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 company’s
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
Promotion TRADE ORIENTED
CONSUMER ORIENTED – Trade allowances
– Free samples – Price deals
– Premium offers – Gifts and premium
– Loyalty programs money
– Coupons – Cooperative
advertising
– Rebates
– Dealer listings
– Discounts
– Trade shows etc
– Samples
– Contests
– Point of purchase
promotions
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 Blue’s 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