Promotion Strategy - Summary of lecture notes PDF

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Promotion Strategy Part 1 Promotion- getting the right message, to the right audience, through the right media Promotional mix  Advertising- paid communication for placement of a message  Personal selling- Two-way communication between buyer and seller  Sales promotion- Excitement building programs  Public relations- Publicity to build community/reputation  Direct Marketing- Individualized targeting to solicit response Communication Process

In the encode/transmit stage, company decides which channel to use Four things can go wrong: the message itself, the channel chosen, message is not decoded properly, noise like competitor advertising To overcome this, companies do repetition of advertising, select multiple channels Effective Promotion  Accomplishes three tasks o Gains receiver’s attention o Achieves shared understanding between receiver and sender o Stimulates receiver’s needs, suggests appropriate method of satisfying them  Steps to reach purchase decision (AIDA model) o Attention/awareness (think)- senders must get the attention of the consumer o Interest (feel)- Consumers should be persuaded to investigate o Desire (feel)- Consumer should move from ‘I like it’ to ‘I want it’ o Action (do)- Consumer should purchase, going to website for more information, contacting the company

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Types of communication o Owned- Corporate website, microsites, corporate social media, content, personal selling (company) 

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A microsite is an individual web page or small cluster of web pages that act as a separate entity for a brand

o Paid (paying a third party to carry the message)- advertising, direct marketing, personal selling (contract), paid search, retail/channel promos, paid influencers o Earned (can be positive or negative, company has no control, it is more credible)- News coverage, word of mouth, mentions/shares/reposts, reviews, testimonials Promotional objectives o Inform-create and build awareness o Persuade- motivate consumers to take action; choose your brand competitors o Remind- remind and prompt purchase

Integrated Marketing Communications o Promotional mix elements must work together to ensure maximum clarity, consistency, and communication impact o A mix of owned, paid, and eared media is the most effective

Part 2 Push strategy: Focus on marketing channel members; communication to intermediary to push product into store Pull Strategy: Focus on the end user to stimulate demand; communication to consumer to pull the product from store. How to compare different promotional mix elements- cost, reach, content and execution Advertising: paid form of communication; Advertising mediums which carry the message are called the media mix

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Television (huge reach, very visual/ not personal, tricky to be interactive, costly Radio (inexpensive, can be selectively targeted, decent reach/ no visual, short exposure) Print (newspapers magazines)- visual, affordable, highly targeted, passive (communicate a lot)/ not flexible, newspapers have short life Outdoor (buses, billboards)- continued exposure, inexpensive/ not highly targeted, exposure time is short Online (flexible, interactive, targeted/ standing out is challenging) Considerations while choosing choice of media- budget, target market, nature of product (print is more passive, so you can include more information

Public Relations  Key PR activities o Publicity (media relations)- press releases, interviews, newsletters o Sponsorships- often combines PR with other promotional tools o Corporate communications- annual reports, corporate website, Investor relations, lobbying o Special events- open houses, public meetings o Owned social media (a.k.a. community building tools) Sales Promotions- excitement building programs, short-term, incentive, more tactical-not about equity building  Channel/trade promotions (push)- Trade shows, dealer incentives, contests, training programs  Consumer promotions (pull)- Samples, bonus packs, premiums (Gift with purchase), contests, coupons, POP displays, rebates, swag.. Part-3 Direct Marketing  Direct mail  Email/text  Telemarketing Personal Selling  Relationship approach: long-term focus, problem-solving role  Advantages- high customer attention, message is customized interactivity, persuasive impact, potential for development of relationship, adaptable, opportunity to close the sale  Disadvantages- high cost, labour intensive, expensive, can only reach a limited number of customers

Other promotion concepts  Cross promotion- Marketing partners share promotional costs o Co-branding- Brands come together to create a new product; saves costs; risk of companies not being a good match o Co-marketing- Two brands come together to market an existing product  Product placement- companies pay to have their product features in films/ tv  Guerilla Marketing- Any non-traditional or unconventional form of promotion  Ambush marketing- When an advertiser ambushes (surprise suddenly) an event to compete for exposure; stealing someone’s thunder; companies are not entitled to do; you cannot associate yourself with someone if you have not paid for it  Experiential marketing- using experiences to engage customers  Share-of-wallet- The percentage of the customer’s purchases made from a particular retailer/brand Choosing promotional mix  Fit the target market  Fit the product- product, price, distribution, product life cycle stage, objectives  Fit the organization- budget, level of control desired  Take account of competitors’ strategies...