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Promotion Concepts

Promotion Concepts. Informing. Reminding. Target Audience. Persuading. What is Promotion?. Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. The Evolution of Advertising. Fragmentation

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Promotion Concepts

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  1. Promotion Concepts

  2. Informing Reminding Target Audience Persuading What is Promotion? Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

  3. The Evolution of Advertising • Fragmentation • Av HH has 150+ channels; 17,000 magazines (5,000 consumer); 400,000 highway billboards; 30,000 plastered buses • Clutter • 330 ads per day (21 ads/hour) • Alienation • 65% believe they are constantly bombarded with too much advertising • 69% are interested in products that would help them skip or block marketing

  4. The Evolution of Advertising • The death of network TV? • Where did males 18-34 go? They are not coming back… • The death of the :30 TV spot? • The power of TiVo: • 2005: 10 million HH PVR • 2007: 20% of HH PVR • Online block out • Media Zone out • Multitasking

  5. Communication Solutions • Advertising yields to communication solutions • Reaching the target audiences with relevant communications based on central brand based creative idea that is delivered through optimal mix of consumer touch points; tracking results for continuous optimization and ROI analysis • Other terms: Media neutral planning; channel neutral planning

  6. Developing Effective Marketing Communications • Identify the target audience • Determine Communication objectives • Design the message • Select the communication channels • Budget • Determine the media mix • Measure the results • Manage the IMC process

  7. Advertising Elements of the Promotional Mix Public Relations Personal Selling Sales Promotion Promotional Mix

  8. How the money gets divided…

  9. Communication Objectives • Cognitive, Affective or Behavioral response • Some of these tend to be qualitative in nature -

  10. Action Desire Interest Attention Design the Message:ADIA Concept

  11. Awareness Interest Desire Action Advertising Very effective Very effective Somewhat effective Not effective Public Relations Very effective Very effective Very effective Not effective Sales Promotion Somewhat effective Somewhat effective Very effective Very effective Personal Selling Somewhat effective Very effective Very effective Somewhat effective ADIA and the Promotional Mix

  12. Designing the Message • Message content • Rational appeals, moral appeals, emotional appeals • Message structure • One sided vs. two sided messages • Message format • Message source • Source credibility

  13. Select Communication Channels • Personal communication channels • Nonpersonal communication channels (which is what we will focus on for this class)

  14. Establishing the Budget • Affordable method • Percentage of sales method • Competitive parity method • Objective and task method

  15. Determining the Promotional Mix • Advertising • Sales Promotion • Public relations and publicity • Direct marketing • Personal selling

  16. Factors Affecting Choice of Promotional Mix Nature of Product Stage in PLC Target Market Factors Type of Buying Decision Promotion Funds Push or Pull Strategy Factors Affecting the Promotional Mix

  17. Maturity Decline Growth Introduction Sales ($) Time Product Life Cycle and thePromotional Mix Light Advertising, pre- introduction Publicity Heavy use of advertising, PR for awareness; sales promotion for trial Advertising, PR, Brand loyalty Personal Selling for distribution Ads decrease. Sales Promotion, Personal SellingReminder & Persuasive AD/PR decrease Limited Sales Promotion, Personal Selling for distribution

  18. PUSH STRATEGY Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer Consumer buys from retailer Orders to manufacturer PULL STRATEGY Manufacturer promotes to consumer Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer Orders to manufacturer Push and Pull Strategies

  19. Measuring the Results • Recognize • Recall • Behavioral responses • Sales & market share • Word of mouth

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