Chapter 17 Overview Promotion any communication used to inform persuade and or remind people about an organization s or individual s goods services image ideas or involvement with society Promotion planning systematic decision making relating to all aspects of an organization s or individual s communications efforts communication can be company sponsored or through independent media Products with consumer awareness focus in on persuasion Products that are popular focus on reminding The Importance of Promotion New products informing people is key Word of mouth communication the process by which people express opinions and product related experiences to one another A good promotion plan complements the product distribution and price aspects of marketing An Integrated Approach to Promotion Planning Integrated marketing communications evaluates the strategic roles of various communication disciplines and combines them for clarity consistency and impact A superior IMC plan addresses these points o Synergistic tactical interactivity with consumers positive influences differential advantages understood all aspect of promotion work together and detailed databases Types of promotion Advertising paid non personal communication regarding goods and services transmitted through various media message controlled by the sponsor Public relations any communication to foster a favorable image for goods services image etc among their publics paid non personal non controlled non o Publicity form of public relations that entails non personal communication passed on though media not paid for Personal Selling oral communication with one or more prospective buyers Sales Promotion paid marketing communication activities that are intended to stimulate consumer purchases The Channel of Communication The Source presents a message o Usually a company independent institution or an opinion leader seeking to present the message o Communicates through a spokesperson celebrity company rep etc o Rep consumer one who likes a product and recommends it present a real consumer and their story o Sales person assertive and persuasive many doubt their objectivity and tactics o Independent institution not controlled by the firms on which it reports good credibility cuz it focuses on good and bad points o Opinion leader fact to face contact with and influences potential consumers persuasive and impactful Encoding the process whereby a thought or idea is translated into a message by the source The Message a combination of words and symbols transmitted to an audience o Message consistency is important o Many firms use one sided messages not two sided messages o Many firms use symbolism humor be careful successful ads in home country may o Comparative messages implicitly or explicitly contrast a firm s offerings with those not be ok in another of competitors Implicit brand X or leading brand approach Explicit direct approach TV and radio with comparative messages o Massed promotion communication efforts are spread in peak periods o Distributed promotion efforts spread out through the year o Wear out rate the time it takes for a message to lose effectiveness The Medium the personal or non personal means used to send a messaged o Personal close contact flexible adapt to changes close sales o Non large audience low per customer costs generate interest Decoding the process by which a message sent by a source is interpreted by an audience o Interpretation based on the audience s background as well as message clarity and complexity complex inc clarity dec o Encoding decoding o Subliminal advertising a highly controversial kind of promotion because it does not enable the audience to consciously decode a message Subliminal ads cannot get people to buy things they do not want Misinterpreted Audience the object of a source s message generally the target market o People are rather disapproving of promotion messages Feedback the response an audience has to a message o Most desirable consumers buy product after interaction with a firm o Second elicits a favorable attitude o Least no sales and non favorable attitude Noise interference at any point along a channel of communication o Cause messages to be decoded improperly Promotional Planning Objectives two main categories stimulating demand and enhancing company image o Hierarchy of effects model used in setting demand goals Provide info Develop positive attitudes and feelings Stimulate purchases and repeat purchases o Primary demand product category o Secondary demand particular brand Budgeting o All you can afford a firm allots funds for other elements of marketing o Incremental a company bases its new promotion budget on the previous one Adv reference based on feelings easy calculations Dis not tied to goals gut feelings overemph hard to evaluate success fail o Competitive raised or lowered according to competitors actions Adv reference market oriented conservative Dis no leadership not recognizing differences o of sales firm ties its promotion budge to sales rev o Objective and task sets promotion goals determines the activities needed to satisfy them and then establishes a proper budget BEST METHOD may be complex Marginal returns the amount of s ales each increment of promotion spending will generate high with new product and low with established Promotion Mix a firms overall and specific communication program o Ads appeal to big audiences and create awareness w o selling is more difficult o Sales flexible short term w o interest may be wasted Global Promotion Considerations International promotion decisions should not be made until each market is carefully studied The Legal Environment of Promotion Full disclosure all data necessary for a consumer to make a sage and informed decision be provided in a promotion message Substantiation requires a firm to be able to prove all the claims it makes in promotion messages Cease and desist order a firm must stop a promotion practice that is deemed deceptive and modify a message accordingly o Firm not forces to guilt or pay fines Corrective advertising a firm has to run new ads to correct the false impressions left by previous ones Fines dollar penalties for deceptive promotion that are paid to the government or consumers
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