IMC PR SP DM

8/7/2019 IMC PR SP DM

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Advertising Personal Selling

Sales Promotion Public Relations Direct Marketing

Reaches large,geographically dispersedaudiences, often withhigh frequency

Low cost per exposure,though overall costs arehigh

Consumers perceiveadvertised goods as morelegitimate

Dramatizescompany/brand

Builds brand image; may

stimulate short-termsales

Impersonal; one-waycommunication

15 -1

PromotionPromotion

ToolsTools


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Advertising

PersonalSelling

Sales Promotion

Public Relations

Direct Marketing

Most effective tool forbuilding buyerspreferences, convictions,and actions

Personal interactionallows for feedback andadjustments

Relationship-oriented

Buyers are moreattentive

Sales force represents along-term commitment

Most expensive of thepromotional tools

15 -2

PromotionPromotionToolsTools


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Advertising

Personal Selling

SalesPromotion

Public Relations

Direct Marketing

May be targeted at thetrade or ultimateconsumer

Makes use of a variety offormats: premiums,coupons, contests, etc.

Attracts attention, offers

strong purchaseincentives, dramatizesoffers, boosts saggingsales

Stimulates quickresponse

Short-lived

Not effective at buildinglong-term brandpreferences

15 -3



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Advertising Personal Selling Sales

Promotion PublicRelations

DirectMarketing

Highly credible

Many forms: newsstories, news features,events andsponsorships, etc.

Reaches manyprospects missed via

other forms ofpromotion

Dramatizes companyor benefits

Often the most

underused element inthe promotional mix

15 -4

PromotionPromotion

ToolsTools


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Advertising

Personal Selling

SalesPromotion

Public Relations

DirectMarketing

( If IMC is referred)

Many forms:Telephone marketing,direct mail, onlinemarketing, etc.

Four distinctivecharacteristics:

Nonpublic

Immediate

Customized

Interactive

Well-suited to highlytargeted marketingefforts

15 -5



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Promotion Mix Strategies Push strategy: trade promotions and

personal selling efforts push theproduct through the distribution

channels.

Pull strategy:producers useadvertising and consumer sales

promotions to generate strongconsumer demand for products.

15 -6


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Checklist: Integrating the PromotionMix Analyze trends (internal and external)

Audit communications spending

Identify all points of contact

Team up in communications planning Make all communication elements

compatible

Create performance measures Appoint an IMC manager

15 -7


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Advertising and Sales Promotion Avoid false and deceptive advertising

Trade promotions can not favor certaincustomers over others

Use advertising to promote socially

responsible programs and actions

15 -8


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Personal Selling

Salespeople must follow the rules offair competition

Three day cooling-off rule protectsultimate consumers from high

pressure tactics Business-to-business selling Bribery, industrial espionage, and

making false and disparaging statements

about a competitor are forbidden

15 -9


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15 -10


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Building good relations with the companysvarious publics by obtaining favorablepublicity, building up a good corporateimage and handling or heading offunfavorable rumors, stories and events.

Major functions are: Press Relations

Product Publicity

Public Affairs

Lobbying Investor Relations

Development


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DefinitionPublic Relations in the management

function which evaluates public attitudes,identifies the policies and procedures of an

individual or an organization to with thepublic Definition cont.

interest, and executes a program of action

to earn public understanding andacceptance.

American Association of AdvertisingAgencies


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15 -13

panys Various Publicsncial Publics: Banks, Investment hernment Publics: Govt. Laws.ia Publics: Newspapers, Magazinesen-action Publics: Envt. Groups etl Publics: Neighborhood,unity organizations.eral Publics: Public Image of co.rnal Publics: employees and others.


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Chap. 15 Marketing 7e

Lamb Hair McDaniel2004 South-

Western/Thomson

14

Evaluates publicattitudes

Evaluates publicattitudes

Identifies issues ofpublic concern

Identifies issues ofpublic concern

Executes programsto gain publicacceptance

Executes programsto gain publicacceptance

The Role ofThe Role of

Public RelationsPublic Relations

The Role ofThe Role of



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Chap. 15 Marketing 7e

Lamb Hair McDaniel2004 South-

Western/Thomson

15

Press RelationsPress RelationsPress RelationsPress Relations

Product PublicityProduct PublicityProduct PublicityProduct Publicity

Corporate CommunicationCorporate CommunicationCorporate CommunicationCorporate Communication

