Marketing MIX:

PROMOTION

(Communication)

Daniela Kolouchová

Advertising AIDA model

9 pillars of promotional MIX

Presentation structure

The Role of Promotion

• To inform about the rest of the marketing mix

• To persuade

• To attract new customers to your brand

• To remind consumer's' of existing product and its benefits

• To increase demand (Sales and Profit)

• To build brand identity (image) - to differentiate a branded

product or service from competition

• Advertising does not necessarily

increase sales and profits!!

• AIDA - is a self-explanatory sequential process used in business;

not only in Marketing.

A – attention, consumers have to be made aware

that the product exists

I – interest, consumers need

to be made interested in the product

D – desire, consumers need to be made

to want to buy the product

A – action, consumers need to be prompted

into action to buy the product

Advertising AIDA Model

The promotional MIX

1. Advertising

2. Sales Promotion

3. Personal Selling

4. Direct Mail

5. Trade Fairs and exhibitions

6. Events and sponsorship

7. Public Relation (PR)

8. Product Placement

9. Packaging

1. Advertising

• Paid communication with consumers.

• Main goal: to inform or persuade

• Aligned with target market and positioning -

select the correct medium (TV, Radio, Print,

Internet) to display there product/service.

Informative Advertising Persuasive advertising

The emphasis of

advertising or sales

promotion is to give full

information about the

product.

Advertising or promotion

which is trying to

persuade the consumer

that they really need the

product and should buy it.

Advertising Agencies

Advertising Agencies – instead of employing a fulltime worker to do your

promotion, you can contract it out and possibly save money in the long run.

• Creative Agency – creating advertising (casting, shooting, …),

cooperating with external suppliers

• Media Agency - planning and handling advertising

• „Full house“ (creative + media agency)

The Advertising Process

Set objectives

(introduce new NIVEA whitenning body lotion)

Decide the advertisingbudget

(production + media placement);

media pre-selection

Create, research and produce advertising

campaigns

(creative brief forcreative agency)

Plan and select the media placement

(media brief for media agency)

Evaluate

the effectiveness of the campaign

Correct

(placement and creativity)

NIVEA Night whitening moisturizer concept

Which Media to use?

Factors to consider:

• Size of Audience

• almost all mediums will provide statistics on the circulation or

number of consumers watching/listening at a particular time.

• Match your consumer profile.

• Consumer Profile – The medium you has to focus on your target

group profile.

• Cost per contact – TV, Radio, Magazines, Cinema, Newspaper.

• Data are available in media agency.

• The communicated Message – to inform, to build a brand identity

(image), to persuade to buy

• To explain more use mag. or newspaper or social media incl.

influencers

• BMW: „The Ultimate Driving Machine” „ Designed For Driving Pleasure.“

Media vehicles

• TV

• Radio

• Newspapers

• Magazines

• Big formats – Posters/ Billboards

• Cinemas

• On-line

TV

Advantages

• Reach: millions of people – build awareness

• Shown in a very favourable way, makes it look attractive

• Reach target segment easily

Disadvantages

• Very expensive for specific, niche target group

RadioAdvantages

• Cheaper than TV per target contact – but not always

• Reaches a large audience

• Use memorable song or tune-remembered

Disadvantages

• No visual image

• Not as wide as an audience on TV

• Not the best channel to remember

Newspapers

Advantages

• Easy targeting

• Many people purchase national newspapers

• A lot of informative info (informative) if needed

Disadvantages

• Not graphic –black & white

• „Actual“ just one day/ week

Magazines

Advantages

• Easy to reach specific target group

• Coloured – „eye catching“

• Special formats (parfumed pages, mini sampling)

Disadvantages

• Only once a month/week

• Usually more expensive than newspapers per contact

Poster/billboardsAdvantages

• Big image formats

• Long-term

• „Repeated“ reach

• public transport, gyms…

Disadvantages

• Missed by fast drivers – outdoor

• Limited reach - outdoor

• No detailed information

2. Sales Promotion

Types of Sales Promotions:

• Price reductions (incl. Cupouning)

• Gifts for Free

• Competitions – buy and win

• Point-of-sale (POS) - Display and demonstration

• After- sales services – refunds, exchanges

• Free samples – free trials

• Shop

• Magazines

• Events….

