mt 219 marketing unit eight the promotion mix components

MT 219 Marketing Unit Eight

The Promotion Mix Components

Review of Unit 7

• Questions or concerns?

• How is the Final Project coming?

• Additional questions?

Our Topics for This Week

The promotional mix:

Advertising

Public Relations

Personal Selling

Sales Promotion

Advertising

• Paid non-personal communication through mass media

• Advantages- Cost efficient on a per person reached basis- Highly flexible, and allows for repetition- Adds value / legitimacy

• Disadvantages- Out of pocket outlay is high- Hard to measure sales effect unless source coding is used- Feedback usually slow

Types of Advertising

• Institutional:- promotes organizational images, ideas, and political issues

- can also be used to create or maintain an organizational image

• Advocacy- promote a company’s position on a public issue, such as smoking, drinking, gun control and so on

• Product (most familiar):- promotes the uses, features, and benefits or products

- can stimulate demand, be competitive, make direct comparisons, remind consumers about the benefits of established brands, or reinforce purchases, and how to get the most satisfaction from product

• Pioneer: - focuses on stimulating demand for a product category

Types of Advertising

• Competitive:- points out a brands’ special features, uses, and advantages relative to competing brands

• Comparative:- make direct comparisons with competing brands (similar or dissimilar)

• Reminder:- remind consumers about the benefits of established brands

• Reinforcement:- reinforce their purchases by telling them they chose the right brand and telling them how to get the most satisfaction from it

Developing an Advertising Campaign

Parallels the Management Process- Plan, organize, lead and control

• Identify and analyze target audience• Define advertising objectives• Create advertising platform• Determine advertising appropriation• Develop media plan• Create advertising message• Execute campaign• Evaluate advertising effectiveness

Major Advertising Objectives

• Inform

• Persuade

• Remind

• Good way to remember this is R.I.P.

Message Strategy

• Message should be- Relevant and important

- Believable

- Executable

- Able to convey competitive advantage

- Memorable

- Undertake some effect to move consumer towards some action

- Consistent with other parts of the promotional mix

• Two most important traits: - 1) relevant and important to the target. When Bud Light implies that young men drinking Bud have fun, that has to be important to those who might purchase Bud Light. When Afflack promises to take care of all your needs should you become incapacitated, that has to be an important message to their target.

- 2) It should also be believable.

Setting the Budget

• Objective and task - identify the tasks required to achieve those objectives, and then cost them out

• Percent of sales - a certain percent of anticipated sales is allocated for advertising

• Matching competition – exactly or budget according to their market share %

• Arbitrary – “pick a number, any number” (often…choose what’s been done historically, adjusting for inflation)

• Affordable – what can do. (many smaller or beginning don’t really have the money to so much of anything)

The Media Plan

• Specific methods- media vehicles and schedule - Examples?

• Sets reach and frequency objectives - % of target audience exposed to message over specified period of time & number of times within the period those exposed see the advertisement

• Sets scheduling patterns- Continuous: marketer advertises at usually low but constant levels throughout the media plan period (products that are consumed year around with no real seasonality)

- Pulsing: where the advertising will spike at peak sales times (flowers at Valentine’s day, etc.)

- Intermittent (irregular): alternates periods of advertising with periods with non-advertising (be more visible while advertising instead of spreading ads out so much they might be invisible)

Major MediaNewspapers

AdvantagesReaches large audiencesPurchased to be readShort lead timeFrequent publicationBelievableGood for comparisonCan cover local areas

DisadvantagesNot selective socioeconomic allyShort lifePoor reproductionClutteredNot as popular as they once

were

Magazines

AdvantagesSelectivity

Good reproduction

Long life

Prestigious

Full color ads

DisadvantagesHigh absolute dollar cost

Long lead time

Television

Advantages

Large audiences

Low cost per person reached

Sight and sound

Visible

Confers legitimacy

Disadvantages

High out of pocket cost

Perishable / Waste coverage

Radio

AdvantagesInexpensive

Flexible

Targeted

DisadvantagesAudio only

Background medium

Short life

Push vs. Pull – how we direct $$

• Push - budgets are directed to resellers, often through personal selling

• Pull – budgets are directed to the consumer, often through advertising and promotion

Issues involved with Promotion

• Is promotion deceptive?• Does promotion increase prices?• Does promotion create needs?• Does promotion encourage materialism?• Should potentially harmful products be advertised?• Other?

Public Relations

Communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Also called publicity.

Individual brands generally have publicity/public relations done at the corporate level.

Some people call this “free advertising,” but is can be expensive and must be done well to be effective.

Examples?

Personal Selling

• Paid Personal Communication• Advantages

- Provides significant impact on customers due to personal contact

- Interactive- Allows for immediate impact and adjustment

• Disadvantages- Costly- most costly part of promotion based on people reached

• If it is so costly, why is it done?

The Personal Selling Process

• Prospecting• Pre-approach- Research is important• Approach• Presentation• Overcoming objections• Closing the Sale• Follow-up- To help ensure subsequent purchases

Sales Promotion

• Direct incentive to buy• May be directed at salespeople, resellers, and

consumers- anywhere in the distribution chain• Examples include free samples, coupons, contests,

premiums, rebates, buy one get one frees, etc.

Any Questions?

Thank you for attending!

See you next week!