Promotion decisions 29-10-13

transcript

Books Recommended

Integrated Marketing Communications AdvertisingPromotions

Session CoverageIntegrated Marketing CommunicationsImportance and Role of Marketing CommunicationDeveloping Effective CommunicationDeciding upon Marketing Communication Mix

AdvertisingDeveloping and Managing advertisingDecision on media and measurement

PromotionSales PromotionsPublicityPublic Relations

Marketing Communications

The means by which firms attempt to inform, persuade, and remind

consumers, directly or indirectly, aboutthe products and brands they sell.

Corporate Image

I don’t know who you are

I don’t know your company

I don’t know your company’s products

I don’t know what your company stands for

I don’t know your company’s customers

I don’t know your company’s record

I don’t know your company’s reputation

Now what was it you wanted to sell?

Anonymous

Communication Objectives

Marketing Communication Or Promotion

Seeks to

Modify behavior or reinforceExisting behavior

Seeks to

Inform, persuade or remind theTarget markets about the firm’s offering

Marketing Communications

Inform Persuade RemindNew Products, pack, feature benefits etc.

To buy now Maintain brand awareness & recall

Difference with respect to competitors

Switching from competitors by giving them clear reason

Product will be needed in near future Foreg: Seasonal products.. AC, Fans, Ice-cream, Cold drinks

Outlets where brands are available

Persuade to stay loyal with the brand

Pricing offered in market

Occasion of Use

How product works where to buy the product

Correct a –ve perception

Communication Mix TYPESCommunication Mix

Personal Non-Personal

Advertising Promotions

Media Direct Response Consumer Trade

Personal Selling

Elements of I.M.C Mix

Tools that a company uses to pursue it’s advertising & marketing objectives.

AdvertisingAny paid form of non-personal promotion by an identified sponsor

Personal sellingFace to face presentation & selling

Sales promotionShort term incentives to encourage trial or purchase

Public relationsRelationship building plan with the outside world to build & protect co’s image

Direct marketingUse of non-personal form of communication to communicate with select customer groups

Relevance of the IMC Elements

Advertising- When product is widely distributed- Market is large & spread out- Demo is not an important criteria- Literacy levels exist

Personal selling- Information needs are high- Product is complex- Customers are few & reachable- Employing push strategy

Relevance of the IMC Elements (contd…)

Sales promotion- When short-term gains are desired- New product requires to induce trial - Brand switchers are to be targeted

Public relations- Long term relationships are targeted- Building public opinion- Pre-event hype is required

Direct marketing- Well defined target market - Service & relationships are crucial

Communication Platforms

Advertising• Print and broadcast ads• Packaging inserts• Motion pictures• Brochures and booklets• Posters• Billboards• POP displays• Logos• Videotapes

Sales Promotion• Contests, games,

sweepstakes• Premiums• Sampling• Trade shows, exhibitions• Coupons• Rebates

Personal Selling• Sales presentations• Sales meetings• Samples• Fairs and trade shows

Direct Marketing• Catalogs• Mailings• Telemarketing• Electronic shopping• TV shopping• Fax mail• E-mail• In formals

Public Relations• Press kits• Speeches• Seminars• Annual reports• Charitable donations• Publications• Lobbying

Elements in the Communications Process

M. Manager

Ad. Manager

Ad. Agency

Ad, Sales presentation, Store display

News Articles

Other Advertisements

Other store displays

Market Research

Sales Results

Media, Local News

Salesperson, Retail Store etc

Receiver Interpretation of message

Customers, listeners, viewers

Response Hierarchy Models

AIDA and the Promotional Mix

AwarenessAwareness InterestInterest DesireDesire ActionAction

Advertising Veryeffective

Veryeffective

Somewhateffective

Noteffective

PublicRelations

Veryeffective

Noteffective

SalesPromotion

Somewhateffective

Veryeffective

PersonalSelling

Somewhateffective

Veryeffective

Somewhateffective

Response Hierarchy Models

LearnFeelDo

LearnDoFeel

DoLearnFeel

High Involvement

Low Involvement

More Differentiation

Little OR NoDifferentiation

Little Differentiation

House, Automobiles

Airline ticket, Personal Comp.

