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Transcript
THE TOOLS OF MARKETING COMMUNICATIONS: THE PROMOTIONAL MIX Topic 2 The Communications Process An effective promotional message accomplishes three tasks: It gains the receiver’s attention It achieves understanding by both receiver and sender It stimulates the receiver’s needs and suggests an appropriate method of satisfying them AIDA concept (Attention-InterestDesire-Action) – an explanation of the steps through which an individual reaches a purchase decision Sender Encoding Channel Decoding Response Feedback Noise Table 15.1 Relating Promotion to the Communication Process THE PROMOTIONAL MIX TOOL 1: ADVERTISING Paid, non personal communication through various media by a business firm, not-forprofit organization, or individual identified in the message with the hope of informing or persuading members of a particular audience ADVERTISING Three Ways to Add Value to Offerings: 1. 2. 3. Innovating Improving quality Altering consumer perspectives Advertising adds value to brands by influencing consumers’ perceptions. Good or Effective Advertising: Extends from sound marketing strategy Takes the consumer’s view Is persuasive Finds a unique way to break through competitive clutter Never promises more than it can deliver Prevents the creative idea from overwhelming the strategy THE FORMS OF ADVERTISING Television – good mass coverage, low coat per exposure, appeals to senses. But .... High absolute cost, high clutter, fleeting exposure Newspapers – flexibility, timeless, good local dimension, high believability. But ... Short life, poor reproduction quality, small audience Direct Mail – High selectivity, flexibility, no ad competition, personalisation. But ... High cost per exposure, junk mail Magazines – geographic and demographic selectivity, credibility, prestige, good reproduction quality. But ... Long ad to purchase lead time, high cost Radio – Local dimension, geographical and demographic sensitive, low cost. But ..Audio only, low attention, fragmented Outdoor – Flexibility, repeat exposure, low cost, positional selectivity. But ... Little audience selectivity, creative limits Internet – high selectivity, low cost, immediacy, interactive. But ... Low impact, audience controls exposure Six Major Activities of Advertising Strategy 4. Planning Message Strategy 1. Objective Setting 2. Budgeting 3. Positioning Six Major Activities of Advertising Strategy 5. Developing Media Strategy 6. Assessing Advertising Effectiveness Objective 6A Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. 1. Setting Objectives: a. b. c. agree a course for advertising planning & the tasks it is to accomplish for a brand. Guides budgeting, message creation, and media selection. Provides standards to measure results 2. Budgeting Setting budgets: judgment, experience, rulesof-thumb. Percentage-of-sales method Objective-and-task method 3. Positioning Positioning establishes how the brand is to be thought of by members of the target market and how the brand is to be perceived relative to competitive brands in the product category. 4. Planning Message Strategy Several advertising techniques: Informational ads, emotional ads, sex appeals, and celebrity endorsements. 5. Developing Media Strategy Successful = targeted media Target audiences are selected based on: Demographic considerations Psychographic considerations Geographic factors Buyographic considerations Advertisers have a variety of media from which to choose: Major mass media Out-of-home media “Alternative” media Online advertising Point-of-purchase advertising TV, Radio, Print, Outdoor Four objectives are fundamental to media planning: Reach 2. Frequency 3. Timing 4. Cost 1. 6. Assessing Advertising Effectivness Only by evaluating results is it possible to determine whether advertising objectives have been accomplished. Clipping services- outside vendors track all advertisements in trade publications that are directed at potential buyers in a particular line of business. Message Strategy: Objectives and Methods Promote brand recall Link a key attribute to the brand name • Repetition ads • Slogan and jingle ads • Unique selling proposition (USP) ads OBJECTIVES OF ADVERTISING Promote Recall - repetition Persuade the Consumers –USP, information, testiomionials Link a key attribute to the brand name Affective Association: Feel-Good Ads (Barry’s Tea), Humour (, Sex Appeal Scare Consumer Into Action Transform Consumption Experience Define Brand Image Master Card – Priceless to create Recall Defining Brand Image – Guinness Humour Ad’s -HSBC TOOL 2: SALES PROMOTION Sales Promotions are the use of any incentive by a manufacturer to induce the trade (wholesalers and retailers) and/or consumers to buy a brand and to encourage the sales force to aggressively sell it. Marketing activities that stimulates consumer purchasing (includes: displays, trade shows, coupons, premiums, contests, product demonstrations, and various non recurrent selling efforts) Trade promotion Big Al’s Promotional Activity – competition for a family holiday A Shift from Advertising to Sales Promotion Pull-oriented Marketing Push-oriented Versus Marketing Objective 6B Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Factors accounting for Shift: 3. Balance of power transfer Increased brand parity and price sensitivity Reduced brand loyalty Rising costs of advertising and advertising “clutter” 1. 