Promotion

MKTG 201Semester 1, 2010Sandy Bennett

Overview• The Marketing Communication process• Compare/Contrast the Promotional Mix elements• Push & Pull Promotion• Integrated Marketing Communications• Promotion over the PLC

Promotion• Promotion

– The creation and maintenance of communication with target markets.

• Marketing communication– A term for promotion that refers to

communicating a message to the marketplace.Objectives:

The marketing communication process

Elements of the Communication Process • Source - the sender of a message

• Encoding - the source deciding what to say and translating it into words or symbols that convey meaning

• Message channel - the carrier of the message

• Decoding - the receiver translating the message

• Receiver - the potential customer

• Noise - any distraction that reduces the effectiveness of the communication process

The Promotion Mix• Combinations of methods used to

promote a product (includes ideas)– Advertising– Public Relations– Sales Promotion– Personal selling

Advertising• Advertising

– The transmission of paid messages about an organisation, brand or product to a large audience.

• Benefits: Reaches many people at relatively low cost per person

• Limitations: Difficult to measure effectiveness, and can be very expensive depending on the medium

Greater Building Society

Jerry Seinfeld Greater Building Society Commercial

Creating an advertising campaign• Key steps in creating an advertising

campaign:1. Understand the market environment2. Know the target market (audience)3. Set specific objectives4. Create the message strategy5. Allocate resources6. Select media7. Produce the advertisement8. Place the advertisement9. Evaluate the campaign.

Public relations• Public relations

– Communications aimed at creating and maintaining relationships between the marketing organisation and its stakeholders.

– Effective PR messages are timely, engaging, accurate and in the public interest.

• Benefits: Credibility, resulting word-of-mouth, low or no-cost, may effectively combat negative perceptions or events.

• Limitations: May be difficult to control

Public relations• Marketers can generate good public relations

through:– Publicity (e.g. Gaining news coverage)– Written communications with stakeholders

(e.g. annual reports)– Sponsorship (e.g. ASB is a Polyfest

sponsor)– Involvement in charitable donations or

acts.• Another role of PR is to be reactive,

countering negative publicity. In an economic downturn, many organisations become more subject to negative media coverage.

Mattel

Product recall and public relations

Tourism Queensland

Queensland government and local tourism industry public relations campaign

Sales promotion• Sales promotion

– Offers of extra value to resellers, salespeople and consumers in a bid to increase sales.

– Used irregularly to smooth demand– Rewards the sale of company’s

products• Limitations: Can lose effectiveness if

overused, easily copied, public becoming increasingly cynical about whether they are being offered real value.

Sales Promotion - Types of Sales PromotionCONSUMER ORIENTED

– Free samples– Premium offers– Loyalty programs– Coupons– Rebates– Discounts– Samples– Contests– Point of purchase

promotions

TRADE ORIENTED– Trade allowances– Price deals– Gifts and premium

money– Cooperative

advertising– Dealer listings– Trade shows etc

Personal selling• Personal selling

– Personal communication efforts that seek to persuade consumers to buy products.

– Expensive, high-involvement or industrial products favour personal selling

• Benefits: Can be specifically tailored to individuals, so has greater influence than advertising, sales promotions and PR strategies.

• Limitations: Expensive, limited reach, labour intensive, time-consuming, lack of uniformity.

How important is personal selling to your organization?

Story Bridge Adventure Climb

Personal selling model

INPLCF:– Information– Needs– Product– Leverage– Commitment/close– Following up

Push and pull policies• Push policy

– An approach in which a product is promoted to the next institution in the marketing channel.

• Pull policy– An approach in which a product is

promoted to consumers to create demand through the marketing channel.

Telstra Bigpond, Patrick and Daniel campaign

Push or Pull?

Additional forms of promotion

• Ambush marketing – The presentation of marketing

messages at an event that is sponsored by an unrelated business or a competitor.

• Product placement– The paid inclusion of products in

movies, television shows, video games, songs and books.

• A plug– When the media overtly promotes a

product within a program rather than as a separate advertisement.

Additional forms of promotion

• Guerrilla marketing– The use of an aggressive and

unconventional marketing approach.• Viral marketing

– The use of social networks to spread a marketing message.

What promotion methods do you use for a B2B manufacturing product?

Simon Bottomley, General Manager, HaveStock Manufacturing

Promoting a hotel

Neil Paterson, Director of Sales and Marketing, Sofitel Gold Coast

Integrated marketing communications• Integrated marketing

communications (IMC)– The coordination of promotional

efforts to _________the communication effect.

– The goal is the _________ send the most effective possible message to the target market

A consistent advertising platform: Virgin Blue

Virgin Blue’s television advertising campaign

Integrating promotion mix elements• Marketing organisations have different

promotional needs and finite financial and other resources, so must choose from options in the promotion mix.

• Those with ______ promotion budgets usually use ______ strategies.

• ______ budgets will rely on ______, simpler strategies.

• The promotion mix should change over time (PLC).

Promotion and the PLC• Introduction

– Objective:

• Growth Stage– Objective:

Promotion and the PLC• Maturity Stage

– Objective:

• Decline– Objective:

Looking Back• The Marketing Communication process• Compare/Contrast the Promotional Mix elements• Push & Pull Promotion• Integrated Marketing Communications• Promotion over the PLC