Salt, Batteries

By understanding and choosing right sequence, We can do a better job in M. Communications

Steps in Developing Effective Communications

Identify target audience

Determine objectives

Design message/communications

Select channels

Establish budget

Decide on media mix

Manage IMC

Developing Effective Marketing Communications

• Step 1: Identifying the target audience– Includes assessing the audience’s

perceptions of the company, product, and competitors’ company/product image

• Step 2: Cognitive, affective, and behavioral objectives may be set

• Step 3: AIDA model guides message design

• Step 4: Selecting Communication Channels– Personal communication channels

• Effectiveness derives from personalization and feedback

– Non-personal communication channels• Influence derives from two-step flow-of-

communication process

• Step 5: Establishing the Marketing Communications Budget– Affordability method– Percentage-of-sales method– Competitive-parity method– Objective-and-task method

MONEY : Allocating BudgetsEstablishing IMC Budget• One of the most difficult decisions:• Methods:1. Affordable Method: Completely ignores impact on sales volume,

Leads to uncertain annual budget, long term planning difficult.2. Percentage of sale method3. Competitive parity method: In line with competition

• Competitors expenses represent collective wisdom on industry4. Objective and task Method: Define specific objectives

– Establish market share goals (50 Lakh potential users, we can attract 25%)

– %age of aware prospects that should be persuaded to buy this year.

Step 6: Deciding on the Marketing Communications Mix

•Advertising-Development and Management-Decisions on Media and Measurement

What is Advertising?Advertising is Any Paid Form of Non-

personal Presentation and Promotion ofIdeas, Goods, or Services by an IdentifiedSponsor.

Major Media Types• Television• Newspapers• Radio• Magazines

• Outdoor• Yellow Pages• Newsletters• Brochures• Telephone• Internet• Direct mail

Characteristics of Leading Media Advertizing- (I)-Television

Advantages• Ability to reach broad

segments of consumers• Low cost per exposure• Ability to demonstrate

product use• Ability to portray image

and brand personality

Disadvantages• Brief • High cost of

production• High cost of

placement• Lack of attention by

viewers

Characteristics of Leading Media Advertizing- (II)-Newspapers

Advantages• Considered

Informational• Most people look upon

advertising +vely.• Broad coverage of local

market• Flexible-Space need not

be reserved in advance

Disadvantages• Life is Only ONE DAY• Weak Reproduction

Quality as compared to magazines

Characteristics of Leading Media Advertizing- (IV)-Magazines

• Very sharply defined audience to consumers• Longest Life• Strong Message to target customers.

Print Ad Components

Headline

Picture

SignatureCopy

Characteristics of Leading Media Advertizing- (III)-Radio

Advantages• Local Medium• Large number of stations

and their distinct positions (Well Segmented)

• Low Cost if message frequency is well defined

Disadvantages• Sound Only and Ads

may easily be turned out

• Clutter is an issue as many ads compete for consumer attention

Alternative Advertising OptionsPlace Advertisement or out of home

• Billboards• Public spaces• Product placement• Point-of-purchase

Public Spaces: Movies, Airlines, Sports Arenas, Kiosks, public areas etc

Problems in Communicating to the Rural Audience

• Large variations in language and culture• Campaigns have to be tailor made for product

and region• Product demonstrations in haats, mandis,

and melas (fairs) are useful• TV and print media do not reach all villages

and all customers• Wall paintings and signboards very popular• Folk theatre, magic shows and puppet shows

are also used as a media vehicle

Developing the Advertising Plan

• The 5 M’s of Advertising

Mission – setting advertising & sales growth objectives Money – budgeting the allocation of resourcesMessage – deciding the content & formMedia – media vehicles to be used, frequency & timingMeasurement – evaluating the impact of communication & it’s effect on sales

The Five M’s of Advertising

MISSION : Defining the objectives

Possible objectives• To inform – informing the market about a new

product/service- suggesting new uses- building brand/company image- building primary demand- generate interest amongst

trade/consumers• To persuade - build brand preference

- induce brand switching- persuade to buy now

• To remind - maintain Top of the mind Recall- keeping customers informed about

availability & improvements

Factors to Consider in Setting an Advertising Budget

Stage in the product life cycle

Market share and consumer base

Competition and clutter

Advertising frequency

MONEY : Allocating Budgets

• One of the most difficult decisions:• Methods:

– Affordability method– Percentage-of-sales method– Competitive-parity method– Objective-and-task method

Message: Deciding ContentAdvertising can take either an emotional route or a rational route to convey the message.

Concept of USP

Each advertisement must make a specific propositionto the consumer : Buy this product & you will get this benefit.

The proposition must be one that competition either cannot or does not offer: It must be unique.

The proposition must be so strong that it can: Pullnew customers to your product.

Message-Appeals

• Rational Appeals: Strong Claim supported by numbers.

