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
- Identify and analyse target audience
- Define advertising objectives
- Create advertising platform
- Determine appropriation
- Develop media plan
- Create message
- Execute campaign
- 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
- Message appeal style
- Selecting elements for the marketing communications mix
- 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