Session 19 - Promotion 1 Flashcards
What is promotion?
- Process of communicating product and service information to target customers and other stakeholders
What are promotional objectives?
- Inform customers about a product - built awareness, increase knowledge
- Persuade them to buy - awarness without purchase is poor business
- Built repurchase rates - create loyal customers
How does promotion work? What is hierarchy of effects model
AIDAS: Awareness, Interest, Desire, Action, Satisfaction
What is traditional promotions management?
- separate functions handled by experts in separate departments
- Begin with organization’s goals and products/services
What is Integrated Marketing Communications
IMC
- Process of coordinating all promotional activities to provide a consistent message across all media
- All elements of promotional mix strategically integrated
- all elements viewed from consumer perspective
What are the types of product promotion?
- Advertising
- Personal selling
- Public relations
- Sales promotion
- Direct marketing
What is advertising?
Any paid form of nonpersonal communication about an organization, goods, serice or idea by an identified sponsor
What is personal selling
Two-way communication between buy and seller, desinged to influence the buyer’s purchase intentions
What is public relations?
A nonpersonal, indirectly paid presentation of an organization, good or service (new articles, product launch announcemnets, editorials)
What are sales promotions?
Short term inducement of value (both consumers and sales channels) offered to arouse interest in buying a good or service (coupons, rebates)
What is direct marketing>?
Any direct communicstion with the consumer designed to induce a response in the form of order, enquiries, or visit (email, telephone, etc)
What are the objectvies of advertising (new vs established)?
For new products: Informative to build awareness and induce trial
For established brands: Be persuasive by reminding people to use product, increasing frequency of use (penetration strategy), distinguish the brand from competitors and other brands on product line
What is the impact of influencers on promotion?
- 10% of americans determine how the rest consume and live by chatting about their likes and dislikes. Often everyday people, who are active in civics, charities and religious institutions
How do you plan a message strategy?
- Develop a position: focus on consumer benefits (e.g. easy/quick food at mcdonals)
- Creative concept “big idea”: visualization or phrase (I’m lovin’ it)
- Advertising appeal: approach to attract attention (actual execution of big idea) (Humor with clown)
How do you execute the big idea?
- Determine an idea that communicates the positioning impact
- Be unique
- be generative (can extend beyond the initial execution to have evolution in campaign)
- Be communicative (revel some truth about the product)
How do you put advertising appeal into affect?
- Affect feelings/moods/emotions
Positive affect:
- humor, excitement, warmth (kids/animals)
Negative affect:
- Fear, guilt - Cognitive (rational) beliefs/attitudes
- product/service advertising
- celebrity advertising
- Reminder (reinforce purchasing behavior)
- advocacy (communicate marketer’s position “dont drink and drive”)
- comparative adveritising
What is cognitive appeal and comparative advertising?
Competitors are directly or indirectly referred to in the ad, either on an attribute or an overall basis.
Creating a differential advantage by comparing a product with a competitor
What are the advantages/disadvantages of television advertising?
Advantages: High reach, some targeting, auditory and visual
Disadvantages: Wasted coverage leading to high total cost, hard to convey complex information
What are advantages/disadvantages of radio advertising?
advantages: targeting (physician’s network, farm radio network), low cost, quick to product
Disadvantages: Auditory only, low attention, competes with other activities, hard to convey complex info, little research info available
What are advantages/disadvantages of print advertising?
Advantages:
- Newspaper (timeliness, good local market coverage)
- Magazines (Good market selectivity, high quality reproduction, long life, good pass-along readership)
Disadvantages:
-Newspaper (short life, little demographic selectivity, poor reproduction quality)
- Magazines (high cost)
What are advantages/disadvantages of outdoor advertising?
Advantages: Location specific, high repetition, easily noticed
Disadvantages: short exposure time requires shrot ad, poor image, local restriction
What is non-traditional media and why use it?
Online (internet and social media) and product placement
Use it because:
- rising prices of traditional media
- loss of attention and control by advertisers (media fragmentation)
- new postmodern philosophy of marketing (blurring distinctions between adverting and entertainment)
What are advantages/disadvantages of advertising on the internet?
advantages: availability of more data enables better ad targeting, relatively inexpensive but this is changing rapidly
Disadvantages: privacy issues, click fraud
What is product placement?
Form of promotion where products or services of a specific brand are placed in the media such as movies or TV programs, not in the TV commercials
How do we dermine how much we need to spend on advertising?
- Percent of expected sales
- competitve parity (share of advertising expenses)
- Quantitative modeling (relationship between advertising spending and sales)
What is an effective ad campaign?
Communication effects: the ability to attract attention and be memorable by conveying the message clearly and unambiguously to target market
Sales effect: the ability to affect purchase behavior
