Promotion
The Promotional Mix
Sales
Promotion
Public
Relations
Advertising
Direct
Marketing
Copyright 2007, Prentice-Hall Inc.
Personal
Selling
12-2
Changing Promotional Landscape
• Mass market fragmentation
– Shift away from mass marketing
– More narrowcasting, less broadcasting
• Improvements in information and communication
technology
– The rise of segmented promotion
• Increased Measurement of Promotional
Effectiveness & Accountability
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Integrated Marketing Communications
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Advertising
• Reaches large masses of
geographically dispersed
buyers – “mass media”
• Best for achieving repetition
of message
• Is impersonal, one-way
communication.
• Can be very costly (i.e.
Superbowl or Prime Time tv
commercials)
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Personal Selling
• Personal
interaction between
two or more people.
• Relationship
building
• Most effective way
for preferences,
convictions, and actions to be influenced.
• Most expensive promotion tool; requires long-term
commitment.
• Most commonly used in B-2-B settings.
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Sales Promotion
• Offers strong
incentives to buy now.
• Usually very good at
attracting consumer
attention.
• Dangers of SP
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Effects are often short-lived
Forward Buying
“Couponing” the brand
Production Inefficiencies
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Public Relations
• Highly credible source of information
(journalists)
• Reaches people who typically avoid
or ignore advertising
• Is cheaper than other forms of
promotion, but never “free”
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Direct Marketing
• Characteristics
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Micromarketing
Customized
Immediate Responses
Driven by Lists
• Biggest promotional
expenditure in U.S.
Direct mail is the most
popular form of direct
marketing.
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Push Vs. Pull Promotion Strategy
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Major Decisions in Advertising
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Setting Advertising Objectives
• Advertising Objective:
– Specific communication task to be accomplished with
a specific target audience during a specific period of
time.
– Example: Make 20% of U.S. males ages 20-50
aware of our new razor blade within 6 months.
• Classified by Purpose:
– Inform
– Persuade
– Remind
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Fulfilling Objectives
INFORM, PERSUADE OR REMIND?
Which function(s) do each of the ads perform?
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Question du Jour
Are there times when ads should do
something other than trying to sell
product or building brand image?
Setting the Advertising Budget
• Affordable method
• Percentage-of-sales
method
 Competitive-parity
method
 Objective-and-task
method
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Developing Advertising Strategy
– Message Strategy (or “Message”)
– Execution
– “Breaking through the clutter”
– Select advertising media
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•
•
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Set reach, frequency, and impact goals.
Choose among major media types.
Select specific media vehicles.
Decide on media timing.
Copyright 2007, Prentice-Hall Inc.
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The Message Strategy
• Develop compelling creative concept —
the “Big Idea”.
– Examples:
•
•
•
•
“Tastes Great, Less Filling.”
“15 Minutes Could Save You 15%...”
“Think Outside the Bun.”
Only Vegas (“What happens in Vegas....)”
• Messages should be meaningful,
believable, distinctive and memorable.
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Message Execution
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•
•
•
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Slice of Life
Slice of Death
Lifestyle
Fantasy
Mood Appeal (Humor,
Sadness, Fear)
• Personality Symbol
• Mascot
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• Celebrities
• Scientific Evidence
• Testimonial or
Endorsement
• Straight Sell
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Celebrity Endorsements
Celebrity endorsements have been at the heart of the
“Got Milk?” milk mustache campaign for years.
Copyright 2007, Prentice-Hall Inc.
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Question du Jour
Why are teens less enamored with
celebrities nowadays?
Humorous Advertising Appeals
Humorous advertising tones are being used in the
marketing of many products, including “boring” products
like dictionaries.
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Message Execution
• Choose a proper tone.
– Consistent with brand and
company image
– Consistent with selling
proposition
• Use memorable,
attention-getting words.
• Lay out the ad
– Visuals
– Headline
– Copy
Copyright 2007, Prentice-Hall Inc.
