PRINCIPLES OF ADVERTISING PRICE INCENTIVE SALES PROMOTION Integrated marketing communication is a management concept designed to make all aspects of marketing communication work together as a unified force These aspects include Advertising Sales Promotion Public Relations A sales promotion is a direct inducement which offers an extra value or incentive for the product to the sales force distributors or the final consumer The primary objective is to create an immediate sale It can also be viewed as an incentive to behave in a certain way and is an approach geared toward short term behavior ADVERTISING VS SALES PROMOTION WHAT DOES IT CREATE WHAT KIND OF APPEAL IS USED ADVERTISING CREATES AN IMAGE OVER TIME SALES PROMOTION CREATES IMMEDIATE ACTION EMOTIONAL ADVERTISING TO THE HEART RATIONAL SALES PROMOTION TO THE WALLET HOW DOES IT AFFECT PROFITABILITY CONTRIBUTES SOMEWHAT CONTRIBUTES SIGNIFCANTLY TO SHORT TERM PROFITABILITY WHAT KIND OF VALUE IS ADDED ADDS TANGIBLE VALUE ADDS TANGIBLE VALUE Some coordinating promotions when it comes to sales promotion include consumer awareness before promotion and the ability to speak with only one voice BEHAVIORAL LEARNING Future behavior is determined by reinforcement accompanying past behavior Promotional tools act as reinforcers along with product performance which is the primary reinforcement to increase the profitability of repeat purchase Shaping is the process of learning a complex behavior by learning a series of successive approximations of the final behavior Errors in the implementation of shaping include improper fading and overuse PRICE ORIENTED PROMOTIONAL TOOLS Examples include Samples are products given to the consumer free of charge which gives them an opportunity to try the product before making a purchase This tool is effective because it eliminates financial risk and eliminates inconvenience o Samples are effective when The brand is clearly superior The product comes in limited varieties The product purchase cycle is short Attitudes or behaviors must be created changed Coupons are certificates presented to a dealer that give the bearer a stated savings on the purchase of a product Likely users of coupons are current users of the product o Coupons are effective because they Retain current users Encourage brand switching Increase in home inventory Lengthen purchase cycle Money Refunds Rebates are partial refunds following a purchase The consumer purchases the product mails in a proof of purchase and a refund is sent at a later time Certain problems may arise when using these including a delay of reinforcement and may discourage the consumer given the amount of effort required to obtain a refund rebate ADDED VALUE SALES PROMOTION An added value promotion is when a product is sold at full price and the consumer gets more for their money which doesn t reduce the price value ratio Companies may implement the use of a premium which is an extra item offered at a low price or free as an extra incentive to purchase Objectives of a premium as it relates to the consumer include Encouraging brand switching Trading up to a larger size Increasing repeat purchase Putting a long term message in front of the consumer Methods of distribution of the premium can be done in package in store as a package itself by mail and online Other sales promotion strategies A sweepstakes is a game where participants have an equal chance of winning a price but make no payment to enter This strategy is effective because it increases engagement and awareness A lottery is a sweepstakes with a charge to enter This strategy is illegal in most situations and relies on donations from non profit organizations A contest is an event in which winners are selected based on skill with a charge to enter Promotions to retailers occur when more money is spent on retailer based promotions than consumer based ones Objectives of this strategy include Retailing an incentive to push vs pull product Maintaining or increasing distribution Maintaining or expanding shelf space Preempting the competition Changing consumer purchase patterns Types of retail promotions include Buying allowances temporary price reductions from manufacturer to retailer Advertising allowances co operative advertising payments by the manufacturer to the retailer funding of the retailer s advertising of the product Contests Sweepstakes Point of Purchase P O P promotional materials placed at the point of purchase Types of P O P include Outside signs Window displays Counter displays Display racks Banners Posters Shelf talkers The objectives of P O P s include Increasing consumer learning Increasing purchase behavior Lowering cost production and implementation Easing the evaluation process Good P O P s for retailers should feature monetary incentives be tied to other items and should be easy to set up PUBLIC RELATIONS Public relations is not free advertising It is a management function that formulates and executes a program of action to earn the understanding and goodwill of its publics ADVERTISING VS PUBLIC RELATIONS GOALS CREDIBILITY ADVERTISING INFORM PERSUADE REMIND TARGET TO SEEN AS LESS CREDIBLE THAN PR SEEN AS MORE CREDIBLE THAN ADVERTISING COST MAJOR COSTS MEDIA TIME SPACE MAJOR COSTS NON MEDIA CONTROL MORE CONTROL OVER MESSAGE LESS CONTROL OVER MESSAGE INTEREST EDITORIAL INTEREST NOT VERY IMPORTANT CRITICAL TO SUCCESS PERSONNEL MORE LIKELY TO HAVE BUSINESS BKGRND MORE LIKELY TO HAVE JRNLISM BKGRND BUY SPECIFIC BRANDS OF PRODUCTS DEVELOP UNDERSTANDING GOODWILL FAVORABLE ATTITUDES PUBLIC RELATIONS Despite their differences advertising and PR do share some similarities They both Stimulate interest in a target group Use research based situation analysis Have specific objectives Have detailed knowledge of media There a many reasons to use public relations It s relatively inexpensive compared to advertising and can help cut through advertising noise Furthermore it s highly credible and can develop new sales leads However it can prove difficult to reach some publics in certain situations Corporate image advertising is an umbrella category of advertising that is for the benefit of the overall company image rather than for individual products Corporate image advertising shares the same objectives with public relations like promoting understanding and good will but paid time provides greater control over message and media CORPORATE IMAGE ADVERTISING VS PRODUCT ADVERTISING CORPORATE IMAGE ADV PRODUCT ADV DIRECTION
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