Promotion

PROMOTION MODULE 5

TOPICS COVERED • MEANING OF PROMOTION • IMC • PROMOTION MIX OR COMMUNICATION MIX • AIDA MODEL AND L AND S MODEL • DAGMAR APPROACH • ESSENTIALS FOR MESSAGE • NOISE, ATMOSPHERICS AND EVENT MANAGEMENT • Description of all Promotional Tools

PROMOTION • Promotion is that marketing

communication activity that attempts to inform and remind individuals and persuade them to accept, resell, recommend or use a product, service, idea or institution. • Promotional communication has the triple purpose to perform. To inform, to persuade and to remind.

Integrated Marketing Communication (IMC) • Integrated Marketing Communications (IMC),

according to The American Marketing Association , is “ a concept of marketing communication’s planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines – for example, general advertising, direct response, sales promotion, public relations and publicity, word of mouth , event management, direct marketing- and combines these disciplines to provide clarity, consistency and maximum communications effect.”

• Integrated marketing communication can be

defined as a holistic approach to promote buying and selling in the digital economy. This concept includes many online and offline marketing channels. Online marketing channels include any e-marketing campaigns or programs, from payper-click, affiliate, email, banner to latest web related channels , blog, and Internet TV. Offline marketing channels are traditional print (newspaper, magazine), mail order, public relations, industry analyst relations billboard, radio, and television

• Integrated Marketing Communications is a simple concept. • • • •

It ensures that all forms of communications and messages are carefully linked together. At its most basic level, Integrated Marketing Communications, or IMC, as we'll call it, means integrating all the promotional tools, so that they work together in harmony. Promotion is one of the Ps in the marketing mix. Promotions has its own mix of communications tools. All of these communications tools work better if they work together in harmony rather than in isolation. Their sum is greater than their parts - providing they speak consistently with one voice all the time, every time. A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.

Reasons For The Growing Importance of IMC • From media advertising to multiple forms of communication • • • • • •

(including promotions, product placements, mailers...) From mass media to more specialized media, which are centered around specific target audiences. From a manufacturer-dominated market to a retailer-dominated market. The market control has transferred into the consumer's hands. From general-focus advertising and marketing to data-based marketing. From low agency accountability to greater agency accountability. Agencies now play a larger role in advertising than ever before. From traditional compensation to performance-based compensation. This encourages people to do better because they are rewarded for the increase sales or benefits they cause to the company. From limited Internet access to widespread Internet availability. This means that people can not only have 24/7 access to what they want, but that advertisers can also target potential buyers just as much.

Disadvantages of IMC • Some marketers resist IMC because it requires changing accepted ways of doing things, decrease emphasis on advertising, puts an increased focus on communications and requires major changes within advertising agencies.

IMC PLANNING PROCESS • Situation Analysis (Marketing Plan Review) • SWOT Analysis (Analyze internal capabilities and weaknesses in relation with opportunities and threats) • Analysis of Communication process (establish goals, message, channels) • Budget determination • Develop IMC (using all tools) • Implement IMC • Monitor, measure and control IMC

Promotion Mix or Communication Mix The Marketing Communication Mix consists of eight major tools: • Advertising • Personal Selling • Sales Promotion • Events and Experiences • Public Relations and Publicity • Direct Marketing • Interactive Marketing • Word of Mouth Marketing

MODEL- 1. AIDA AIDA MODEL of Hierarchy of Consumer Response or Four Stage Model (developed in 1920’s) 2. Attention--- Cognitive Level 3. Interest--- Affective Level 4. Desire----- Affective Level 5. Action----- Connative Level The model says attract attention, gain interest, arouse desire and result in action.

MODEL- 2. Levidge and Steiner

2. 3. 4. 5. 6. 7.

Robert Levidge and Gary Steiner gave a model variant of AIDA for marketing of consumer durables, office and industrial products or Six Stage Model of consumer response Knowledge– Cognitive Level Awareness– Cognitive Level Preference– Affective Level Liking– Affective Level Conviction– Connative Level Purchase– Connative Level

DAGMAR • DAGMAR was put forward by Russell H. Colley in

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his book titled Defining Advertising Goals for Measured Advertising Results in 1961 under the sponsorship of Association of National Advertisers. The term DAGMAR corresponds with the abbreviation of the title . DAGMAR views advertising has to perform a Communication task and not a Sales task, therefore advertising goal should be separate and specific, should be written, a defined audience and a specific time period. In the DAGMAR approach, the communication task is based on a specific model of the communication process which is also referred to as Hierarchy of Effects Model

Hierarchy of Effects Model

Controversies to DAGMAR The first controversy centered around the theme: What should be the objective of advertisingcommunication as propounded by DAGMAR or it should be sales? Others are DAGMAR Approach is less practicable, Inhibits creative ideas, use of hierarchy of effects model.

