Download (IAI PROMOTION 1 - Fundamentals [Mode de compatibilité])

Aims of the course
Aims
International Affairs Engeenering
Introduction to main concepts and
practices :
- Theoretical grounding and Processes
- Strategies, technics and tools
Communication / promotion
Learn how sales promotion campaigns are developed and
implemented.
Learn how companies use public relations to communicate with
their publics.
Session 1 : The Fundamentals of Communication
G. de Lanauze
½ Unit (ECUE)
Period: 2d semester
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Course presentation
Promotion - IAI M1 - 2015 / 2016
Course outlines
Déroulement du cours de COMMUNICATION :
6 sessions of 3h duration
Session 1 :
Fundamentals and communication theory, promotion
strategy, communication plan ( a review)
Session 2 :
Advertising through mass media
Session 3 :
Sales promotion
Session 4 :
Below the line promotional technics
Session 5 :
Online promotion
Session 6 :
Case study in class
Final exam
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COMMUNICATION
Promotion - IAI M1 - 2015 / 2016
What is promotion?
Promotion is the element in an organisation’s marketing
mix that serves to inform, persuade and remind the market
about the organisation and/or its products.
Session 1
Must contribute to the firm profitability and performance
Fundamentals
Communication theory
Promotion strategy
Relationship between Advertising
and the Product Life Cycle
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Introduction to promotion policy
Aims of promotion
Aim: to communicate with customers as to provide information that
buyers need in order to make purchasing decisions
Company
Numerous tools available: advertising is the most visible, but also
personnal selling, exhibitions, sales promotions, publicity, direct
marketing (including the Internet)
Differentiation
Competitive
advantages
Brand
awareness
In a global world, image can grow international and entail strategic
benefits
Service
tangibilization
•Provide information
•Influence the buyer
But communication is mainly based on language and cultural meaning,
which usually implies adaptation to the local culture
Informing
Persuading
Reminding
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Why do we PROMOTE?
•
•
•
•
•
•
•
•
Promotion - IAI M1 - 2015 / 2016
Promotion objectives
Informing
Increase sales by increasing consumer demand
Remind consumer of exiting products and why they are
special
Attract new buyers
Demonstrate the superior quality of product as compared to
its competitors – often occurs after a product has been
updated
Create or reinforce the brand image
Correct misleading reports about the product or the business
and reassure consumers after a “scare” or “accident”
Develop or adapt the public image rather than the product
Encourage stocking by retailers
people have to know about it, in order to buy it
Technics that seeks to develop demand through presenting factual information
on the attributes of a product or service.
Persuading
when competition offers similar product, you have to “persuade” them
to try yours
Technics that emphasizes using words and/or images to try to create an image
for a product and to influence attitudes about it.
Reminding
when new competition comes along, you have to “remind” customers
of your greater experience, advantages etc.
Technics whose goal is to reinforce previous promotional activity by keeping the
product’s or service’s name in front of the public.
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The communication process
Noise
sender
Message
Message: coding - decoding
Shannon & Weaver (1949)
encoding
Media
decoding
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Semiology:
Receiver
signifier
One way communication : advertising, sales promotion
Sender
Message
Feed back
explicit
or implicit
convention
Receiver
Response
signified
Two way communication (interactive): Direct Marketing, Internet
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Message: coding - decoding
The communication process models
Semiology:
The AIDA model (1898, Lewis) :
signifier
explicit
or implicit
convention
A for Attention
1°Draw the attention on the message
I for Interest
2°Arouse the interest of the target
D for Desire
3°Create and develop the desire for the
product
A for Action
4°Convince to purchase
signified
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The advertising persuasion model
The model of attitude
Mc Guire (1976)
Exposure to the message
Attitude components
Effects hierarchy
Conative step: intention of
buying
6. Purchase
5. Conviction
Affective step: feelings
4. Preference
3. Liking
Cognitive step: perception,
beliefs
2. Knowledge
1. Awareness
Attention for the message
Comprehension of the message
Acceptation of the message and change of attitude
Memorization of the message
Behavior based on the new attitude
Advertising draws not only cognitive responses but also affective
responses: emotions, feelings, humors,…
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Toward attitudinal and behavioral changes
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Exercize
Aim of any promotional action is to get a consumer response.
