Chapter 13- Promotion 1

Saturday, September 29, 2018 12:32 PM

Update!

LO1 Communications, Promotion Mi

Marketing Communication
• Aims to either inform, remind, persuade, or bui
relationship.
• Integrated marketing communication (ICM) involv
planning, execution, and evaluation of coordina
brand Communication programs over time to targe
audiences.
○ Aim is to deliver consistent messaging acros
platforms.
(Some) message characteristics
• In the "always on" Digital world, IMC uses
multichannel promotion that combines traditiona
marketing communication with social media and o
online activities.

Communication models

Broad me
ix

ild

ved the
ated
et

ss

al
other

edia advertising
 Broad me
Consumer
Public r

Personal
Direct ma
Telemarke
Direct ma

Social media
User to user
Amplified WOM

Communication process
edia advertising
r sales promotion
relations

selling
ail
eting
arketing
Sources
• Consumers are more likely to accept the message
the spokesperson:
○ Is likable
○ Is attractive
○ Is trustworthy
○ Has expertise

• Even color and font carries a message. All thes

should be coordinated to reinforce the brand.
○ Intensity- more intense means more attention
therefore more comprehension.
○ Color- Colors carrying meaning.
○ Font- fonts carry meaning.
○ Numbers (codes)-Nissan Z, Mazda R8.
○ Spacing- interval between repeat.

Color
e if

se

n,
Color

Simplicity/ complexity

• Simple phrases such as "fat free" often communi

more clearly than detailed information.
• But, sometimes details work.
• Here is John Caples' classic ad written for the
Music School, which employs a storyline appeal.
• It is so effective because it answers Q every
individual's need for attention and recognition

Message receivers

• Know your audience

icate

e U.S.
.

n too."
Message receivers

• Know your audience

○ Intelligence/ ability
○ Prior knowledge
○ Involvement
○ Familiarity/ Habituation
○ Expectations
○ Physical limits
○ Brain dominance

Promotional mix
• Promotion mix is the communication elements the
marketer controls.
○ Mass (one-to-many) Communication includes
advertising, sales promotion, and public rel
○ Personal (one-to-one) Communication includes
personal selling, and direct marketing.
e

lation.
s
Simplicity/ complexity

• Simple phrases such as "fat free" often communi

more clearly than detailed information.
• But, sometimes details work.
• Here is John Caples' classic ad written for the
Music School, which employs a storyline appeal.
• It is so effective because it answers Q every
individual's need for attention and recognition

Message receivers

• Know your audience

○ Intelligence/ ability
○ Prior knowledge
○ Involvement
○ Familiarity/ Habituation
○ Expectations
○ Physical limits
○ Brain dominance

Promotional mix
• Promotion mix is the communication elements the
marketer controls.
○ Mass (one-to-many) Communication includes
icate

e U.S.
.

n too."

e
Promotional mix
• Promotion mix is the communication elements the
marketer controls.
○ Mass (one-to-many) Communication includes
advertising, sales promotion, and public rel
○ Personal (one-to-one) Communication includes
personal selling, and direct marketing.

Control vs. credibility

• There is a trade off between message control an

perceived credibility.

LO2 Promotion Planning Steps

e

lation.
s

nd
LO2 Promotion Planning Steps

Promotion planning process

1.Target audiences

• Often you communicate not just to consumer but

others. Other stakeholders influence consumers
may require different messages.
and
• Often you communicate not just to consumer but
others. Other stakeholders influence consumers
may require different messages.

2. Objectives

• Creating a new customer occurs as a result of a

series of messages.
• Messages are designed change behavior by moving
consumer closer to purchase, and hopefully, loy
This is called the hierarchy of effects.
 and

g the
yalty.
3. Budget
• Decision 1: set a total marcomm budget.
○ Top-down(% of sales, competitive parity) or
up (ROI)
• Decision 2: decide on a push or pull strategy.
○ Channel (push through docs) or a direct to
consumer (DTC, pull from consumers)
○ Pharma does both
• Decision 3: Allocate spending to specific activ
 bottom

vities.
4. Promotional mix

• Designing promotional mix involves:

○ Channels to be used
○ What promotional tools to be used.
○ Specifying message to be communicated.
• Communication goals (AIDA model)
○ Attention
○ Interest
○ Desire
○ Action

5. Evaluation
 ○ Interest
○ Desire
○ Action

5. Evaluation

• Several ways to monitor and evaluate Communicat

efforts.
• Sales promotions are the easiest to evaluate as
often occur over a fixed, short period and requ
identification (e.g. Coupons).
• Advertising has delayed effects, more difficult
link sales.
• Brand awareness, recall of product benefit, Ima
typical ad campaign measures.
• Attribution models are current "hot topic."

Multichannel promotions

• Part of the ICM concept is to have messaging in

multiple channels (see LO1 for channels) that
coordinate and reinforce the behavior goal.
• Combination of traditional advertising, sales
promotion, public relations, and direct marketi
activities with social media activities can be
○ Boosts effectiveness of either online or off
used alone.
○ Allow marketers to repeat the message across
various channels.

