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Promotional Mix: Communication Tools (Public Relations (Used to influence…
Promotional Mix: Communication Tools
Advertising
"Any paid form of non-personal communication of ideas/products in the prime media i.e TV, the press, posters, cinema + radio" [Fahy + Jobber 2014]
Objectives:
Generate instant sales; Change/Reinforce attitudes; Raise awareness; Encourage impulse purchases; Engage audiences
Usually reliant on mass-media for large scale campaigns
Allows repetition of a message to a wide audience
Low credibility, High cost, Medium level of control
Repeat to get familiarity, but have to be careful to not overdo it to the extent that customers get annoyed and it damages the brand, e.g GoCompare
Public Relations
Used to influence how an organisation is perceived by various groups of stakeholders
Different from other tools in that it doesn't require the purchase of airtime or space in media vehicles like magazines
Low-cost public + perceived to be v credible
Tries to co-integrate a company's policies w/ the interests of stakeholders
Helps develop relationships which benefits all parties
Key Forms:
Sponsorship, publicity, crisis communications, investor relations etc
Can include: local communities, media, employees, customers, government, general public etc
The idea is to widely broadcast good things about your organisation. It's better to have consistently good PR: shouldn't just rely on it when things go wrong. However, it is often used in extreme cases, e.g if a product has killed someone
No direct media costs, but also not much control over publications
"Development of good relations w/ the company's various publics, by obtaining favourable publicity, building a good 'corporate image' + handling/heading off unfavourable rumours, stories + events" [Kotler et al 2005]
Sponsorships
Associated w/ PR but also w/ advertising
A commercial activity where one party allows another an opportunity to exploit an association w/ a target audience in return for funds, services or resources [Fill 2009]
Used by organisations to generate awareness + brand associations
People receiving sponsorships are starting to ask themselves if they want to be associated w/ certain brands that are deemed as unethical/damaging towards the environment etc. E.g Shell + other petrol companies have previously been heavily invested in the Arts
EXAMPLE:
Coca-Cola + The Olympic Games. #That'sGold Campaign of Rio 2016 - 2 TV commercials that contained archived footage of previous games as well as current top athletes. Promoted the brand but also broadened the reach of the current olympics by including their athletes.
Sales Promotion
Direct inducement/incentive to encourage consumers to buy a product
Offer customers additional value to induce an immediate sale
Key Forms:
Sampling, coupons, deals, contests etc
Can be targeted at consumers, distributors, agents + members of the sales force
Trying to tailor an offering to a group of ppl at a specific point in time, e.g seasonal offers
Connected to price but not really about shifting products - more about learning about customers. They have to sign up to receive offers/freebies, which gives organisations permission to access their data. BUT, guidelines are a lot stricter now + customer details can't be passed on w/out severe consequences
Moving into more direct contact w/ specific customers
Direct Marketing
"The distribution of products, information + promotional benefits to target customers through interactive communication in a way that allows a response to be measured" [Fahy + Jobber 2015]
Aka. Bombarding customers w/ lots of data. Many ppl find it intrusive
Nowadays, there are regulations which limit the amount of contact companies can have w/ you directly. Can opt out of email/phone lists
Necessary evil bc marketers have to contact new customers. BUT, it's a numbers game, + they often have to ring a lot of ppl before someone is willing to talk
Traditional forms: direct mail/database marketing + telemarketing
New forms: mobile + internet marketing
Precise, which means messages are only received by the target audience, unlike advertising
Media-based activity, which allows the collection + utilisation of measurable data
Sending customised messages often requesting a 'call-to-action' designed to provoke a change in audience's behaviour
Personal Selling
Direct interaction between buyer + seller
Interpersonal communication through which info is provided, positive feelings developed, + behaviour stimulated
Usually undertaken by an individual representing an organisation, or by a sales force collectively
Ensures the seller can identify specific needs of the buyer + tailor the sales presentation
Successful in a B2B context, but not as good w/ consumers unless the products are really high value e.g Houses, holidays. It's often helpful to have someone guide us through risky purchases
Sales are costly: high value, highly complex, low frequency
High cost, Medium control + credibility
Digital Marketing
The most valuable part of social media is the shared approach where ppl talk about a company using #s, mentions etc
One of the most powerful ways to promote a company is by getting customers to talk to others about you:
"Peer Effect"
[shared/endorsed exposure]
Digital Media Forms:
Internet, Digital TV, CDs, Wireless, Mobile
Companies can communicate w/ clients in radically different ways than previously available
Enables 2-way interactive communication + interaction w/ info flowing from the source to the receiver + back.
EXAMPLE:
Banner ads: Click, takes to new website w/ new info, then respond to questions to go to a new site etc.
High speed, low cost, great clarity
Internet space is unlimited, so costs per contact fall as more visitors are received
Generally has been a trend to reduce the amount of traditional media used + increase the amount of digital media.
EXAMPLE:
GAP announced in 2009 that it was dropping TV adverts completely + just using social media for the launch of a range of jeans
WOM Communication
"Verbal consumer to consumer communication between a receiver + a communicator whom the receiver perceives as non-commercial, regarding a brand, product or service" [Arndt 1967]
"One of the most influential types of communication about products + services" [Silverman 2001]
Personal contacts provide a stamp of approval + social support for a purchase
Consumers view WOM as reliable + trustworthy
WOM is often backed up by social group pressure to agree/comply w/ recommendations
"Word of Mouse" [Online/Social Media]
Bad WOM spreads v quickly: shouldn't be ignored or reacted to negatively
Companies will use influencers on social media + pay them to spread awareness of their product + talk positively about them:
Influencer Marketing.
It's a low-cost avenue to reach a massive market, but low control as have no idea what they will say
Stimulating WOM as a promotional tool
Identify opinion leaders + use them as a market segment: send them direct mail + provide them w/ discounts, samples etc
Create opinion leaders to advertise the product physically:
EXAMPLE:
Free home improvements are incentives for ppl to show others the products - may ultimately recoup the cost of the improvement
However, ppl may not believe influencers are being honest if they know they're receiving things for free
Social media gives WOM a wider reach than before