Promotion decisions = communication to build and maintain relationships by informing and persuading one or more audiences

Communication process

channel capacity = the limit on information a communication channel can handle effectively

decoding process = converting signs or symbols into concepts and ideas

communications channel = the medium of transmission that carries the encoded message from the source to the receiver or audience

receiver = the individual, group or organisation that decodes a coded message

encoding process = converting meaning into a series of signs or symbols that are meaningful to the intended receiver

noise = anything that reduces a communication's clarity and accuracy

source/sender = a person, group or organisation with a meaning it tries to send

feedback = the receiver's response to a message

communication = a sharing of meaning, the transmission of information

Marketing communications mix = a combination or marketing methods used to promote a specific product

sponsorship

personal selling

publicity

sales promotion

public relations

word of mouth

product placement

advertising

subtle, powerful, easy, can be misleading or fall outside codes of conduct

strategic location of products within TV or other media to reach product's target market

communication efforts used to create and maintain favourable relations between an organisation and its stakeholders

enhance organisation's image or to maintain positive public perceptions

news release, press conference, feature article, captioned photograph

communication in a news story form about the organisation, its products, or both, and transmitted through a mass medium at no charge

enhances the brand image and customers perception of brand

event/social/arts/sport

often closest relationship, freedom to adjust message, usually most expensive

paid personal communication that attempts to inform customers and persuade them to purchase products in an exchange situtation

consumer = coupons, refunds, frequent user incentives etc

trade = sales content, trade allowance, free merch and gifts

an activity and/or material meant to induce resellers or sales people to sell a product or get consumers to buy it

not strictly a part of mix as message is not controlled by organisation

personal, informal exchanges of information that customers share with one another

paid non-personal communication about an organisation and its products transmitted to target audience through mass media

comparative/reminder advertising

advertising campaign

  1. Identify and analyse target audience
  1. Define advertising objectives
  1. Create advertising platform
  1. Determine appropriation
  1. Develop media plan
  1. Create message
  1. Execute campaign
  1. Evaluate effectiveness - pretest, consumer panel, post test (recognition/unaided recall)

PLC and promotion strategy

Growth = make mass market aware of the brand benefits, moderate emphasis and expenditure

Maturity = use promotion as a vehicle for differentiation among otherwise similar brands, moderate emphasis, heavy expenditure

Introduction = aim at needs of early adopters, high emphasis, heavy expenditure

Decline = emphasise low price to reduce stock, minimum emphasis and expenditure

Integrated marketing communications (IMC) = the coordination of promotional efforts for maximum informational and persuasive impact on customers

  1. Message appeal style
  1. Selecting elements for the marketing communications mix
  1. Objectives of promotion

To persuade = stimulate demand, encourage product trial, reduce sales fluctuations

To inform = create awareness, identify prospects

To remind = retain loyal customers, combat competitive promotional efforts

Emotional = stir emotions such as humour etc

Rational = promotes factual information

Moral = relies on sense of right and wrong

factors affecting selection:

resources, objectives, policies

characteristics of the target market

characteristics of the product

cost and availability of promotional methods

push and pull channel policies. push = promoting a product only to the next institution down the marketing channel. pull = promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel