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Promoting Products: Communication and Promotion Policy and Advertising Presented By Brandon L. Lee NRA 2016 Food Forecast https://www.youtube.com/watch?v=FpG8nJl3of4 Food for Thought: How would this affect your restaurant or foodservice operation? What would you do to keep up to date with the recent trends? How does this change your vision? The Communication Process Communication Process Every company is inevitably cast into the role of communicator and promoter. Companies must ask not only “How can we reach our customers?” but also “ How can our customers reach us?” Recent trends suggest that with decreasing communication costs, new technology has allowed companies to move from mass communication to more targeted communication and one-on-one dialogue. Key Terms Promotion Mix- A company’s total marketing communications program. Including advertising, sales promotion, public relations and personal selling. Advertising- Any 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 sales of a product or service. Public Relations- Building good relations with the company’s various publics by obtaining favorable publicity. Personal Selling- Oral presentation in a conversation with one or more prospective purchasers for the purpose of making sales. Key Terms (cont.) 3 Types of advertising: Informative advertising- advertising used to inform the guests about a new product or feature to build primary demand. E.g. Wendy’s new Gouda Baconburger with Cheese Fries Persuasive advertising used as competition increases and a company’s objective becomes building selective demand. E.g. Think about Planet Fitness/Gold’s Gym/Snap Fitness January 1st every year. Reminder advertising- Advertising used to keep guests thinking about a product. E.g. Puppy/Monkey/ Baby Commercial from 2016 Superbowl- Mountain Dew 6 Steps to Developing Effective Communications 1. Identify the target audience 2. Determine the communication objectives 3. Design the message 4. Select the communication channels 5. Select the message source 6. Measure the communications’ results process Identifying the Target Audience Potential audience may be individuals, groups, special publics or the general public. A marketer must understand the target audience by creating a message that will be meaningful to the them in a media they will understand. Determining the Communication Objective Determining the Communication Objective (cont.) Awareness- Building simple name recognition (e.g. messages repeating the name multiple times) Knowledge- The target market may know the name but little else. Liking- Likert scale (e.g. “dislike”, “dislike very much”…) Determining the Communication Objective (cont.) Preference- Try and build consumer preference. Conviction- Audience might prefer the product but not have conviction to buy it. Purchase- Actions may include offering the product at a low price, offering a premium or letting consumers try it on a limited basis. Design the Message AIDA model The message should… Get attention Hold interest Arouse desire Obtain action Marketing Communicator must solve four problems 1. What to say (message content). 2. How to say it logically (message structure). 3. How to say it symbolically (message format). 4. Who am I saying this to (target audience). Selecting Communication Channels Two Board types: Personal and Nonpersonal Personal- two or more people communicate directly with each other. These include face to face, person to audience, over the telephone, or even through mail. Nonpersonal- Media that carry messages without personal contact or feedback . These include media (newspapers, magazines, direct mail, radio, television, billboards) and atmospheres (designed environments that reinforce the buyers leanings toward purchasing a product). Selecting the Message Source How does the audience view the sender? Messages delivered by highly credible sources are persuasive. What makes a source credible? Take a guess, there are three. Selecting the Message Source (cont.) 1. Expertise 2. Trustworthiness 3. Likability Johnny Iuzzini CIA baking and pastry arts alumni Pastry chef/consultant Measure the Communications’ Results Ask the target audience whether they remember the message. (“How did you hear about us/ me?” Ask how many times they saw it? What points do they recall? How did they feel about the message? Ask about their past and present and attitude toward the company. Records should be kept on those who purchased the product based on seeing the message (i.e. billboard, radio…). Managing and Coordinating Integrated Marketing Communications Nature of Each Promotion Tool Types of Promotion Tools: Advertising Personal Selling Sales Promotion Public Relations Advertising Advantages Builds long-term image for product Reaches the masses for low cost per exposure Disadvantages Impersonal Not as persuasive as personal Personal selling Defined as personal interaction between two or more people, allowing each to observe the other persons needs and characteristics and make quick adjustments. Advantage Builds long-term relationship Disadvantages Requires a long-term company commitment Most expensive promotion tool Sales promotion Includes, Coupons Contests Cents-off deals These lead the consumer to want to buy the product. These invite quick reward response. Advertising says “buy our product” but sales promotion says “buy it now”. Advantages Creates a stronger and quicker response Dramatizes the product offers and boosts sagging sales Disadvantages Short-lived Public Relations Advantages Believability (e.g. stories, events, features) It dramatizes the product Current Trends Underutilized by marketers So what’s an infomercial, like slap chop, total gym or Hydroxycut? It is a blend of advertising (TV) and public relations (testimonials). “ I lost 50 lbs in 2 ½ months! Thanks Hydroxycut!!” Setting the Promotion Mix Push versus pull strategy Pull strategy- a company directs its marketing activities toward final consumers to induce them to buy the product. Push strategy- The company directs its marketing activities at channel members to induce them to order, carry, and promote the product. I.e. Provide an incentive for the consumer to come to you. How does marketing apply to me? Foodservice and Restaurant Administration major: Restaurants/ Catering Hotels/ Resorts Colleges Large food organizations Dietetics major: Dietitians with their own practicebariatrics Hospitals- outpatient care Dietitians in Public Health- WIC Gyms or Fitness Facilities Dietetic Scenario Katrina Johnson MS, RD, CDN is a nutrition education consultant for the Wisconsin Dairy and Nutrition Council, where she is responsible for the development and execution of nutrition communications and medical outreach programs throughout Wisconsin. The Dairy and Nutrition Council has recently been contacted by Dannon Okios Yogurt about a new yogurt product they have developed and they want the Wisconsin Dairy and Nutrition Council to be a leader in the promotion of this new product in their respective state. Within the Council, Katrina has been tasked with the marketing approach to take for this project. Dietetic Scenario (cont.) Assignment: Form groups of 4-5 people and make a game plan for this project. Decide on which marketing approach(es) to take. Create a short-term (<60 days) and long-term (>60 days) plan. In addition, keep in mind any competitors (e.g. Chobani, Stonyfield Farms) and their marketing strategies. Be creative and specific. ~5 minutes for decision and ~5-10 minutes for discussion. Reference Kotler, P., Bowen, J., & Makens, J. C. (2003). Marketing for Hospitality and Tourism (3rd ed.). Upper Saddle River, NJ: Pearson Prentice Hall.