Public AffairsPublic AffairsPublic AffairsPublic Affairs

LobbyingLobbyingLobbyingLobbying

Employee and Investor RelationsEmployee and Investor RelationsEmployee and Investor RelationsEmployee and Investor Relations

Crisis ManagementCrisis ManagementCrisis ManagementCrisis Management

55


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SpecialEvents

SpecialEvents

WrittenMaterialsWritten

Materials

CorporateIdentityMaterials

CorporateIdentityMaterials SpeechesSpeeches

NewsNews

AudiovisualMaterials

AudiovisualMaterials

Major Public Relations ToolsMajor Public Relations Tools

PublicService

Activities

PublicService

Activities

Web SiteWeb Site


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Click to add titleClick to add title

Setting Public Relations ObjectivesSetting Public Relations Objectives

Choosing the Public Relations Messagesand Vehicles

Choosing the Public Relations Messagesand Vehicles

Implementing the Public Relations PlanImplementing the Public Relations Plan

Evaluating Public Relations ResultsEvaluating Public Relations Results

Major Public Relations DecisionsMajor Public Relations Decisions


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17-18

What is the biggest obstacle to

arketing communications program?

ake a position:

. The biggest obstacle to effective promotion

ix is a lack of agency coordination

cross communication units.

. 2. The biggest obstacle to effective promotioix is a lack of understanding as to how to

ptimally design and evaluate such

rograms.


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17-19

Pick a Brand and go to the Web sitLocate as many forms ofcommunication as you can find.

audit. What do you notice? Howconsistent are the differentcommunications?


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School

Public

Relations


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The surest way tokill a bad

product is to

advertise it.Mike Flynn, Darcy AdvertisingMike Flynn, Darcy Advertising


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Public Relations

School public relationsis a solid, long-range

and democratic course of action. It is a processthat attempts to foster understanding and friendly

working relationships between schools and their

communities in order that they may not only serve

educational needs but also select more intelligently

the media and activities which will keep peopleinformed about the schools, their purposes

programs, progress, and problems.

School public relationsis a solid, long-range

and democratic course of action. It is a processthat attempts to foster understanding and friendly

working relationships between schools and their

communities in order that they may not only serve

educational needs but also select more intelligently

the media and activities which will keep peopleinformed about the schools, their purposes

programs, progress, and problems.

Not simply

publicity!!


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Public Relations

Effective public relations is

a planned two-way program

in which educators and the

public work together to meet

the educational needs ofchildren.

Effective public relations is

a planned two-way programin which educators and the

public work together to meet

the educational needs of

children.


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Public Relations

There is a need for

Public Relations..

There is a need for

Public Relations..


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Public Relations

Public Relations

is an ongoing program..

Public Relations

is an ongoing program..


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Public Relations

public relations goes on actively at

all times whether the school likes it

or notevery contact is a PR contact

visitors perceptions are impacted

with every contact

public relations goes on actively at

all times whether the school likes it

or notevery contact is a PR contact

visitors perceptions are impacted

with every contact


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Public Relations

What is the role of the

Principal in developing

good school

public relations?

What is the role of the

Principal in developing

good school

public relations?

P bli R l ti


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takes a leadership role

refines and disseminates school news

develops positive relationships with media

establishes open lines of communication

with community

formulates plans and policies

takes a leadership role

refines and disseminates school news

develops positive relationships with media

establishes open lines of communication

with community

formulates plans and policies

The

Principal


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Public Relations

The principal understands publicsThe principal understands publics


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Public Relations

Each public has its own

personality, size, interest,and organization

Each public has its own

personality, size, interest,and organization

Public Relations


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External public that group that is

not in the building

or district

External publicthat group that is

not in the building

or district

The Principal

understands the

dynamics of

ParentsClubs & community service organizations

Parent-teacher association

Businessmen

Adults who do not have children in school

Civic groups and leaders

ParentsClubs & community service organizations

Parent-teacher association

Businessmen

Adults who do not have children in school

Civic groups and leaders

Public Relations


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Internal public those groups within

the building or

district

Internal publicthose groups within

the building or

district

The Principal

understands the

dynamics of

Students

Teachers

Support Staff

Other School Sites

Central Office

Students

Teachers

Support Staff

Other School Sites

Central Office

P bli R l ti


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Public Relations

Principals must understand

interrelationships of various

publics, their unique structures,

collective personalities, interests,

and political importance

Principals must understand

interrelationships of various

publics, their unique structures,

collective personalities, interests,

and political importance

Public Relations


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warmth

acceptance

tolerance

understanding

cooperative

objective rather than emotional

warmth

acceptance

tolerance

understanding

cooperative

objective rather than emotional

Factor

s

P bli R l ti


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Public Relations

The principal must develop a

climate conducive to goodworking relationships with

publics and media

The principal must develop a

climate conducive to goodworking relationships with

publics and media

Creating a Public Relations Plan


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Creatinga

PR Plan

Creatinga

PR Plan


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Most public relations efforts

have as much impact onschool/district performance

as a rain dance has

on the weather



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Do these sound familiar?Do these sound familiar?

