Week 7 - Promotion and Communication Flashcards
What is Promotion?
The marketing activities that make potential customers, partners and society aware of and attracted to the business’ offerings
What are marketing communications
Another term for promotion that refers to communicating a message to the marketplace
What are the objectives of promotion
demonstrates the features and benefits of the product distinguishing from competitors’ offerings
Encourage product trials and create demand.
Increase awareness about and goodwill for the organisation
- when this is linked to product sales, this is known as caused-
related marketing
Build a relationship between the customer and brand.
Integrated marketing communications (IMC)
It is the coordination of promotional efforts to maximise the communication effect.
The idea behind it is that the planning of each part in the promotion mix should be done in isolation.
Its goal is to consistently send the most effective possible message to the target market
What is the Promotional Mix (PAPS)
Public relations
Advertising
Personal Selling
Sales Promotion
Integrating promotion mix elements
The most effective choice and mix of promotion elements depend on
- specific goals of the marketing effort
- individual product characteristics
- Individual target market characteristics
- nature of the marketing organisation itself
- Resources and budget available for the marketer
What is the appropriate promotion mix
The appropriate promotion mix is likely to change over time as each characteristic can change, causing their effectiveness to change
What is a pull policy
A pull policy is an approach in which the producer promotes its product to consumers
What is a push policy
A push policy is an approach in which the product is promoted to the following organisation down the marketing distribution channel
What is advertising
Advertising is the transmission of paid messages about an organisation, brand or product to a mass audience
The benefit is it’s ability to reach a lot of people at a relatively low cost per person
Product advertising usually aims to demonstrate the features
and benefits of the product and to promote the product or group
of products above competitors’ products
How to create an advertising campaign?
There are key steps in creating an advertising campaign
- Understand the market environment
- Know the target market
- Set specific objectives
- create the message strategy
- Allocate resources
- Select Media
- Produce the advertisement
- place the advertisement
- evaluate the campaign
Understanding the market environment
Advertising cannot be viewed in isolation.
Emerging issues in the marketing environment may affect
the advertising campaign.
* Technological changes.
* Competitor actions.
Need for a situational analysis.
Knowing the target market (audience)
If you are sending a message, it is important to know about
who you are sending the message to.
* Demographic factors
* Lifestyle factors.
Marketing organisations that run advertising campaigns
that are not built on knowledge of the target market set
themselves up to fail.
Set specific objectives
Often objectives will be set with the sight to increase sales,
but there need to be clear, measurable communication
objectives.
Once these are correctly defined, it can facilitate later
evaluation of the campaign’s success.
Create the message strategy
A main messaging approach needs creating.
* E.g., emotional vs. rational.
* Type of emotional appeals
Intimately linked to knowledge of the target market and to
the specific objectives of the advertising campaign.
A lot of research is put into understanding which strategies
are more effective.
Allocate resources
Determine a budget for its advertising campaign.
Budget will be based on its financial and other resources,
the objectives of the campaign and what it expects the
return on the investment to be.
- What is the right amount of capital and labour to invest?
- Businesses can choose to:
- Match its competitors’ spend.
- Set a certain percentage of sales or revenues aside.
- Make an educated guess
- Work backwards from the objectives to determine what will be
required to produce the appropriate advertising.
Select Media
Two of the most important considerations in choosing
media are reach and frequency.
* Reach measures what proportion of the target audience is
exposed to the advertisement at least once (how many).
* Frequency measures how many times each target market
member is exposed to the advertisement (how often).
Produce the advertisement
The marketing organisation must create content (based on the
message strategy) and then work out how best to present that
content.
* Small organisations may undertake the creative execution
themselves.
* Large scale organisations might contract an advertising agency.
* The creative services may include copywriting, graphic design,
illustration, scripting and photography.
* Advertisements should aim first to grab the potential customer’s
attention
Place the advertisement
Involves the buying and placement of media space and time
- Monitoring effectiveness
Evaluate the campaign
Advertising campaigns can be evaluated before (pre‐tests),
during and after (post‐tests) the campaign is run.
- During the campaign, its effectiveness can be monitored by
measuring changes in sales and enquiry levels, and any
extra publicity generated by the campaign. - After the campaign, its effectiveness can still be measured
through changes in sales and enquiry levels, as well as by
conducting market research to assess the level of attention
or awareness, such as brand recognition or brand recall
What are some legal issues in advertising
While the advertising sector is largely self‐regulating, there are a
number of legal restrictions on what can be advertised and how.
- While some promotions undoubtedly stretch the truth or add
‘puffery’ (exaggeration), outright lying is not only illegal, but
damaging to customer relationships.
Attention economy
Attention is one of the most valuable resources in the digital
age.
* Increasing problem for advertisers.
* Consumer attention span of ~8 seconds.
* Attention, Interest, Desire, Action (AIDA) is becoming an increasingly more difficult task
What does the term Public relations mean
used to describe promotional efforts designed to build and sustain good relations between an organisation and its stakeholders.
Public relations is also used reactively to counter poor publicity
or as a part of crisis management.
Public relations approaches and methods, publicity
The exposure a marketing organisation receives when it obtains free coverage in the media
Positive coverage is preferred, but many marketers adhere to the old idea that ‘any publicity is good publicity
One of the highest-profile public relations tools is sponsorship
Public relations approaches and methods, Sales promotion
Sales promotion offers extra value to resellers, salespeople and consumers in a bid to increase sales
The main benefit of sales promotions are to smooth out sales in periods of low demand and to facilitate retailer support
Consumer Sales promotions
Sales promotion methods aimed at the consumer include:
- free sample
- premium offers
- loyalty program
- contests
- coupons
- discounts
- event sponsorships
What is Trade sales promotion
aimed at business purchasers and are run by producers or industries to present products to business customers (e.g. - Conventions and Trade Show)
This is an example of a push policy
Trade sales promotion methods include the following
Trade allowances
Gifts and premium money
Cooperative advertising
Dealer listings
Personal selling
the use of personal communicaton with consumers to persuade them to buy products
Personal selling is the most expensive form of promotion as it requires the full dedication of a salesperson, or sales representatives, to a customer
Additional Forms Of Promotion:
Ambush marketing - The presentation of marketing messages at an event that is sponsored by an unrelated business or even a competitor
Guerrilla Marketing - Used to describe any aggressive and unconventional marketing approach simply to grab attention
Product Placement - The paid inclusion of products in movies, tv shows, video games, songs and books usually excluding any competitors
Viral Marketing - The use of electronic social networks to spread a marketing message
Permission Marketing - The broad term given to activities that are centred around obtaining customer consent to receive information and marketing materials from a company
Sponsorship - The paid association of a brand with an event or person
