2.1
PROMOTION PROMOTION andand
IMC PLANNINGIMC PLANNING
andandSTRATEGYSTRATEGY
3.13.1
The Promotion Plan The Promotion Plan
A PROMOTION PLAN IS:A PROMOTION PLAN IS: Direct Extension of Firm’s Marketing PlanDirect Extension of Firm’s Marketing Plan A Specification of the Analysis, Strategy, and Tasks of the Promotional EffortA Specification of the Analysis, Strategy, and Tasks of the Promotional Effort Needed to Conceive and Implement an Effective Promotional EffortNeeded to Conceive and Implement an Effective Promotional Effort
SIX MAJOR ELEMENTS OF A PROMOTIONAL PLAN ARE:SIX MAJOR ELEMENTS OF A PROMOTIONAL PLAN ARE: Executive Summary and OverviewExecutive Summary and Overview Situation AnalysisSituation Analysis ObjectivesObjectives BudgetingBudgeting StrategyStrategy Evaluation Evaluation
3.23.2
IntroductionIntroduction
Situation AnalysisSituation Analysis
ObjectivesObjectives
BudgetingBudgeting
StrategyStrategy
ExecutionExecution
EvaluationEvaluation
Stages in theStages in thePromotional Promotional PlanPlan
3.33.3
The Promotion Plan (con’t)The Promotion Plan (con’t)EXECUTIVE SUMMARY & OVERVIEWEXECUTIVE SUMMARY & OVERVIEW Executive Summary-States Most Important Aspects of the PlanExecutive Summary-States Most Important Aspects of the Plan Overview-What is to be Covered in the Plan in General TermsOverview-What is to be Covered in the Plan in General TermsSITUATION ANAYLSISSITUATION ANAYLSIS Marketers and Agencies Lay Out Most Important Factors Defining the Situations Facing the Firm, and Include:Marketers and Agencies Lay Out Most Important Factors Defining the Situations Facing the Firm, and Include:
Demographic TrendsDemographic Trends Historical ContextHistorical Context Industry AnalysisIndustry Analysis Market CharacteristicsMarket Characteristics
Type of ConsumerType of Consumer Geographic ConsiderationsGeographic Considerations CompetitionCompetition
3.43.4
3.43.4
The Promotion Plan (con’t)The Promotion Plan (con’t)
SITUATION ANAYLSIS (con’t)SITUATION ANAYLSIS (con’t) Product CharacteristicsProduct Characteristics
CategoryCategory Convenience GoodsConvenience Goods Shopping GoodsShopping Goods Specialty GoodsSpecialty Goods
Stages in Product Life CycleStages in Product Life Cycle Characteristics of the FirmCharacteristics of the Firm
Push vs. Pull StrategyPush vs. Pull Strategy Funds AvailableFunds Available Size of Sales StaffSize of Sales Staff Extent of Firm’s Product LineExtent of Firm’s Product Line
3.53.5
3.3.55
The Promotion Plan (con’t)The Promotion Plan (con’t)
SITUATION ANALYSIS (con’t)SITUATION ANALYSIS (con’t) Characteristics of the DistributionCharacteristics of the Distribution
Intensity of DistributionIntensity of Distribution Intensive DistributionIntensive Distribution Selective DistributionSelective Distribution ExclusiveExclusive
Length of Trade ChannelLength of Trade Channel Types of Trade PartnersTypes of Trade Partners
3.3.66
A Situation Analysis Needs toA Situation Analysis Needs toConsider the Type of TradeConsider the Type of TradePartners that Will be PromotingPartners that Will be PromotingThe Marketer’s BrandThe Marketer’s Brand
3.7
OBJECTIVESOBJECTIVES Lays the Framework for Executions in Promotional Campaign and Lays the Framework for Executions in Promotional Campaign and
Identifies Goals of a Marketer in Concrete, Measurable TermsIdentifies Goals of a Marketer in Concrete, Measurable Terms Create & Maintain Image for BrandCreate & Maintain Image for Brand Increase Customer Awareness & Curiosity about a BrandIncrease Customer Awareness & Curiosity about a Brand Change Consumers’ Beliefs & Attitudes about a BrandChange Consumers’ Beliefs & Attitudes about a Brand
Belief – Knowledge & Feelings Accumulated about a BrandBelief – Knowledge & Feelings Accumulated about a Brand Attitude is Overall Evaluation of Brand Based on Attitude is Overall Evaluation of Brand Based on