1. We notified everybody. Wesent a letter/memo out.

2. We tried some PR. We mailed

a press release Press kit.

3. Communication? Our newsletter

goes to over 50,000 people.4. Publicity? Lets do a public

service announcement.

5. Marketing: Weve distributed

over one Kazillion brochures!

Do these sound familiar?Do these sound familiar?


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Effective marketing

is really appliedcommon sense

Nora K. Carr, St. Louis UniversityNora K. Carr, St. Louis University



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g

RACE

ResearchAnalysis & Planning

Communication

Evaluation

= RESULTS

Remember to



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g

ResearchResearch

Q ti t k


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Questions to ask

What makes your school unique?

How do people find out about your school? Do people perceive your school differently than you

perceive your school? Why? Why do parents/students choose your school,

programs? Why do they choose your competitor?

What are the values, lifestyles, interests of yourcustomers? What to they do for a living? Educationallevel? Are they happy? Disappointed?

Who are you communicating with the most? Whoshould you be communicating and relating with more?

Who is critical to your success? Why? How close areyou to them?



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g

Analysis

&

Planning

Analysis

&

Planning


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Focus is the secretingredient in

virtually everysuccessful

marketing planTrout & Ries, Bottom-Up MarketinTrout & Ries, Bottom-Up Marketing

Analyze data generated from


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Analyze data generated fromquestions or other collectioninstruments and develop a

planGOAL: To impact attitude, opinion,

behavior or action

FOCUS ON WHAT THE CUSTOMER(Parents, Community etc.) VALUES

IMPLEMENT STRATEGY: Best way to reach,move, influence target audience



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Determine your Strengths,

Weaknesses, Opportunities,Threats

Determine your Strengths,

Weaknesses, Opportunities,Threats

Keep it personal; focus on opinion leaders


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Keep it personal; focus on opinion leaders

Segment! Segment! Segment!

Expand involvement in your school throughadvisory groups, sub-committees

Use community and district resourcesTry something new! Explore ways to make new

technology more intimate

Use several channels to reach each

audience


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Public Relations Ideas

Newsletters often mailed to parents at PTAexpense

News Tips Sheets brief (who, what, whenwhere)

Visit local newspaper offices meet reporters Publicize teacher inservice ex. Accelerated

Reader Program

Courteous personal contacts

Breakfast with parents Pre-registration counseling with students &parents


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Student recognition award, bulletinboards, newspapers, etc.

Senior ID cards free admission to events

Adopt a student

Open House have students and parentspresent

Evening Meals business and professionalleaders

Parent conferences


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Public Relations IdeasOpen shop possible one night per

week

Performing student groups

Computerized assignment system

Shadow a studentOutside marquee

Letters to parents honor rolls

Publish Honor Rolls in newspapersGood conduct awards


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Good news cards hand out to parents atevening meeting

Booster club meetings after ball games

Grandparents DayFlowers to mothers on mothers day

Awards assemblies

Citizenship and Good Deeds day


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Announce student birthdays overmorning intercom

School picnic invite parents in forspecial activities

Students seen doing something goodMini-school for parents entire day

follow the schedule of their children

Senior citizen Thanksgiving dinner

Senior citizen Pen-Pal club


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Positive phone calls from teachersCareer day

School page in local newspaper

School web page

Give out school email addresses to parentsWeb-based grading and homework sites

Parent-Advisory Committee

Joining community organizations (Rotary clubetc.)


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Speaking at community meetings(Homeowners Association meetings)

School renewal day

School-based enterprisesAfter-school day care

Opening the building after hours forcommunity use (scout meetings,computer lab use, library use)


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Strategies that break the moldgrow initially like weeds.