LO3 Advertising
Advertising defined
• Advertising is non-personal Communication from
identified sponsor using mass media.
tion

s they
uire

t to

age are

ing
used.
fline

an
Advertising defined
• Advertising is non-personal Communication from
identified sponsor using mass media.
○ Practice dates to ancient Greece and Rome (a
with flyting, as we saw last class, those
Greeks!).
• Changes in media landscape have slowed growth o
traditional advertising.
• But mass communications remains look best way t
reach a large audience.

Types of Advertising

Ad Campaign process
• Most companies, even small ones using ad agency
help them design their ads and IMC.
 an

along

of

to

y to
3. Creating ads
• Ads that are usually part of a larger campaign
coordinated plan that carries out promotional
objectives. This results in a series of ads pla
various media overtime.
• Most firms hire outside agencies:
○ Limited-service agency
○ Full-service agency
• Agencies pool services of many different groups
people:
○ Account management
○ Creative services
○ Research and marketing services
○ Media planning

User generated content

• User generated content (UGC) include some milli
product-related comments, reviews, Photos, imag
 mama a

aced in

s of

ions of
ges,
User generated content
• User generated content (UGC) include some milli
product-related comments, reviews, Photos, imag
and videos posted online by consumers
• Some marketers (e.g. Doritos, Ford fiesta) enco
consumers to contribute they're own DIY ads.
• But this can have unexpected results. Canadian
broadcasting corp. Show as listeners to complet
simile:
○ As American as apple pie
○ As Canadian as

Terms
• Creative strategy is the process that turns a c
into an advertisement.
• A creative brief is a guideline or blueprint fo
marketing communication program that guides the
creative process and is a summary the results o
creative strategy.

Ads appeal type

Ad's appeal Content format Ad's Ton

Informational Comparison Straightfor
Emotional Demonstration Dramati
Unique value Testimonial Romantic/S
Reminder Slice of life Fear
Teaser/Mystery Lifestyle Humor
ions of
ges,

ourage

te the

concept

or the
e
of

ne
rward
ic
Sexy
 Teaser/Mystery Lifestyle Humor

4.Pretest
• Advertisers try to minimize mistakes by getting
reactions to ad messages before they actually p
them.
• Data from pretesting research may come from eit
quantitative (e.g., Focus groups) sources.
• Social media and rapid response has made this m
difficult in some channels.

Pretest- here's why (Dove)

• "it's unclear who created the ad. Olgivy & Math
handles much of the brand's creative work, but
Unilever also has moved considerable work,
g
place

ther

more

her
Pretest- here's why (Dove)
• "it's unclear who created the ad. Olgivy & Math
handles much of the brand's creative work, but
Unilever also has moved considerable work,
particularly for quick-turnaround Digital ads,
house to its U Studios"- AdAge
• "the content featured demonstrates the benefits
our Dove body wash for every type of skin. It o
100% gentle cleansers, is sulfate free, aneurys
number one dermatologist recommended. We are
committed to representing beauty of all ages,
ethnicities, shapes and sizes and to listen all
women's needs to create great products." -Dove

Mass Media
her

in-

s of
offers
sm

l
Newer Media
• Authenticated streaming- TV content delivered t
known device via Internet.
• Native advertising- mimic content of the medium
the ad appears.
• Mobile advertising- communicated to consumers v
handheld device
○ GPS-enabled phones allowed new ad opportunit
• Branded entertainment (product placement)- paid
placement within movies, TV shows, video games,
even retail settings and games (" advergaming")

Owned, Paid, Earned

to a

m where

via a

ties.
d
, and
)
Web advertising

• Us adults spend more time on mobile devices tha

• Target customers via:
○ Banners on buttons
○ Pop-up ads
○ Search engine
○ Permission email marketing [not really web]

Scheduling terms
an TV
Scheduling terms

• Media schedule- plan for what media to use and

• Reach- percentage of the target market exposed
medium.
• Frequency- average number of times a person in
target group will be exposed the message.
• Gross rating points- compares effectiveness of
different media.
• Cost per thousand (CPM)- is the cost to deliver
message to 1,000 people homes.

Types of schedules
• Eight continuous schedule maintain A steady str
advertising throughout the year. Usually done b
large brands.
• A pulsing schedule varies that the amount of
advertising throughout the year based upon when
product is likely to be in demand. Usually done
larger brands of seasonal products.
• Flighting is advertising that appears in short
with periods of little or no activity. Often us
smaller companies.

Examples media buy schedule

when.
to the

the

r a

ream of
by

n the
e for

bursts
sed by
LO4 Sales Promotion
Sales promotion defined

• Programs designed to build interest in, or enco

purchase of, a product during a specified perio
• Comparing sales promotion and advertising:
○ Both are paying promotional activities with
identifiable sponsors.
○ But, sales promotions typically have a more
immediate short-term objective (and are ofte
priced-based).

B2C sales promotions

ourage
od.

en
• Overuse of seal promotion has lead to higher de
seeking by many consumers.

Sales promotion globally

• To prevent the ruinous competition, in Europe,

promotion times (generally twice a year), lengt
and discounts are often set authorities.
• Some Asian countries also restrict promotions.
an example, Vietnam recently expanded times and
discounts.

B2B sales promotions

eal-

sales
ths,

But as
d