Knowledge/EmotionsKnowledge/Emotions Influence Purchase IntentionsInfluence Purchase Intentions Stimulate Trial UseStimulate Trial Use Convert One-Time Users to Repeat CustomersConvert One-Time Users to Repeat Customers Switch Consumers from Competing BrandsSwitch Consumers from Competing Brands Encourage Brand LoyaltyEncourage Brand Loyalty Stimulate More Frequent UseStimulate More Frequent Use Increase SalesIncrease Sales
3.3.88
The Promotion Plan (con’t)The Promotion Plan (con’t)
Creating Awareness and Curiosity is aCreating Awareness and Curiosity is a Common Promotional ObjectiveCommon Promotional Objective
OBJECTIVES – KEY TERMINOLOGYOBJECTIVES – KEY TERMINOLOGY Brand ImageBrand Image Brand AwarenessBrand Awareness Top-of-the-Mind AwarenessTop-of-the-Mind Awareness BeliefsBeliefs AttitudeAttitude Purchase IntentPurchase Intent Trial UsageTrial Usage Repeat PurchaseRepeat Purchase Brand SwitchingBrand Switching Brand LoyaltyBrand Loyalty Increasing the Frequency of Use Increasing the Frequency of Use
3.3.1010
The Promotion Plan (con’t)The Promotion Plan (con’t)
COMMUNICATIONS vs. SALES OBJECTIVESCOMMUNICATIONS vs. SALES OBJECTIVES Increase Awareness of Brand Name to 40% of All Consumers in Increase Awareness of Brand Name to 40% of All Consumers in
Western USWestern US Create Trial Use by 15% of all Teenagers 13-15Create Trial Use by 15% of all Teenagers 13-15 Communicate Superior Brand Performance Features to Target Audience with Communicate Superior Brand Performance Features to Target Audience with
Series of Advertisements over Next Six MonthsSeries of Advertisements over Next Six Months
CHARACTERISITICS OF WORKABLE PROMOTIONAL CHARACTERISITICS OF WORKABLE PROMOTIONAL OBJECTIVESOBJECTIVES
Establish Quantitative BenchmarkEstablish Quantitative Benchmark Specify Measurement MethodsSpecify Measurement Methods & Criteria or Success & Criteria or Success Specify a Time FrameSpecify a Time Frame
3.3.1111
The Promotion Plan (con’t)The Promotion Plan (con’t)
The Promotion Plan (con’t)The Promotion Plan (con’t)
BUDGETING - METHODSBUDGETING - METHODS Percentage-of-Sales ApproachPercentage-of-Sales Approach Unit-of-Sales ApproachUnit-of-Sales Approach Share of Market/Share of VoiceShare of Market/Share of Voice Funds AvailableFunds Available Objective & TaskObjective & Task
3.3.1212
3.3.1313
The Promotion Plan (con’t)The Promotion Plan (con’t)
BUDGETING FOR ADVERTISINGBUDGETING FOR ADVERTISING Marketing ResearchMarketing Research Message ResearchMessage Research Production Costs: Production Companies, Talent, Production Costs: Production Companies, Talent,
Site CostsSite Costs Media CostsMedia Costs Agency Commissions/FeesAgency Commissions/Fees Account Personnel Travel ExpensesAccount Personnel Travel Expenses
BUDGETING FOR SALES PROMOTIONBUDGETING FOR SALES PROMOTION Coupon Value and Dealer Handling ChargesCoupon Value and Dealer Handling Charges Contest and Sweepstakes Material and ChargesContest and Sweepstakes Material and Charges Brochures and Collateral MaterialBrochures and Collateral Material Trade Shows & ExhibitsTrade Shows & Exhibits Trade Channel Partner Meeting & EntertainmentTrade Channel Partner Meeting & Entertainment PremiumsPremiums Point-of-Purchase MaterialsPoint-of-Purchase Materials Trade AllowancesTrade Allowances Trade IncentivesTrade Incentives Trade Training ProgramsTrade Training Programs Refunds/RebatesRefunds/Rebates
3.3.1414
The Promotion Plan (con’t)The Promotion Plan (con’t)
Premiums—Like This One Premiums—Like This One Offered by Jell-O—Must be Offered by Jell-O—Must be Factored into Budget PlanningFactored into Budget Planningfor Promotionfor Promotion
3.15
The Promotion Plan (con’t)The Promotion Plan (con’t)
BUDGETING FOR DIRECT MARKETINGBUDGETING FOR DIRECT MARKETING
Uses a Simple Cost-Based MethodUses a Simple Cost-Based Method Exact Bids Obtained - Printing, Sorting, Bundling & Exact Bids Obtained - Printing, Sorting, Bundling &
Mailing for Print Campaigns Mailing for Print Campaigns Bids Obtained for Telemarketing, Infomercial or Catalog Bids Obtained for Telemarketing, Infomercial or Catalog
Selling from External FacilitatorsSelling from External Facilitators
3.3.1616
