11-F10--Promotion.ppt

8/20/2019 11-F10--Promotion.ppt

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BUAD 307 PROMOTION Lars Perner, Instructor 1

Promotion Integrated Marketing CommunicationElements of promotion ● Advertising Strategies ●

Other Methods of Promotion


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Learning Objectives

• Understanding theobstacles that advertising

messages face

• Understanding thechoices facing marketing

managers regarding

– Promotional objectives

– Promotional message

– Media choice

– Advertising and promotion

spending


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Elements of the Promotion Mix

• Advertising

• Sales Promotion– Sales

– Coupons

– Rebates

– Premiums

• Personal selling• Public relations

• Direct mareting


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Promotion b! Decision Stage

• Pre"purchase– #nfluence

decision$

preference

– Samples to

induce trial

• Purchase– Sales promotion

– Point"of"purchase

%P&P' displa!s

• Post"purchase– #ncrease

repurchase

propensit!


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Developing the Advertising Program

IDENTIFYING THEIDENTIFYING THE

TARGET AUDIENCETARGET AUDIENCE

SPECIFYINGSPECIFYINGADVERTISINGADVERTISING

OBJECTIVESOBJECTIVES

DESIGNING THEDESIGNING THE

ADVERTISEMENT(S)ADVERTISEMENT(S)

SETTING THESETTING THE

ADVERTISINGADVERTISING

BUDGETBUDGET


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Some Media Alternatives

• (elevision

– Conventional advertisements

– #nfomercials

– Sponsorship programming– )Placements*

• #n programming

• )Superimposed*

• Radio

• Maga+ines

• ,e-spapers

• &utdoor

• #nternet

• Point"of"purchase

• &ther

– Movie theaters

– &n other products


7/19BUAD 307 PROMOTION Lars Perner, Instructor 7

Reaching the !stomer" #ncoding$

%&oise$' and %(ecoding'

ENCODINGENCODING

THETHE

MESSAGEMESSAGE

MESSAGEMESSAGE

CHANNELCHANNEL

DECODINGDECODING

THETHE

MESSAGEMESSAGERECEIVERRECEIVER

CHANNELCHANNEL

FEEDBACKFEEDBACK

NOISENOISE

S#&(#RS#&(#R

Text, p. !!))

Mktg mgr Mktg mgr

Advertising mgr Advertising mgr

Advertising Advertising

agenc*agenc*

Advertisement Advertisement

o!pono!pon

Sales presentationSales presentation

Press releasePress release

Store displa*Store displa*

Media$ SalespersonMedia$ Salesperson

Retail storeRetail store&e+s program&e+s program

Receiver Receiver

interpretation ofinterpretation of

the messagethe message

!stomers!stomers

Media a!dienceMedia a!dience

&e+s media&e+s media

lientslients

Other adsOther ads

&e+s articles&e+s articles

Other store displa*sOther store displa*s



Some Promotional Objectives

• ,rand a+areness – -no+ledge of prod!ct categor*

• #.istence

• ,enefits

• /!nctions

• 0echnolog*

– -no+ledge of brand differences

• ,rand attit!de – /avorable beliefs abo!t the

brand

• Overall

• Relative to competitors

• Prod!ct categor* or

brand trial

• ,rand preference – 1illingness to pa* a premi!m

for the brand

– Resistance to competitor

promotions 2e)g)$ sales$

co!pons3

– 1illingness to b!* !nder less

convenient circ!mstances

• 4ncrease in prod!ct

categor* or brand !sage –

5!antit* !sed – /re6!enc* !sed

– Scope of !ses

• 4ncrease in short term

sales



Promotional Objectives Across the

Prod!ct Life *cle 2PL3

• 4ntrod!ction – Advertising and

p!blic relations

awareness

– Sales promotion

trial

– Personal selling distribution

• 7ro+th – Advertising and PR

brand loyalty

– Less emphasis on

sales promotion

• Mat!rit* – Advertising

persuasion,

reminder

– Sales promotion

market share

• (ecline – Red!ction in

advertising and

PR

– More emphasis

on sales

promotions

temporar* sales

0e.t$ p) 89:0e.t$ p) 89:



4ncrease in Prod!ct ategor* or ,rand Usage

;Prod!ct ategor* Potential #.amples

• Scope of !ses – Orange j!ice" %4t isn



omm!nications Objectives

• 4nforming – A+areness

– 4nterest

– ,enefits – Other information

• Pers!ading – Preference based on

competitive

advantages

– ,rand s+itching or

prevention of brand

s+itching

• Reminding

– 0rigger memories

– Maintain preference

and b!*ing habits



Some Advertising Strategies

• omparative ads – 4llegal in most co!ntries

– 7enerall* ver* disliked b*

U)S) cons!mers b!t still

relativel* effective

• C!mor appeal – A +a* to get attention to the

advertisement;b!t the

cons!mer ma* remember

the h!mor and not +hat the

prod!ct feat!red +as

• Adding beliefs

• lassical conditioning

2association3

• /ear appeal – 0o be effective"

• /eared stim!l!s m!st be

of medi!m intensit*;

eno!gh to motivate

action b!t not so intensethat the individ!al %t!nes

o!t' the ad

• A clear sol!tion m!st be

offered;e)g)$ !se

Listerine> to avoidtooth loss d!e to

gingivitis

• Repetition

• elebrit* endorsements



(he Elaboration .ielihood Model and .iel!

Effectiveness of Celebrit! Endorsements

ProductProduct

important orimportant or

expensive/expensive/

elebrit*elebrit*

endorsementsendorsements

more likel* to bemore likel* to be

effectiveeffective

,o,o

#s endorser#s endorser

congruent -ithcongruent -ith

productproduct

endorsed/endorsed/

0nliel! to be0nliel! to be

effectiveeffective

More liel!More liel!

to beto be

effectiveeffective

,o,o 1es1es

1es1es

.o-.o-

elaborationelaboration

2igh2ighelaborationelaboration



Executing (he Advertising Program

• Pre"testing

– Several )stor! boards* or actual ads are created

– Ads are tested on consumers• #nstant response technologies %consumers either rate

approval or have ph!siological measures taen throughout

an ad duration

– (he best performing ad or ads are chosen sub3ectto constraints imposed %e4g4$ need to specif! a

certain message or use certain t!pes of models'

• Possible redesign

• Carr!ing out advertisement

– 5ull service agencies– .imited service agencies

– #n"house



Advertising #ntensit! and Return ""A

(!pical Relationship

)8

)@

)D

)E

9

R e s p o n s e 2 e ) g ) $ s a l e s

$ r e c a l l 3

F 9 9F 8 8F Amo!nt of Advertising Spending

T"e #S$%S"&pe' C*e

S&t&t+-

P+-t R e

. & t + * e . /

h i g h

e f f e

c t i v

e n e s s

T +tte t '

01" 2'



Sample Exam 6uestion



Measuring Advertising Effect

• Several possible criteria7– Scanner data

• #ndividual (8 exposure can be

matched against actual purchases

• Available onl! for grocer! products

– Increase in sales %but it ma! beimpossible to separate effects of

different simultaneous ads'

– Lab studies• Recall

• Attitude to-ard product

• Preference



Gapanese Advertising;Use of animation

and cartoon characters


19/19BUAD 307 PROMOTION L P I t t 19

,reaking 0hro!gh the l!tter

11-F10--Promotion.ppt

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