Download Promotion Objectives

FIGURE 14-1 The communication process
shows that the only thing in common is the
channel.
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Communication: Meaning is transferred from
one person to another
Source
Encoding
Noise
Message: the physical form of a communication
Medium: communication vehicle
TV Radio Internet Magazines Newspape
Mail Billboards Flyers Person-to-person
Decoding
Promotion
What are the objectives of promotion?
Promotion Objectives
1. Create Awareness
Promotion Objectives:
1. Create Awareness
2. Stimulate Demand
Promotion Objectives:
1. Create Awareness
2. Stimulate Demand
3. Encourage Product Choice
Promotion Objectives:
1. Create Awareness
2. Stimulate Demand
3. Encourage Product Choice
4. Identify Prospects
(Customers)
Promotion Objectives:
5. Retain Customers
Promotion Objectives:
5. Retain Customers
6. Counter Competition
Promotion Objectives:
5. Retain Customers
6. Counter Competition
7. Reduce Sale Fluctuations
Promotion Objectives:
5.
6.
7.
8.
Retain Customers
Counter Competition
Reduce Sale Fluctuations
Persuade
Promotion Objectives:
5.
6.
7.
8.
9.
Retain Customers
Counter Competition
Reduce Sale Fluctuations
Persuade
Change Attitudes
Promotion Objectives:
5.
6.
7.
8.
9.
Counter Competition
Reduce Sale Fluctuations
Persuade
Change Attitudes
Educate
Promotion Objectives:
5. Retain Customers
6. Counter Competition
7. Reduce Sale Fluctuations
8. Persuade
9. Change Attitudes
10. Educate
11. Facilitate Channels
Promotional Mix
The promotional mix: is the combination
of one or more communication tools used
to: (1) inform prospective buyers about the
benefits of the product, (2) persuade them
to try it, and (3) remind them later about the
benefits they enjoyed by using the product.
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Promotional Mix
FIGURE 14-2 The five elements of the
promotional mix
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Advertising
Advertising: is any paid form
of nonpersonal communication
about an organization, good,
service, or idea by an identified
sponsor.
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Advertising:
Paid massed non-personal communication
Personal Selling
Personal selling: consists of the
two-way flow of communication
between a buyer and seller, often
in a face-to-face encounter,
designed to influence a person’s
or group’s purchase decision.
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Personal Selling:
Person-to-person communication
Sales Promotion
Sales promotion: is a short-term
inducement of value offered to
arouse interest in buying a good
or service.
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Sales Promotion:
Short-term incentives and programs to encourage
interest and the purchase of a product or service
Public Relations
Public relations: is a form of
communication management that
seeks to influence the feelings,
opinions, or beliefs held by customers,
prospective customers, stockholders,
suppliers, employees, and other
publics about a company and its
products or services.
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Publicity
Publicity: is a nonpersonal,
indirectly paid presentation of an
organization, good, or service.
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Publicity (PR):
Promotion through commercially significant
vehicles of mass media, not paid for directly
by sponsor
Direct Marketing
Direct marketing: is a promotion
alternative that uses direct
communication with consumers
to generate a response in the
form of an order, a request for
further information, or a visit to
a retail outlet.
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Direct Marketing:
Direct communications with targeted
customers by phone, e-mail, mail, etc.
Direct Marketing:
Direct communications with targeted
customers by phone, e-mail, mail, etc.
eMarketing
Promotional Mix
How do we put all the parts of promotion
together to obtain our goals?
Integrated Marketing
Communications (IMC)
Integrated marketing communications
(IMC) is the concept of designing
marketing communications programs
that coordinate all promotional activities—
advertising, personal selling, sales
promotion, public relations, and direct
marketing—to provide a consistent
message across all audiences.
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Selecting the Promotional Mix Elements
1. Internal factors
Resources
Objectives of the firm or campaign
Policies
Selecting the Promotional Mix Elements
2. Market Characteristics
Size
Location
Demographics
http://www.census.gov/2010census/
Selecting the Promotional Mix Elements
3. Product Characteristics
Life cycle
Good/Service/Ideas
Competition & Intensity of Coverage
Product Usage
Selecting the Promotional Mix Elements
4. Cost and Availability of Methods
Social Media
CPM
Effective Hits
Promotion goes through a life cycle just
like products

Introduction Stage

Growth Stage

Maturity Stage

Decline Stage
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FIGURE 14-3 Promotional tools used over
the product life cycle of Purina Dog Chow
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Push and Pull
Push: Push product (or awareness) from
production to customer
Push Strategy
A push strategy involves
directing the promotional mix to
channel members to gain their
cooperation in ordering and
stocking the product.
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Push and Pull
Pull: Pull product (or awareness) up to customer
(customer driven)
Pull Strategy
A pull strategy involves directing
the promotional mix at ultimate
consumers to encourage them
to ask the retailer for a product.
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FIGURE 14-4 A comparison of push and
pull promotional strategies
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FIGURE 14-5 The promotion decision
process includes planning, implementation,
and evaluation
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DEVELOPING AN IMC PROGRAM
1. Who is the Target Audience?
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DEVELOPING AN IMC PROGRAM
1. Who is the Target Audience?
2. What are the promotion objectives?
Hierarchy of effects
Awareness
Interest
Evaluation
Trail
Adoption
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DEVELOPING AN IMC PROGRAM
3. Setting the Promotion Budget

Percentage of Sales Budgeting

Competitive Parity Budgeting
• Matching Competitors
• Share of Market

All-You-Can-Afford Budgeting

Objective and Task Budgeting
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DEVELOPING AN IMC PROGRAM
4. Selecting the Promotional Mix
5. Designing the Promotion
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DEVELOPING AN IMC PROGRAM
6. Scheduling the promotion
7. Executing the plan
Pretesting
Post testing
IMC audit
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