Promotional Planning B2B BA 303 C 16-18 Session Lindell Phillip Chew University of Missouri- St....

transcript

Promotional PlanningB2B BA 303 C 16-18

Session

Lindell Phillip ChewUniversity of Missouri- St. Louis, College of Business Administration

DEFINITION Promotion is a persuasive communications mix. It is

a deliberate attempt to communicate information which

presents a company and its products to prospective customers in a

manner persuasive enough to induce the kind of acceptance, reaction, or

response desired. THIS IS A CONTROLLED AND

INTEGRATED PROGRAM OFCOMMUNICATION METHODS AND MATERIALS.

THE PROMOTIONAL (COMMUNICATIONS) PLANNING PROCESS LPC1@UMSL.EDU

FUNCTIONS The basic purpose of promotion is to

present a business and its products and services to prospective customers, to communicate the

need/want satisfying attributes of those products/services, to facilitate sales, and to contribute positively to the long ran performance of the business.

HOW TO SELL PRESENT CUSTOMERS ADD1T1ONAL UNITS.

GET NON CUSTOMERS TO BECOME CUSTOMERS.

FIRST REVIEW YOUR MARKETING PLAN & ITS

OBJECTIVE AND THEN PURSUE THE STEPS of the

PROMOTIONAL (COMMUNICATIONS) PLANNING PROCESS

Our corporate objective is to increase earnings per share

from $6.71 per share to $7.71 per share

OUR MARKETING OBJECTIVE IS TO INCREASE MARKET SHARE FROM 23% TO 25%, ALSO IN ONE YEAR

STEPS SITUATIONAL ANALYSIS

ESTABLISHING PROM0TIONAL OBJECTIVES JUSTIFICATONS

DETERMINING BUDGET

PLANNING, MANAGING, BLENDING THECOMMUNICATIONS

EVALUATION MEASURING EFFECTIVENESS

FOLLOW ON AND FUTURE PLANNING

STEPS SITUATIONAL ANALYSISMARKET TARGETS DEFINITION

Current Market

Additional or Potential Customer Franchises

COMPETITION ENVIRONMENTAL FACTORS

Internal (policies, profit inhibitors, financial and personnel resources)

External (legal/ethical, business/economic conditions,cultural/social)

STEPS SITUATIONAL ANALYSISCRITICAL QUESTIONS

Are you familiar with the strengths & weaknesses of various promotional

efforts?

Is outside technical/financial assistance available to enhance

promotional efforts?

TYPES OF PROMOTION

(EXPLICIT TOOLS)

TYPES OF PROMOTION (EXPLICIT TOOLS)

ADVERTISINGPERSONAL SELLINGSALES PROMOTIONPUBLIC RELATIONS / PUBLICITY

AdvertisingAdvertising

Personal SellingPersonal Selling

Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.

Sales Promotion Short-term Incentives to Encourage Trial or Purchase.

Public Relations

Direct MarketingDirect Communications With Individuals to Obtain an Immediate Response.

Protect and/or Promote Company’s Image/products.

Personal Presentations.

The Marketing Communications Mix

PLEASE NOTE THAT RESELLER SUPPORT OBJECTIVES AND PROGRAMS MAY ALSO BE ADDED

PURPOSE TO……..

IMPROVESUPPLEMENTCONTROL PERFORMANCE

ADVERTISING paid, nonpersonal communication regarding goods, services, organizations, people, places, and ideas that is transmitted through various media by business firms, government and other nonprofit organizations, and individuals who are identified in the advertising message as the sponsor.

PERSONAL SELLING

involves oral communication with one or more prospective buyers by paid representatives for the purpose of making sales.

SALES PROMOTIONInvolves…paid….marketing

communication activities(other than advertising, publicity, or

personal selling) that are intended to stimulate consumer purchases and dealer effectiveness.

PUBLIC RELATIONS / PUBLICITY . Publicity is nonpersonal public relations that is

transmitted Public relations includes any communication to foster a favorable image for goods, services, organizations, people, places, and ideas. It may be personal or nonpersonal, paid or nonpaid, and sponsor controlled or not controlled through media but not paid for by an identified sponsor.

NOW LET’S PURSUE THE OTHER STEPS

Elements in the Communication Process

SENDER(source)SENDER(source) EncodingEncoding DecodingDecoding RECEIVER(s) RECEIVER(s)Message

FeedbackFeedbackResponseResponse

NoiseNoise

Decide on Explicit Communications Mix Decide on Explicit Communications Mix

AdvertisingPublic, Pervasive, Expressive, Impersonal

Sales PromotionCommunication, Incentive, Invitation

Public Relations & PublicityCredibility, Surprise, DramatizationPublic Relations & Publicity

Credibility, Surprise, Dramatization

Personal SellingPersonal Confrontation, Cultivation, Response

Direct MarketingNonpublic, Customized, Up-to-Date, Interactive

Product Life-Cycle Stage

Type of Product/ Market

Push vs. Pull Strategy

Factors in Developing Promotion Mix Strategies

Buyer/ Readiness

Push Versus Pull Strategy

Producer

Interme-diaries

Marketingactivities

End users

Marketingactivities

Demand Interme-diaries

Demand

Push Strategy

Pull Strategy

End users

Marketing activities

Demand

PROMOTION PLANNING STEP OBJECTIVE SETTING

The objectives of promotion may be categorized as stimulating demand and enhancing company image.

The sequential short-term, intermediate, and long-term promotion goals for a firm to pursue.

