Define:

The Promotional Mix

Define:

Integrated Marketing Communication

(IMC)

- refers to:

* the plan for how to use the promotional mix to achieve communication objectives

* communication strategies are designed by marketers to:

- inform

- persuade

- remind

- build relationships with potential buyers

Promotional Mix Objectives:

Inform

- increase awareness

- explain how products work

- suggest new uses

- build company image

Promotional Mix Objectives:

Persuade

- encourage brand switching

- change customers' perception of product attributes

- influence buying decision

- persuade customers to call

Promotional Mix Objectives:

Remind

- remind customers that product may be needed

- remind customers where to buy product

- maintain customer awareness

Type of Buying Decisions Affect Promotional Mix Choice:

Routine

- advertising

-sales promotion

Type of Buying Decisions Affect Promotional Mix Choice:

Not Routine or Complex

- advertising

- public relations

Type of Buying Decisions Affect Promotional Mix Choice:

Complex

Pushing and Pulling:

A Push:

Pushing and Pulling:

A Pull:

Define:

Personal Appeals

Define:

Mass Appeals

- an ambush

- unexpected location

- promotional message (integrated with other parts of promo mix)

- encouraging electronic "word-of-mouth" communication regarding the product

- incentives are sometimes offered to customers for spreading the word

- young consumers are influenced by friends more than ads so....

** to help firms plant information about their brands in schools, at sleepovers, by cell phone and other crevices that are difficult for companies to infiltrate

1. Institutional Advertising

2. Product Advertising

- the public

- investment community

- customers

- employees

- pioneering

- competitive

- comparative

Possible Objectives:

Institutional Advertising

- promote organizational image

- stimulate product category demand

- build industry goodwill

- not usually action-oriented

- may take the form of advocacy advertisements of controversial issues or public service announcements

Product Advertising:

Pioneering

(inform)

- stimulates primary demand for new product or category

- generates attention and interest

Product Advertising:

Competitive

(persuade, build relationships)

- influences PLC selective demand

- often stresses emotional or psychological dimensions

- promotes brand preference

Product Advertising:

Comparative

(persuasive)

- compares product attributes of competing brands

- promotes brand switching

- legality and strength of message policies differ among countries

Creating an Advertising Campaign:

Determine Campaign Objectives:

- a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals

- related to a specific product or service and runs for a defined period of time

- define period, desired outcomes, and how these outcomes will be measured

Creating an Advertising Campaign:

Develop a Creative Strategy

- what to say (appeal)

- how to say it (execution format)

Creating an Advertising Campaign:

Select Media Outlets

Define:

Reach

Define:

Frequency

Define:

Media Outlet

- how consumer sees advertisment

ex. TV, magazine, radio

Define:

Positioning

1. Convenience

2. Health

3. Environmental Consciousness

- what product offers (sell benefits, not features)

- why customer should buy (sex appeal, lifestyle capatible, problem solving)

- themes

- positioning

1. Profit

2. Health

3. Love/Romance

4. Fear

5. Admiration

6. Convenience

7.  fun and pleasure

8. vanity and egotism

9. environmental consciousness

Creative Strategy: How to Say It

- Common Execution Syles

1. Slice-of-Life

2. Lifestyle

3. Spokesperson/Testimonial

4. Fantasy

5. Humorous

6. Real/Animated Product Symbols

7. Mood or Image

8. Demonstration

9. Musical

10. Scientific

1. Newspapers

2. Magazines

3. Radio

4. Television

5. Outdoor

6. Internet

7. Alternative Media

Advantages/Disadvantages:

Newspapers

Advantage: geographic selectivity

Disadvantage: clutter

Advantage: demographic selectivity

Disadvantage: higher cost per contact

Advantage: selectivity and audience segmentation

Disadvantage: background distractions

Advantage: wide diverse audience

Disadvantage: DVR - bypass ads

*technology advancements

Advantage: growing innovativeness

Disadvantage: high "noise" level

Advantage: widely used for business to business marketing

Disadvantage: ad exposure relies on "click through"

- cell phones

- video shopping carts or video checkout

- computer screen savers

- interactive kiosks

- ads in movies & videos

- stimulate immediate action

- modify behavior and increase loyalty

- reward performance

- reinforce existing behavior (repurchase)

- stimulate repeat purchases

- increase ad or personal selling effectiveness

**** short term incentives*****

2 Kinds:

- Consumer: the ultimate consumer market

- Retailers: members of the marketing channel

- coupons and rebates

- premiums

- loyalty marketing programs

- contests and sweepstakes

- sampling

- point-of-purchase promotion

- trade allowances

- push money

- training

- free merchandise

- store demonstration

- conventions and trade shows

**** offered to middlemen(wholesalers/retailers), not consumers*****

- provides a detailed explanation or demonstration of product

- messages can be varied to fit the needs of each prospective customer

- can be directed to specific qualified prospects

- costs can be controlled by adjusting sales force size

- most effective in obtaining sales and gaining satisfied customers

- generate leads (prospect new customers)

- qualify leads

- probe customer needs(conduct needs assessment)

- develop solutions

- handle objections (handling negotiations)

- close the sale (asking for business)

- follow up

- define sales goals (quota) and sales process

- build sales force structure by product size, industry, size, and geography

- establish and maintain a positive organizational image

* product placement, blogs, annual reports, press releases, event sponsorships

Define:

Publicity

- a means of accomplishing public relations

* involves third party

* free

* limited control over content

- attract public's attention

- maintain public visibility

- provide information

- changes attitudes

- combat negative publicity from another source

- Corporate Visibility & Image

- Product Information

- news releases

- press conferences

- lobbying

- annual reports

- event sponsorships

- website

- consumers

- general public

- employees

- government officials

- stockholders