Presentation is loading. Please wait.

Presentation is loading. Please wait.

Part 5 Principles: IMC and Total Communication Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 17-1.

Similar presentations


Presentation on theme: "Part 5 Principles: IMC and Total Communication Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 17-1."— Presentation transcript:

1 Part 5 Principles: IMC and Total Communication Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 17-1

2 What are the current trends and practices in planning promotions? How are various consumer promotions used? What are the types and purposes of trade promotions? How do multiplatform promotionssponsorships and events, loyalty programs, and partnership programs work? How are promotions used strategically in marketing in terms of brand building, integration, and effectiveness? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-2

3 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 17-3

4 Sales promotion: increasing the value of its product or brand by offering an extra incentive to purchase it. Designed to encourage action. Sales promotion is primarily designed to motivate people to act by offering incentives. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-4

5 The Promotion Marketing Association (PMA) defines sales promotion as: The media and non-media marketing pressure applied for a predetermined, limited period of time at the level of consumer, retailer, or wholesaler in order to stimulate trial, increase consumer demand, or improve product availability. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-5

6 Accountability Managers are under pressure for short-term profits. Promotions cost less and deliver tangible results. Evaluation is easy and quick because there is usually an immediate response. Its easier to compute return on investment (ROI). This is known as payout planning. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-6

7 To see how sales promotion can generate positive ROI, go to: Here, the Moonfruit company gave away 10 MacBook Pros as part of a birthday celebration. Participants were required to send out a creative Tweet. The idea exploded on Twitter and generated massive publicity for the company. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-7

8 Media shifts Traditional media costs have escalated to the point where alternative media must be considered. Promotions cost less and deliver tangible results. Global incentive programs have increased dramatically. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-8

9 Marketplace changes Consumer behavior: shoppers are more likely to switch brands. Pricing: consumers expect coupons, sales, price promotions. Market share: increased switching leads to increased market share. Parity products: promotions can become a tie-breaker in consumer decision making. The power of the retailer: dominant retailers such as Safeway and Wal-Mart demand promotional incentives. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-9

10 Promotional Big Ideas The Big Idea is just as important for sales promotion as it is for advertising. In many cases, the promotion is part of a bigger IMC campaign. The challenge is to come up with exciting, interesting promotional ideas that are involving and capture the attention of the target market. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-10

11 1. Consumer 2. Trade 3. Sales Force Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-11

12 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 17-12

13 Price Deals Temporary price reduction, sale price, or even freebies. 1.Cents-off deal 2.Price-pack deals 3.Bonus packs 4.Banded packs Freebies can be a killer if the company doesnt adequately predict consumer response! Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-13

14 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-14 The Billings Trailhead campaign used weekly drawings with the winners receiving caps, as well as dinner and two nights at the Crowne Plaza Hotel for the grand prize winner.

15 Refunds and Rebates Marketers offer to return a certain amount of money to the consumer who purchases the product, or a coupon to encourage repeat use. Sampling Allowing the consumer to try the product or service. Examples: in-store, mailed, dentist office, or newspaper. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-15

16 Premiums A premium is a tangible reward for a particular act. It works by adding value to the product. There are four variations: 1. Store premiums: given at retail site 2. In-pack premiums: inserted in the package 3. On-pack premiums: attached to package 4. Container premiums: the package is the premium A self-liquidator premium requires that a payment be mailed with proof of purchase. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-16

17 Coupons Provide a discount on the price of the product. Retailer: redeemable only at their outlet. Manufacturer: redeemable at any outlet carrying the product. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-17 Cellfire is a company that sends digital coupons via text messages and loyalty cards.

18 Contests and sweepstakes Create excitement by promising something for nothing and offering impressive prizes. Contests are based on skill or ability. Sweepstakes are based on luck. Specialties Presents the brands name on something that is given away as a reminder. Examples: key chains, pens, calendars, tote bags, coffee mugs. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-18

19 Promotional media These can include: Print Broadcast Online Frontier Airlines favorite animal contest used the Internet to increase online purchase of flights. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-19

20 Promotional campaigns Special promotions are usually approached as a campaign because they involve a variety of media and reach many stakeholders. For an example, check out the The Inside Story: The Intersection of the Movie and Promotion Industries in this chapter. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-20

21 Awareness The first step in consumer decision making. Trial Get the right people involved with the product through sampling, price deals, coupons, and rebates. Maintain or increase market share The idea is to convince people to switch. Price deals work with low-loyalty products. Characters associate the brand with the character. Brand reminder Remind customers of positive experience with ad copy, specialty items, and thank-you gifts. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-21

22 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 17-22

23 Trade refers to all involved in the channel of distribution including buyers, brokers, distributors, wholesalers, and others. Usually directed at distribution channel members. This is known as channel marketing. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-23 These kits were sent by Kuni Automotive to the smart car company to win dealerships in three cities.