Absolut print ads attract
attention through a compelling
visual layout and headline.
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Setting Media Objectives
• Reach
– Percentage of people exposed to ad.
• Frequency
– Number of times a person is repeatedly exposed to
an advertisement.
• Media Impact
– How much of an impression an ad’s message
strategy and execution makes on the target audience.
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Choosing Media Types & Vehicles
•
Media Type
– TV, Print, Internet, Outdoor, etc.
– Considerations
• Impact and effectiveness
• Cost
• Reach and frequency potential
•
Media Vehicles
– Specific media within
each general media type
– Examples
• Network TV, HGTV, Food Network
• Time Magazine, Sports Illustrated
• San Francisco Chronicle
– Considerations
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•
•
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Cost
Audience quality (demographic & psychographic)
Editorial quality
Fit with brand image
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Alternative Media
Other examples?
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Media Timing
• Scheduling advertising for the year
• Possible ad patterns
– Continuous
– Pulsing
– Flighting
– Blasting
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Evaluating Advertising
• Advertising accountability and measurement are
more important than ever before.
• Evaluation methods
– Pre-testing and Post-testing
• Copy Testing
• Day After Recall
– Sales Measures vs. Surrogate Measures
– Ad/Marketing ROI
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Global Advertising Considerations
• Standardization vs. adaptation
• Language and cultural norms are not “universal” – avoid
cultural missteps
• Costs and media availability vary by country
• Advertising regulations vary by country
An example of
standardized advertising
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Sales Promotion
Short-term incentives to encourage
sales of a product.
The main purpose is to generate
immediate sales.
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Pull-Oriented Sales Promotions – FSI Example
Ad Copy & Sales Promotion Call to Action (coupon)
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Rapid Growth of Sales Promotion
• Why?
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More pressure to increase current vs. future sales
Companies face more competition
Advertising efficiency has declined
Much easier to measure effectiveness
Consumers have become more deal-oriented and
less brand-loyal
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Consumer Sales Promotion Tools
• Coupons: money off the
purchase price when
redeemed.
• Rebates: refund part of
the purchase price after
the item has been
bought.
• Price Packs: offer
savings off the regular
price of the product;
marked on the package.
Copyright 2007, Prentice-Hall Inc.
• Samples: offer a trial
amount of the product.
• Premiums: goods
offered for free or at a low
price as an incentive to
buy.
• Giveaways: useful
items imprinted with
company/brand name or
logo given as gifts to
consumers.
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More(!) Consumer Sales Promotion Tools
• Loyalty Programs /
Patronage Rewards: cash
or other awards offered for
regular use of a brand.
• Contests, Sweepstakes &
Games: can breathe new life
and excitement into “stale”
products.
• POP Displays: in-store
signs and displays that
persuade consumers to buy.
• Demonstrations: food or
product in-store sampling.
Copyright 2007, Prentice-Hall Inc.
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Point of Purchase Displays
Point-of-purchase
displays draw
attention to the brand
and stimulate impulse
buys.
Why do many retailers
resist using POP
displays?
Copyright 2007, Prentice-Hall Inc.
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Trade Promotion
• Objectives:
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Persuade resellers to carry a brand.
Give a brand “preferable” shelf space.
Promote brand in-store and out-of-store.
“Pushes” brand to customers
• Tools:
– Discounts, allowances, free goods, push money,
specialty advertising items.
What is the common problem associated with trade promotion?
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Public Relations
• PR Activities
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Building and maintaining good relations with various publics
Generating favorable publicity
Building and maintaining a favorable corporate image
Handling or heading off unfavorable rumors, stories and events
Crisis Management
• Most PR is practiced reactively instead of proactively
• PR Functions:
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Press relations
Public affairs
Lobbying
Investor relations
Copyright 2007, Prentice-Hall Inc.
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Public Relations
Scholastic sponsored low-cost sleepovers, games, and
costume contests to promote the release of the sixth
Harry Potter book.
Copyright 2007, Prentice-Hall Inc.
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