Promotion Integrated Marketing Communication

Elements of promotion Advertising Strategies

Other Methods of Promotion
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PROMOTION

Lars Perner, Instructor 1

Learning Objectives
Understanding the
obstacles that advertising
messages face
Understanding the
choices facing marketing
managers regarding

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Promotional objectives
Promotional message
Media choice
Advertising and promotion
spending
PROMOTION

Lars Perner, Instructor 2

Elements of the Promotion Mix

Advertising
Sales Promotion

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Sales
Coupons
Rebates
Premiums

PROMOTION

Personal selling
Public relations
Direct marketing

Lars Perner, Instructor 3

Promotion by Decision Stage

Pre-purchase
Influence
decision,
preference
Samples to
induce trial

Purchase

Sales promotion
Point-of-purchase
(POP) displays

Post-purchase
Increase
repurchase
propensity

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PROMOTION

Lars Perner, Instructor 4

Developing the Advertising Program

IDENTIFYING THE
TARGET AUDIENCE

DESIGNING THE
ADVERTISEMENT(S)

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PROMOTION

SPECIFYING
ADVERTISING
OBJECTIVES

SETTING THE
ADVERTISING
BUDGET
Lars Perner, Instructor 5

Some Media Alternatives

Television

Conventional advertisements
Infomercials
Sponsorship programming
Placements
In programming
Superimposed

Radio

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Magazines
Newspapers
Outdoor
Internet
Point-of-purchase
Other
Movie theaters
On other products

PROMOTION

Lars Perner, Instructor 6

Reaching the Customer: Encoding,

Noise, and Decoding
NOISE
Other ads
News articles
Other store displays

SENDER

Mktg mgr
Advertising mgr
Advertising
agency

ENCODING
THE
MESSAGE
Advertisement
Coupon
Sales presentation
Press release
Store display

MESSAGE
CHANNEL

DECODING
THE
MESSAGE

Media, Salesperson
Retail store
News program

Receiver
interpretation of
the message

RECEIVER

Customers
Media audience
News media
Clients

CHANNEL
FEEDBACK

Text, p. 211..
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PROMOTION

Lars Perner, Instructor 7

Some Promotional Objectives

Brand awareness
Knowledge of product category

Existence
Benefits
Functions
Technology

Knowledge of brand differences

Brand attitude
Favorable beliefs about the
brand
Overall
Relative to competitors

Product category or
brand trial

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PROMOTION

Brand preference
Willingness to pay a premium
for the brand
Resistance to competitor
promotions (e.g., sales,
coupons)
Willingness to buy under less
convenient circumstances

Increase in product
category or brand usage
Quantity used
Frequency used
Scope of uses

Increase in short term

sales
Lars Perner, Instructor 8

Promotional Objectives Across the

Product Life Cycle (PLC)
Introduction

Maturity

Advertising and
public relations
awareness
Sales promotion
trial
Personal selling
distribution

Decline

Growth

Text, p. 217

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Advertising
persuasion,
reminder
Sales promotion
market share

Advertising and PR
brand loyalty
Less emphasis on
sales promotion

PROMOTION

Reduction in
advertising and
PR
More emphasis
on sales
promotions
temporary sales

Lars Perner, Instructor 9

Increase in Product Category or Brand Usage

Product Category Potential Examples
Scope of uses
Orange juice: It isnt
just for breakfast
anymore
Baking soda
ZipLock bags
WD-40 (lubrication
and sticker removal)

Quantity used
Calcium supplements
Milk
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PROMOTION

Frequency used

Cosmetics
Deodorant
Wine
Greeting cards
Phone calls
Cell phone minutes
Call to family/friends

Hotels, airlines
Conference calls
Car engine oil
Canned soup
Lars Perner, Instructor 10

Communications Objectives
Informing

Persuading

Awareness
Interest
Benefits
Other information

Preference based on
competitive
advantages
Brand switching or
prevention of brand
switching

Reminding
Trigger memories
Maintain preference
and buying habits
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PROMOTION

Lars Perner, Instructor 11

Some Advertising Strategies

Comparative ads
Illegal in most countries
Generally very disliked by
U.S. consumers but still
relatively effective

Humor appeal
A way to get attention to the
advertisementbut the
consumer may remember
the humor and not what the
product featured was

Adding beliefs
Classical conditioning
(association)
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PROMOTION

Fear appeal
To be effective:
Feared stimulus must be
of medium intensity
enough to motivate
action but not so intense
that the individual tunes
out the ad
A clear solution must be
offerede.g., use

Listerine to avoid
tooth loss due to
gingivitis

Repetition
Celebrity endorsements
Lars Perner, Instructor 12

The Elaboration Likelihood Model and Likely

Effectiveness of Celebrity Endorsements

Product
important or
expensive?
Low
elaboration

Yes
High
elaboration

No

Yes

No

Celebrity
endorsements
more likely to be
effective
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Is endorser
congruent with
product
endorsed?

Unlikely to be
effective
PROMOTION

More likely
to be
effective
Lars Perner, Instructor 13

Executing The Advertising Program

Pre-testing
Several story boards or actual ads are created
Ads are tested on consumers
Instant response technologies (consumers either rate
approval or have physiological measures taken throughout
an ad duration

The best performing ad or ads are chosen subject

to constraints imposed (e.g., need to specify a
certain message or use certain types of models)

Possible redesign
Carrying out advertisement
Full service agencies
Limited service agencies
In-house

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PROMOTION

Lars Perner, Instructor 14

Advertising Intensity and Return --A

Typical Relationship
Response (e.g., sales, recall)

The S-Shaped Curve

1
0.8
0.6
h

0.4

l y es
e
v
i ven
t
a
l c ti
e
R ffe
e
h
g
i

Saturation
Point

Too little to do
much good

0.2
0

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5
10
15
Amount of Advertising Spending

PROMOTION

20

25

Lars Perner, Instructor 15

Sample Exam Question

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PROMOTION

Lars Perner, Instructor 16

Measuring Advertising Effect

Several possible criteria:

Scanner data

Individual TV exposure can be

matched against actual purchases
Available only for grocery products

Increase in sales

Lab studies:

(but it may be
impossible to separate effects of
different simultaneous ads)
Recall
Attitude toward product
Preference

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PROMOTION

Lars Perner, Instructor 17

Japanese AdvertisingUse of animation

and cartoon characters

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PROMOTION

Lars Perner, Instructor 18

Breaking Through the Clutter

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PROMOTION

Lars Perner, Instructor 19