Communications Strategy

Managing communications mix Ior

products, brands
Advertising and sales promotion
strategy - campaigns
ey Factors to Consider Promotion strategy
should be developed to Reach your target
market Meet your goals and objectives
Tailor Promotion Strategy to
Specific Objective:
%o provide inIormation about the
product/service
%o stimulate demand
%o diIIerentiate product/ service or build brand
image
%o counter competitors
%o respond to news
PROMOTIONAL
STRATEGY
Pushing and Pulling Strategies
Pushing strategy relies on personal selling to market an
item to wholesalers and retailers in a company's
distribution channels. Companies promote the product
to members oI the marketing channel, not to end users.
Pulling strategy Promote a product by generating
consumer demand Ior it, primarily through advertising
and sales promotion appeals. Potential buyers will
request that their suppliers retailers or local distributors
carry the product, thereby pulling it through the
distribution channel.
Most marketing situations require combinations oI
pushing and pulling strategies, although the primary
emphasis can vary.
Promotional
Mix
Promotional
Mix
Personal selling
techniques
Non-Personal
selling
techniques
Non-Personal Selling:
Advertising,
Sales promotion,
Public relations, and
Sponsorships.
Personal Selling
nterpersonal promotional process involving a
seller's Iace -to-Iace presentation to a
prospective buyer.
Promotion Strategy
Promotion Strategy is nitiating and
maintaining a Ilow oI communications
between a company (brand) and ts market
targets.
Promotion
Strategy
Advertising
Strategy
Sales Promotion
Strategy
PRO MO%ON S% RA%
%he Composition oI Promotion Strategy
Developing a Promotion Strategy
Communications Objectives
Deciding the Role oI the Promotion components
Determining the Promotion Budget
Promotion Component Strategies
ntegrating and mplementing the Promotion
Strategy
IIectiveness oI Promotion Strategy
OMMUNIATION
OB1ETIVES
ROLE OF PROMOTION
OMPONENTS
PROMOTION
BUDGET
PROMOTION OMPONENT
STRATEGIES
oordination
with Product,
Distribution,
and Price
Strategies
DESIGNING THE PROMOTION STRATEGY
Advertising Sales Promotion Public Relations Personal Selling Direct Marketing Interactive/ Internet
Marketing
MARKET TARGETING AND POSITIONING
STRATEGIES
INTEGRATE AND IMPLEMENT PROMOTION
OMPONENT STRATEGIES
EVALUATE EFFETIVENESS OF
PROMOTION STRATEGY
COMMUNCA%ON OBJC%'S
Finding Buyers
Brand Building
valuation oI Alternatives
Decision to Purchase
Customer Retention
Deciding the Role oI the Promotion Components
xpected contribution Ior each oI the promotion
components.
Which communication objective(s) will be the
responsibility oI each component?
What part oI the budget will go to each component?
DCDN % ROL OF % PROMO%ON COMPONN%S xpected
contribution Ior each oI the promotion components. Which communication
objective(s) will be the responsibility oI each component? What part oI the budget
will go to each component? Factors uiding the Role Assigned to ach Component
Market %arget(s) Desired Positioning Role oI Promotion in Positioning Product
Characteristics Stage oI LiIe Cycle Situation SpeciIic Factors Budgeting Methods
Features Limitations Percent oI sales Percent oI sales Fixed percent oI sales, oIten
based on %he method is very arbitrary. Budget may past expenditure pattern. be too
high when sales are high and too low when sales are low. Comparative parity
Comparative parity Budget is based largely upon what DiIIerences in marketing
strategy may competition is doing. require diIIerent budget level. Objectives and
%ask Objectives and %ask Set objectives and then determine %he major issue in
using this method is task(and cost) necessary to meet the deciding the right
objectives so objectives. measurement oI result is important. ntegrating and
mplementing Promotion Strategy : ntegration Challenges Avoiding Iragmentation
DiIIiculty in evaluating productivity DiIIerences in priorities Separate
organizational units Assigning integration responsibility Promotion Strategy ssues
xpense/Response Relationships Allocation mpact on Brand quity ntegration oI
Promotion Components valuating IIectiveness
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Setting Objectives and Budgeting
Creative Strategy
Media/Programming Strategy
Role oI the Agency
Program mplementation and
IIectiveness
Determining Advertising Objectives
Does the advertising aim at immediate sales?
