Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements...

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Promotional Promotional strategy strategy Module 8 Module 8

Transcript of Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements...

Page 1: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Promotional strategyPromotional strategy

Module 8Module 8

Page 2: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Session overview

The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications Factors influencing the promotional mix

Page 3: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Role of promotion in the marketing mix

Promotion is the communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinion (toward the product) or elicit a (favourable) response

Focus on differential advantages • unique selling proposition (USP) • reason to buy our brand (selective demand)

Page 4: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Five elements of the promotion mix

Sales promotion

Public relationsPersonal selling

Advertising Direct marketing

Five major elements of promotion mix

Page 5: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Personal selling

Oral presentation• personal - face-to-face or over the phone

Aim• gain rapport• overcome objections• close the sale

Page 6: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Advertising Impersonal, one-way mass communication

• wide reach, low CPM (cost per thousand reached) Paid by an identified sponsor or company Aim

• build brand image

• longer-term strategy Examples:

• broadcast media (TV, radio)

• print media (newspapers, magazines, brochures)

• yellow pages, cinema and outdoor

Page 7: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Sales promotion

Short-term incentive Aim

• stimulate sale or trial shorter-term strategy - buy now!

Examples:• competitions• 2 for 1 deals• price specials• premiums

Page 8: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Public relations ‘function that evaluates public attitudes, identifies are

as that the public may be interested in, and executes a program of action to earn public understanding and acceptance’ (Summers et al. 2006, p. 312)

Aim• monitor attitudes and build good relations• build corporate image• good corporate citizen

Examples:• sponsorship

McDonalds, BlueScope• publicity, press releases

Page 9: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Direct marketing

Direct marketing• gain an immediate response• selective and personalised• direct mail, telemarketing, SMS, direct selling, ho

me-shopping etc.

Page 10: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Factors affecting the promotional mix

Nature of the product• consumer versus business products• cost and risks associated with using the product

Stage in product life cycle• exhibit 9.7, p.324

Target market characteristics• how informed/knowledgeable?• how brand loyal?• what are their media habits?• how can we reach them?

Page 11: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Factors affecting the promotional mix cont….

Type of buying decision• complex versus routine

high versus low involvement

Promotional budget• cost of media• absolute versus relative costs (CPM)

Push v pull strategies• exhibit 9.8, p.327

Page 12: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Integrated marketing communications

‘Method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused’

Consistency• consistent theme, message, jingle, colour scheme etc.• examples

Commonwealth Bank ‘which bank’ Toyota ‘Oh what a feeling’

Synergy• all elements of the IMC mix work together to deliver a more powerful

message than the sum of the individual elements.• each element has its role, its advantages and disadvantages

Page 13: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

The communication processThe communication process

Message channel

Message

Decoding

Receiver

Response

Feedback Encoding

Sender

Page 14: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Elements in the communication Elements in the communication processprocess

Sender (source)Sender (source)• company, spokespersoncompany, spokesperson

Encoding the messageEncoding the message• putting ideas into symbolsputting ideas into symbols

MessageMessage• set of symbols that are transmittedset of symbols that are transmitted

Message channel (media)Message channel (media)• channel of communicationchannel of communication

Page 15: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Communication process cont.Communication process cont.

Decoding the messageDecoding the message• receiver interprets symbolsreceiver interprets symbols

assigns meaning to the messageassigns meaning to the message ReceiverReceiver

• response - reaction/actionresponse - reaction/action• feedback - communicated back to senderfeedback - communicated back to sender

NoiseNoise• communication barrier or distortioncommunication barrier or distortion• occurs at all stagesoccurs at all stages

Page 16: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

PromotionalPromotional goalsgoals

InformInform PersuadePersuade RemindRemind Refer to exhibit 9.5, p. 319Refer to exhibit 9.5, p. 319

Page 17: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Example : InformExample : Inform

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Example: PersuadeExample: Persuade

Page 19: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Example: RemindExample: Remind

Page 20: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Session overviewSession overview

AIDA modelAIDA model Message issuesMessage issues Message appealsMessage appeals

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AIDA ModelAIDA Model

Attention

Interest

Desire

Action

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Message issuesMessage issues

What will we say?What will we say?• key benefitskey benefits

functionalfunctional psychologicalpsychological

• important attributesimportant attributes What is our usp (unique selling proposition)?What is our usp (unique selling proposition)? What response are we seeking?What response are we seeking? Do we want to support our current positioning Do we want to support our current positioning

strategy or reposition?strategy or reposition?

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Message appealsMessage appeals

Moral Appeals

RationalAppeals

Emotional AppealsThree types

ofappeals

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Rational appealRational appeal

Page 25: Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications.

Emotional appealsEmotional appeals

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Moral appealsMoral appeals