Marketing Week 8: Promotion

a combination of promotional methods used to promote a specific product or organisation.

Define promotion mix

Intro: the marketers are focused on targetting the early adopters so they may choose channels to do more target communication and the content is about communicating the features of the product. This may include encouraging product trial so samples or coupons may be administered. Promotion expenditure is heavy growth: Competitors emerge so a marketer may need to target a broader audience. Mass communication is offered, mass-market awareness of the brand benefits. Promotion expenditure is moderate and it is used to create brand preference. maturity: Number of comps are stable everyone offers, so main purpose for promotion is to encourage brand switching and build up brand loyalty. Promotion costs are moderate and expenditure is high. decline: fewer comps and the emphasis on promotion is low to reduce stock, the phase-out of a product.

How does the product life-cycle affect the promotion strategy?

1. Product placement: the paid inclusion of products in movies, tv shows, videos games, songs and books. The audience is pre-segmented according to the audience's content, easier to reach the target market. subtle but effective. It is most effective when the audience does not realise they are utilising product placement. 2. Sponsorship: the paid association id a brand with an event or a person. Olympic partnership 3. Ambush marketing: the presentation of marketing messages at an event that is sponsored by an unrelated business or a competitor. They take adavnatge of the publicity provided by a major event to create awareness for its product without formal sponsorship. Example: Holden airship flew over many events without being a sponsor. 4. Viral Marketing: The use of social networks to spread a marketing message. Can be quick to go viral. 5. Permission marketing: Marketing that aims to build an ongoing relationship with customers ex: options to opt-in for newsletters of special offers. This shows respect to customers and shifts the power, the can more effectively communicate with the right customers. Guerilla Marketing: using an aggressive and unconventional marketing approach to attract potential customers to attract attention. ex: graffiti on the sidewalk.

What are 6 additional forms of promotion?

Push policy: This approach is an approach where the product is promoted to the next organisation down the marketing distribution channel, for example: a producer promotes a product to wholesaler, wholesaler to retailer and then the retailer to the consumer. More concerned with short-term sales Pull policy: A pull policy is an approach where the producer promotes its products to consumers, usually through advertsing or sales promotion. this generates upward demand. The consumer is informed about a product, enquires to the retailers, retailer asks supplier, suppliers then seek out the product. More concerned with long-term brand loyalty. Alternatively, a cooperative advertising campaign may be undertaken, where a producer and retailer promote the product to a target market.

What are push and pull channel policies and how can they affect the choice of promotional strategy?

There are restrictions on what can be advertised and how -deceptive or exaggerating ads -ads towards children -advertising harmful products -comparative ads They should check with the ACCC and what is stated under the Australian consumer law.

What are some of the legal issues in advertising?

1. understand the market environment: including micro, macro environment 2. know the target market (audience) what their characteristics are, this is important so they can create an effective advertising campaign. May involve collecting georgraphic, demographic, psychological and lifestyle attributes. 3. set the specific objectives: what they want to achieve, needs to be clear and measurable. ex: the increase in brand awareness. 4. create the message strategy: the need to highlight attributes of the product as well as of the target audience. Message needs to stand out. They need to consider... - rational appeal (factual info surrounding the product) -emotional appeal (stirs emption ex: anti-smoking ads) -moral appeal (relies on the sense of what is wrong and what is right) 5. Allocate resources: setting advertising budget, they must consider the size of the market, how fast or slow moving is the product, what are the industry norms, what is the company's position within the market 6. Select Media, what media channels will be used. These forms may be... - television 📺 (free to air, pay tv) - radio - internet (brand or product website, company website, advertising on other sites, search engine optimisation) 7. Produce the ad 8. PLace the ad 9. Evaluate the campaign, before, during or after the campaign, they may use sales data comparison to estimate the effectiveness of a campaign. They may measure an audiences recognition of a product.

What are the 9 steps of an advertising campaign?

- television 📺 (free to air, pay tv) (Adv free to air)Mass audience, low cost per reached, advertsing content cab be presented as part of the program (dis) free to air: very expensive to produce and air in total, competing for the attention. of viewers as there is a lot of competing ads, impossible to customise message. (adv pay tv) large audience or specialised niche audience depending on the station ex: the cooking channel, advertising content can be presented as part of the program. (dis pay tv) very expensive to produce and air, viewers become increasingly immune to ads and or using technology, impossible to skip messages. - radio (adv) mass audience, potentially low production costs, advertising conetent can be presented as part of the program (dis) very expensive to produce on air, viewers become increasingly immune to ads and they may skip, impossible to customise message. - internet (brand or product website, company website, advertising on other sites, search engine optimisation) (adv of company website) can be cheap, easily updated, no competing messages on the site and can be tailored and interactive. (dis) need to attract audience to the website, often these websites perform multiple different functions. E-mail (adv) cheap, specific and opt-in (dis) very easy to ignore, very difficult to measure effectiveness

What are the different advertising media options available for marketers? And what are their advantages and disadvantages?

An effective promotion mix requires the right combination of components of... - resources, objectives and policies (budget, goals and stage of the product life cycle) -characteristics of the target market (the size, geographic dist and demographic characteristics) -characteristics of the product: the price and personal nature of the product -cost and availability of promotional methods: some more expensive than others -push and pull channel policies

What are the different components that must be considered before utilising a promotion mix?

