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part three: the marketing mix

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1 part three: the marketing mix
Chapter 8 promotion

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 Place Marketing Mix Product Price advertising Promotion Mix
sales promotion personal selling stress promotion/MC as interchangeable terms other promotional tools? CIM include DM and packaging direct marketing packaging public relations

5 promotion = marketing communications

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?
stimulate trial get into purchase consideration set regain lost customers obtain information re-position increase usage create brand awareness build brand image inform remind educate break into new market change/reinforce attitudes recent good brand awareness = Intel recognition - if choice is made at point of purchase e.g. chocolate recall - if choice is made prior to purchase e.g. movie some ads focus on “ask for it by name” obtain info - perhaps to build customer profile, or to build dB etc or change image, target audience... (PIMMS)

8 targeted objectives key to the organisation’s 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 target audiences SMART objectives
strategies push pull

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

13 a simple communications model: 2
noise sender receiver distortion distortion

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

15 the promotional mix advertising public relations (PR) sales promotion
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
A I D 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 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 short-term special offers which add value to a product offering
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 competitor’s campaign encourage greater product use and so more frequent purchase

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

29 a salesperson’s 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
Audience Impact Message Response Internal Management The End 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 affordable 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 year’s 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 (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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