Chapters Fourteen, Fifteen and Sixteen Lectures 10,11 & 12.

Chapters Fourteen, Fifteen and SixteenLectures 10,11 & 12. Communicating Customer Value: Integrated Marketing Communications Strategy Promotion Mix

Promotion Mix Strategies Setting the Total Promotion Budget and Mix

Steps in Developing Effective Marketing Communication

Steps in Developing Effective Communication Identifying the Target market

Steps in Developing Effective Marketing Communication AIDA Model Get Attention Hold Interest Arouse Desire Obtain Action Designing a Message

Steps in Developing Effective Marketing Communication Message content is an appeal or theme that will produce the desired response Rational appeal Emotional appeal Moral appeal Message Format Designing a Message

Steps in Developing Effective Marketing Communication Rational appeal relates to the audience’s self-interest Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase Designing a Message

Steps in Developing Effective Marketing Communication Personal communication involves two or more people communicating directly with each other Face to face Phone Mail E-mail Internet chat Choosing Media

Steps in Developing Effective Marketing Communication Personal communication is effective because it allows personal addressing and feedback Control of personal communication Company Independent experts Word of mouth Choosing Media

Steps in Developing Effective Marketing Communication Opinion leaders are people within a reference group who, because of their special skills, knowledge, personality, or other characteristics; exerts social influence on others Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities Choosing Media Personal Communication

Steps in Developing Effective Marketing Communication The message’s impact on the target audience is affected by how the audience views the communicator Celebrities • Athletes • Entertainers Professionals • Health care providers Selecting the Message Source

Setting the Total Promotion Budget and Mix Affordable budget method sets the budget at an affordable level Ignores the effects of promotion on sales Setting the Total Promotion Budget

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Percentage of salesmethod sets the budget at a certain percentage of current or forecasted sales or unit sales price Easy to use and helps management think about the relationship between promotion, selling price, and profit per unit Wrongly views sales as the cause rather than the result of promotion

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Competitive-parity method sets the budget to match competitor outlays Represents industry standards Avoids promotion wars

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Objective-and-task method sets the budget based on what the firm wants to accomplish with promotion and includes: Defining promotion objectives Determining tasks to achieve the objectives Estimating costs

Setting the Total Promotion Budget and Mix Advertising reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times Shaping the Overall Promotion Mix The Nature of Each Promotion Tool

Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, actions, and developing customer relationships

Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Sales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase, and can be used to dramatize product offers and to boost sagging sales

Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events Direct marketing is a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarketing, and online marketing

Media Selection Message objectives Creative decisions Overall objectives Audience considerations Cost – Production + Space Time constraints Media availability Legal constraints

Broadcast - TV & Radio Print – Newspapers & Magazines Outdoor – Billboards & Transit New – CD-ROM, Internet, etc In-Store – POP & packaging Other – Cinema, product placement, exhibitions, etc Types of Media Available

National – Regional – Local Morning/Daily – Evening – Weekend – Sunday Free versus paid for…. Targeted sections BROADsheets – Tabloids – Red Tops Semi-permanent Colour available – quality Press Newspapers

Magazines – Strengths and Weaknesses

Newspaper – Strengths and Weaknesses

Consumer General Interest v Specific Business to Business Trade Wide choice Informed figures on circulation/readership Production lead times – typically short High impact DPS plus Press – Magazines

Detailed message Permanent Direct response Advertorial endorsement Kudos from title Noise Ad overload Ad Advoidance Press - Magazines

7,221,000 Readers Free available in-store http://www.cedarcom.co.uk/our-work/tesco-magazine.html Analyse content Tesco Magazine

Using media to establish a direct and interactivity link with consumers May be see as wasteful – Junk mail Can be highly targeted Database building Measurable Controllable Direct Marketing

Mail – Post E-mail Leaflets Door to door In-store Mail order Direct Marketing Channels

T e l e v i s i o n Appeals to most senses Good creative platform Mass v local v Targeted channels Timing flexible Good image – as seen on TV Intrusive medium Certain groups have low TV exposure Long time scales Expensive Response = limited

Reach Campaign flexibility Production lead times short Relatively low cost Programming defines audience Creative opportunity Message is transient – non permanent Often considered as Wallpaper R a d i o

Good variety – Posters,Transport,OTHER? Colourful – visible IMPACT National v regional v local High repetition – routing Relatively low cost per thousand Only simple message 50 x 30 Familiarity = ignoring Standards of presentation Good positions at a premiumscarce Outdoor

Captive audience Frequency low – long time to develop reach Key targets young/couples + audience discrimination National and local Longer ads IMPACT Lack of noise Some groups never go to the Cinema C i n e m a

Sales Promotion Pulling the trigger!!! Getting the sale!!!!!!

Speaking the language…Talking the talk…. Above the Line Below the Line… Sales Promotion – Key Term Alert

Existing Customers buy more Sell to new customers There are Only Two Ways to Increase Sales!

Push Pull Profile Persuasion of Salesmen The 4 P’s of Sales Promotion

Broad Promotional Objectives

Trade Promotion Techniques

Oral persuasive presentation to gain sale. Involves face to face dialogue Gives flexibility of message Immediate feedback gained Very useful in business to business markets Very useful when products and services are complex Personal Selling

Prospecting Communicating Selling Servicing Information gathering Allocating Shaping Varied Roles of a Salesperson

Order collector Order taker Pre-order caller Order supporter Order getter Varied Subroles in Selling

Range of tactical marketing techniques designed to add value to a product or service in order to achieve a specific objective Offers buyers additional inducement to buy Reach new customers Achieve a switch from competitors Increase display space Smooth seasonality Generate a database Sales Promotion

Only two ways to sell more product Get new buyers // customers Get new/lapsed customers to buy. Sales Promotion Repeat….

Chapters Fourteen, Fifteen and Sixteen Lectures 10,11 & 12.