The worst thing would be to leave people indifferent. And to
be noticed is good, but not enough…
List the vaious factors and ways to improve each step of process:
•
Exposure
Create a preference
Modifying beliefs, acting on perceptions, chnaging attitudes
•
Attention/impact
•
Comprehension
•
Acceptation / Attitude change
•
Memorization
•
Behavior
Stimulate motivation / reduce inhibitions and obstacles to
purchase
Generate a reaction
Modify consumer behavior
Préférences must have actual effects
Advertising must involve
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Deciding on message source: the endorsement
theory
The target audience
The sender influences the target audience : the source effect
Define the target clearly : critical influence on promotion decisions
reach
Credibility
Appeal, prestige
Influence
cost
Marketing target
Target audience
Core target
Source credibility factors: expertise, trustworthiness, likability
•
• Consumers
Potential buyers
• Current users
• Deciders
• Influencers
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Communication according to targets
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The different levels of communication
Varying messages, varying channels according to whom we talk
to : large public, groups, individuals
Three main levels:
• The company
Communication about the company toward its main partners
(suppliers, personal, distributors, stockholders) and toward the
public (expression of its values, institutional communication)
Mass targeting
One to many
Segments
• The brand
Communication about the value and the personality of the brand,
development of the brand awareness
One to few
• The product
Communication about the product, its attributes and quality
One to one
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The main techniques of communication
Promotion - IAI M1 - 2015 / 2016
Communication channels
Interpersonal channels
Five main kinds of communication:
Communication
Impersonal channels
Advertising
Public
relations
Sales
promotion
Direct
marketing
Personal
selling
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Five Major Promotion Tools
Typical communication tools
One way communication
Advertising
Paid form of nonpersonal presentation and promotion of
ideas, goods, or services by an identified sponsor
Sales promotion
Short-term incentives to encourage the purchase or sale
of a product or service
Personal selling
Personal presentation by the firm’s sales force for the
purpose of making sales and building customer
relationships
Public relations
Advertising
Newspapers
Building good relations with the company’s various
publics by obtaining favorable publicity, building up a
good corporate image, and handling or heading off
unfavorable rumors, stories, and events
Direct marketing
Direct connections with carefully targeted individual
consumers to both obtain an immediate response and
cultivate lasting customer relationships
Public relations
Two way communication
Sales
promotion
Direct
marketing
Personal selling
Annual reports
Rebates and
price discounts
Direct mail/
database
marketing
Sales
presentations
Magazines
Corporate image
Catalogues and
brochures
Internet
marketing
Sales force
management
Radio
House
magazines
Samples,
coupons and
gifts
Telemarketing
Trade fairs and
exhibitions
Television
Press relations
Competitions
Viral marketing
Cinema
Public relations
Outdoor
Events
Internet
Lobbying
Sponsorship
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Promotion Types
Above-the-line promotion
Above-theline
Purchasing communication with
the consumer – AKA – advertising
Below-the-line promotion
Below-theline
Short-term incentives to
encourage consumers to
purchase the product
Promotion - IAI M1 - 2015 / 2016
ATL and BTL definitions
Promotions
that are visual
& auditory
TV Ads,
billboards,
radio, print
ads
Promotions
that are tactile
Samples,
coupons,
loyalty
programs,
games, price
deals
The term involves the way in which Procter & Gamble, was
charged for its media in the 1950 and 1960s.
Advertising agencies made commission from booking media
(Television, cinema, radio, press, out-of-home and
magazines).
As below the line had no media involvement there was no
commission to be made for the advertising agencies. The
accountants thus labeled the different media ATL and BTL
depending on where it would sit in the balance sheet and
profit and loss accounts (ATL where they made a profit and
BTL where they did not) .
Colloquially, ATL means mass media. However since then,
models have changed and clients are no longer charged for
their media in that way
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Above-the-line Promotion
Persuasive
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Provide information to potential
customers like, price, features,
technical specifications, or where to
purchase
Trying to create a distinct image or brand
identity
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Promotion - IAI M1 - 2015 / 2016
Below-the-line Promotion
Advertising
Communicating information about a product or business through
the media such as radio, TV, newspapers, magazines, or
billboards.
Informative
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Sales promotions are used to generate short-term gains in sales.
