A REVIEW OF: PROMOTION/IMC & ADVERTISING FRAMEWORKS

REVIEW LEARNING OUTCOME LO2 Elements of the Promotional Mix

Marketing Communication As Senders As Receivers Develop messages Adapt messages Spot new communication opportunities Inform Persuade Remind Notes: Marketers are both senders and receivers of messages. As senders, marketers inform, persuade, and remind the target market to adopt courses of action. As receivers, marketers attune themselves to the target market in order to develop and adapt messages, and spot new communication opportunities. Marketing communication is a two-way process. LO3

Goals & Tasks of Promotion LO4 Informing Reminding Persuading Target Audience PLC Stages: Introduction Early Growth Growth Maturity Notes: The informing phase of promotion seeks to convert an existing need into a want or to stimulate interest in a new product. It is more prevalent during the early stages of the product life cycle. Persuasive promotion is designed to stimulate a purchase or an action. It becomes the main promotion goal when the product enters the growth stage of its life cycle. Reminder promotion is used to keep the product/brand name in the public’s mind. It is effective during the maturity cycle. A discussion of each category follows. Discussion/Team Activity: Name products/brands and discuss the stage of their product life cycle. Categorize the type of promotion—informative, reminder, or persuasive-- that is used in the product/brand promotional mix.

The AIDA Concept LO5 AIDA Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. Attention Interest Desire Action Notes: The goal of any promotion is to get someone to buy a good or service, or take some action. A classic model for reaching promotional goals is called the AIDA concept—attention, interest, desire, and action—the stages of consumer involvement. This model proposes that consumers respond to marketing messages in a cognitive--thinking, affective--feeling, and conative--doing sequence.

The AIDA Concept LO5 Action Desire Interest Attention Conative (doing) Cognitive (thinking) Affective (feeling) Conative (doing) Online: NASCAR Kellogg’s What kind of promotions are coming out of the relationship between Kellogg’s cereals and NASCAR racing? How successful do you think NASCAR promotions will be in selling cereal? How effective will Kellogg’s promotions be in increasing the number of NASCAR fans? http://www.nascar.com http://www.kelloggs.com Online

REVIEW LEARNING OUTCOME LO5 The AIDA Concept Notes: Exhibit 14.4 shows the relationship between the AIDA model and the promotional mix. Above is a variation on that exhibit. For example, advertising is most useful in gaining attention for goods. In contrast, personal selling reaches fewer people at first. Salespeople are more effective at creating customer interest, in creating desire, and taking action. Public relations is best at gaining attention for a company, a good or service. Sales promotion’s greatest strength is in creating strong desire and purchase intent (action).

Type of Buying Decision LO6 Type of Buying Decision Advertising Sales Promotion Routine Personal Selling Neither Routine nor Complex Public Relations Print Advertising Complex Notes: For a routine buying decision such as the purchase of toothpaste, the most effective promotional tools are advertising and especially sales promotion. For buying decisions that are not routine or complex, advertising and public relationships help establish awareness. In contrast, consumers making complex decisions need large amounts of information, and personal selling is the most effective tool. Print ads are also effective for conveying large amounts of information. Discussion/Team Activity: Consider recent purchases of routine and complex products. What promotion tool(s) were effective to reach the buyer and influence the purchase decision?

CHANNEL Orders to Manufacturer Push and Pull Strategies Manufacturer promotes to wholesaler Wholesaler retailer Retailer consumer Consumer buys from PUSH STRATEGY CHANNEL Orders to Manufacturer PULL STRATEGY Manufacturer promotes to consumer Notes: Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler/retailer to carry and sell their merchandise. This is known as a push strategy. The wholesaler, in turn, pushes the merchandise forward by persuading the retailer to handle the goods. The retailer uses advertising and other forms of promotion to convince customers to buy the “pushed” products. At the other end is a pull strategy, which stimulates consumer demand to obtain product distribution. The manufacturer uses a pull strategy by focusing promotional efforts on end consumers and opinion leaders. The wholesaler then places an order for the “pulled” merchandise from the manufacturer. Consumer demand pulls the product through the channel of distribution. A company typically uses a mix of push and pull strategies. The Push and Pull strategies are diagrammed in Exhibit 14.6. Discussion/Team Activity: Discuss products and/or industries that utilize push and/or pull strategies in their promotion mix. Wholesaler demands product from manufacturer Retailer demands product from wholesaler Consumer demands product from retailer CUSTOMER Orders Through Channel to Manufacturer

Product Advertising LO2 Pioneering Competitive Comparative Stimulates primary demand for new product or category Used in the PLC introductory stage Competitive Influences demand for brand in the growth phase of the PLC Often uses emotional appeal Comparative Compares two or more competing brands’ product attributes Used if growth is sluggish, or if competition is strong Online Pizza Hut Papa John’s Can you find evidence of comparative advertising on either Pizza Hut’s or Papa John’s Web site? Notes: The product’s stage in its life cycle often determines which of the above types of product advertising is selected. Pioneering advertising is used during the introductory stage of the PLC. Competitive advertising is used during the growth phase of the PLC as competition increases. It is used to influence demand by appealing to emotions. Comparative advertising compares competing brands. Before the 1970s, comparative advertising was allowed only if the competing brand was unidentified. Care should be used with comparative advertising approach in global markets due to government regulations and cultural/social value sensitivity. LO2 Online

REVIEW LEARNING OUTCOME LO2 The Major Types of Advertising

Advertising Appeals LO3 Profit Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism Environmental Consciousness Product saves, makes, or protects money Appeals to body-conscious or health seekers Used in selling cosmetics and perfumes Social embarrassment, old age, losing health Reason for use of celebrity spokespeople Used for fast foods and microwave foods Key to advertising vacations, beer, parks Used for expensive or conspicuous items Centers around environmental protection Notes: Common advertising appeals are listed in Exhibit 15.1. Choosing the best appeal normally requires market research. The appeal must make a positive impression on the target market, while being unique, distinguishable from the competitors’ messages, and believable. Discussion/Team Activity: Discuss advertisements that use these appeals. How effective are the advertisements? Why? LO3

Executing the Message LO3 Mood or Image Musical Demon- stration Scientific Real/ Animated Product Symbols Fantasy Lifestyle Slice-of-Life Humorous Spokes-person/ Testimonial Notes: Message execution is the way an advertisement portrays its information. The AIDA plan is a good means of executing an advertising message. An ad should immediately get attention, and hold consumers’ interest, create desire for the good, and motivate an action of purchase. Exhibit 15.2 lists and describes the ten common executional styles for advertising. Executional styles often dictate the media utilized. For example, print works well for scientific executional styles, while demonstration and musical styles are more likely found in broadcast advertising. Executional styles for foreign advertising are different from those in the United States. They often are sexually oriented or aesthetically imaginative. Post-campaign evaluation can be the most demanding task facing advertisers. LO3