They are not cultivated liketomatoes in a hothouse

Henry Mintzberg, The Rise and Fall of Strategic PlanHenry Mintzberg, The Rise and Fall of Strategic Plan



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CommunicationCommunication

Hierarchy of Effective Communication


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Hierarchy of Effective Communication

1. One-to-one, face to face

2. Small group discussion/meeting

3. Speaking before a medium-sized groups4. Phone conversation

5. Hand-written, personal note

6. Typewritten, personal letter not generated by computer

7. Computer generated personal letter

8. Mass-produced, non-personalized letter

9. Brochure or pamphlet sent out as a direct mail piece

10. Article in organizational newsletter, magazine, posters, etc.

11. New carried in popular press

12. Advertising in newspapers, radio, TV, magazines, posters, etc.

13. Other less effective forms of communication (billboards,skywriters, pens, give-aways, etc.)


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Ask


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Ask.Who are we reaching now?

Using what tools/channels of communication?What should we be emphasizing more?What is the best way to reach our target

audience?What has been most effective in the past?

Why?What new avenues should we explore?What resources do we have?What free help can we get?

Who can we collaborate with?


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Avoid

Not using data in making decisionsNot reporting information; or not

developing reports that encourage

other to use informationMisinformation

Forgetting to tell people how to use

the information you collect ordiscover

Public Relations


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SummarySummary

Public Relations


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ub c e a o sEssentials

Effective PR & Marketing means building

relationshipsIt is better to have many people involved in

your PR plan, understanding that efficiencymay suffer some, than to have one person do

everything perfectlyIf your PR & Marketing program isnt tied toyour organizations critical issues, you aregoing about it the wrong way

The best way to kill a bad product is toadvertise it


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Public relations and sponsorship


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Public relations defined

The deliberate, planned and sustained

effort to institute and maintain mutual

understanding between an

organisation and its publics.

Institute of Public Relations (IPR)


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Publics defined

Figure 19.1


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PR - marketing and corporate

Marketing PR:

Long-term strategic image building,developing credibility, raising theorganisations profile, and enhancing

other marketing activities.

Corporate PR:

Long-term relationship buildingstrategy with various publics.


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PR techniques

Figure 19.2


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Publicity versus advertisingAdvantages of publicity over advertising:

Credibility - advertising is paid forwhilst publicity is seen as free.

Reach - PR can achieve an incrediblelevel of reach.

Excitement - Publicity is about newsand can generate its own excitement.

Disadvantage of publicity over


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External communication used for PR

Advertising. Publications. Lobbying.


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Internal communication used for PR

House journals and newsletters.

Briefings.


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Evaluating public relations

Figure 19.3


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Corporate reputation

Concerned with how people feel about a

company based in whatever

information (or misinformation) theyhave on company activities,

workplace, past performances and

future prospects.

Fombrun, 2000


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Perceived corporate reputation:stakeholders

Figure 19.4Source: based on the value to be found in Corporate Reputation Financial Times4th Dec., Fombrun

(2000).


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Five principles to corporatereputation management( Fombrun , 2000 )

Distinctiveness. Focus. Consistency. Identity. Transparency.


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Corporate identity

The way an organisation chooses topresent itself.

Reflects the character and philosophyof the organisation.

Emphasises those characteristics thatare positive.


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Changing corporate identity

Figure 19.5


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The change process

Figure 19.6


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Reasons for failure

Figure 19.7


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Sponsorship

A business relationship between a

provider of funds, resources or

services and an individual, event or

organisation which offers in return

some rights and association that maybe used for commercial advantage.


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Types of sponsorship

Sport. Broadcast. Arts. Cause related.


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Role of sponsorship

To support the broader PR strategy. Provide a venue for meeting key

customers/suppliers.

Improve awareness and attitudestowards company or individual brands.

Support employee, government andcompany relations.

Support wider marketing objectives.


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Factors influencing sponsorshipchoice

Figure 19.8


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Sponsorship evaluation methods

Media exposure measurement. Assessing communication results. Measuring sale results. Feedback from particular groups.


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Ambush Marketing

15 - 90

What is Ambush


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What is AmbushMarketing?

Generally defined as: marketing and promotional activities

that:

seek an association with a sponsoredevent

without the authorization or consent of the

organizer of the event or sponsor, and without paying the requisite fee


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ambush marketing?

Goal: to misappropriate or capitalize on the goodwill and

popularity of the sponsored event

intentionally confuse the public into thinking that the

ambush marketer is the official sponsor of the eventto deflect some attention away from the competing

sponsors

to reduce the effectiveness of their communication

while also undermining the value and the quality of the

sponsorship opportunity that was sold

Ambush Marketing?