Message Essentials • 1. Message Considerations: The

marketer has to penetrate through the target audience’s perceptual veil because everything that is said is not grasped and retained in consumer’s mind. Selective attention, distortion and retention occurs everytime a person is exposed to message.

• 2. Message Content: In deciding the right

content , the marketer has to choose words and appeal, a theme , idea or any unique proposition that will make the message stand out in the noise created by the competition in media. Therefore, Right Words play a key role. Appeal: Fear, Humor, Rational, Emotion, Ethical appeals can be used.

• 3. Message Structure: This refers to the

body of the message. There are conclusion drawing messages, one or to sided arguments etc. • 4. Message Format: creative part of the message and includes decisions like headlines, colour, text, visuals and styling. • 5. Source of the Message: An excellent message communicated by a weak man would create no tremors and thus source should be strong.

Noise, Atmospherics and Event Management • Noise: If we open a magazine, newspaper or

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switch on a television there are so many advertisements and not every advertisement is noticed. This is noise in the media. Atmospherics: Packaged environment that creates the buyers perception of the firm and its products. Johnson and Johnson ‘s claen building depicts the products are tender, caring and healthy. Event Management: special events organised to communicate message and getting undivided attention.

1. ADVETISEMENT According to Institute of Practitioners in Advertising (IPA): "The means of providing the most persuasive possible selling message to the right prospects at the lowest possible cost". Kotler and Armstrong provide an alternative definition: "Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor". There are five main stages in a well-managed advertising campaign: • Stage 1: Set Advertising Objectives An advertising objective is a specific communication task to be achieved with a specific target audience during a specified period of time. Advertising objectives fall into three main categories: (a) To inform - e.g. tell customers about a new product (b) To persuade - e.g. encourage customers to switch to a different brand (c) To remind - e.g. remind buyers where to find a product

Stage 2: Setting Advertising Budget: b. Affordable or Arbitrary Allocation c. Competitive Parity Method d. Percentage of Sales Method e. Objective and Task Method

Stage 3: Determine the key Advertising Messages and Copy Testing and Development Spending a lot on advertising does not guarantee success. Research suggests that the clarity of the advertising message is often more important than the amount spent. The advertising message must be carefully targeted to impact the target customer audience. A successful advertising message should have the following characteristics: (a) Meaningful (b) Distinctive (c) Believable Message essentials like right words and right appeal, message structure, formatting ,styling and source of the message are important This is the stage where creative part comes into being. Mostly companies outsource it to the Advertising Agencies

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• Advertising Agencies: Advertising agencies do the creative work. Leading Advertising Agencies: • Ogilvy and Mather • DDB Needham • Mudra • Foote, Cone and Belding • Ted Bates • McCann Erickson • Leo Burnett • Grey Advertising • Walter Thompson Company

• 4 Approaches in Copy Development: • 1. David Ogilvy: Founder of famous Ogilvy and

Mather (O AND M). In his famous book Confessions of an Advertising man, he gave 11 principles in 1964. The important amongst those were that: • Do not create dull copies • Avoid clowning • Celebrities should endorse • Be honest • Do not Imitate etc. He was the staunch believer of Research

• 2. William Bernbach: founder of Doyle Dane

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Bernbach now known as DDB Needham agency, he demphasises research because it leads to ‘me too’ brands. He avoided heavy repititions in his copy. 3. Leo Burnett: Founder of Leo Burnett agency was of the opinion to use common man in advertising as opposed to David Ogilvy. 4. Rooser Reeves: founder of Ted Bates agency, he propounded USP (Unique Selling Proposition) concept. USP should be unique that someone has never claimed it.

• Stage 4: Decide which Advertising Media to Use

There are a variety of advertising media from which to chose. A campaign may use one or more of the media alternatives. The key factors in choosing the right media include: (a) Reach - what proportion of the target customers will be exposed to the advertising? (b) Frequency - how many times will the target customer be exposed to the advertising message? (c) Media Impact - where, if the target customer sees the message - will it have most impact?  Media Mix means choosing from variety of vehicles like magazines, newspaper, audio visual, direct mail, radio etc.

Stage 5: Evaluating and Measuring Advertising Effectiveness: The evaluation of an advertising campaign should focus on two key areas: (1) The Communication Effects - is the intended message being communicated effectively and to the intended audience? (2) The Sales Effects - has the campaign generated the intended sales growth. This second area is much more difficult to measure. Testing Methods: 1. Recognition Tests 2. Recall Tests: Aided or Unaided 3. Psychological and Attitude Measurement Tests

