1. Promotion Concepts

2. What is Promotion? Informing Reminding Persuading Target Audience
Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.
Informing
Reminding
Persuading
Target
Audience

3. The Evolution of Advertising
Fragmentation
Av HH has 150+ channels; 17,000 magazines (5,000 consumer); 400,000 highway billboards; 30,000 plastered buses
Clutter
330 ads per day (21 ads/hour)
Alienation
65% believe they are constantly bombarded with too much advertising
69% are interested in products that would help them skip or block marketing

4. The Evolution of Advertising
The death of network TV?
Where did males go? They are not coming back…
The death of the :30 TV spot?
The power of TiVo:
2005: 10 million HH PVR
2007: 20% of HH PVR
Online block out
Media Zone out
Multitasking

5. Communication Solutions
Advertising yields to communication solutions
Reaching the target audiences with relevant communications based on central brand based creative idea that is delivered through optimal mix of consumer touch points; tracking results for continuous optimization and ROI analysis
Other terms: Media neutral planning; channel neutral planning

6. Developing Effective Marketing Communications
Identify the target audience
Determine Communication objectives
Design the message
Select the communication channels
Budget
Determine the media mix
Measure the results
Manage the IMC process

7. Promotional Mix Elements of the Promotional Mix Advertising
Public Relations
Personal Selling
Sales Promotion

8. How the money gets divided…

9. Communication Objectives
Cognitive, Affective or Behavioral response
Some of these tend to be qualitative in nature -

10. Design the Message: ADIA Concept
Attention
Interest
Desire
Action

11. ADIA and the Promotional Mix
Awareness
Interest
Desire
Action
Advertising
Very
effective
Somewhat
Not
Public
Relations
Sales
Promotion
Personal
Selling

12. Designing the Message Message content Message structure Message format
Rational appeals, moral appeals, emotional appeals
Message structure
One sided vs. two sided messages
Message format
Message source
Source credibility

13. Select Communication Channels
Personal communication channels
Nonpersonal communication channels (which is what we will focus on for this class)

14. Establishing the Budget
Affordable method
Percentage of sales method
Competitive parity method
Objective and task method

15. Determining the Promotional Mix
Advertising
Sales Promotion
Public relations and publicity
Direct marketing
Personal selling

16. Factors Affecting the Promotional Mix
Nature of Product
Stage in PLC
Target Market Factors
Type of Buying Decision
Promotion Funds
Push or Pull Strategy
Factors
Affecting
Choice of
Promotional Mix

17. Product Life Cycle and the Promotional Mix Personal Selling Reminder &
Introduction
Growth
Maturity
Decline
Sales ($)
Time
Light
Advertising,
pre-
introduction
Publicity
Heavy use of
advertising,
PR for
awareness;
sales
promotion
for trial
Advertising,
PR, Brand
loyalty
Personal
Selling for
distribution
Ads decrease.
Sales Promotion,
Personal Selling Reminder &
Persuasive
AD/PR
decrease
Limited
Sales
Promotion,
Personal
Selling for
distribution

18. Push and Pull Strategies
Manufacturer
promotes to
wholesaler
Wholesaler
retailer
Retailer
consumer
Consumer
buys from
PUSH STRATEGY
Orders to manufacturer
Manufacturer
promotes to
consumer
Consumer
demands
product
from retailer
Retailer
from wholesaler
Wholesaler
product from
manufacturer
Orders to manufacturer
PULL STRATEGY

19. Measuring the Results Recognize Recall Behavioral responses
Sales & market share
Word of mouth