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Ambush Marketing?

The result:

consumers may be confused as to who is the

official sponsor of the event

ambush marketing may impact negatively onsponsorship rights

Therefore:

sponsors seek some guarantee from theorganizer of the event that offenders will be

pursued (in the sponsorship agreement)

Forms ambush


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marketing Simultaneous promotions (for example:

sample/free product distribution at

sponsored event, billboard advertising or

flying blimp with advertisers mark over

venue) Purchase of sub-category rights (for

example: broadcast rights purchased

from a TV network from marketers who

are not official sponsors of the event forthe duration of the sponsored event)

Laws: How did it work?


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Laws: How did it work?

No Olympic Pizza or Cake on salein Turin

No fly zone over sports venues Bar Olympic (pub in central

location) had to cover the logo

Same obligation for a sportsapparel and equipment shop

Special Teams


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Special Teams

How did it work?


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How did it work?

Despite huge efforts some teams run afoul

Logo on the helmet, duly covered


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Sales Promotion

15 - 98

Wh t i S l P ti ?

What is Sales Promotion?


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What is Sales Promotion?What is Sales Promotion?

Mass communication technique that offers

short-term incentives to encourage purchaseor sales of a goods or service.

1) Consumer Promotion, 2)Trade Promotionand 3)Sales force Promotion ( Three Targetgroups)

Rapid growth in the industry has beenachieved because: Product managers are facing more pressure

to increase their current sales,

Companies face more competition, Advertising efficiency has declined, Consumers have become more deal

oriented.

Consumer - Promotion Tools


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Point-of-Purchase

Displays

Point-of-Purchase

Displays

PremiumsPremiums

Price PacksPrice Packs

Cash RefundsCash Refunds

CouponsCoupons

SamplesSamples

Short-Term Incentives to Encourage Purchaseor Sales of a Product or Service.

Consumer-PromotionObjectives

Consumer-Promotion Tools

PatronageRewards

PatronageRewards

GamesGames

SweepstakesSweepstakes

ContestsContests

Advertising

Specialties

Advertising

Specialties

PatronageRewards

Entice Consumers toTry a New Product

Entice Consumers toTry a New Product

Lure Customers AwayFrom Competitors Products

Lure Customers AwayFrom Competitors Products

Get Consumers to Load Upon a Mature Product

Get Consumers to Load Upon a Mature Product

Hold & Reward LoyalCustomers

Hold & Reward LoyalCustomers

Consumer RelationshipBuilding

Consumer RelationshipBuilding

Trade - Promotion Tools

Trade - Promotion Tools


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Specialty

Advertising

Items

SpecialtyAdvertising

ItemsContestsContests

Free GoodsFree Goods

Buy-Back

Guarantees

Buy-Back

Guarantees

AllowancesAllowances

Price-OffsPrice-Offs

Short-Term Incentives That are Directed toRetailers and Wholesalers.

Trade-PromotionObjectives

Trade-PromotionTools

PatronageRewards

PatronageRewards

Push MoneyPush Money

DiscountsDiscounts

PremiumsPremiums

Displays

Persuade Retailers orWholesalers to Carry a Brand

Persuade Retailers orWholesalers to Carry a Brand

Give a Brand Shelf SpaceGive a Brand Shelf Space

Promote a Brand inAdvertising

Promote a Brand inAdvertising

Push a Brand to ConsumersPush a Brand to Consumers

Business - Promotion Tools

Business - Promotion Tools


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Short-Term Incentives That are Directed toIndustrial Customers.

Business-PromotionObjectives

Business-Promotion Tools

Generate Business LeadsGenerate Business Leads

Stimulate PurchasesStimulate Purchases

Reward CustomersReward Customers

Motivate SalespeopleMotivate Salespeople

ConventionsConventions

Trade ShowsTrade Shows

Sales ContestsSales Contests


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15 - 103

Sales-force Promotion:Bonuses, Contest andRallies . Best salesman of the YearAward Trip to Europe or USfor best performers.

