2. Promotion Pertemuan 21 Matakuliah: J0114/Manajemen Pemasaran Tahun: 2008

3. Bina Nusantara Learning Outcome Students can show relationship between promotions and customer experience

4. Bina Nusantara Material Outline: Communication and marketing process Value communication Procedure to communicate value

5. Bina Nusantara Communication and Marketing Process Promotion is a communication process. The essence of promotion is to deliver messages to targeted audience (whom is our consumers) to induce change in behavior according to our goals. Traditionally, marketing mix is defined as a blend of activities such as designing the product and its package, pricing the product, distributing the product so that it is accessible to customers and communicating about the product. To encourage customer experience with the product, marketers need to share information about the product to customers, so that customers are aware of the product.

6. Bina Nusantara Communication and Marketing Process In experiential marketing, marketers try to identify customers and potential customers and bonds them to the brand through customer experience. When communication is guided by this concept, the central goal, satisfying the customers, helps coordinate communication tools with the other marketing functions and increases the likelihood that a particular communication program will be successful.

7. Bina Nusantara Communication and Marketing Process Four tools of marketing: –Product: includes product design and development, branding and packaging. –Distribution: includes the channels used in moving and storing the product from the manufacturer to the buyer –Price: Includes the price at which the product or service is offered for sale and establishes the level of profitability –Communication: includes personal selling, advertising, public relations, sales promotion, direct marketing, point-of-sale, and word of mouth.

8. Bina Nusantara Value Communication Economic value communication: –Easy to judge differences in brands prior to purchase –The benefits sought are primarily economic value Psychological benefit communication: –Comfort, pleasure, safety, security, status, companionship, adventure –Fulfilling consumer’s motivations –Reframing the way the consumers view the product or service differentiation

9. Bina Nusantara Procedure to Communicate Value Situation analysis: –This section details the search for and analysis of important information and trends affecting marketplace, competition, consumer behavior, company and product or brand itself. Example: –A marketing communication manager of Excelcomindo plans to reinforce his products. Market conditions show that consumers seek for low-tariff cellular provider. Most of users make phone calls less than 3 minutes. This shows that in developing his promotional message he should stress on low-tariff and duration people make phone calls to determine price cut during certain moment.

10. Bina Nusantara Procedure to Communicate Value In developing a procedure to communicate value, one should consider these three aspects: –Targeting audience: whom are you trying to reach? What value do you offer? –Message strategy: What do you say to them? What value do you deliver to them? –Communication strategy: When and where will you reach them? How?

11. Bina Nusantara Procedure to Communicate Value Communication objectives: –Communication objectives are derived from marketing objectives along with the results of situation analysis. –The objectives can be financial objectives or non-financial objectives, such as product awareness, product image building, and so forth. Targeting the Audience: –Marketing communication team must create profiles of target audiences that include demographics, personality descriptors, and lifestyle traits. The purpose is to make that “typical” person as real as possible for the creative people, who then try to write believable messages that will appeal to this person.

12. Bina Nusantara Procedure to Communicate Value Product features and competitive advantage: –Product feature refers to feature analysis. In this part, marketers structure their products against competing products. Creating a chart of marketers’ product and competitor’s product. Listing each product’s relevant features Evaluate how important each feature is to the target audience and how well the products perform on that feature. –Positioning strategies: Positioning goes beyond the brand personality in that it incorporates many marketing tools.

13. Bina Nusantara Procedure to Communicate Value Communication budget –Determining the total appropriation allocated to communication program according to the objectives set up before. Some methods commonly used: Historical method Objective-task method Percentage of sales method Competitive method Implementation Evaluation: –Evaluation is commonly undertaken based on how well the advertising plan meets its objectives.

14. Bina Nusantara Conclusions: Promotion is a communication process. The essence of promotion is to deliver messages to targeted audience (whom is our consumers) to induce change in behavior according to our goals. In experiential marketing, marketers try to identify customers and potential customers and bonds them to the brand through customer experience. –Product: includes product design and development, branding and packaging. –Distribution: includes the channels used in moving and storing the product from the manufacturer to the buyer –Price: Includes the price at which the product or service is offered for sale and establishes the level of profitability –Communication: includes personal selling, advertising, public relations, sales promotion, direct marketing, point-of-sale, and word of mouth.