Introduction To Marketing
Dr Amelie Burgess
PROMOTION PART 1
INTRODUCTION TO MARKETING
Admin
• Test feedback:
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Referencing
PEEL
Definitions/explanations
Recommendations
• Quizzes
• Week 11 lecture
• Group Assignment
Learning objectives
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9.
Discuss the concept of integrated marketing communications (IMC)
Describe the communication process.
Explain the goals and tasks of promotion.
Discuss the elements of the promotional mix.
Identify factors that affect the promotional mix, and discuss the AIDA
concept and its relationship to the promotional mix.
Discuss the effect that advertising has on market share and
customers.
Identify the main types of advertising and the advertising campaign
process.
Describe media evaluation and selection techniques.
Define the objectives of sales promotion and the tools used to
achieve them.
The promotions mix
• Defined as the media and communication tools brands use in
order to communicate to audiences and fulfil objectives
• Broadly promotions function informing, persuading and
reminding
Promotional
strategy
Promotion
Communication by
marketers that informs,
persuades and
reminds potential
buyers of a product in
order to influence an
opinion or elicit a
response
A plan for the optimal
use of the elements of
promotion: advertising,
public relations, direct
marketing, personal
selling and sales
promotion
The University of Adelaide
Slide 4
Role of promotion in the
marketing mix
The University of Adelaide
Slide 5
The elements of the promotional mix
• A combination of promotion tools used to reach the
target market and fulfil the organisation’s overall goals
• The promotional mix includes:
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personal selling
direct marketing (direct-response marketing)
Advertising (television, radio, sometimes social media!)
sales promotion
public relations
social media
The University of Adelaide
Slide 6
Integrated marketing
communication (IMC)
The method of carefully coordinating all
promotional activities to produce a
consistent, unified message that is
customer-focused
The University of Adelaide
Slide 7
The communications
process
The Communications
Process
The University of Adelaide
Slide 8
The goals and tasks of promotion
Informative
promotion
Persuasive
promotion
Reminder
promotion
Seeks to convert an
existing need into a
want, or to stimulate
interest in a new
product
Designed to stimulate
a purchase or action
(e.g., to drink more
Coco-Cola or use
H & R Block)
Used to keep the
product and brand
name in the public’s
mind
The University of Adelaide
Slide 9
Promotion tasks and examples
• https://www.youtube.com/watc
h?v=HmI46TvcO14
• https://www.youtube.com/watc
h?v=4ij1I0OB2hk
The University of Adelaide
Slide 10
Media types
Paid media
Earned media
Owned media
Based on the
traditional advertising
model whereby a
brand pays for media
space
Based on public
relations or the
publicity model that
gets customers talking
about products or
services
Based on brands
becoming publishers
of their own content in
order to maximise the
brand’s value to
customers
How does each media type take shape in the digital
and non-digital environment?
Strategic criteria for selecting elements of
the promotional mix
The University of Adelaide
Slide 12
Factors affecting the
promotional mix
Nature of the product
Think back to week 5
Stages of the product life cycle
Target market characteristics
Type of buying decision
Week 3- consumer decision making
and Week 4 - segmentation
Availability of funds for promotion
Push and pull strategies
The University of Adelaide
Slide 13
Key Media Selection Decisions
Key media selection decisions:
• Media mix: the combination of media to be used for a promotional
campaign
• Cost per contact: is the cost of reaching one member of the target
market
• Reach: the number of target consumers exposed to a commercial at
least once during a specific period (usually four weeks)
• Frequency: the number of times an individual is exposed to a given
message during a specific period
• Audience selectivity: ability of an advertising medium to reach a
precisely defined market
• Attention: the ability of an advertising medium to drive results and to
actually be “attended to” by the audience
• Media diversity: multiple rather than singular channels and vehicles!
The University of Adelaide
Slide 15
Media scheduling
Media schedule: designation of the media, specific
publications or programs, and advertising insertion dates.
There are three types of media schedules:
1. Continuous media schedule: used for products in the latter
stages of the product life cycle; advertising is run steadily
throughout the advertising period (e.g. 1 ad per week all year –
good for non-seasonal products e.g. Weetbix)
2. Flighted media schedule: ads are run heavily every other month
or every two weeks to achieve a greater impact with an increased
frequency and reach (good for seasonal products e.g. “back to
school”)
3. Pulsing media schedule: uses continuous scheduling throughout
the year coupled with a flighted schedule during the best sales
periods (e.g. deodorant – all year round, but more in summer?)
The University of Adelaide
Slide 16
Product life cycle and the promotional
mix
The University of Adelaide
Slide 18
Push versus pull strategy
Push strategy
Pull strategy
Uses aggressive personal
selling and trade
advertising to convince a
wholesaler or retailer to
carry and sell particular
merchandise. Enticing
consumers in a more
direct and explicit way.
Stimulates consumer
demand to obtain
product distribution.
Enticing consumers in
a more implicit way.
The University of Adelaide
Slide 19
Push versus pull strategy
The University of Adelaide
Slide 20
The AIDA concept
A model that outlines the process for achieving
promotional goals in terms of stages of consumer
involvement with the message
Awareness
Interest
Desire
Action
The University of Adelaide
Slide 21
When the elements of promotion are most
useful
The University of Adelaide
Slide 22
Advertising
Advertising and
market share
Advertising
Any form of nonpersonal, paid
communication in
which the product or
company is identified
Apple, Samsung,
Google, Coca-Cola,
were all built by heavy
advertising.
