PROMOTION

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					PROMOTION

David Forlani University of Colorado at Denver and Health Sciences Center

Overview
• Promotion Defined • Promotional Strategy & Goals • Developing and Implementing a Promotional Plan

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What is Promotion
• Promotion involves both education and persuasion. That is, informing potential customers about your offerings and convincing them to think and/or act favorably toward these offerings. • For new offerings, the focus is be on education, and for mature offerings, persuasion.

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Promotion Strategies

• Push: Incentives are placed in the channel. This has the effect of ―pushing‖ the product from the provider to the end user. Channel intermediaries shoulder most of the promotional effort. • Pull: Incentives are directed toward the end user. This has the effect of ―pulling‖ the product through the channel and requires that the provider shoulder the majority of the promotional effort.

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Goal of Promotion
• In general, to motivate purchase. • Promotional activities should shift and/or twist the demand curve for an offering. • This is reflected in a market either demanding more of the good at a given price or being willing to pay more for a given quantity. • Is not met if there is only movement down the demand curve.

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Promotional Plan
• Specifies how each element of the Promotion Mix (Advertising, Personal Selling, Sales Promotion and Public Relations) will be used to achieve certain promotional objectives within a targeted market.

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Creating a Promotional Plan
Define the audience to be targeted (1) Set the promotional objectives (2)
Design the promotional mix

(3)
Set the promotion budget

(4) Evaluate the results (5)
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Define the Audience
• The audience should match the target market as closely as possible. • It will to the extent that the characteristics of the target market (accessibility segmentation criteria) can be used in selecting communication vehicles.

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Set the Promotional Objectives

• Being S.M.A.R.T. means setting goals that are: • Specific: identify the change we want to effect in the customer group of interest. • Measurable: assess the degree of change. • Attainable: ensure that the objective is doable. • Relevant: ensure that the objective is consistent with other firm initiatives. • To be completed in a given Time Frame

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Sample Promotional Objectives
• Increase brand awareness or recall • Create or Change an Attitude / Image • Highlight the salience of an Attribute or improve its evaluation • Gain trial, Close a sale, Increase the repeat purchase rate • Build confidence or trust • Establish expectations

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Promotion Mix
• Set of tools used to communicate the promotional message. • Advertising: Paid, non-personal delivery • Personal Selling: Paid, personal delivery • Sales Promotion: Short term value-enhancing incentives • Public Relations: Non-paid, non-personal delivery

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Strategic Considerations

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Linking Mix Elements to Objectives
• Determine which element (s) of the promotion mix should be used to fulfill each SMART objective. • Map the objectives to the mix element. • Estimate the ―amount‖ of each element needed to meet its mapped objective. • This process results in a promotion mix and provides a foundation for estimating the budget.

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Set the Promotional Budget
• This a philosophical question. • If you believe that Sales  Promotion, then a percent of sales method for setting the budget is fine. • If on the other hand, you believe that Promotion  Sales, then the promotional budget should be set relative to the objectives it needs to meet. • The process is likely iterative.

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Implement the Plan and Evaluate the Results
• Follow up is valuable both in assessing the effectiveness of what was done and in planning for future promotional efforts.

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Designing the Message
• The promotional objectives are met through the message. • It is what is communicated to the target audience through the elements of the promotion mix. • Consideration of how communication occurs can help to inform the design process.

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Basic Communication Model

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The Copy Platform
• Structures the Promotional Campaign’s Message and is Associated with Advertising. It incorporates:
– – – – – Basic issue or problem advertising must address Advertising objectives Target audience The BIG IDEA—or key benefits, selling proposition Creative strategy statement (campaign theme, appeal, and execution technique) – Supportive information (justification)

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The BIG IDEA
• Is how the Advertising meets its promotional objectives given its audience and constraints. • Translates the ads purpose into its Creative Strategy (how it will do what it is supposed to).
– The Creative Strategy is built around a theme that contains an appeal. – The theme is the ad’s context, or setting. – The appeal taps into the audiences’ motives to initiate and guide behavior / learning.
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Motives / Appeals
• All ads have appeals. Appeals tap motives which initiate responses (e.g., recall to purchase). • Typical Motives: achievement, expertise, fear, functionality, health, humor, mystery, performance, pride, safety/security, self fulfillment/expression, sex, spiritual comfort (peace, tranquility).

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Illustrating the Copy Platform

1 of 2

• Lysol is introducing a new bathroom cleaner that kills germs but is non-toxic. • What could we say about the product? (BIG IDEA) • If the target market is women with young children, how would we say it? (Creative Strategy—theme and appeal)

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Illustrating the Copy Platform

2 of 2

• To meet the objective of 30% awareness in the target market in 6 months, advertising has been selected as the promotional mix element. • What Medium and Vehicle could be used to reach the stay at home moms in the target? (Communication Model)

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posted:11/8/2009
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