Integrated Marketing Communications and Promotion MKTG 370 PROMOTION Elements of promotion Advertising strategies Other methods of promotion Lars Perner, Instructor 1 Elements of the Promotion Mix Advertising Sales Promotion MKTG 370 Sales Coupons Rebates Premiums PROMOTION Personal selling Public relations Direct marketing Lars Perner, Instructor 2 Promotion by Decision Stage Prepurchase Purchase Sales promotion Point-of-purchase (POP) displays Post-purchase MKTG 370 Influence decision, preference Samples to induce trial Increase repurchase propensity PROMOTION Lars Perner, Instructor 3 Channel strategies “Push” MKTG 370 Make product readily available to buyers “Hard” sell to Distributors Consumers Heavy sales promotions PROMOTION “Pull” Create demand for products “When you care to send the very best” “Snapple—made from the best stuff on earth” Lars Perner, Instructor 4 Developing the Advertising Program Identifying the target audience Specifying advertising objectives Setting the advertising budget Designing the advertisement(s) MKTG 370 Informational/persuasive Fear appeals Sex appeals Humor appeal PROMOTION Lars Perner, Instructor 5 Some Media Alternatives Television MKTG 370 Conventional advertisements Infomercials Sponsorship programming “Placements” In programming “Superimposed” Radio PROMOTION Magazines Newspapers Outdoor Internet Point-of-purchase Other Movie theaters On other products Lars Perner, Instructor 6 Executing The Advertising Program Pre-testing Possible redesign Carrying out advertisement MKTG 370 Portfolio test Jury tests Need to test a very large number of tests Full service agencies Limited service agencies In-house PROMOTION Lars Perner, Instructor 7 Advertising Intensity and Return -A Typical Relationship Response (e.g., sales, recall) The “S”-Shaped Curve 1 0.8 Saturation Point 0.6 0.4 Too little to do much good 0.2 0 MKTG 370 0 5 10 15 Amount of Advertising Spending PROMOTION 20 25 Lars Perner, Instructor 8 Measuring Advertising Effect Several possible criteria: Increase in sales (but it may be impossible to separate effects of different simultaneous ads) MKTG 370 PROMOTION Lab studies: Recall Attitude toward product Preference Lars Perner, Instructor 9 Public Relations and Publicity Advantages of media coverage over advertising: Issues MKTG 370 cost credibility attention PROMOTION “Two-way street”--must provide something of interest to media Lars Perner, Instructor 10 Making a News Release--Issues Properties of a good news release MKTG 370 timing--for event and journalist’s schedule brevity--if you can’t say it in two pages, how do you expect the journalist to? Interest to readers content quotes facts PROMOTION Lars Perner, Instructor 11 Personal selling MKTG 370 PROMOTION Traditional vs. consultative selling Commission vs. salary Lars Perner, Instructor 12