ZUST-Marketing-Lecture-8_Promotional strategy

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					Promotional strategy
       Module 8
             Session overview
n   The role of promotion in the marketing mix
n   Elements in the promotional mix
n   Integrated marketing communications
n   Factors influencing the promotional mix
Role of promotion in the marketing
               mix
n   Promotion is the communication by marketers
    that informs, persuades, and reminds potential
    buyers of a product in order to influence their
    opinion (toward the product) or elicit a
    (favourable) response
n   Focus on differential advantages
    • unique selling proposition (USP)
    • reason to buy our brand (selective demand)
Five elements of the promotion mix
Direct marketing     Advertising    Sales promotion




       Five major elements of promotion mix




Personal selling                    Public relations
                Personal selling
n   Oral presentation
    • personal - face-to-face or over the phone
n   Aim
    • gain rapport
    • overcome objections
    • close the sale
                     Advertising
n   Impersonal, one-way mass communication
    • wide reach, low CPM (cost per thousand reached)
n   Paid by an identified sponsor or company
n   Aim
    • build brand image
    • longer-term strategy
n   Examples:
    • broadcast media (TV, radio)
    • print media (newspapers, magazines, brochures)
    • yellow pages, cinema and outdoor
                    Sales promotion
n   Short-term incentive
n   Aim
    • stimulate sale or trial
         n   shorter-term strategy - buy now!
n   Examples:
    •   competitions
    •   2 for 1 deals
    •   price specials
    •   premiums
                   Public relations
n   ‘function that evaluates public attitudes, identifies
    areas that the public may be interested in, and
    executes a program of action to earn public
    understanding and acceptance’ (Summers et al. 2006,
    p. 312)
n   Aim
    • monitor attitudes and build good relations
    • build corporate image
    • good corporate citizen
n   Examples:
    • sponsorship
       n   McDonalds, BlueScope
    • publicity, press releases
              Direct marketing
n   Direct marketing
    • gain an immediate response
    • selective and personalised
    • direct mail, telemarketing, SMS, direct selling,
      home-shopping etc.
    Factors affecting the promotional
                   mix
n   Nature of the product
    • consumer versus business products
    • cost and risks associated with using the product
n   Stage in product life cycle
    • exhibit 9.7, p.324
n   Target market characteristics
    •   how informed/knowledgeable?
    •   how brand loyal?
    •   what are their media habits?
    •   how can we reach them?
    Factors affecting the promotional
               mix cont….
n   Type of buying decision
    • complex versus routine
       n   high versus low involvement
n   Promotional budget
    • cost of media
    • absolute versus relative costs (CPM)
n   Push v pull strategies
    • exhibit 9.8, p.327
                 Integrated marketing
                   communications
n   ‘Method of carefully coordinating all promotional activities to
    produce a consistent, unified message that is customer
    focused’
n   Consistency
    • consistent theme, message, jingle, colour scheme etc.
    • examples
        n   Commonwealth Bank ‘which bank’
        n   Toyota ‘Oh what a feeling’
n   Synergy
    • all elements of the IMC mix work together to deliver a more powerful
      message than the sum of the individual elements.
    • each element has its role, its advantages and disadvantages
The communication process
                    Sender



    Feedback       Encoding




                   Message

                Message channel




   Response        Decoding




                    Receiver
     Elements in the communication
                 process
n   Sender (source)
    • company, spokesperson
n   Encoding the message
    • putting ideas into symbols
n   Message
    • set of symbols that are transmitted
n   Message channel (media)
    • channel of communication
    Communication process cont.
n   Decoding the message
    • receiver interprets symbols
       n   assigns meaning to the message
n   Receiver
    • response - reaction/action
    • feedback - communicated back to sender
n   Noise
    • communication barrier or distortion
    • occurs at all stages
             Promotional goals

n   Inform
n   Persuade
n   Remind
n   Refer to exhibit 9.5, p. 319
Example : Inform
Example: Persuade
Example: Remind
             Session overview

n   AIDA model
n   Message issues
n   Message appeals
            AIDA Model

Attention


             Interest


                        Desire


                                 Action
                 Message issues
n   What will we say?
    • key benefits
       n functional
       n psychological

    • important attributes
n   What is our usp (unique selling proposition)?
n   What response are we seeking?
n   Do we want to support our current positioning
    strategy or reposition?
     Message appeals


Rational                 Emotional
Appeals                   Appeals
           Three types
                of
             appeals




             Moral
             Appeals
Rational appeal
Emotional appeals
Moral appeals

				
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posted:10/14/2013
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