2. SALES PROMOTION • “An activity designed to boost the sales of a product or service. It

may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal letters on other methods”. More than any other element of the promotional mix, sales promotion is about “action”. • It is about stimulating customers to buy a product. It is not designed to be informative – a role which advertising is much better suited to. • Sales promotion is commonly referred to as “Below the Line” promotion. Sales promotion can be directed at: The ultimate consumer (a “pull strategy” encouraging purchase also referred as Consumer Sales Promotion) The distribution channel (a “push strategy” also known as Trade Sales Promotion encouraging the channels to stock the product). This is usually known as “selling into the trade”

Methods of Sales Promotion 1. Price promotions: Price promotions are also commonly known as” price discounting” These offer either (1) a discount to the normal selling price of a product, or (2) more of the product at the normal price. 2. Coupons: Coupons are another, very versatile, way of offering a discount. - On a pack to encourage repeat purchase - A cut-out coupon • The key objective with a coupon promotion is to maximise the redemption rate – this is the proportion of customers actually using the coupon.

3. Gift with purchase: It is also known as a “premium promotion” in that the customer gets something in addition to the main purchase. 4. Competitions and prizes 5. Fairs and Trade Shows 6. Demonstrations 7. Trade in allowances 8. Money Refunds 9. Point of sales display 10.Sampling 11. Low interest financing

3. PERSONAL SELLING • Personal selling is oral communication with

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potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale“ According to American Marketing Association: Personal selling is the personal or impersonal process of assisting or persuading a prospective customer to buy a product or service and to act favourable upon an idea that has commercial significance to the seller.

Personal Selling Process • 1. Prospecting • 2. Qualifying the Prospect • 3. Approaching • 4. Sales Presentation • 5. Handling objections • 6. Closing the Sales • 7. Follow up

4. PUBLIC RELATIONS and PUBLICITY • Public Relations: Communication function that seeks to • •

build good relationships with an organisations publics including consumers, stockholders, and legislators. Publicity: unpaid communication appearing in the mass media about an organisation The advantages of publicity are low cost, and credibility (particularly if the publicity is aired in between news stories like on evening TV news casts). New technologies such as weblogs, web cameras, web affiliates, and convergence (phone-camera posting of pictures and videos to websites) are changing the cost-structure. The disadvantages are lack of control over how your releases will be used, and frustration over the low percentage of releases that are taken up by the media.

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But the publicist cannot wait around for the news to present opportunities. They must also try to create their own news. Contest Art exhibitions Event sponsorship Arrange a speech or talk Make an analysis or prediction Conduct a poll or survey Issue a report Take a stand on a controversial subject Arrange for a testimonial Announce an appointment Invent then present an award Stage a debate Press kits Issue a commendation

• The following section lists numerous means by which you

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can publicize events. Some of these ideas will be familiar to you, while others will hopefully provide you with some innovative and more creative ways of effectively publicizing activities.  Inexpensive Publicity Techniques  POSTERS: The essential purpose of a poster is the rapid telling of a single message using a limited number of elements. Posters are viewed more rapidly than are other methods of advertisement; hence, their message must be strong, simple, and brief. FLYERS: A smaller version of the poster is the flyer. They are usually made on 8 ½” x 11 or 8 ½” x 14 paper. An advantage is that they can be reproduced easily at minimal cost.  TABLE Tents: Table tents should be made of a thick or heavy grade of paper that shall stand firm. Table tents can be placed in visible locations including the lounge, lobby, dining hall, and on desk tops.

• CALENDAR: A large calendar of activities located in a •

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central location is a particularly effective technique. BALLOONS:You can write a message on the balloon or put the message on a piece of paper inside the balloon. Balloons can be tied with string to door knobs, handed out at the entrance of the building, or handed out in dining hall lines.  BANNERS: A large extension of the poster, these can be hung outside your residence hall or in your main lobby. A bedsheet or old shower curtain will make a good size banner. WORD OF Mouth: And of course, there is the time-honored word-of-mouth perhaps the oldest, yet most effective way to get the word out. Go door to door and personally inform people of the activity; and remind them frequently, so that they don’t forget.

5. Events and Experiences • Sports • Entertainment • Festivals • Arts • Causes • Company Museums • Social campaigns

6. Direct Marketing • Use of Direct channels to reach

consumers without taking help of middlemen like: • Direct Mail • Telemarketing • Catalog Marketing • Websites • Mobile devises

7. Word of Mouth Marketing • Social networks have become an important force in both • • • •

B2C,B2B and C2C marketing. Buzz Marketing: generates excitement, creates publicity and convey new brand related information. Viral Marketing: encourages consumer to pass along company developed products, services or audios, video or written information online. The information spreads like Viral fever and is very quick. Blogs and Chat Rooms: regularly updated online journals or diaries are also WOM technique. Shill Marketing or Stealth marketing: company paid people talking good about the product in public places without disclosing that they are paid.

8. Interactive Marketing • The internet provides much greater interaction • • • • • • • •

and individualisation. Placing Ads and Promotion Online Voice mail Blogs Mailings Catalogs Fax mail Electronic shopping Websites