Primary demand is an objective when seeking consumer interest for a product category.

Selective demand is a later objective that seeks consumer interest for a particular brand of a product.

PROMOTION PLANNING STEP BUDGETING

USE OBJECTIVE & TASK Under the objective-and-task method, a firm sets promotion goals,

determines the activities needed to satisfy them, and then establishes the proper budget. Most large companies use some form of objective-and-task technique.

During promotional budgeting, a firm should keep the concept of the marginal return in mind. This is the amount of sales each increment of promotion spending will generate. It is usually highest for

new products.

Step 5. Establish the BudgetStep 5. Establish the Budget

CompetitiveParity

Objective& Task

Affordable% OfSales

PROMOTION PLANNING STEP PLANNING, MANAGING,

BLENDING THECOMMUNICATIONS

• THE PROMOTION MIX

PROMOTION PLANNING STEP PLANNING, MANAGING, BLENDING THE

COMMUNICATIONS

SELECTING MEDIA

Media are selected on the basis of these criteria: Advertising media costs. Reach Frequency. Gross Rating Points Waste Message permanence. Persuasive impact Clutter Lead time

COMMUNICATIONS

SELECTING MEDIA Advertising media costs

Outlays for media time and space. Total costs are computed

first. Per-reader or viewer costs are

computed second.

COMMUNICATIONS

SELECTING MEDIA Reach—the number of viewers,

readers, or listeners in an audience. . For TV and radio, reach is the total

number of people who are exposed to an ad. . For print media, reach has two

components: circulation (the number of copies sold or distributed) and passalong rate (the number of times each copy is read by another reader).

COMMUNICATIONS

SELECTING MEDIA Waste—the part of an

audience not in a firm’s target market.

Narrowcasting, which presents messages to limited and well-defined audiences, can reduce audience waste.

COMMUNICATIONS

SELECTING MEDIA Frequency—how often a medium can

be used.

Repetition, repetition, repetition

James Smith 1890’s

COMMUNICATIONS

SELECTING MEDIA

GROSS RATING POINTS (GRP’S)

GRP’S = REACH X FREQUENCY

COMMUNICATIONS

SELECTING MEDIA Message permanence—the number of exposures one

ad generates and how long it remains available to the audience.

Persuasive impact—the ability of a medium to stimulate consumers.

COMMUNICATIONS

SELECTING MEDIA Clutter—the number of ads found in a single

program, issue, etc. of a medium. Lead time—the period required by a medium for

placing an ad.

COMMUNICATIONS

SELECTING MEDIA In recent years, there have been many

media innovations, such as online computer services, regional editions, special one-sponsor issues, specialized Yellow Pages, TV ads in supermarkets, infomercials, etc.

COMMUNICATIONS

SELECTING MEDIA

As of 2004, the typical U.S. consumer will have access to 44 local radio stations, 200 TV channels, 2,400 Internet radio stations, 18,000 magazine titles, and 20 million Internet sites.

PROMOTION PLANNING STEP THE PROMOTION MIX

The promotion mix is a firm’s overall and specific communication program, including its use of advertising, public relations (publicity), personal selling, and/or sales promotion.

With an integrated marketing communications program, each type of promotion has a distinct function and complements the other types.

The promotion mix is a firm’s overall and specific communication program,

A promotion mix varies by type of company, the product life cycle, access to media, and channel member support.

ADVERTISING PERSONAL SELLING SALES PROMOTION PUBLIC RELATIONS /

PUBLICITY RESELLER SUPPORT

PROGRAMS

CONSIDERING COOPERATIVE EFFORTS

With cooperative advertising, two or more firms share some advertising costs. 1. A vertical cooperative ad is

an advertising agreement between firms at different levels of the distribution channel.

2. A horizontal cooperative ad is an advertising agreement among independent firms at the same stage.

3. Good agreements clearly state each party’s costs, functions, and responsibilities; the ads covered; and the basis for termination.We will apply SCHNUCKS to both.

PROMOTION PLANNING STEP BUDGET

A budget delineates expenditures by explicit tool and medium

Considerations in budgeting may include alternative media costs, the number of placements needed, cost increases of media, the status of the economy, channel member tasks, production costs, and budget allocation for domestic versus international ads.

PROMOTION PLANNING STEPEVALUATION

MEASURING EFFECTIVENESS

EVALUATING… SUCCESS OR FAILURE COMMUNICATION

(PROMOTIONAL) success or failure depends on how well the company achieves promotion objectives, which may range from creating awareness to expanding sales. Example: R x F= GRP’s

PROMOTION PLANNING STEP

FOLLOW ON & FUTURE PLANNING

FEEDBACK & ADJUST

Summarize

Promotional PlanningSession

Summarize STEPS

SITUATIONAL ANALYSIS

ESTABLISHING PROM0TIONAL OBJECTIVES

JUSTIFICATONS

Summarize STEPS

DETERMINING BUDGET

PLANNING, MANAGING, BLENDING THE

COMMUNICATIONS

Summarize STEPS

EVALUATION MEASURING EFFECTIVENESS

FOLLOW ON AND FUTURE PLANNING

Next Steps

OPPORTUNITY IS NOW HERE!

JUST DO IT!!!!!!

LPC1@umsl.edu

Promotional PlanningSession

Lindell Phillip ChewUniversity of Missouri- St. Louis, College of Business Administration

Promotional Planning B2B BA 303 C 16-18 Session Lindell Phillip Chew University of Missouri- St....

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