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Promotion MKTG 201 Semester 1, 2010 Sandy Bennett.

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1 Promotion MKTG 201 Semester 1, 2010 Sandy Bennett

2 Overview The Marketing Communication process Compare/Contrast the Promotional Mix elements Push & Pull Promotion Integrated Marketing Communications Promotion over the PLC

3 Promotion –The creation and maintenance of communication with target markets. Marketing communication –A term for promotion that refers to communicating a message to the marketplace. Objectives:

4 The marketing communication process

5 Elements of the Communication Process Source - the sender of a message Encoding - the source deciding what to say and translating it into words or symbols that convey meaning Message channel - the carrier of the message Decoding - the receiver translating the message Receiver - the potential customer Noise - any distraction that reduces the effectiveness of the communication process

6 The Promotion Mix Combinations of methods used to promote a product (includes ideas) –Advertising –Public Relations –Sales Promotion –Personal selling

7 Advertising –The transmission of paid messages about an organisation, brand or product to a large audience. Benefits: Reaches many people at relatively low cost per person Limitations: Difficult to measure effectiveness, and can be very expensive depending on the medium

8 Greater Building Society Jerry Seinfeld Greater Building Society Commercial

9 Creating an advertising campaign Key steps in creating an advertising campaign: 1.Understand the market environment 2.Know the target market (audience) 3.Set specific objectives 4.Create the message strategy 5.Allocate resources 6.Select media 7.Produce the advertisement 8.Place the advertisement 9.Evaluate the campaign.

10 Public relations –Communications aimed at creating and maintaining relationships between the marketing organisation and its stakeholders. –Effective PR messages are timely, engaging, accurate and in the public interest. Benefits: Credibility, resulting word-of-mouth, low or no-cost, may effectively combat negative perceptions or events. Limitations: May be difficult to control

11 Public relations Marketers can generate good public relations through: –Publicity (e.g. Gaining news coverage) –Written communications with stakeholders (e.g. annual reports) –Sponsorship (e.g. ASB is a Polyfest sponsor) –Involvement in charitable donations or acts. Another role of PR is to be reactive, countering negative publicity. In an economic downturn, many organisations become more subject to negative media coverage.

12 Mattel Product recall and public relations

13 Tourism Queensland Queensland government and local tourism industry public relations campaign

14 Sales promotion –Offers of extra value to resellers, salespeople and consumers in a bid to increase sales. –Used irregularly to smooth demand –Rewards the sale of company’s products Limitations: Can lose effectiveness if overused, easily copied, public becoming increasingly cynical about whether they are being offered real value.

15 Sales Promotion - Types of Sales Promotion CONSUMER ORIENTED –Free samples –Premium offers –Loyalty programs –Coupons –Rebates –Discounts –Samples –Contests –Point of purchase promotions TRADE ORIENTED –Trade allowances –Price deals –Gifts and premium money –Cooperative advertising –Dealer listings –Trade shows etc

16 Personal selling –Personal communication efforts that seek to persuade consumers to buy products. –Expensive, high-involvement or industrial products favour personal selling Benefits: Can be specifically tailored to individuals, so has greater influence than advertising, sales promotions and PR strategies. Limitations: Expensive, limited reach, labour intensive, time-consuming, lack of uniformity.

17 How important is personal selling to your organization? Story Bridge Adventure Climb

18 Personal selling model INPLCF: –Information –Needs –Product –Leverage –Commitment/close –Following up

19 Push and pull policies Push policy –An approach in which a product is promoted to the next institution in the marketing channel. Pull policy –An approach in which a product is promoted to consumers to create demand through the marketing channel.

20 Telstra Bigpond, Patrick and Daniel campaign Push or Pull?

21 Additional forms of promotion Ambush marketing –The presentation of marketing messages at an event that is sponsored by an unrelated business or a competitor. Product placement –The paid inclusion of products in movies, television shows, video games, songs and books. A plug –When the media overtly promotes a product within a program rather than as a separate advertisement.

22 Additional forms of promotion Guerrilla marketing –The use of an aggressive and unconventional marketing approach. Viral marketing –The use of social networks to spread a marketing message.

23 What promotion methods do you use for a B2B manufacturing product? Simon Bottomley, General Manager, HaveStock Manufacturing

24 Promoting a hotel Neil Paterson, Director of Sales and Marketing, Sofitel Gold Coast

25 Integrated marketing communications Integrated marketing communications (IMC) –The coordination of promotional efforts to _________the communication effect. –The goal is the _________ send the most effective possible message to the target market

26 A consistent advertising platform: Virgin Blue Virgin Blue’s television advertising campaign

27 Integrating promotion mix elements Marketing organisations have different promotional needs and finite financial and other resources, so must choose from options in the promotion mix. Those with ______ promotion budgets usually use ______ strategies. ______ budgets will rely on ______, simpler strategies. The promotion mix should change over time (PLC).

28 Promotion and the PLC Introduction –Objective: Growth Stage –Objective:

29 Promotion and the PLC Maturity Stage –Objective: Decline –Objective:

30 Looking Back The Marketing Communication process Compare/Contrast the Promotional Mix elements Push & Pull Promotion Integrated Marketing Communications Promotion over the PLC

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