Developing the Sales Promotion

Program

Developing the Sales PromotionProgram


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Decide on the Size of the IncentiveDecide on the Size of the Incentive

Set Conditions for ParticipationSet Conditions for Participation

Evaluate the ProgramEvaluate the Program

Determine How to Promote andDistribute the Promotion Program

Determine How to Promote andDistribute the Promotion Program

Determine the Length of the ProgramDetermine the Length of the Program

ProgramProgram


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Sales Promotions

Sales promotion spurs actionand must complement

advertising

Sales Promotion


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An extra incentive to buy

An acceleration tool

Targeted to different parties

An inducement to intermediaries

A direct inducement that offers an extra

value or incentive for the product to the

sales force, distributors, or the ultimate

consumer with the primary objective of

creating an immediate sale.

A direct inducement that offers an extra

value or incentive for the product to thesales force, distributors, or the ultimate

consumer with the primary objective of

creating an immediate sale.

Reasons for Increase in SalesP ti


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Promotion

Growing Power of RetailersDeclining Brand Loyalty

Increased Promotional Sensitivity

Brand ProliferationFragmentation of Consumer Markets

Short-Term Focus

Increased Accountability

Competition

Clutter

Sales Promotion Uses


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Sales Promotion Uses

Introduce new products by encouraging trial andrepurchase

Get existing customers to buy more

Attract new customers

Defend current customers

Maintain sales in off season

Target a specific market segment

Enhance IMC efforts and build brand equity (brandcan cheapen if SP is not designed to reinforce

the brand positioning)If advertising spends are reduced to increase Sales

Promotions it can erode brand franchise andimage (commodity / parity product image)

Sales Promotion Vehicles


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Frequency programs

Sales Promotion VehiclesConsumer-Oriented

Samples

Coupons

Premiums

Contests/sweepstakes

Refunds/rebates

Bonus packs

Price-off deals

Event marketing

Trade-Oriented

Contests, dealer incentives

Trade allowances

Point-of-purchase displays

Training programs

Trade shows

Cooperative advertising

Objectives of Consumer-O i t d S l P ti


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Oriented Sales Promotion

To Obtain Trial and Repurchase

To Increase Consumption of anEstablished Brand

To Defend (Maintain) CurrentCustomers

To Target a Specific Segment

Enhance IMC programs and buildbrand equity

Advantages and Limitations ofCoupons


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CouponsAdvantages:

Appeal to pricesensitive consumer

Can offer price break

without retailers coop

Can be effective wayto induce trial of new ofexisting products

Can be a way to defend

market share and

encourage repurchase

Disadvantages Difficult to determine

how many consumerswill use coupons andwhen

Coupons are often used

by loyal consumers whomay purchase anyway

Declining redemptionrates and high costs ofcouponing

Misredemption andfraud

Distribution of Coupons


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s bu o o Coupo s

Through ads, DM / press / on-pack and also by the scanner to

competitive brand usersCoupon ads should -

Reinforce the positioning - highlight brand strength and key benefitsemphasised in the ad

Be convenient to clip, show package prominently and have themandatory legal copy

Placed in /on packto build repeat purchase & loyalty Placed on other products Cross-ruff to attract new

customers

DM coupons are more targeted, have higher redemption

Scanner dispensed coupons attract other brand users

Cash rebates (on durables) on proof of purchase

Coupon Fraud


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p

Consumers redeem withoutpurchase

Clerks and staff exchange for

cashManagers/owners redeem

without sale

Criminals collect or counterfeitand sell

Coupon Trends


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Coupon Trends

Major companies cutting back onuse of coupons

Searching for more effective

coupon techniques

More use of internet fordistribution

Sampling


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Sampling works best when:

The products are of relatively low unit value, sosamples dont cost much

The purchase cycle is relatively short so theconsumer can purchase in a relatively short timeperiod

The products are divisible and can be broken

into small sizes that can reflect the productsfeatures and benefits

There is enough quantity for the consumer totry a product, (but keep packaging & mailingexpenses down)

Providing consumer with some

quantity of a product for no chargeto induce trial

Sampling Methods


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p g

Door-to-doorDirect mail

In-store sampling

Cross-product sampling

With newspaper or magazine

Through the internet

Sampling is more effective after an introductory

set of ads giving a toll free number to call forsamples

Premiums


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Two types of premiums: (in pack / mailed onproof of purchase at no cost)

Free premiums -only require purchase of the product

Self-liquidating premiums -

require consumer to pay some or all of the cost of thepremium

Reinforces brand image Builds repeat purchase / brand loyalty

Premium an offer of an item of

merchandise

or service either free or at a low

cost that

is an extra incentive for customers

Contests and Sweepstakes


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Contests and Sweepstakes

Contest a promotion whereconsumers compete for prizes or

money on the basis of skills or

ability. Winners are determined byjudging entries or ascertaining which

entry comes closes to some

predetermined criteria

Sweepstakes/games a promotionwhere winners are determined purely by

chance and cannot require a proof ofpurchase as a condition for entry.