• Radio Mirchi “India’s 2nd largest channel is not seen, it is heard”. (TRP)

• Zodiac “ Why Zodiac makes best shirts in India” Fabric, Stitching, buttons, Collars, Style and Comfort, Customer Satisfaction.

• Complan “23 vital nutrients”• Maggi 2-Minute Noodles

Message-Appeals Cont…• Emotional Appeals:• “ A Gift for someone you love”• Kingfisher Airlines• Fly Kingfisher this season for good times• Because Queen of your heart deserves to fly

like one• To make someone feel like she is on cloud

Message-Appeals Cont…• Humour Appeals: Important clutter breaker• Newsweek (Times Magazine):• “ If your Ad doesn’t work in TM, Change your Ad

Agency”• “ If your Ad doesn’t work in TM,DON’T Change

your Ad Agency” Place it in Newsweek.• Negative Appeals: Fear, Guilt, Shame• Fear Appeals:• “Today a picture of safety, tomorrow a picture of

disaster”

Informational Appeals• Elaborates of product/service benefits:• Saridon stops headache pain quickly• Product demonstration ads• Transformational Appeals (Non product

related benefits or image)• Kind of person or kind of experience results

from using of brand• Liril (Freshness Soap), Mentos (electrify

your mind, (Raymonds-A complete man)

Media: Selecting Appropriate Media

Media options are: Print Media - Newspapers/magazines Audio visual - Radio/TV/internet Outdoor - Hoardings/bus panels/kiosks/banners Data bases - Yellow pages/trade directories Direct mail - Brochures/leaflets/newsletter

Selecting specific media: Circulation/ readership/ viewer ship Reach-penetration Feasibility Cost Visibility vs. clutter

Media Selection

• Reach• Frequency• Impact• Exposure

Relationship among Trial, Awareness, and the Exposure Function

Measures of Audience SizeTRP Ratings

• Circulation• Audience• Effective audience• Effective ad-exposed

audience

Classification of Advertising Timing Patterns

Product Launch Communications Mix

Kleenex allocated its communications:•75% Television•23% Print•2% Online

MEASUREMENTEvaluating Advertising Effectiveness

• Communication Effect Research

1. Consumer feedback method:– Main Message you get from is Ad– What works well and what works poorly?– Which is the best place to reach you with this message?

2. Portfolio Tests: Asked to view and listen to many Ads (Asked to recall all Ads and its content.

3. Lab Tests: Physiological reactions (Heartbeat, BP Etc) Asked to turn a knob to indicate their liking or disliking moment by moment.

Current Consumer States for Two Brands

PROMOTIONSales Promotion

PublicityPublic Relations

Sales Promotion

Collection of incentive tools, mostlyshort term, designed to stimulate

quicker or greater purchase of particular products or services

by consumers or the trade.

Sales Promotion-Examples

• Exchange your new car, get loyalty points• Buy a Chocolate, win free trip to

Switzerland• Buy one, get TWO free• Reward of 5% for paying your bills with us• Clearance sales, rock bottom prices• Scratch and Win, get lucky with our

sweepstakes.

Sales Promotion ToolsConsumer-directed• Free Samples• Coupons• Cash refund offers• Price offs• Premiums• Product Warranties• Patronage Awards• Tie-in promotions

Trade-directed• Temporary Price Cuts• Renting Shelf space• Cooperative

advertising• Volume Discounts• Contests

Sales Promotion Tools

• Consumer promotion tools– Sampling – Free amount of Product– Couponing – Entitles bearer to stated saving on specific

product– Cash Refund Offer (Rebate) – Price reduction after

purchase rather than at retail shop.– Premiums – Product offered at low cost or free as an

incentive to purchase particular product.– Patronage awards – Value in cash or other form if you

purchase things from certain vendor or group of vendors.– Product Warranties- Promises by sellers that product will

perform as specified or they will replace/repair/refund it.

Sales Promotion Tools

• Consumer promotion tools– Sampling – to induce trial– Couponing – to induce repeat buying– Price-offs – to induce brand switching– Premiums – to induce preponement of purchase– Patronage awards – to reward loyalty/ retain customers– Contests – to induce immediate purchase

• Trade promotion tools– Discounts on list prices– Free goods offers– Promotional allowances– Gifts

• Business promotion tools– Trade shows & Conventions– Sales contests for sales personnel

Public Relations• Press relations• Product publicity• Corporate communications• Lobbying• Counseling• Lobbying: Dealing with Lawmakers/Government Officials

to defeat law.• Counseling: Ad Management about public issues,

company position and image in good/bad times.

Major Tools in Marketing PR

• Publications• Events• Sponsorships• News• Speeches• Public Service

Activities