Budgeting for Direct MarketingBudgeting for Direct MarketingNeeds to Consider the Cost of Needs to Consider the Cost of Printing and Mailing MaterialsPrinting and Mailing Materials
3.17
The Promotion Plan (con’t)The Promotion Plan (con’t)
BUDGETING FOR WEBSITES & BANNER ADSBUDGETING FOR WEBSITES & BANNER ADS Costs for Web Sites - $30K to $100KCosts for Web Sites - $30K to $100K Costs for Banner Ads - $10 CPM to $30 CPMCosts for Banner Ads - $10 CPM to $30 CPM
3.183.18
The Promotion Plan (con’t)The Promotion Plan (con’t)
BUDGETING FOR PUBLIC RELATIONSBUDGETING FOR PUBLIC RELATIONS
Most Difficult of All Budgets to Set - Most Most Difficult of All Budgets to Set - Most Expensive Public Relation Occurs During CrisesExpensive Public Relation Occurs During Crises
Most PR Firms Work on Retainers - Set on an Most PR Firms Work on Retainers - Set on an Annual BasisAnnual Basis
3.193.19
The Promotion Plan (con’t)The Promotion Plan (con’t)
BUDGETING FOR PERSONAL SELLINGBUDGETING FOR PERSONAL SELLING Recruiting CostsRecruiting Costs Training CostsTraining Costs Travel ExpensesTravel Expenses Promotional Material - Samples, Catalogs, Product Promotional Material - Samples, Catalogs, Product Brochures Brochures Salaries & BenefitsSalaries & Benefits Incentive Programs - Bonuses & RewardsIncentive Programs - Bonuses & Rewards
3.203.20
The Promotion Plan (con’t)The Promotion Plan (con’t)
STRATEGYSTRATEGY Mechanism by which Something is DoneMechanism by which Something is Done Account Planner Assists in StrategyAccount Planner Assists in Strategy
Works in Advertising Agency & Synthesizes Works in Advertising Agency & Synthesizes all Relevant Audience Research to Formulate all Relevant Audience Research to Formulate Promotional StrategyPromotional Strategy
3.213.21
The Promotional Plan (con’t)The Promotional Plan (con’t)
EVALUATIONEVALUATION
Marketer Determines How Promotional Program Marketer Determines How Promotional Program has Performed - Factor by Factorhas Performed - Factor by Factor
Main Basis for Evaluation - Communications and Main Basis for Evaluation - Communications and Sales Objectives Set for the ProgramSales Objectives Set for the Program
Measuring the Effectiveness of Promotion & IMCMeasuring the Effectiveness of Promotion & IMC3.223.22
Evaluation of the IMC Program Will Include the Effect Evaluation of the IMC Program Will Include the Effect on Sales of Various Promotional Toolson Sales of Various Promotional Tools
IMC Management & PlanningIMC Management & Planning
STRATEGIC PLANNING OF IMC IS DIFFERENT FROM TRADITIONAL USE STRATEGIC PLANNING OF IMC IS DIFFERENT FROM TRADITIONAL USE OF MULTIPLE PROMOTIONAL TOOLSOF MULTIPLE PROMOTIONAL TOOLS IMC Management Planning Requires Comprehensive IMC Management Planning Requires Comprehensive & Detailed Knowledge & Detailed Knowledge
CustomersCustomers ProspectsProspects
Knowledge about Customer & ProspectsKnowledge about Customer & Prospects IMC Management Plan - Built Around Brand CommunicationsIMC Management Plan - Built Around Brand Communications Control of IMC Management & Planning - CentralizedControl of IMC Management & Planning - Centralized
Firms Appointing IMC or Marcom ManagersFirms Appointing IMC or Marcom Managers3.243.24
IMC Management & Planning (con’t)IMC Management & Planning (con’t)
MODEL OF IMC MANAGEMENT & PLANNINGMODEL OF IMC MANAGEMENT & PLANNING IMC Model Considers Complete ProcessIMC Model Considers Complete Process
Uses Promotion to Communicate to Target MarketsUses Promotion to Communicate to Target Markets Effectively Deploys Promotional ToolsEffectively Deploys Promotional Tools Corporate & Marketing Plans - Understood and Adopted as Corporate & Marketing Plans - Understood and Adopted as
Part of IMC PlanPart of IMC Plan Databases - Help Identify & Profile Target MarketsDatabases - Help Identify & Profile Target Markets Promotional Objective - Dictate Mix of Promotional Tools Promotional Objective - Dictate Mix of Promotional Tools
to Pursue for each Targetto Pursue for each Target
3.253.25