Promotions Dr. Mary Wolfinbarger Marketing 300 Promotion Marketing activities used to communicate positive, persuasive info about an org’n, its prods and its activities to a target audience Purpose: to directly or indirectly create sales, influence consumers. To whom does promotion communicate? Consumers/potential consumers Interest groups/regulatory agencies Current/potential investors Society in general Company employees Integrated Marketing Communications A planning concept recognizing the added value in integrating promo mix elements Purpose: to provide clarity, consistency and maximum communications impact. Explosion of communication choices made this more necessary Technology made it more possible Van’s What is Van’s positioning strategy? What are their competitive advantages? How do they communicate those competitive advantages to their consumers? What does Steve Van Doren mean when he says he sees events as “planting seeds?” What are “grass roots” events? How does Van’s market to different target markets? Promotion Mix Advertising Personal Selling Sales Promotion Public Relations Advertising A paid form of nonpersonal communication about an orgn and/or its products to a target audience through a mass medium. Media TV Newspapers Radio Magazines Internet Billboards Etc…. Advantages Can reach large mass audiences/ small niches Usually cost efficient per person reached Repetition of messages Disadvantages Absolute dollar outlay may be high Response to ads (except retail ads) are slow Advertising less persuasive than personal selling Direct Marketing Often included in advertising Advantage: communicate directly with prospects Can tailor messages for prospects Messages can be longer/more complex Can target best prospects Direct Marketing Biggest Disadvantage: Cost per person reached expensive (except for Internet email!) Direct Marketing Generate inquiries about prod. Generate purchase Gain trial Increase usage Enhance prod image w/ well-defined target audience Direct Marketing Gather information Build ongoing relationships with customers The Internet as An Advertising/ Direct Selling Medium Pointof sale ability (look and buy) Potential for “mass customization” of ad messages Advertising messages can be interactive and/or updated continuously Advantages of Internet as Selling Medium Primaryform of online advertising (as of 2005): search (Google, Yahoo!, MSN) Easy to measure effectiveness of search advertising Banner Ads are now called Display Ads The use of “rich media” in ads is increasing Advantages of Internet as Selling Medium Other forms: sponsorship ads in podcasts ads embedded in online games (Massive Inc.) viral games and videos YouTube (sponsored and unsponsored) Ad portals? veryfunnyads.com Widgets Mobile Advertising, Mobile search Advantages of Internet as an Advertising Medium Buyers often visit search engines and other web sites when in “purchase corridor” Can change creative approach quickly Click-through rates, page views, conversion rates easily tracked (“clickstream” data also) Blogs/Social Networks/Discussion Groups Robert Scoble’s book: Naked Conversations Marketing junk is resisted (read “Flogs”) Authenticity is expected • (well, with the exception of satirical blogs such as fakesteve.com) Pretendingto be someone you’re not may bring negative attention Still, there is some “seeding” of discussions and some underground activity Blogs/Social Networks/Discussion Groups buzz is not independent of other Internet marketing mix variables Advertising and other promotions increase buzz Read “Five Rules of Underground Marketing” http://www.clickz.com/showPage.html?page= 3624847 What are the 5 rules? Personal Selling Face to face communication w/ buyers to inform and persuade them to buy Personal Selling Onaverage, companies spend more money/yr on personal selling than other elements of promo mix Personal Selling Major Advantage: More persuasive Major Disadvantage Costly per individual reached Personal Selling Objectives: Finding Prospects Converting Prospects to Customers Maintaining Customer Satisfaction Personal Selling Personal selling most likely for new, complex, and/or expensive products The web now does some personal selling tasks For example, Apple has a 20 minute sales presentation for the iPhone on its site Cadillac has a site called mycadillacstory.com where celebrities and others post cadillac- related videos (soft sell, but it’s selling) Sales Promotion A direct inducement, offering added value or incentive for the product, to resellers, salespersons, or consumers. Sales Promo 25 yrs ago, % of spending on advertising was 70% In recent years, about 25% Shift largely been to trade promo (But, the advertising pie has grown as well) Sales Promo Why the shift? Ad clutter VCRs (zipping) Channel surfing (zapping) Various recessions Sales Promo Why the shift? Marketplace factors similarity between goods short term focus of managers consumer expectations private label competition Common Objectives of Sales Promotion Short term sales stimulation Induce trial Retain current customers/increase usage Reinforce advertising efforts Build trade support for campaign Motivate sales force Comments on Sales Promo “We’re in a very interesting phase in [sales] promotion. On one hand, we have had the meteoric advances of promotion understanding and consumer intelligence brought about by scanners and database management. Then on the other hand, we see the …. Success of Batman glasses at Taco Bell -- Comments on Sales Promo --over 4 million given away-- and we realize that it’s the same type of promotion America used to court movie goers on Saturday afternoons in the 1930s. It surely shows how human nature doesn’t change.” --William Robinson, Promotional Marketing Two types: Consumer-oriented (pull) Trade-oriented (push) Consumer Promotions Samples Coupons Premiums Contests and Sweepstakes Price Discounts Trade Promotions Trade allowances Dealer contest POP Co-operative advertising Trade shows Collateral materials Price Discounts Main Issue in Sales Promo What is the long term impact on brand equity? (especially with price discounting) Main Issue in Sales Promo Short term bribe point of view: Buyers purchases on special deals often become less brand loyal Main Issue in Sales Promo Long term sales building view: Helps achieve shelf placement/ in-store display,thus increasing visibility Consumers have little time to notice ad messages; sales promo get attention. Main Issue in Sales Promotions Ideally: Sales promo results in short term sales w/ long term equity building. Both objectives needed in a competitive market. More Comments on Sales Promotions “For years, sales promotion meant MDF funds (Market Development Funds, an innocuous word for slush money to pay off retailers for promoting your product), giant displays and tacky potholders. But now the industry has grown up…Marketers are looking to promotions to build their brand’s sales to insure a future for their brand’s tomorrow.” --William Robinson, Promotional Marketing Publicity Nonpersonal communication in news story form, regarding an organization and/or its products, transmitted through a mass medium at no charge. The story is free; PR people are not Public Relations Brings advantage vs. advertising -- more credibility Little control over message content or timing PR takes great coordination/effort Types of Publicity News Release Feature Article Press Conference Letters to the Editor Editorial Special Events Integrated Marketing Communications and PR Complements event sponsorship & trade shows New products with special angles can be supported by PR Marketing campaigns with a special “hook” are newsworthy PR Objectives Informing buyers how to select, buy or use your product Dispelling negative info about brand Build store traffic Support event sponsorships, trade shows, other promo activities Persuade target audience to purchase brand Goals and Tasks of Promotion Informative Promotion Increase awareness Explain how product works Suggest new uses Build company image LO4 Goals and Tasks of Promotion Persuasive Promotion Encourage brand switching Change customers’ perceptions of product attributes Influence immediate buying decision Persuade customers to call Goals and Tasks of Promotion Reminder Promotion Remind customers that product may be needed Remind customers where to buy product Maintain customer awareness The AIDA Concept Action Desire Conative (doing) Interest Affective (feeling) Attention Cognitive (thinking) Different promotional methods are better at different parts of AIDA – also we can evaluate an entire marketing communication effort by evaluating the success we are having with consumers at each step of the model. Persuasion Group Exercise Briefly summarize each of Cialdini’s principles. Assume you are a marketing intern for the Dirtbags. Use each of the principles to come up with an idea for selling Dirtbag tickets to faculty. Which 1 or 2 ideas do you think will be most effective and why?
Pages to are hidden for
"Promotions"Please download to view full document