2 Session overview The role of promotion in the marketing mix Elements in the promotional mixIntegrated marketing communicationsFactors influencing the promotional mix
3 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) responseFocus on differential advantagesunique selling proposition (USP)reason to buy our brand (selective demand)
4 Five elements of the promotion mix Direct marketingAdvertisingSales promotionFive major elements of promotion mixPersonal sellingPublic relations
5 Personal selling Oral presentation Aim personal - face-to-face or over the phoneAimgain rapportovercome objectionsclose the sale
6 Advertising Impersonal, one-way mass communication wide reach, low CPM (cost per thousand reached)Paid by an identified sponsor or companyAimbuild brand imagelonger-term strategyExamples:broadcast media (TV, radio)print media (newspapers, magazines, brochures)yellow pages, cinema and outdoor
7 Sales promotion Short-term incentive Aim Examples: stimulate sale or trialshorter-term strategy - buy now!Examples:competitions2 for 1 dealsprice specialspremiums
8 Public relations‘function that evaluates public attitudes, identifies areas 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)Aimmonitor attitudes and build good relationsbuild corporate imagegood corporate citizenExamples:sponsorshipMcDonalds, BlueScopepublicity, press releases
9 Direct marketing Direct marketing gain an immediate response selective and personaliseddirect mail, telemarketing, SMS, direct selling, home-shopping etc.
10 Factors affecting the promotional mix Nature of the productconsumer versus business productscost and risks associated with using the productStage in product life cycleexhibit 9.7, p.324Target market characteristicshow informed/knowledgeable?how brand loyal?what are their media habits?how can we reach them?
11 Factors affecting the promotional mix cont…. Type of buying decisioncomplex versus routinehigh versus low involvementPromotional budgetcost of mediaabsolute versus relative costs (CPM)Push v pull strategiesexhibit 9.8, p.327
12 Integrated marketing communications ‘Method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused’Consistencyconsistent theme, message, jingle, colour scheme etc.examplesCommonwealth Bank ‘which bank’Toyota ‘Oh what a feeling’Synergyall 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
13 The communication process SenderFeedbackEncodingMessage channelMessageResponseDecodingReceiver
14 Elements in the communication process Sender (source)company, spokespersonEncoding the messageputting ideas into symbolsMessageset of symbols that are transmittedMessage channel (media)channel of communication
15 Communication process cont. Decoding the messagereceiver interprets symbolsassigns meaning to the messageReceiverresponse - reaction/actionfeedback - communicated back to senderNoisecommunication barrier or distortionoccurs at all stages
16 Promotional goalsInformPersuadeRemindRefer to exhibit 9.5, p. 319
22 Message issues What will we say? key benefitsfunctionalpsychologicalimportant attributesWhat is our usp (unique selling proposition)?What response are we seeking?Do we want to support our current positioning strategy or reposition?
23 Message appeals Rational Emotional Appeals Appeals Three types of MoralAppeals