Promotions Flashcards
6 M’s Model of Communication Planning
Market – To whom is the communication addressed?
Mission – What is the objective of the intervention?
Message – What are the specific points to be communicated?
Media – Which vehicles will be used to execute on the goals?
Money – How much will be spent in the effort?
Measurement – How will impact be assessed after the campaign?
Buying Process- Cognitive Stage
Unaware of Product –> Awareness –> Knowledge
Buying Process- Affective Stage
Liking –> Preference –> Conviction
Buying Process- Behavioral Stage
Purchase –> Repeat Purchase
Advertising Options- Media
($141 billion )(Mass to Customized) Television ($58 billion), Magazines ($29 billion), Newspaper ($28 billion), Radio - One way message
Advertising Options- Direct (Lag Response)
(Mass to Customized) Infomercials, Catalog, Direct
Advertising Options- Direct (Instant Response)
(Mass to Customized) Email, Telemarketing, Web
Major Promotional Tools
Personal Selling, Sales Promotions, Indirect Forms
Personal Selling
Highly flexible but most expensive
Instantaneous feedback, customization and creates an ability to account for complex decision-making units
Sales Promotions
Most common objectives are to induce product trial, repeat usage, increased frequency or multiple unit purchase, awareness of new product, etc. among other objectives
Consumer Sales Promotions
“pull strategies”
Trade Promotions
“push strategies”
Indirect Forms
Product Placement, Public Relations
Integrated Marketing
Mapping of the buying and selling processes
Internal consistency across promotional vehicles employed
Buying & Selling Processes
For ideal media selection
Internal Consistency
Goes beyond marketing mix – totality of messages in promotional mix – pricing, product’s ability to deliver on promised benefits, and the customer experience at the point of sale – contribute to how existing and potential customers perceive product or service
Budget Calculation Methods
Percentage of expected or previous year’s sales
Competitive-based benchmark
Objective and Task method
Competitive-based benchmark
Share of voice equal to product share of market
Measuring Effectiveness
Key requirement for successful measurement of promotion effectiveness is that the objectives are clearly laid out at the onset of a promotion
Overriding Principles in Promotional Resource Allocation
The need to affect various stages of the decision-making process
Effectiveness of various promotional tools can vary, and the one that yields the highest impact per dollar spent should be chosen
Marketing
process through which a firm creates value for its chosen customers by meeting those customers’ needs.
Pricing
capture a portion of created value
Promotions
aware of the product’s existence, sufficiently value the product to choose it over competitive products, or to choose it over not buying at all.
hierarchy of effects model
A general model of the steps that a consumer
might go through before buying a product- decision making process
