Promotion

MKTG 201
Semester 1, 2010
Sandy Bennett

Overview

The Marketing Communication process

Compare/Contrast the Promotional Mix elements
Push & Pull Promotion
Integrated Marketing Communications
Promotion over the PLC

Promotion
Promotion
The creation and maintenance of
communication with target markets.
Marketing communication
A term for promotion that refers to
communicating a message to the
marketplace.
Objectives:

The marketing communication

process

Elements of the Communication Process

Source - the sender of a message
Encoding - the source deciding what to say and translating
it into words or symbols that convey meaning
Message channel - the carrier of the message
Decoding - the receiver translating the message
Receiver - the potential customer
Noise - any distraction that reduces the effectiveness of the
communication process

The Promotion Mix

Combinations of methods used to
promote a product (includes ideas)
Advertising
Public Relations
Sales Promotion
Personal selling

Advertising
Advertising
The transmission of paid messages
about an organisation, brand or
product to a large audience.
Benefits: Reaches many people at
relatively low cost per person
Limitations: Difficult to measure
effectiveness, and can be very
expensive depending on the medium

Jerry Seinfeld Greater Building

Society Commercial

Greater Building Society

Creating an advertising
campaign
Key steps in creating an advertising
campaign:
1. Understand the market environment
2. Know the target market (audience)
3. Set specific objectives
4. Create the message strategy
5. Allocate resources
6. Select media
7. Produce the advertisement
8. Place the advertisement
9. Evaluate the campaign.

Public relations
Public relations
Communications aimed at creating and maintaining
relationships between the marketing organisation
and its stakeholders.
Effective PR messages are timely, engaging,
accurate and in the public interest.

Benefits:

Credibility, resulting word-of-mouth,

low or no-cost, may effectively combat negative
perceptions or events.

Limitations: May be difficult to control

Public relations
Marketers can generate good public relations
through:
Publicity (e.g. Gaining news coverage)
Written communications with stakeholders
(e.g. annual reports)
Sponsorship (e.g. ASB is a Polyfest
sponsor)
Involvement in charitable donations or
acts.
Another role of PR is to be reactive,
countering negative publicity. In an economic
downturn, many organisations become more
subject to negative media coverage.

Product recall and public relations

Mattel

Queensland government and local

tourism industry public relations
campaign

Tourism Queensland

Sales promotion
Sales promotion
Offers of extra value to resellers,
salespeople and consumers in a bid to
increase sales.
Used irregularly to smooth demand
Rewards the sale of companys
products
Limitations: Can lose effectiveness if
overused, easily copied, public becoming
increasingly cynical about whether they
are being offered real value.

Sales Promotion - Types of Sales

TRADE ORIENTED
Promotion
Trade allowances

CONSUMER ORIENTED
Free samples
Premium offers
Loyalty programs
Coupons
Rebates
Discounts
Samples
Contests
Point of purchase
promotions

Price deals
Gifts and premium
money
Cooperative
advertising
Dealer listings
Trade shows etc

Personal selling
Personal selling
Personal communication efforts that
seek to persuade consumers to buy
products.
Expensive, high-involvement or
industrial products favour personal
selling
Benefits: Can be specifically tailored to
individuals, so has greater influence than
advertising, sales promotions and PR
strategies.
Limitations: Expensive, limited reach,
labour intensive, time-consuming, lack of
uniformity.

How important is personal

selling to your organization?

Story Bridge Adventure Climb

Personal selling model

INPLCF:
Information
Needs
Product
Leverage
Commitment/close
Following up

Push and pull policies

Push policy
An approach in which a product is
promoted to the next institution in
the marketing channel.
Pull policy
An approach in which a product is
promoted to consumers to create
demand through the marketing
channel.

Push or Pull?

Telstra Bigpond, Patrick and Daniel

campaign

Additional forms of
promotion
Ambush marketing
The presentation of marketing
messages at an event that is sponsored
by an unrelated business or a
competitor.
Product placement
The paid inclusion of products in
movies, television shows, video games,
songs and books.
A plug
When the media overtly promotes a
product within a program rather than
as a separate advertisement.

Additional forms of
promotion
Guerrilla marketing
The use of an aggressive and
unconventional marketing approach.
Viral marketing
The use of social networks to spread
a marketing message.

What promotion methods do you

use for a B2B manufacturing
product?

Simon Bottomley, General Manager, HaveStock

Manufacturing

Promoting a hotel

Neil Paterson, Director of Sales and Marketing, Sofitel Gold

Coast

Integrated marketing
communications
Integrated marketing
communications (IMC)
The coordination of promotional
efforts to _________the
communication effect.
The goal is the _________ send the
most effective possible message to
the target market

A consistent advertising
platform: Virgin Blue

Virgin Blues television advertising campaign

Integrating promotion mix

elements
Marketing organisations have different
promotional needs and finite financial
and other resources, so must choose
from options in the promotion mix.
Those with ______ promotion budgets
usually use ______ strategies.
______ budgets will rely on ______,
simpler strategies.
The promotion mix should change over
time (PLC).

Promotion and the PLC

Introduction
Objective:

Growth Stage
Objective:

Promotion and the PLC

Maturity Stage
Objective:

Decline
Objective:

Looking Back

The Marketing Communication process

Compare/Contrast the Promotional Mix elements
Push & Pull Promotion
Integrated Marketing Communications
Promotion over the PLC