Does the advertising aim at near-term sales?
Does the advertising aim at building a long-range consumer
Iranchise?
Does the advertising aim at helping increase sales?
Does the advertising aim at some speciIic step that leads to a sale?
ow important are supplementary beneIits oI advertising?
Should the advertising impart inIormation needed to consummate
sales and build customer satisIaction?
Should advertising build conIidence and goodwill Ior the
corporation?
What kind oI images does the company wish to build?
MDA SCDULN DCSON
Scheduling reIers to the pattern oI advertising
timing, represented as plots on a yearly
Ilowchart. %hese plots indicate the pattern oI
scheduled times advertising must appear to
coincide with Iavorable selling periods.
%he classic scheduling models are
Continuity,
Flighting and
Pulsing.
Continuity
%his model is primarily Ior non-seasonal
products, yet sometimes Ior seasonal products.
Advertising runs steadily with little variation over
the campaign period.
%here may be short gaps at regular intervals and
also long gapsIor instance, one ad every week
Ior 52 weeks, and then a pause.
%his pattern oI advertising is prevalent in service
and packaged goods that require continuous
reinIorcement on the audience Ior top oI mind
recollection at point oI purchase.
Flighting (or "bursting")
n media scheduling Ior seasonal product
categories, Ilighting involves intermittent and
irregular periods oI advertising, alternating
with shorter periods oI no advertising at all.
For instance, all oI 2000 %arget Rating
Pioneered in a single month, "going dark" Ior
the rest oI the year. alloween costumes are
rarely purchased all year except during the
months oI September and October.
Pulsing
Pulsing combines Ilighting and continuous
scheduling by using a low advertising level all
year round and heavy advertising during peak
selling periods. Product categories that are sold
year round but experience a surge in sales at
intermittent periods are good candidates Ior
pulsing.
For instance, under-arm deodorants, sell all
year, but more in summer months.
Determ|n|ng the romot|on 8udget
ercent of Sa|es
Io||ow the
Compet|t|on
Cb[ect|ve and 1ask
A|| ou Can Afford
8udget|ng Approaches
Percent of Sales
Fixed percent oI sales, oIten based on past
expenditure patterns.
omparative Parity
Budget is based largely
upon what competition is doing.
Objective and Task
Set objectives and then determine tasks
(and costs) necessary to meet the
objectives.
Percent of Sales
%he method is very arbitrary. Budget may be
too high when sales are high and too low
when sales are low.
omparative Parity
DiIIerences in marketing strategy may
require diIIerent budget levels.
Objective and Task
%he major issue in using this method is
deciding the right objectives so measurement
oI results is important.
Features Limitations
Budgeting Methods
ntegrating and mplementing Promotion Strategy
Avoiding Iragmentation
DiIIiculty in evaluating productivity
DiIIerences in priorities
Separate organizational units
Assigning integration responsibility
Promotion Strategy ssues
B xpense/Response Relationships
B Allocation
B mpact on Brand quity
B ntegration oI Promotion Components
B IIectiveness oI the Strategy
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$0tting Obj0.tiv0s and Budg0ting
Cr0ativ0 $trat0gy
M0dia/$.0duIing D0.isions
RoI0 of t0 Adv0rtising Ag0n.y
Program ImpI0m0ntation and M0asuring
Eff0.tiv0n0ss
Advert|s|ng Strategy
1arget Aud|ence
Advert|s|ng Cb[ect|ves
Advert|s|ng 8udget
Creat|ve Strategy
Advert|s|ng Med|a and rogramm|ng
Schedu|es
Lva|uate the Lffect|veness of the Strategy
Expos0 .ommuni.ation to targ0t
audi0n.0
Cr0at0 awar0n0ss
Cang0 attitud0s)
In.r0as0 $aI0s
G0n0rat0 profits
Advert|s|ng Cb[ect|ves
In.r0asing Un.0rtainty
About Impa.t on
Pur.asing B0avior
In.r0asing Diffi.uIty
of M0asur0m0nt
Typ0 of Obj0.tiv0
Exposure
Awareness
Attitude
Change
Sales
Profit
A|ternat|ve Leve|s for Sett|ng Advert|s|ng Cb[ect|ves
8udget Determ|nat|on
C8ILC1IVL AND 1ASk ML1nCD nAS 1nL MCS1 SUCk1
M0dia/
$.0duIing
D0.isions
Cr0ativ0
$trat0gy
Budg0t
D0t0rmination
roducL ulsLrlbuLlon rlce romoLlon
AdverLlslng
(Pow Lo communlcaLe lnLended
poslLlonlng Lo buyers and oLhers
lnfluenclng Lhe purchase)
CreaLlve SLraLegy
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1he creaLlve sLraLegy ls gulded by Lhe markeL LargeL and
Lhe poslLlonlng sLraLegy
rovlde a unlfylng concepL LhaL blnds
LogeLher Lhe varlous parLs of Lhe
adverLlslng campalgn
Med|a]Schedu||ng Dec|s|on
B T0I0vision
B Radio
B Magazin0s
B OnIin0
B 0bsit0
B Outdoor
Advert|s|ng Agenc|es |n erspect|ve
ast .ang0 as .om0 to t0 adv0rtising industry.
