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CHAPTER 8 PROMOTION part three: the marketing mix.

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Presentation on theme: "CHAPTER 8 PROMOTION part three: the marketing mix."— Presentation transcript:

1 CHAPTER 8 PROMOTION part three: the marketing mix

2 an opening challenge You run a small, specialist soft drinks firm. Your marketing budget is a tiny fraction of your major competitors and you certainly cannot afford television advertising. How will you get your brand noticed by potential customers?

3 agenda the promotion mix managing promotional activities objectives promotion strategy marketing communications process marketing communications tools regulations budgets

4 mixes Marketing Mix P Place P Product P Price P Promotion Mix advertising public relations sales promotionpersonal selling packagingdirect marketing


6 promotion management setting objectives setting budgets designing marketing programmes/campaigns implementing campaigns checking the results of campaigns (evaluation and control)

7 the objectives of promotion what is it meant to achieve? create brand awareness build brand image inform remind educate break into new market change/reinforce attitudes stimulate trial get into purchase consideration set regain lost customers obtain information re-position increase usage

8 targeted objectives key to the organisations direction – strategies are devised to meet objectives objectives should be SMART – specific, measurable, achievable, relevant, timed aim at a specific target audience

9 audience or market? markets are customers/consumers – people who buy or use things audiences listen or watch so promotional activities are targeted at audiences – who may or may not be customers/consumers

10 promotional strategy market analysis SMART objectives target audiences strategies pushpull

11 promotional strategy a subset of overall marketing strategy informed by branding and positioning overall marketing communications strategy plus campaign strategies overview of how objectives will be achieved – the details go in the plan push strategies – aimed at the trade pull strategies – aimed at consumers

12 channel encoding decoding a simple communications model: 1 sender receiver message

13 a simple communications model: 2 sender receiver distortion noise

14 channel encoding decoding a simple communications model: 3 sender receiver feedback message (Schramm, 1955)

15 the promotional mix advertising – paid for, mass media public relations (PR) – media relations, sponsorship, exhibitions, hospitality, celebrity endorsement sales promotion – discounts, special offers, competitions personal selling – b2b, retail, telesales

16 influencing customers attention interest desire action think feel do

17 AIDA and the promotion mix AQ – re-set figure type

18 DAGMAR: a hierarchical model AQ – re-set figure type

19 promotion tools advertising public relations sales promotion personal selling direct marketing packaging sponsorship

20 advertising essentials AQ – re-set figure type

21 creative executions slice of life animation & CGI endorsement celebrity news-style fantasy spoof or parody demonstration comedy audience participation music

22 media media class or category, e.g. television media vehicles e.g. EastEnders media vehicles

23 public relations (PR) the determined, planned and sustained effort to establish and maintain mutual understanding between an organisation and its publics. Also understood as reputation management (Chartered Institute of Public Relations, 2010)

24 PR techniques publicity or media relations publications corporate communications community relations lobbying sponsorship product placement branded content events management crisis management

25 sales promotion short-term special offers which add value to a product offering

26 benefits of sales promotion good at increasing sales effectiveness can be easily measured has accurate targeting can keep budget down has an almost immediate effect creates interest in products

27 typical sales promotion objectives stimulate product trial – which may lead to regular purchase introduce a new product to the market combat/spoil a competitors campaign encourage greater product use – and so more frequent purchase

28 personal selling prospectingpreparing making the appointment objection handling following up the call or pitch closing

29 a salespersons job buyer/seller team coordinator customer service provider buyer behaviour expert information gatherer market analyst and planner sales forecaster market cost analyst technologist

30 direct marketing the planned recording, analysis and tracking of individual customers responses and transactions for the purpose of developing and prolonging mutually profitable customer relationships (Institute of Direct Marketing, 2010)

31 direct marketing communications personal contact looking for a direct response – better feedback database marketing direct response advertising

32 DM media selection: AIMRITE A udience I mpact M essage R esponse I nternal Management T he E nd Result (Pickton and Broderick, 2004)

33 UK regulations advertising standards code – legal – decent – honest – truthful similar principles in other codes of practice – sales promotion, sponsorship for up-to-date rules, visit the ASA website at:

34 setting budgets arbitrary method – judgement call affordable method – tends to result in low budgets competitive parity method – but did the competition get it right? objective and task method – time-consuming but accurate percentage of sales method – commonly used, but which years sales?

35 summary clear campaign objectives good market understanding clearly identified target audience – and the means to reach them originality and creativity – so the message is correctly received a variety of tools to integrate into the campaign

36 references Chartered Institute of Public Relations (CIPR) (n.d.) CIPR website. Available at resources/jargon-buster (accessed 30/06/10). Institute of Direct Marketing (IDM) (n.d.) IDM website. Available at: (accessed 15/05/10). Pickton, D.W. and Broderick, A. (2004) Integrated Marketing Communications, 2nd edn. Harlow: FT Prentice Hall. Schramm, W. (1955) How communication works, in W. Schramm (ed.), The Process and Effects of Mass Communications. Champaign: University of Illinois Press, pp. 3– 26.

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