Price reduction

• Price decrease of products and services.

• Money-off coupons which give discounts for now and the

future.

Advantages

• Shopping in bulk – buy 2 get 3 free

• It blocks the competition

• Encourages customers to come back (coupons)

• Keeps customers satisfied (saved money)

Disadvantages

• Profit loss

• Possibe image decrease – quality perception

POS - Display and demonstration

• Product Promotion in POP = POS

(Point of purchase = Point of Sales)

• Main forms:

• Product demonstration -

showing how it looks and how

it is used.

• Advertising – posters, product

models, leaflets, flyers,

screens, woblers…

Overall advantages of sales promotion

• Encourages new customers to try a product

• Encourage existing consumers to buy a new product

• Encourages existing customers to repurchase or purchase in

greater quantities

• Encourages customers to buy a product instead of a competing

product – switching during „buing process“

• Promote sales during low- season (off-season purchase)

3. Personal Selling

• Direct personal communication with customers

• Relationship building between the brand and consumer

• Very common in B2B

• B2C „door to door“– AVON, Oriflame, VACSY, Tupperware…

• Customers discuss their requirements

• Targeted and imediate advices (sales)

4. Direct marketing

• Communicates with a particular „narrow“ market segment -

vs. Advertising – Mass Market segments.

• Focus on:

• Potential customers – stimulation for buying

• Existing customers – stimulation for repeated/ increased purchase

• Cross-selling motivation – complementary products

• Up-selling motivation – new product version

• Direct mail – the most used direct marketing tool

• Via e-mailing

• Via mailing (post)

5. Trade Fairs and Exhibitions

• More important for B2B than for B2B

• New product or new technologies introduction

• Direct contact with potential or existing consumers

• Allow personal selling

6. Events and sponsorship

• Events - organized by companies; emotional experience

• Sponsorship – organized by „third“ partner; finantial or non-f.

support; charity…

7. Public Relation

• Relationships with the media – journalists (journalists are

interested only in NEWS!!!)

• Giving; „selling“ news vs. crisis communication – negative info

about product/brand/company

• Press KIT – 1-2 pages about company NEWS, brand NEWS +

pictures

• Press coference

• Info used and rewrite

by journalists with specific

magazine language

7. Public Relation

• WHY info from journalists:

• Trusted

• Perceived as „non-marketing“

• Free PR vs. Paid PR

• Free PR – written by journalist based on Press KIT

• Paid PR – advertorials, special projects (produced by magazine

or by creative agency); has to be identified as an „ad“

Paid PR example

Different resutls of the same brief….

Glanz; Ona dnes Marianne Nový čas pre ženy

8. Product placement• Branded products and services are noticeable within a drama

production. The European Union leg.: "any form of audiovisual commercial

communication consisting of the inclusion of or reference to a product, a service or

the trade mark thereof so that it is featured within a programme".

• Can be „measured“ in terms of how accurately it targeted the film's

target audience.

• Has to be announced in tittles: PP

• Great marketing instrument – if you know how and where –

associations with the story or the hero are transfered into the

brand values

• Packaging „speaks“ for itself

• One of the first images consumers get of the product

• Support of a promotional strategy

• Eye catching

• high class product - high class packaging

• environmentally friendly packaging - cost considerations

9. Packaging

The promotional MIX is

interconnected and interrelated

1. Advertising

2. Sales Promotion

3. Personal Selling

4. Direct Marketing

5. Trade Fairs and exhibitions

6. Events and sponsorship

7. Public Relation (PR)

8. Product Placement

9. Packaging

• On-line

• Can be used in advertising, sales promotion, personal selling, direct marketing, events and sponsorships, PR, productplacement