2. Increased impulse purchasing Respectability Competitor activity Measurability ROLES AND OBJECTIVES OF SALES PROMOTIONS 1. 2. 3. 4. 5. Facilitating the introduction of new products to the trade. Obtaining trial purchases from consumers. Stimulating sales force enthusiasm for new, improved, or mature brands. Invigorating sales of a mature brand. Increasing on- and offshelf merchandising space. 6. Neutralizing competitive advertising and sales promotion. 7. Holding current users by encouraging repeat purchases. 8. Increasing brand usage by loading consumers. 9. Preempting competition by loading consumers. 10. Reinforcing advertising. TYPES OF SALES PROMOTIONS a. Trade Promotions: are directed at wholesalers, retailers, and other marketing intermediaries, and represent the first step in any promotional effort. OBJECTIVES FOR USING TRADE-ORIENTED SALES PROMOTIONS: 1. 2. 3. 4. 5. 6. 7. 8. 9. To introduce new or revised products To increase distribution of new packages or sizes To build retail inventories To maintain or increase the manufacturer’s share of shelf space To obtain displays outside normal shelf locations To reduce excess inventories and increase turnover To achieve feature space in retailers’ advertisements To counter competitive activity To sell as much as possible to final consumers Trade Allowances Off-invoice Allowance- by using off-invoice allowances, manufacturers hope to increase retailers’ purchasing of the manufacturer’s brand and increase consumers’ purchasing from retailers. Forward buying Diverting Trade Shows- a temporary forum for sellers of a product category to exhibit and demonstrate their wares to present and prospective buyers. b. Consumer Promotions encourage consumers to purchase one brand over another, to purchase a particular brand more often, and to purchase in larger quantities through activities such as sampling, couponing, sweepstakes, and contests. DANGERS OF SALES PROMOTIONS Short lived (“Top hat” effect) Erosion of brand loyalty Downward spiral Erosion of brand image TOOL 3: PUBLIC RELATIONS PR is the MarCom tool that is uniquely suited to fostering goodwill between a company and its various publics. It can also increase brand awareness, build favorable attitudes toward a company and its products, and encourage purchase behavior. Publicity: stimulation of demand for good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations Proactive MPR is another MarCom tool in addition to advertising and sales promotion that can give a brand additional exposure, newsworthiness, and credibility. Reactive MPR is undertaken as a result of external pressures and challenges brought by competitive actions, changes in consumer attitudes, changes in government policy, or other external influences. HARRY POTTER TOOL 4: SPONSORSHIP Sponsorships range from supporting athletic events to throwing corporate weight behind a worthy cause. Event Marketing: companies invest in some sort of event sponsorship. incorporates elements from all of the promotional tools. Cause Related marketing Four Factors account for the growth in sponsorships: 1. 2. 3. 4. Enables companies to avoid the clutter inherent in advertising media Helps companies respond to consumers’ changing media habits Helps companies gain the approval of various constituencies Enables marketers to target their communication and promotional efforts to specific regions or groups How Sponsorship Differs from Advertising Sponsor’s degree of control Nature of the message Audience reaction Ambush marketing TOOL 5: PERSONAL SELLING See Topic Personal Selling and Sales Management Examples of IMC Jameson IMC in New York Coordinated St. Patrick’s Day promotional radio news push international distribution of a Video News Release feature articles in leading beverage trade publications Hired Celebrity Party Planner to endorse and deliver brand message media exposure on national and local television, radio, print and online media national media tour to key markets Sponsorship of the New York Underground Film Festival - 70% increase in the trial of Jameson among 25 to 35’s Developed relationships with leading New York City nightclubs. THE MATRIX IN ASIA TV, Print Samsung & Matrix Reloaded Bought all signage in train stations for 2 days in Tokyo Wrapped a 10 storey building in Singapore Online sweepstakes Merchandising – free gifts etc Total budget $100 (TV, Print, Outdoor, online) http://bravia.sony.eu/balls/welcome_balls.html http://video.google.com/videoplay?docid=7187335 191952779612 http://www.aglassandahalffullproductions.com/#/ home/ http://www.utalkmarketing.com/Pages/CreativeS howcase.aspx?ArticleID=12888&Filter=0&Keywo rds=&Order=LATEST&Page=3&Title=Guinness_ '250_Years'