Winners are determined

by random selection from the pool of

entries or generation

orce brands advertising platformif appropriat

Other Popular Consumer SalesPromotion Tools


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Promotion Tools Price packs offer lower price than usual or

greater quantity than usualBonus Packs For value enhancing items more

quantity packs are better than price-offspromotions

Price-off deals - Induces switching and reinforces

loyaltyRefunds and Rebates

Event marketing

Frequency/loyalty programs

Subsidised financing / Reduced EMI incentive for durables

Consumer Franchise-Building(CFB) Promotions


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CFB Promotional Objectives

Communicate distinctive brand attributesDevelop and reinforce brand identity that is

consistent with the image of the brand

Build long-term brand preference

Encourage repeat purchase and long-termpatronage

Engage active consumer involvement

(CFB) Promotions

Consumer Franchise BuildingPromotions Communicate distinctive

brand attributes and contribute to the

development and reinforcement of

brand identity and image

Nonfranchise-Building (non-FB)Promotions


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Promotions

Non-FB Promotions May Include Price-off deals Bonus packs Rebates or refunds

Non-FB Promotions shortcomings

Trade promotions benefits may not reach customers Customers may buy on the basis of price rather than

brand equity Do not encourage the development of brand loyalty

Nonfranchise-building promotions -Accelerate the purchase decisionprocess and generate an immediatesales increase but do not contribute to

the building of brand identify and image

Trade-Oriented Sales PromotionObjectives


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Objectives

Obtain Distribution of New Products

Maintain Trade Support for Existing Products

Encourage Retailers to Display and Promote ExistingBrand

Build Retail Inventories Stock and buy more stocks Move goods from warehouse to shelf

Can erode brand franchise & image if advertising spendsare reduced (commodity / parity product image) or isnot brand enhancing

Types of Trade-OrientedPromotions


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PromotionsContests and Incentives

Trade Allowances

Buying Allowances

Promotional Allowances

Slotting AllowancesPoint-of-Purchase Displays

Sales Training Programs

Trade ShowsCooperative Advertising

Trade Allowances


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Trade Allowances

Off-invoice / buying allowance Count-recount allowances

Billback allowances

Display allowances in-ad grocer coupon Slotting and facing allowances

Trade inventory financing and delayed

billing Sweepstakes, contests, etc for retail sales

people

Trade Allowances


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Off-invoice or buying allowance - % price-cutapplied to volumes purchased during promotionalperiod. (Free goods may be offered instead)Applies Push pressure to sell stocks picked-up

Count-recount allowances for shifting the

stocks from the warehouse to the shelf Pressure to pass the price cut to the consumer

Billback allowances allowance paid if certainperformance criteria is met For Displays Ads in retailer publications etc

Display allowances - to display productsprominently Time pressed customers pick up brands made salient

this way

Trade Allowances


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In-ad grocer coupon - in the retailerscircular. Co pays for coupon face-value &handling costs

Slotting & facing allowances one time feepaid to place new brand on shelf to cover costof space, admn. & risk

Trade inventory financing & delayedbilling - used for durables reduced ratefinancing / delayed billing

Sweepstakes, contests for retail salespeople. Timed to run along with sales promos

Problems with TradeAll


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AllowancesMarketers expect that the savings will be passed on

to the consumer in the form of lower prices.However, the trade members often pocketdiscounts

Two practices that are particularly bothersome

forward buying

and diverting

To deal with these trade problems, companieshave adopted a policy of

Everyday Low Pricing (EDLP) the list price is loweredand trade promotional allowances are reduced /eliminated

Promotion Targeted to ResellerSalespeople


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Salespeople

Product or program sales Selling a specific number of cases Selling a specific number of units Selling a specific number of promotional programs

New account placements Number of new accounts opened Number of new accounts ordering a minimum amount Promotional programs placed in new accounts

Merchandising efforts

Establishing promotional programs Placing display racks, counter and other p-o-p displays

Types of CooperativeAdvertising


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Advertising

Horizontal cooperate advertising

Ingredient-sponsored cooperative

advertising

Vertical cooperative advertising

Retailerspromotions


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Consumer Promotions used byretailers to

clear inventory out of style, slow

moving, shelf-unstable products

Consumer Franchise-Building(CFB) Promotions


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CFB Promotional ObjectivesCommunicate distinctive brand attributes

