used – Scope of uses • Increase in short term sales Lars Perner, Instructor 8 Promotional Objectives Across the Product Life Cycle (PLC) • Introduction – – – • Maturity – Advertising and public relations awareness Sales promotion trial Personal selling distribution – • Decline – • Growth – Text, p. 217 BUAD 307 – Advertising persuasion, reminder Sales promotion market share Advertising and PR brand loyalty Less emphasis on sales promotion – PROMOTION Reduction in advertising and PR More emphasis on sales promotions temporary sales Lars Perner, Instructor 9 Increase in Product Category or Brand Usage—Product Category Potential Examples • Scope of uses – Orange juice: “It isn’t just for breakfast anymore” – Baking soda – ZipLock™ bags – WD-40™ (lubrication and sticker removal) • Quantity used – Calcium supplements – Milk BUAD 307 PROMOTION • Frequency used – – – – – Cosmetics Deodorant Wine Greeting cards Phone calls • Cell phone minutes • Call to family/friends – – – – Hotels, airlines Conference calls Car engine oil Canned soup Lars Perner, Instructor 10 Communications Objectives • Informing – – – – • Persuading Awareness Interest Benefits Other information – Preference based on competitive advantages – Brand switching or prevention of brand switching • Reminding – Trigger memories – Maintain preference and buying habits BUAD 307 PROMOTION Lars Perner, Instructor 11 Some Advertising Strategies • Comparative ads – Illegal in most countries – Generally very disliked by U.S. consumers but still relatively effective • Humor appeal – A way to get attention to the advertisement—but the consumer may remember the humor and not what the product featured was • Adding beliefs • Classical conditioning (association) BUAD 307 PROMOTION • Fear appeal – To be effective: • Feared stimulus must be of medium intensity— enough to motivate action but not so intense that the individual “tunes out” the ad • A clear solution must be offered—e.g., use Listerine™ to avoid tooth loss due to gingivitis • Repetition • Celebrity endorsements Lars Perner, Instructor 12 The Elaboration Likelihood Model and Likely Effectiveness of Celebrity Endorsements Product important or expensive? Low elaboration Yes High elaboration No Yes No Celebrity endorsements more likely to be effective BUAD 307 Is endorser congruent with product endorsed? Unlikely to be effective PROMOTION More likely to be effective Lars Perner, Instructor 13 Executing The Advertising Program • Pre-testing – Several “story boards” or actual ads are created – Ads are tested on consumers • Instant response technologies (consumers either rate approval or have physiological measures taken throughout an ad duration – The best performing ad or ads are chosen subject to constraints imposed (e.g., need to specify a certain message or use certain types of models) • Possible redesign • Carrying out advertisement – Full service agencies – Limited service agencies – In-house BUAD 307 PROMOTION Lars Perner, Instructor 14 Advertising Intensity and Return --A Typical Relationship Response (e.g., sales, recall) The “S”-Shaped Curve 1 0.8 Saturation Point 0.6 0.4 Too little to do much good 0.2 0 BUAD 307 0 5 10 15 Amount of Advertising Spending PROMOTION 20 25 Lars Perner, Instructor 15 Sample Exam Question BUAD 307 PROMOTION Lars Perner, Instructor 16 Measuring Advertising Effect • Several possible criteria: – Scanner data • • Individual TV exposure can be matched against actual purchases Available only for grocery products – Increase in sales – Lab studies: (but it may be impossible to separate effects of different simultaneous ads) • Recall • Attitude toward product • Preference BUAD 307 PROMOTION Lars Perner, Instructor 17 Japanese Advertising—Use of animation and cartoon characters BUAD 307 PROMOTION Lars Perner, Instructor 18 Breaking Through the Clutter BUAD 307 PROMOTION Lars Perner, Instructor 19
© Copyright 2024