24 Retail (dealer) kits Materials that support retailers selling efforts or help representatives make sales calls. They could contain product spec sheets, or ad slicks. Trade incentives and deals A financial reward for purchasing a certain amount of product or supporting a promotion. Includes special displays, extra purchases, superior store locations, more local promotion. Retailers get special discounts, free goods, gifts, cash, and advertising allowances. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-24

25 Contests Advertisers can develop contests and sweepstakes to motivate resellers. Contests are far more common than sweepstakes because they can be more closely tied to product. Point-of-purchase promotions Manufacturers design and distribute displays to retailers to draw attention to their products. Examples: racks, display cartons, banners, signs, moving parts, lights, action. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-25

26 Trade Shows and Exhibits Companies in the same industry gather to present and sell merchandise and demonstrate products. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-26 Nintendo launched its Wii game with demonstrations at entertainment and video game trade shows.

27 The two primary roles for a trade promotion: 1.Stimulate in-store merchandising or other trade support. 2.Create excitement among those responsible for selling the product. Trade promotions are also used to: Manipulate wholesalers and retailers inventory levels. Expand product distribution to new geographic areas or classes of trade. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-27

28 Demand: push-and-pull strategies Pull strategies: creating or increasing customer demand so product is pulled through the channel. Push strategies: give channel members reasons to carry products or give them better shelf space so product is pushed through the channel. Common push strategy incentives: BonusesDealer loader Buying allowancesAdvertising allowances Co-op advertising Display allowance Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-28

29 Attention PoP displays get attention and stimulate impulse purchases. PoPs can also complement other promotional campaigns. Motivation Contests, trade deals, and other incentives motivate trade/channel members to make sales. Information Trade show displays give information about products, allow trade buyers to gather and compare products. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-29

30 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 17-30

31 Some promotions cross over to other areas of marketing and blur the lines between promotion, advertising, and public relations. Sponsorships Event marketing Loyalty programs Co-marketing or partnership promotions Lets take a look at each one… Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-31

32 Sponsorships Occur when companies support a sporting event, concert, or charity, either financially or by donating supplies and services. Companies undertake sponsorships to build brand associations and increase the perceived value of the brand in the consumers mind. As a class: Read and discuss A Matter of Practice: Advertising Through Sports to learn about the growth of sports-related promotions. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-32

33 Event marketing Here, marketers link a brand to an event. Examples: The Jose Cuervo beach volleyball tournament Wii Fit Plus Experience Game with Target Stores The Super Bowl, the granddaddy of all events Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-33

34 Ambush marketing refers to promotional stunts at events by companies that are not official sponsors. Other promotional support might include: Blimps Balloons Inflatables Skywriting airplanes Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-34

35 To help promote the opening of the movie Spider-Man, inflatables like this one were placed along buildings in major cities. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-35

36 Also called continuity or frequency programs. Designed to increase customer retention. Frequent flyer programs, TGI Fridays Frequent Fridays These programs also capture information to use for more targeted promotions and advertising. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-36

37 Comarketing involves manufacturers developing marketing communication programs with their main retail accounts, instead of for them. Cobranding occurs when two companies come together to offer a product. For example, American Airlines put its logo on a Citibank Visa card. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-37

38 With licensing, one company gives another company the right to use its legally protected trademarks and logos on products and in advertising or promotion. Tie-ins and cross-promotions occur when two companies are displayed, advertised, or promoted together to multiply impact. As a class: Recall Billings, Montana/Pepsi Trailhead rebranding campaign from this chapter. What were its key elements? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-38

39 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 17-39

40 To introduce a new product. To create brand awareness. To build a brand over time. Create affinity between brands and buyers. Create brand involvement through positive associations. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-40

41 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-41 Advertising Creates a brand image over time. Relies on emotional appeals. Adds tangible value to product or service through image. Contributes moderately to short-term profitability. Promotion Creates immediate action. Added value strategies rely on rational appeals; impulse appeals use emotion. Adds tangible value to product or service. Contributes greatly to short- term profitability.

42 Effectiveness is measured by sales volume, response rates, and redemption (coupons, refunds, rebates) rates. Payout planning seeks to produce promotions that increase sales and profits. Promotions can deliver sales but they must be well planned and executed in order to enhance the brands reputation. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-42

43 In Chapter 18, we will: Wrap up our discussion of IMC. Introduce various specialized areas of marketing communication. Reinforce the idea that all the tools presented thus far must work together to create a consistent and coherent brand image. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-43

44 Consumers Vote Frontier the Winner Frontiers Denvers Favorite Animal campaign proved to be a winner. Fans engaged in the democratic process in a mock election, posting more than 4,000 entries. Web traffic was up more than 50 percent over the same period in the previous year. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-44

45 Consumers Vote Frontier the Winner Key lessons: To reach the marketing and campaign objectives, advertisers must be willing to take risks. Sales promotions must be consistent with the brands personality, and deliver on brand promise. As a class: What others can you think of? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall17-45


Download ppt "Part 5 Principles: IMC and Total Communication Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 17-1."

Similar presentations


Ads by Google