Develop and reinforce brand identity that isconsistent with the image of the brand

Build long-term brand preference

Encourage repeat purchase and long-term

patronageEngage active consumer involvement

(CFB) PromotionsConsumer Franchise Building

Promotions Communicate distinctivebrand attributes and contribute to the

development and reinforcement of

brand identity and image

Nonfranchise-Building(non-FB)Promotions


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o o o s

Non-FB Promotions May Include Price-off deals

Bonus packs Rebates or refunds

Non-FB Promotions shortcomings Trade promotions benefits may not reach

customers Customers may buy on the basis of price ratherthan brand equity

Do not encourage the development of brandloyalty

Nonfranchise-building promotions -

Accelerate the purchase decisionprocess and generate an immediatesales increase but do not contribute tothe building of brand identify and image

The Sales PromotionDilemma


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AllOth

ers

MaintainPromotions

MaintainPromotions

Cut BackPromotions

Cut BackPromotions

Our Firm

We losemarket share

Same marketshare, profits

stay low

Higher profitsfor everyone We gain inmarket share

Dilemma

Evaluation and Risks


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Consumer Promotions Advtg and SP play a complementary role

and when run in tandem they yieldpowerful synergies

Delivers additional brand value and Induces trial & repeat purchase

Breaks through clutter

SP can hurt the image of the brand equity

if run in isolation of advertising

if poorly designed

if protracted - particularly true for highlyinvolvement, image & feeling products

Evaluation-Risks


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Trade Promotions Advtg. Campaign, Consumer SP and TP

if run in tandem yield powerfulsynergies

TP erode brand franchise and imageleading to less leverage with the trade

Because of less ad spend

If promos are not brand enhancing

Coordinating Sales PromotionWith Other IMC Elements


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With Other IMC Elements

Budget allocation - It depends on the promotional objectives of the campaign

the market and competitive situation

the brands stage in its life cycle

Media support and timing

Coordination of ad and promotion themesMeasuring effectiveness

Various IMC elements such asadvertising, direct marketing, Internet

and personal selling efforts need to be

coordinated with sales promotion to

create a synergistic effect. Mustconsider:


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Direct Marketing

Direct Marketing


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13-140

Direct marketing consists of directconnections with carefully targetedindividual consumers to both obtain an

immediate response and cultivatelasting customer relationships.

The New Direct-Marketing Model


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Some firms use direct marketing as asupplemental medium.

For many companies, direct

marketing constitutes a new andcomplete model for doing business.

Some firms employ the direct modelas their onlyapproach.

Some see this as the new marketingmodel of the next millennium.

Benefits of Direct Marketing


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Benefits to Buyers:Convenient

Easy to use

Private

Ready access to products

and informationImmediate and interactive

Benefits of Direct Marketing Benefits to Sellers:


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Powerful tool for building customer

relationships Can target small groups or

individuals

Can tailor offers to individual needs

Can be timed to reach prospects atjust the right moment

Gives access to buyers they could

not reach through other channels Offers a low-cost, efficient way to

reach markets

Customer Databases


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An organized collection of comprehensive dataabout individual customers or prospects, includinggeographic, demographic, psychographic, andbehavioral data.

Databases can be used to identify prospects, tailor

products, and maintain customer relationships

Database marketing requires substantialinvestment in hardware, software, personnel

Forms of Direct Marketing


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13-145

Direct-Mail Marketing

Involves sending an offer,


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Involves sending an offer,announcement, reminder, or otheritem to a person at a particularaddress.

Accounts for a high proportion ofdirect-marketing sales.

Permits high target-market selectivity.

Personal and flexible.

Easy to measure results.

Catalog Marketing


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13-147

With the Internet, more and morecatalogs going electronic.

Print catalogs still the primary

medium. Harder to attract new customers with

Internet catalogs.

Direct-Response TV Marketing


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Direct-Response Advertising

Infomercials

Home Shopping Channels

Integrated Direct-Marketing


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The use of carefullycoordinated multiple-media,multiple-stage campaigns.

Public Policy and Ethical Issues inDirect Marketing


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Irritation to Consumers

Taking unfair advantage of impulsive

or less sophisticated buyers

Targeting TV-addicted shoppers

Deception, Fraud

Invasion of Privacy


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IMC PR SP DM

Documents

Transcript of IMC PR SP DM