Promotion Strategy

Promotion Strategy - Promotion Establishes a company or...

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Unformatted text preview: Promotion Establishes a company or product/service image, such as prestige, discount, or innovative Communicates product or service features Creates awareness for new products or services Keeps existing products or services popular Can reposition the images or uses of faltering products or services Generates enthusiasm from channel members Promotion Explains where products or services can be purchased Convinces consumers to trade up from one product or service to a more expensive one Alerts consumers to sales Justifies product or service prices Answers consumer questions Closes transactions Provides afterservice for consumers Places the company and its products or services in a favorable light, relative to competitors Managing Mass Communications Managing Mass Message Money Stage in PLC Market Share Customer Base Competition Clutter Promotion Frequency Product Substitutes Generation Evaluation Selection Execution SR Review Mission Sales Goals Promotion Objectives Measurement Communications Sales Media Reach Frequency Impact Media Types Timing Geography Communications Elements Goals of Promotional Goals Activities Activities 1. To create target customer awareness of the firm and/or its products. 2. To provide information to target customers. 3. To explain company actions to people outside the market target. 4. To induce people to try products. Goals of Promotional Activities 5. To induce middlemen to stock and push a product. 6. To retain loyal customers. 7. To increase the amount or frequency of product usage by present and new users. 8. To help the firm learn who its customers are and/or what they think of the firm or product. 9. To reduce sales fluctuations. Hierarchy of Effects Awareness General Behavioral Objective Provide Information Specific Behavioral Objectives Obtain customer recognition, knowledge of product Obtain favorable Attitude, gain preference for brand Selected Promotional Mixes Advertising, public Relations, point­of­ purchase, premiums Knowledge Liking Preference Conviction Purchase Develop Positive Attitude/Feelings Media (persuasive), image and status appeals, sales force (if complex product) Stimulate interest and Make sales Sustain preference, gain purchase, maintain customers Advertising, point­of­ purchase, special offers, price appeals, endorsements, sales force, demonstrations Promotion Objectives Type of Objective Illustration information Create brand awareness Explain characteristics of new product Acquaint customers with new shopping policies Reduce need for salespeople to answer basic ???s Expand Base of customers Improve store/brand image Gain brand preference Increase traffic Increase sales Improve loyalty Stabilize sales Maintain brand loyalty Sustain brand recognition and image Reinforce customer brand preference persuasion reminding S-Curve Effect MARGINAL RETURN Promotion Planning All elements of communication with all stakeholders Advertising Personal selling Other promotion Media Planning Choice of communications course of action Outlets Business goals Audience Strategy Budget 1. 2. 3. 4. 5. Consumer Patronage Tools Building Loyalty Samples Coupons Rebates Price deals Premiums Frequency programs Prizes Patronage awards Free trials Product warranties Tie­in promotions Point­of­purchase displays Demonstrations Integrated Marketing Integrated Communications Communications Coordination of message extensive knowledge of customers Promotional Media Advertising ­ ­ ­ ­ E­Mail Events Literature Public Relations Web Marketing Newspaper Magazine Radio Cable Other Promotion -Yellow Pages -Outdoor -Specialty -Sponsorships -Transit -Online -Coupons Direct Marketing Media Choices Media Newspapers Television Direct Mail Radio Magazines Outdoor Yellow Pages Newsletters Brochures Telephone Internet Advantages Flexibility; Timely; good local market coverage; acceptance; believability Combines sight, sound motion; appeals to senses; high attention; high reach Audience selectivity; flexibility; no ad competition; personalization Mass use; high geographic/demographic selectivity; low cost Disadvantages Short life; poor reproduction quality; low pass­along High cost; high clutter; fleeting exposure; less audience selectivity Relatively high cost; “junk” mail Audio only; lower attention than TV; unstandard rate structure; fleeting exposure High geographic/demographic selectivity; credibility; Long ad purchase lead time; waste prestige; high­quality reproduction; long life; loyal circulation; no guarantee of readers position Flexibility; high repeat exposure; low cost; low competition Good local coverage; believability; wide reach; low cost High selectivity; full control; interactive opportunities; low cost Flexibility; full control; dramatize messages Many users; personal touch High selectivity; interactive possibilities; low cost Limited audience selectivity; creative limitations High competition; long ad purchase lead time; creative limitations Costs could run away Overproduction ­ costs High cost unless volunteers are used; no answers New media; low use in some places Media Selection Reach, Frequency, Impact Reach – number of different people/households exposed to promotion in a given period of time Frequency – number of times in a given time period a person/household is exposed to a message Impact – qualitative value of an exposure Target Audience ORIGINS of purchase: Who buys it? OBJECTIVES of purchase: What do they need/buy? OCCASIONS of purchase: When do they buy it? OUTLETS of purchase: Where do they buy it? OBJECTIVES of purchase: Why do they buy it? OPERATIONS of purchase: How do they buy it? Which Means… FEATURES WHICH MEANS … BENEFITS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Performance Reputation Materials Uses Applications Timelessness Delivery Price Design Availability Installation Promotion Lab Tests Terms Workmanship • • • • • • • • • • • • • • • Time saved Prestige in the classroom Cutting edge teaching/learning Improved classroom environment Multiple classroom Use Continuous use Leadership Value for students Ease of use in the classroom Ease of access to updates Evolutionary change Simplicity of use Performance improvement guarantee Increased student learning Long class life Identifying and Qualifying Identifying Customers Customers Demographics Psychographics • • • • • • • • • • • What do they like about business product? What do they like about business competitor's products? What made them decide to buy business products? Did they know which brand they were buying before they purchased it? What advertising messages had they seen prior to buying? How much disposable or discretionary income is available for this type of purchase? What are their hobbies? What emotional aspects impact their purchase? Who is the actual decision­maker for this type of purchase? What values and attitudes play a part in this type of purchase? Who do they look to when making purchasing decisions? Business Position Perception that audience has • • • • • Products Service Personnel The business itself The entrepreneur Business Position Key Issues Audience Perception Target Audience Needs/Wants Hole to be Filled Key Foundational Business Attributes Product/Service Benefits “Really Unique” Application Is target audience unique enough to establish position Learn from competitor Quality/Price/Opportunities Evaluating Media Coverage Rating (Gross Rating Points) • • • Reach Frequency Impressions Eliminate waste Follow Customers Buy Enough Frequency Communications Audit History­ what was done? Results? Why? Business Issues­ Communications and mission/vision/values Situation Analysis­ current/similarity to post/ learning/change Product/Service Description­ known by all Implementation­ learning/change Team Communication­ everybody “sells” Evaluation­ put ego in check ...
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This note was uploaded on 12/21/2010 for the course BUSA 5336 taught by Professor Jeff during the Summer '09 term at UT Arlington.

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