Presentation on theme: "Promotional strategy Module 8. Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications."— Presentation transcript:
Promotional strategy Module 8
Session overview The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications Factors influencing the promotional mix
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)
Five elements of the promotion mix Sales promotion Public relations Personal selling AdvertisingDirect marketing Five major elements of promotion mix
Personal selling Oral presentation personal - face-to-face or over the phone Aim gain rapport overcome objections close the sale
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
Sales promotion Short-term incentive Aim stimulate sale or trial shorter-term strategy - buy now! Examples: competitions 2 for 1 deals price specials premiums
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) Aim monitor attitudes and build good relations build corporate image good corporate citizen Examples: sponsorship McDonalds, BlueScope publicity, press releases
Direct marketing gain an immediate response selective and personalised direct mail, telemarketing, SMS, direct selling, home-shopping etc.
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?
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
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
The communication process Message channel Message Decoding Receiver Response Feedback Encoding Sender
Elements in the communication process Sender (source) Sender (source) company, spokespersoncompany, spokesperson Encoding the message Encoding the message putting ideas into symbolsputting ideas into symbols Message Message set of symbols that are transmittedset of symbols that are transmitted Message channel (media) Message channel (media) channel of communicationchannel of communication
Communication process cont. Decoding the message Decoding the message receiver interprets symbolsreceiver interprets symbols assigns meaning to the message assigns meaning to the message Receiver Receiver response - reaction/actionresponse - reaction/action feedback - communicated back to senderfeedback - communicated back to sender Noise Noise communication barrier or distortioncommunication barrier or distortion occurs at all stagesoccurs at all stages
Promotional goals Inform Inform Persuade Persuade Remind Remind Refer to exhibit 9.5, p. 319 Refer to exhibit 9.5, p. 319
Example : Inform Example : Inform
Session overview AIDA model AIDA model Message issues Message issues Message appeals Message appeals
AIDA Model Attention Interest Desire Action
Message issues What will we say? What will we say? key benefitskey benefits functional functional psychological psychological 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 strategy or reposition? Do we want to support our current positioning strategy or reposition?
Message appeals Moral Appeals Rational Appeals Emotional Appeals Three types of appeals