Hug0 int0grat0d ag0n.i0s fa.0 a .aII0nging futur0.
Do .Ii0nts want a fuII-s0rvi.0 ag0n.y?
T0 busin0ss mod0I is in n00d of .ang0.
T0 basis of .omp0nsation .ontinu0s to b0 d0bat0d and aIt0r0d.
$p0.iaIists 0.g. m0dia buying s0rvi.0s) ar0 b0ing us0d.
ImportantIy t0 .or0 of t0 .r0ativ0 pro.0ss is t0 ag0n.y.
$0v0raI m0tods ar0 avaiIabI0 to 0vaIuat0 adv0rtising r0suIts.
Advert|s|ng Agency
ko|e of the Advert|s|ng Agency
1arget Aud|ence
Advert|s|ng Cb[ect|ves
Advert|s|ng 8udget
Creat|ve Strategy
Advert|s|ng Med|a and
rogramm|ng
Lva|uate the Lffect|veness of the Strategy
Advert|s|ng Strategy Imp|ementat|on and Lffect|veness
Dec|de how to measure effect|veness before |mp|ement|ng
the strategy
Ass|gn respons|b|||ty for track|ng performance
Assess|ng the qua||ty of advert|s|ng |s |mportant
Lxposure to advert|s|ng |s not a very sens|t|ve measure of
effect|veness
Severa| methods are ava||ab|e to eva|uate
advert|s|ng resu|ts
MEA$URING
ADVERTI$ING
EECTIVENE$$
Rating
$0rvi.0s
$aI0s and
Exp0ns0 AnaIysis
T0st
Mark0ting
ControII0d
T0sts
R0.aII
T0sts
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cons|sts of var|ous |ncent|ves most|y short term
|ntended to st|mu|ate qu|cker and]or greater purchase
of part|cu|ar goods]serv|ces by consumers or the trade
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S%RA%
FA%UR
Consumers hate the hassles, companies love unredeemed rebates, and regulators are
investigating the consumer complaints.
As much as 40 oI rebates never get redeemed.
Some 400 million rebates are oIIered each year with a total value oI $6 billion.
Unclaimed rebates translate into more than $2 billion oI extra revenue Ior retailers and
their suppliers each year.
Complex Iiling rules and long delays discourage consumers.
Companies emphasize the Iiling processes are intended to discourage Iraud.
%he largest rebate processor monitors 10,000 addresses suspected oI submitting bogus
rebates.
Rebates oIIer companies an opportunity to promote small discounts without marking the
products down.
Rebates have become very popular with computer and consumer-electronics companies.
1he 8eallLles of Mallln
8ebaLes
%he value oI rebates has also increased.
Regulators are intensiIying their scrutiny oI the companies oIIering rebates.
%he developing back-lash against rebates is pushing some companies to halt rebate
strategies.
Others are encouraging online Iiling.
FulIillment houses are revising their processing systems, using computer technology to
validate claims.
Consumers would like mail-in rebates to go away but want the best price they can get.
Source 8rlan Crow 1he CreaL 8ebaLe 8unaround" 8uslnessWeek uecember 3 2003 34 36 and 37
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Consum0r
Buy0rs
$aI0sp0opI0
Busin0ss
Buy0rs
VaIu0 Cain
Sa|es romot|on Act|v|t|es and 1argets
AcLlvlLles lnclude Lrade shows speclalLy
adverLlslng conLesLs dlsplays coupons
recognlLlon programs and free samples