Sales or price deals – a temporary reduction in price
Loyalty programs – airline miles, points earned to redeem for
other products and gifts
Coupons
Point-of-sale displays – aisle interrupters, dump-bins
BOGOF – buy one, get one free offers
Games and competitions
Public relations
Sponsorships
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New classification
The new trends in communication
Before
Paid media
Owned media
Earned media
Offline
Offline
Offline
Advertising
Point of sales promotion
Direct marketing
Editions/ catalogs
Packaging
Controled point of sales
WOM
Opinion leaders
Journailists
Online
Online
Online
Advertising :display & search
Afilliation and comparators
E-mailing
Vompany websites
Mobile apps
Blogs forums
Social networks
•Prospects
•Customers
•influencers
•Customers
•Prospects
•Public opinion
Company
message
Media
Consumer
message
Now
Message
Consumer
Win
when lit
Company
•Fans
•Leaders
Media
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Promotions mechanisms
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Push versus pull promotion strategy
Producer
marketing
activities
Promotions can be targeted to two groups:
• Final consumer – encourages consumers to purchase (PULL Strategy)
a pull strategy emphasizes mass media advertising
Producer
Demand
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Pull strategy
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Pushing through the promotion channel
wholesaler
retailer
Consumers
Producer marketing activities
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Personal selling
Demand
Retailer &
wholesalers
Producer
The choice between the strategies depends upon:
1. product type and consumer sophistication
2. channel length
3. media availability
Producer
Consumers
Push strategy
Distribution channel or Retailer – encourage stocking and display to
encourage more sales (PUSH Strategy)
a push strategy emphasizes personnel selling
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Retailer &
wholesalers
Reseller
marketing
activities
Pulling through the promotion channel
customer
Producer
Examples of promotional techniques:
Run ads in trade magazines to make wholesalers aware of the product
•
Provide incentives to retailers to carry the item
•
Run contests for salespeople to win prizes for selling the product
Personal selling
2 wholesaler
retailer
Examples of promotional techniques:
•
Run TV commercials so customers directly learn about the product - then
they go to the store and ask for it, or call around to find out where it is sold
•
Give free samples to potential customers
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customer
A pull strategy is better:
• for consumer goods products
• when distribution channels are long
• when sufficient print and electronic media are available to carry the
marketing message
In general, a push strategy is better:
• for industrial products and/or complex new products
• when distribution channels are short
• when few print or electronic media are available
•
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Importance of a good promotion Mix
Integrated marketing communication
Advertising
The concept under which a company carefully integrates and coordinates
its many communications channels to deliver a clear, consistent, and
compelling message about the organization and its products.
mix of promotion tools
Personal selling
Marketing
Communications
mix
(Promotion mix)
Advertising
Sales promotion
Customer
Public relations
Personal
selling
Sales
promotion
Public
relations
Consistent,clear,and
compelling company
and product
Messages.
Direct marketing
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Direct
marketing
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The communication plan
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Definition
Advertising is an artsistic job:
Promotion plan
A tool for defining, according to the marketing objectives of the
firm, the promotional actions to reach them.
It settle the promotion objectives, the targets and the messages,
the actions, time schedules and budgets.
It helps and ensures the piloting of the program actions
Wrong
The core factor of a good promotion strategy:
Analysis, vision and rigor:
It is :
A management tool
A communication tool
A organizing tool orchestrating the actions and their synergies
True
The promotion plan
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Developing the promotion plan
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Steps in developing the communication strategy
1. Strategic Objectives
Coherence
2. Communication Objectives
Synergies
3. Targets
Market strategy
Positioning
Targets
Teams
Actions
4. Communication design
Impact of the
whole greater
than the sum
5. Select Channels
6. Establish Budget
7. Decide on media mix
8. Measure results
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Strategic objective / promotion objective
Communication objectives
Communication objectives are different from strategic
objectives:
Three main kinds of objectives:
- share of market.
- Sales volume.
- contribution to profitability
Cognitive objectives:
• Knowledge, information, awareness
Communication managers must:
Affective objectives
Know them perfectly
Contribute to the strategic objectives (knowing the environment, knowing
the communication processes)
Examples:
•
•
•
•
• Liking, feelings, emotions, preference, image
Conative objectives
• Action, persuasion, behaviors, habits, trial
Product launching
Win market dhares
Reinforcement on specific target audiences
Reactions to competitors actionss
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Measure of awareness
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Benefits of awareness
Brand awareness rate is the percentage of a given population
who knows the existence of the brand in a given category
and knows to which product categoy it belongs
Ground for other traits of image
Familiarity / Preference
Aided (or prompted) awareness
awareness
Spontaneous (or unaided) awareness
Old and well known brand = trustworthiness
Top of mind
Simplify choice and purchase
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Image
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Benefits attached to brand image
Information processing
•Brand image is the whole set of mental perceptions and
•associations attached to a brand by an individual
Differentiation and positioning
Brand image characteristics:
BRAND IMAGE
Individual
Subjective
Selective
Incomplete
Relatively steady over time, but not invulnerable
Positive attitudes
Trust and attachment
Purchaser/consumer valuation
Ease brand extensions
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Measuring brand image
Brand image : Apple
Qualitative measure: perceived image
Brand reputation:
social responsibility, emotions, performance,
products, services, image
Image review, assessment, dimensions, positioning
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Does this ad attempt to inform, persuade, or
remind?