Objectives of promotion should support the organisation's overall marketing objectives.... -create awareness -encourage product trial (done through persuasive info or samples) ex: Spotify premium trial for 7 days -encourage repeat purchases and retain existing customers (reinforce the brand or product, loyalty programs are widely used for chain restaurants, cinemas, alternatively they may use reminder adds, or they may use reinforcement adds to reduce the potential for cognitive dissonance to occur) - stimulate demand (discounts or coupons or text message or e-mail to communicate new offerings, discounts or coupons) Better offerings during off-peak seasons and times. Ex: Cheap Tuesdays at the Classic Cinema at Elsternwick. - Build positive associations with an organisation and its products: marketers often engage in charitable activities or sponsorships or they claim that their products are ethical and environmentally friendly. Real Estate agents sponsor local schools by providing them with sales boards. sends out their brand as well as building positive associations. -Facilitating reseller support: effective promotional efforts can increase the level of support that is offered by retailers. ex: when a product is more desirable it is more likely they will be prominently displayed in retail stores and there will be more intense person selling by the retail staff. Retailers and producers may coordinate marketing activities to increase sales for both products. Ex: Coca-Cola gained support from Mcdonalds, win-win situation from both parties. ...Promotional activities should be consistent with the rest of the marketing mix.

What are the different objectives of promotion?

1. info gathering 2. identifying needs 3. presenting the product and stimulating interests 4. leverage, highlighting the comparative and competitive advantages 5. commitment or close, asking the prospect to make the purchase decision. 6. follow-up, reducing post-purchase dissonance.

What are the steps to personal selling?

1. Advertising: Strengths: able to reach a lot of people, cost-effective per exposure Weaknesses: difficult to measure effectiveness, limited personalisation. 2. Public Relations: Strengths: Credible and low or no cost Weaknesses: Rejection from news media and cynical viewers 3. Sales Promotion: Strengths: Smooth out sales, facilitate retail support Weaknesses: Can lose effectiveness if overused and it can be easily copied. 4: Personal selling: Strengths: Personalised message Weaknesses: expensive and has a limited reach

What are the strengths and weaknesses of the 4 traditional forms of promotion?

The concept of a company integrating and coordinating its various communication channels to deliver a clear and consistent message about the org or for its products. This gives maximum impact. NO PART OF THE PROMOTION MIC SHOULD BE DONE IN ISOLATION.

What is IMC (Integrated marketing communication)?

Advertising is a form of paid, non-personal communication about an organisation, brand or product to a mass audience.

What is advertising and when is it used?

Promotion is the marketing communication process, designed to create and maintain communication with the target markets. promotion can be are we selling the right products, to the right people at the right time. Promotional activities include 1. advertising 2.public relations 3. sales promotions 4. personal selling

What is promotion?

A media activity that marketers use to create and maintain relationships between the marketing organisation and its stakeholders. used to... -generate positive publicity - used to counter poor publicity and goodwill towards an organisation -should not be seen as tools that are only to be used in times of crisis

What is public relations? and when is it used?

Publicity is the exposure a marketing organisation receives when it obtains free coverage in the media. Approaches and methods may include, media release, press conference, sponsorship and charitable donations or acts. Publicity increases consumer awareness.

What is publicity?

Refers to short-term incentives to encourage consumers to purchase a product or encourage resellers to stock and sell a product. Buy now sales promotion methods include -free samples -premium offers -loyalty programs -contests -discounts -rebates -event sponsorship Trade sale sponsorship are the sales promotion tools that marketers use towards wholesalers and retailers. -conventions and trade shows -sales contests -cooperate advertising trade allowances

What is sales promotion and when is it used?

1. A message is encoded and sent by a sender or a source, via a message channel to a reviver or target audience 2. The receiver or target audience decodes the message and responds by some form of feedback. -Anything that interferes with the effectiveness of the communication process is referred to as noise. ex: poor reception on your mobile phone. Noise can also originate in the receiver, example the receiver not checking their e-mail or not understanding a concept that the marketer is trying to convey. -the communication process is also influenced by the 'fields of experience', this is what the receiver or target audience knows about each other and how that influences the ways they encode and decode messages. Marketers must try to recognise these fields of experience because the encoded message may be decoded in a different way to what they may have intended) 1. sender (source) (person or org) they must have a message they want to communicate 2. encoding (can be done through verbal or non-verbal communication like speaking or jingles)They must encode meaning through signs, symbols or text, marketers must consider who it is their receiver is to plan for how they will encode a message. 3. message 4. media channel (include mass media platforms) carries the encoded message from the sender to the receiver. 5. decoding (the same message is then decoded, converting the signs and symbols back into concepts or ideas) 6: receiver 1. receiver (audience, target market) 2. enoding 3. response (may be immediate, alternatively it may take some time (normally through mass marketing-coming through back as reviews or behaviour) 4. feedback (may be communication or behaviour, Ex, a change in consumer behaviour) 5. decoding 6. sender

What is the Marketing communication process?

-moral -emotional -rational

When a marketer is creating a message strategy what are the different message appeals they may choose from>

Push policies would be used when a product is more likely to be purchased at the retail store Pull strategies should be favoured when a consumer is more likely to think about the product independently (away from the store environment)

When should push policies and pull policies be utilised?

-product placement -sponsorship -viral marketing -permission marketing -ambush marketing -guerilla marketing

what are additional forms of the promotion mix?

- advertising -public relations -sales promotion -personal selling

what are the 4 traditional elements of the promotion mix?

Personal communication efforts that seek to persuade consumers to buy products. -this is very precise -closest relationship with customers -provides the greatest freedom to adjust the message -usually the most expensive -two way personal communication - good for prices with high involvement or unsought products.

what is Personal selling and when is it used?