Advertising dollars are
spent on maintaining
broad awareness and
market share.
The University of Adelaide
Slide 23
Advertising: the consumer, brand loyalty
and product attributes.
Advertising and
the consumer
Advertising and
brand loyalty
Advertising and
product attributes
Consumers obtain
information and
entertainment from
advertising. And it can
also transform their
attitudes from negative
to positive.
Advertising creates
and maintains brand
loyalty in the market,
and reinforces positive
attitudes towards
brands.
Advertising can affect
the way consumers
rank a brand’s
attributes.
Creating an advertising campaign:
main types of advertising
Product advertising
Institutional advertising
A form of advertising designed
to enhance a company’s image
rather than promote a particular
product. Includes diversity
advertising, whereby a brand
attempts to reflect multiple
consumer identities to resolve
marketplace discrimination and
exclusion
A form of advertising that promotes the
benefits of a specific good or service.
Three main categories include:
• Pioneering advertising: stimulates a
primary demand for a new product or
product category
• Competitive advertising: influences
demand for a specific brand
• Comparative advertising: compares
two or more competing brands on one or
more specific attributes
The University of Adelaide
Slide 25
Institutional or product advertising?
Let’s discuss some different types of
media… where have you seen
advertising/promotions? Where do you prefer
to see them?
The University of Adelaide
Slide 27
Types of advertising mediums and their
advantages/disadvantages
The University of Adelaide
Slide 28
Sales promotion
Consumer sales
promotion
Trade sales
promotion
Sales promotion
activities to the
ultimate consumer
Sales promotion
activities targeted at a
channel member, such
as a wholesaler or
retailer
The University of Adelaide
Slide 29
Tools for consumer sales promotion
Coupon & Rebates
Premiums
Coupon: A certificate
that entitles
consumers to an
immediate price
reduction when they
buy the product.
Rebate: A cash refund
given for the purchase
of a product during a
specific period
An extra item offered
to the consumer,
usually in exchange for
some proof of
purchase of the
promoted product
The University of Adelaide
Loyalty marketing
program
A promotional program
designed to build longterm, mutually
beneficial relationships
between a company
and key customers.
Includes Frequent
Buyer Programs.
Slide 30
Tools for consumer sales promotion
Contests &
Sweepstakes
Contests: Promotion
that requires skill or
ability to compete for
prizes.
Sweepstakes:
Promotion that
depends on chance or
luck, with free
participation
Sampling
Point-of-purchase
promotion (POP)
A promotional program
that allows the
consumer the
opportunity to try the
product or service
for free.
A promotional display
set up at the retailer’s
location to build traffic,
advertise the product
or induce impulse
buying
The University of Adelaide
Slide 31
The University of Adelaide
Slide 32
Sales promotion advantages and
disadvantages
Advantages
Disadvantages
Extra incentives to purchase the product
Short term impact
Can appeal to the price sensitive
consumer
Can be abused (think of Gym
memberships!)
Generate extra interest
Does not contribute to brand image / may
damage brand image
Easy to measure effectiveness
Achieve quick boost to sales
Can be high cost
Encourage product trial/switching
The University of Adelaide
Slide 33
Which one of these brands might be
more suited to a discount sales
promotion?
Direct marketing
What is it?
Dealing directly with your customer
Take full responsibility for the functions of the marketing mix
There are no ‘middle men’ that the customer is aware of
Internet makes this easier!
“Direct marketing involves the use of several media to transmit messages that
encourage purchase (or other immediate response). DM is facilitated by increasingly
sophisticated databases. DM is marketing material sent DIRECTLY to the consumer
that is designed to create an immediate response”
The University of Adelaide
Slide 35
The University of Adelaide
Slide 36
Advantages and disadvantages of
direct marketing
Advantages
Disadvantages
Better margins
No shared risk
Complete control (pricing, placement,
communications, returns and exchanges
Complete control = complete
responsibility
Enhanced loyalty
Clutter
Reduced exposure to competitors
Potentially missing markets
Associated products promoted
Limited distribution
Less support
The University of Adelaide
Slide 37
Practice Question
Short Answer Question:
Imagine you are a marketing consultant for Canadian Club. Canadian Club is a brand that sells of a
variety of whiskey products, including ready-to-drink whiskey mixes (e.g., whiskey and cola) and
straight liquor whiskey. For the summer period in Australia, Canadian Club has decided to release a
limited edition ready-to-drink whiskey mix, a whiskey sour. Whiskey sours are traditionally a sweet
citrus whiskey cocktail, and now Canadian Club wants to offer it in a can. How convenient! Canadian
Club comes seeking your advice about their promotional activities over the product’s life-cycle.
First, define the product life-cycle and outline the different stages. Next, identify which stage of the
product life-cycle Canadian Club’s whiskey sour is likely at. Then, provide advice to Canadian Club
regarding their promotional activities at each product life-cycle stage.
Please note this is an exam question and answer, which means references are not expected due to
being a closed book examination.