Brand Promotional Strategy - PowerPoint by syk59282

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									International Brand Management



                     Week 3
Week 3 Objectives

   Understand how management sets direction and
    priorities on strategy for promotional programs.
   Learn how brands are introduced, promoted,
    maintained and managed throughout the process to
    achieve optimum results.
   Acquire understanding needed to observe
    promotions and assess the company’s marketing
    strategies, and to contrast competitors’ efforts.



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    Terminology

   Goal/Objective
   Strategy/Tactics
   Integrated Program
   Promotional “Mix”
   Advertising
   Public Relations
   Sales Promotion
   Personal Selling

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What Is a Promotional Strategy?

   A planned and controlled, integrated program
    of communications methods and materials
   Designed to present the organization and its
    products to prospective customers
   That communicates persuasive, need-
    satisfying attributes of products
   To facilitate sales and thus contribute to long-
    run profit performance

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Developing Promotional Strategy

    Brand strategy is already determined – and
     brand values and attributes have been
     determined (and validated by research)
    Promotional Strategies begin with deciding
    1. Budget available
    2. Distribution of budget among advertising,
       public relations, sales promotion or
       personal selling.

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Budget Strategy

   No clear formula or percentage for spending
   Management considers business strategy –
    for example, spending levels vary for:
    –   Defender
    –   Differentiated Prospector
    –   Low-Cost Defender
   Management considers appropriate level of
    investment in promotion
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Promotional Strategy Alternatives
- Decide on the “Mix”

   Advertising: non-personal through paid media,
    involving both copy/content and media costs
   Public Relations: personal communications
    WITH target audiences through non-paid media
    and other two-way communications opportunities
   Sales Promotion includes a broad diversity of
    other promotions (i.e., trade shows)
   Personal Selling encompasses both designing a
    selling program and supervising sales people

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Management Considerations

   Competing marketing needs (such as designing new
    packaging)
   Product pricing strategy (premium priced products
    allow greater promotional spending)
   Sales response to promotions (difficult to forecast)
   Ability to leverage a variety of promotions
   Long term effect of promotional efforts (varies by
    product/service and frequency of purchase)


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But Remember…..

   Constant challenges with Promotions
   Decisions often are influenced by
    –   Many people
    –   Lack of measurable results
    –   Personal selling decisions made separately
   An INTEGRATED communications plan can make
    sure all messages, delivered by all promotional
    efforts, will be consistent with the overall brand
    strategy

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Goal/Objective and Strategy/Tactic

   GOAL - Overall statement of what is to be
    achieved over long-run
   OBJECTIVE – Specific, measurable, time-
    limited
   STRATEGY - How to achieve objective
   TACTIC – “Execution” or specific activity in a
    time period to achieve specific Objective

                                          10
Goal/Objective and Strategy/Tactic

   GOAL - “We will dominate the market as market
    leader” (meaning more than 50% market share)
   OBJECTIVE – “We will increase our market share in
    2005 from 39% to 45%”
   PROMOTIONAL STRATEGY - “We will add an
    interactive Internet communication channel”
   TACTIC – “In January 2005 we will launch an
    interactive Internet website, with a supporting
    promotional program, enabling customers to
    communicate directly with sales persons”

                                            11
Advertising Strategy

   Advertising strategy and tactics should focus
    on what phase is targeted and measure
    results accordingly
   All advertising leads to sales eventually
    –   May “condition the market”
    –   May move a customer from one phase to the next
        – from product awareness, to familiarity, to
        receptivity, to purchase
    –   May directly impact near-term sales

                                             12
Advertising Steps

   “Copy”   - all aspects - picture, words, symbols, color,
    layout
   What most appeals to management may not
    succeed – customer research is invaluable
   Advertising Tactical Options:
    –   Source credibility – use of spokespersons
    –   Balance of argument – appeals to better educated people
    –   Message repetition – questionable value without change
    –   Rational versus emotional appeals – no conclusive research
    –   Comparison advertising – positioning against competing
        products or services, by name - little research on effectiveness -
        specifically prohibited in many European countries


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Public Relations Strategy

   Public Relations is very important in:
    –   “Conditioning the market”
    –   Moving a customer from one phase to the next – from
        product awareness, to familiarity, to receptivity, to purchase
   Some products and services benefit significantly from
    personal communications WITH audiences (complex
    new products, personal services, etc.)
   Media coverage about products and services in non-
    paid media provide source credibility
   Public relations offer lower-cost promotional
    opportunities

                                                          14
Personal Selling Strategy

   Sales person builds a close, trusting relationship
    with the customer
   Customer values the sales person as a trusted,
    knowledgeable advisor, not a “sales person.”
   Brand strategy may offer the brand promise of an
    advisor relationship
   More important in business-to-business markets
   Important for higher-priced products and services
   Very expensive for multinational companies


                                                15
Sales Promotion Strategy

 Influenced by the specific industry, business and
    marketing strategies, and product market position
   Tactics must reflect the brand position on
    –   Quality (high-priced, complex products might require
        customer demonstrations and exhibits at trade shows),
    –   Competitors’ promotions
    –   Customers’ expectations for such products
    –   Other issues such as product lifecycle (new consumer
        product introductions might require sales and dealer
        incentives, point-of-purchase promotions).

                                                       16
What Is a Promotional Strategy?

   A planned and controlled, integrated program of
    communications methods and materials
   Designed to present the organization and its products
    to prospective customers
   That communicates persuasive, need-satisfying
    attributes of products
   To facilitate sales and thus contribute to long-run
    profit performance


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    Week 4 – Next Class

   Test 1 – Overview of International Branding
    –   Week 1 – Evolution of Branding Concepts
    –   Week 2 - Branding Strategy Alternatives
    –   Week 3 - Promotional Strategies
   What to Expect
    –   Terminology
    –   True/False statements
    –   Some writing on an issue

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