Introduction to Promotion
MKTG 5200
CUSTOMER ANALYSIS
COMPETITOR ANALYSIS
COMPANY ANALYSIS
P.E.S.T. ANALYSIS
Statistics
Shopping / usage behavior
Buying process
Direct / indirect competitors
Their current / previous strategies
Importance of this market to them
Likely actions and reactions
Objectives
Strengths / weaknesses
Current / past performance
Fit with other products
Political
Economic
Social
Technological
SEGMENTATION
Possible segments
Size of segments
Growth potential
Analysis
TARGET
MARKET
SELECTION
DIFFERENTIATION
Benefits valued by customer
Added value from specific
combinations of benefits
POSITION
IMPLICATIONS FOR
MARKETING STRATEGY
Product
Price
Distribution channels
Promotion
- advertising
- sales force
Decisions
OUTCOMES
Financial
Other
Marketing Decision Framework
Outcomes
Analysis
IMPLICATIONS FOR
MARKETING STRATEGY
Promotion
- advertising
- sales force
Decisions
Marketing Decision Framework (Showing Area of Outcomes
Focus for this Lecture)
What do marketers mean by “promotion”?
Promotion
• The set of activities undertaken by a firm to communicate
with target customers about its product offerings and
persuade them to purchase
The fourth “P” in the marketing mix,
after product, price, and place
Marketing Mix
PRODUCT
PRICING
PROMOTION
DISTRIBUTION
Marketing Mix
PRODUCT
DISTRIBUTION
PRICING
PROMOTION
Sponsorship
Direct
Marketing
Public
Relations
Personal
Selling
Advertising
Sales
Promotion
Digital
Marketing
Guerilla
Marketing
Forces are reshaping advertising and promotion
even as you watch this lecture
Brand Parity
• As information on competitors has become widely
accessible, and manufacturing processes easy to reverseengineer, offerings look increasingly similar
• Marketers must clearly communicate what makes their
brand unique, including intangible elements that may not
be evident on first inspection of the product
‘Glocal’ Competition
• With the rise of e-commerce, competition can now come
from the other side of the globe, or a small entrepreneur
down the street
• It’s more important than ever to have a compelling value
proposition for your chosen target market, and to
communicate this value clearly along with appropriate
incentives for purchase
Ad Clutter
• The world is filled with so much advertising that it can be
difficult to get noticed
• It’s estimated that the average North American consumer
is exposed to more than 3,000 discrete commercial
messages every day…
8 minutes of commercials in every half-hour of conventional TV
(i.e., 16 30-second spots, or 32 15-second spots)
Digital ads flooding websites, social media feeds, and YouTube
Overwhelming amounts of outdoor advertising
Consumer Resistance
• Much as we might like to believe otherwise, consumers
are not eagerly awaiting our offers…
– Most of the time, they don’t care about us or our products
• They also have negative views of advertising…
“Ads are manipulative”
“Ads are irritating”
“Ads get in the way of consuming content”
“Ads are all the same”
Shift to Streaming
• Companies’ ability to reach audiences through video advertising
has been transformed as consumers abandon conventional
television in favour of streaming services
Shift to Digital & Targeted Advertising
• Advertisers’ focus has shifted to online and social media,
as consumers consume increasing amounts of content on
digital platforms
• The old model of “buying audiences” via 30-second spots on
specific TV shows or ad space in specific publications is quickly
being replaced by ads that target individuals based on location,
demographic traits, past behaviour, and other factors
Trackability and Tailoring
• Since online search and purchase behaviour can be linked
back to ad exposure, marketers can design messages and
offers tailored to specific individuals
• But trackability has created a bewildering amount of data;
successful companies are those with the people and
processes to turn data into actionable insights
– Tailored messages
– Customized offers
Trackability and Tailoring
• Some of this can be automated through artificial intelligence
that learns from repeated trials and refines its algorithms
Greater Demand for Accountability
• CEOs and shareholders expect and precise measurement of
marketing ROI, increasing pressure on marketing managers to
demonstrate the impact of promotional spending on key metrics
– Sales
– Market share
– Brand awareness
– Customer loyalty
All this has increased the need for organizations
to speak with one voice
in their marketing communications
Integrated Marketing Communications
• Coordination of all marketing communication tools into a
seamless program in order to maximize the impact on
consumers at minimum cost
• The goal is not necessarily to convey the same message
across media, but rather to ensure that messages are
consistent while also leveraging the unique characteristics
of each medium as fully as possible
End of Lecture
0