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Identify target audience
Identify and prioritise the targets:
Main targets: consumers, users
Other important targets: prescriptors, other partners (suppliers,
customers, intermediairies, distributors), opinion leaders,
journalists
Analyse and define targets :
Quantitative factors : Démographics, économic, prfesional,
social factors
Qualitative description: behaviors (habits, lifestyles,innovation,
motivations) brand positioning, searched advantages
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Choose and define target audiences
Discussion question
Example : targets as they are defined in the copy strategy of Dan Up Danone
product
When does advertising
pass the boundaries of
good taste? Can you think
of some examples?
– Quantitative target :
»
»
»
»
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Under-50 housewives
Kids in households
Catégories de revenus A, B, C
Men and women between 15 and 24
– Qualitative target
Should marketers be
concerned about the
opinions of anyone other
than the target market?
Why or why not?
» Consumers looking for tonifying product to be in shapconsumers juging the
product as a cool way to drink yogurt anywhere.
» Kids and teens seduced by the specific way to drink it directly from the bottle
– Core target
» Teens and young adults 15-24
Criteria must be explicative of behaviors and operational
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Establish the marketing communications budget
How much to spend on marketing communications?
Depends on:
Stage in the product life cycle
Marketshare and consumer base
Competition and clutter
Advertising frequency
Product substituability
Four common methods:
1. Affordable method (resources)
2. Percentage-of-sales method
3. Competitive-parity method
4. Objective-and-task method
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Promotional budget
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Budget decisions
Promotional budget results from:
• Strategical objectives
• Ambitions (eg; market share)
• Competitors strategies
Two main issues:
Optimal amount of money to spend?
Repartition among brands, targets, technics and support media ?
Communication spendings are operating costs
• (they are not investments, though they usually have to be considered on the
long run)
Decision belongs to the advertiser (the company)
Communication spendings are fixed costs
• (Many of them do not depend on the sales volumes, though they may be
planned according to sales previsions or objectives
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Promotion budget decision
The promotional budget
Percentage of sales method
• Company may determine past or anticipated sales and apply a
percentage of sales as the promotional budget.
All available funds
• Company uses all available funds on the promotional campaign .
Matching the competition (also known as competitive parity).
• Promotional expenditure based on market share of competitors, or
actual expenditure if known.
Task or objective method
• Determine what tasks or objectives the promotion must accomplish.
• Determine what it will cost to perform the task or meet objective.
Affordable
Percentageof sales
Promotion
budget
decision
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Objective and task
Competitive
parity
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Competitors spending analysis
Budget decisions
Share of voice (SOV) : brand X share of advertising spendings
among the total spendings on the given market
Some further principles:
Plan side budgets (opportunity or market problems)
Comparing the share of voice and share of market: R = SOV/SOM
• R>1 : overinvestment
• R<1 : unerinvestment
Example:
Brands
Plan budgets for long term programs
Market share in
$
SOV
R
Brand A
45%
40%
0,88
Brand B
20%
30%
1,5
Brand C
18%
28%
1,55
Brand D
6%
0%
-
Brand E
5%
0%
-
Other brand
6%
2%
0,33
In case of small budgets: creative risk, boldness, narrow target audiences,
Do not neglect pre and post-tests
Ask for detailed quotations, get help from specialists (cost-controllers)
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Criterions for the choice of an ad agency
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New trends in promotion and communication
Quelques termes et concepts:
• Agency size
(homogeneity between the announcer's and the agency’s size)
Reactive and Interactive marketing
Story telling and content marketing
• Activity
(experience in the field, but no direct competitor)
•
Digital native and new tools
• Working methods
Sometime a testing campaign is made before the partnership
Anti-ad movements and brandalism
…
• Announcer's international policy
(adaptation, standardization or homogenization)
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For next time
Friday, Jan. 8th
Select an ad (magazine or television)
Define :
• Signifier and signified
• Main objective
• Target audience
• Pros and cons according to the McGuire model
To be discussed in class
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Application – case study
presentation in class
What do you have to do?
In groups of two
Your task is to explain the importance of a coherent
promotion strategy and the synergies between the
different actions and media
Select a company or brand in any product or service category
You should consider including information on:
Marketing and promotional objectives
Target audiences
competitive advantage
Choice of methods and synergies
Timings and budgeting
Evaluation and results
Describe the promotion strategy
Define, detail and justify : the objectives, the targets, the actions
Give a proxy of the corresponding budget
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Case presentations
20 page report (word doc.) and presentation support (ppt) to be sent by
Monday, March, 21st, for evaluation:
[email protected]
3-4 groups selected for a 20’ presentation on Wednesday, March. 23rd
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