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PROMOTION and IMC PLANNING and STRATEGY

PROMOTION and IMC PLANNING and STRATEGY. The Promotion Plan. A PROMOTION PLAN IS: Direct Extension of Firm’s Marketing Plan A Specification of the Analysis, Strategy, and Tasks of the Promotional Effort Needed to Conceive and Implement an Effective Promotional Effort

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PROMOTION and IMC PLANNING and STRATEGY

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  1. PROMOTION andIMC PLANNINGandSTRATEGY

  2. The Promotion Plan A PROMOTION PLAN IS: • Direct Extension of Firm’s Marketing Plan • A Specification of the Analysis, Strategy, and Tasks of the Promotional Effort • Needed to Conceive and Implement an Effective Promotional Effort SIX MAJOR ELEMENTS OF A PROMOTIONAL PLAN ARE: • Executive Summary and Overview • Situation Analysis • Objectives • Budgeting • Strategy • Evaluation 3.2

  3. Introduction • Situation Analysis • Objectives • Budgeting • Strategy • Execution • Evaluation Stages in the Promotional Plan 3.3

  4. The Promotion Plan EXECUTIVE SUMMARY & OVERVIEW • Executive Summary-States Most Important Aspects of the Plan • Overview-What is to be Covered in the Plan in General Terms SITUATION ANAYLSIS • Marketers and Agencies Lay Out Most Important Factors Defining the Situations Facing the Firm, and Include: • Demographic Trends • Historical Context • Industry Analysis • Market Characteristics • Type of Consumer • Geographic Considerations • Competition 3.4 3.4

  5. SITUATION ANAYLSIS • Product Characteristics • Category • Convenience Goods • Shopping Goods • Specialty Goods • Stages in Product Life Cycle

  6. Characteristics of the Firm • Push vs. Pull Strategy • Funds Available • Size of Sales Staff • Extent of Firm’s Product Line

  7. SITUATION ANALYSIS • Characteristics of the Distribution • Intensity of Distribution • Intensive Distribution • Selective Distribution • Exclusive • Length of Trade Channel • Types of Trade Partners

  8. A Situation Analysis Needs to Consider the Type of Trade Partners that Will be Promoting The Marketer’s Brand 3.7

  9. The Promotion Plan OBJECTIVES • Lays the Framework for Executions in Promotional Campaign and Identifies Goals of a Marketer in Concrete, Measurable Terms • Create & Maintain Image for Brand • Increase Customer Awareness & Curiosity about a Brand • Change Consumers’ Beliefs & Attitudes about a Brand • Belief – Knowledge & Feelings Accumulated about a Brand • Attitude is Overall Evaluation of Brand Based on Knowledge/Emotions • Influence Purchase Intentions • Stimulate Trial Use • Convert One-Time Users to Repeat Customers • Switch Consumers from Competing Brands • Encourage Brand Loyalty • Stimulate More Frequent Use • Increase Sales

  10. Creating Awareness and Curiosity is a Common Promotional Objective

  11. The Promotion Plan OBJECTIVES – KEY TERMINOLOGY • Brand Image • Brand Awareness • Top-of-the-Mind Awareness • Beliefs • Attitude • Purchase Intent • Trial Usage • Repeat Purchase • Brand Switching • Brand Loyalty • Increasing the Frequency of Use

  12. COMMUNICATIONS vs. SALES OBJECTIVES • Increase Awareness of Brand Name to 40% of All Consumers in Western US • Create Trial Use by 15% of all Teenagers 13-15 • Communicate Superior Brand Performance Features to Target Audience with Series of Advertisements over Next Six Months CHARACTERISITICS OF WORKABLE PROMOTIONAL OBJECTIVES • Establish Quantitative Benchmark • Specify Measurement Methods & Criteria or Success • Specify a Time Frame

  13. BUDGETING - METHODS • Percentage-of-Sales Approach • Unit-of-Sales Approach • Share of Market/Share of Voice • Funds Available • Objective & Task

  14. BUDGETING FOR ADVERTISING • Marketing Research • Message Research • Production Costs: Production Companies, Talent, Site Costs • Media Costs • Agency Commissions/Fees • Account Personnel Travel Expenses

  15. BUDGETING FOR SALES PROMOTION • Coupon Value and Dealer Handling Charges • Contest and Sweepstakes Material and Charges • Brochures and Collateral Material • Trade Shows & Exhibits • Trade Channel Partner Meeting & Entertainment • Premiums • Point-of-Purchase Materials • Trade Allowances • Trade Incentives • Trade Training Programs • Refunds/Rebates 3.17

  16. Premiums—Like This One Offered by Jell-O—Must be Factored into Budget Planning for Promotion 3.15

  17. BUDGETING FOR DIRECT MARKETING • Uses a Simple Cost-Based Method • Exact Bids Obtained - Printing, Sorting, Bundling & Mailing for Print Campaigns • Bids Obtained for Telemarketing, Infomercial or Catalog Selling from External Facilitators

  18. Budgeting for Direct Marketing Needs to Consider the Cost of Printing and Mailing Materials 3.17

  19. BUDGETING FOR WEBSITES & BANNER ADS • Costs for Web Sites - $30K to $100K • Costs for Banner Ads - $10 CPM to $30 CPM

  20. BUDGETING FOR PUBLIC RELATIONS • Most Difficult of All Budgets to Set - Most Expensive Public Relation Occurs During Crises • Most PR Firms Work on Retainers - Set on an Annual Basis

  21. BUDGETING FOR PERSONAL SELLING Recruiting Costs • Training Costs • Travel Expenses • Promotional Material - Samples, Catalogs, Product Brochures • Salaries & Benefits • Incentive Programs - Bonuses & Rewards

  22. STRATEGY • Mechanism by which Something is Done • Account Planner Assists in Strategy • Works in Advertising Agency & Synthesizes all Relevant Audience Research to Formulate Promotional Strategy

  23. EVALUATION • Marketer Determines How Promotional Program has Performed - Factor by Factor • Main Basis for Evaluation - Communications and Sales Objectives Set for the Program

  24. Evaluation of the IMC Program Will Include the Effect on Sales of Various Promotional Tools

  25. IMC Management & Planning STRATEGIC PLANNING OF IMC IS DIFFERENT FROM TRADITIONAL USE OF MULTIPLE PROMOTIONAL TOOLS • Outside-in Approach • IMC Management Planning Requires Comprehensive & Detailed Knowledge • Customers • Prospects • Knowledge about Customer & Prospects • IMC Management Plan - Built Around Brand Communications • Control of IMC Management & Planning - Centralized • Firms Appointing IMC or Marcom Managers

  26. MODEL OF IMC MANAGEMENT & PLANNING • IMC Model Considers Complete Process • Uses Promotion to Communicate to Target Markets • Effectively Deploys Promotional Tools • Corporate & Marketing Plans - Understood and Adopted as Part of IMC Plan • Databases - Help Identify & Profile Target Markets • Promotional Objective - Dictate Mix of Promotional Tools to Pursue for each Target

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