Promotional Strategy Integrated Marketing Communication

1. Promotional Strategy Integrated Marketing Communication • Chapter 20:pp. 505-516; 522-528

2. Creating Persuasive ArgumentsThree keys (according to Aristotle): • Logic:focus on information • Example: mathematical estimates, pros and cons of an action • Passion:focus on emotions • Example: appeals to fairness, reciprocity • Character: focus on the person • Example: Cite their reputation for honesty, fairness, authority

3. Characteristics Logic Rational Open Comparison Discussion Characteristics Friendliness Ingratiation Likeability - Similarity Emotion- Sincerity Power Sources Facts Reports Reason Features/Benefits Language Power Sources Authority - Celebrity Emotion Words & Images Manipulation Central Route (direct) Peripheral Route (indirect)

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6. Persuasive-Informative- ads Effective? Efficient? • T-Mobile • JnJ Shampoo • Robitussin Radio commercials gain_laundry_detergent_crumple

7. The Marketing Communication Model Medium Awareness Purchase Loyalty Medium Options: Publications Sales force Broadcast: TV-Radio Billboards/Signs Pop-ups/SEO Mail Telephone Word of Mouth • Sources of “Noise”: • Poor choice of channel/Medium. Poor written or oral expression. • Mixed message • Physical distractions/environment • Biases, Selective Perception • Competing messages • Competing media

8. Advertising Personal Selling Paid form of non-personal communication from a sponsor. Good message control! Measureable? Personal presentations by sales force. Short term v. Long term ? Short-term incentives to encourage purchases-sales. Clutter? Short Term? Loyalty? Sales Promotion Building good relations with “publics” to gain good publicity. Lack of Message Control Effective? Public Relations Direct communications with individuals to gain a response. Cost per contact? Is Measureable! Direct Marketing Promotional Mix

9. Control of Promotional Mix Elements Level of Control of Marketer Low High Word of Mouth Public Relations Personal Selling Sales Promotion Direct Marketing Advertising

10. Pullversus Push Strategy Pull Strategy Push Strategy Manufacturer offers promotions to the retailer (discounts, increased personal selling, etc.) Retailer demands product from the manufacturer (pulls) Manufacturer markets to the consumer through advertising, sales promotions, etc. Consumer demands product from the retailer (pulls) Retailer passes along (pushes) these incentives in some way to the consumer Push and Pull strategies can be used separately or together

11. Personal selling -push strategy used: • In business-to-businesscontexts • With inexperienced consumers who need hands-on assistance • When goods/services are complex or costly • Cost per contact is high

12. Type of Buyer Desired Results Sales PromotionExamples Loyal Customers • Reinforce behavior • Increase consumption • Change timing • Awards Program • Membership Value Competitor’s Customers • Break loyalty • Persuade to switch • Sampling • Sweepstakes, contests, premiums Brand Switchers • Persuade to buy your brand more often • Price-lowering promotion • Trade deals Price Buyers • Appeal with low prices • Supply added value • Coupons, price-offpackages, refunds • Trade deals Objectives of Sales Promotion

13. Promotion Medium Trendshttp://www.marketingprofs.com/charts/2009/124/communications-industry-forecast-slump-then-growth

14. Promotional Mix: Clear, Consistent and Compelling to generate: Goals: Attention – Interest – Desire - Action But Don’t Forget…. Product design Product assortment Price of the product Place (where sold) Packaging

15. Maturity Sales ($) Introduction Decline Growth Time Light Advertising, pre- introduction Publicity Heavy use of advertising, PR for awareness; sales promotion for trial Advertising, PR, Brand loyalty Personal Selling for distribution Ads decrease. Sales Promotion, Personal SellingReminder & Persuasive AD/PR decrease Limited Sales Promotion, Personal Selling for distribution Product Life Cycle and thePromotional Mix Inform Remind Persuade

16. Factors Affecting Promotional Mix • Nature of the product • Business vs. Consumer • Costs and risks of product • Stage in the PLC • Target market characteristics • Location of customers • Informed or not informed • Repeat or new customers • Type of buying decision • Budget • Push vs. Pull • Consumer Involvement with the Message (AIDA)

19. Pull Strategy