got milk?
Definition:
To communicate with individuals, groups or organizations to
directly or indirectly facilitate exchanges by informing and
persuading one or more audiences to accept an organization's
products.
-Companies must communicate with their customers, this
communication should not be left to chance.
Design communication to your specific target audience:
- Target Market
- Part of Target Market
- Different stakeholders of your organization.
Promotion: Fourth element of the marketing mix. Need
to make sure the goals of promotion are integrated with other Ps.
Need to design a communications strategy, that integrates the
promotion mix:
- advertising: paid form of non personal communication about an
organization or its products that is transmitted to a target audience
through a medium: US: 1990, $138 b, 2000 $320 b (approx), worldwide, $780
b. In US, 25% promotional budget
- sales promotion: materials that act as a direct inducement,
offering adding value, or incentive for the product, to resellers,
sales people or consumers: trade promotions = 47% of promotional
budget, consumer promotions = 28%
- public relations / publicity: news story form about an organization
or its products or both, through a medium at no charge
- personal selling: personal communication in an exchange situation
- direct marketing
Increasing importance of Integrated Marketing Communications ... Why?
The fourth P the critical P ?
Communications process consists of:
- sender
- encoding
- message
- media
- decoding
- receiver
- response
- feedback
- noise
Need to identify and understand the target audience, from the perspective
of information processing:
- selective attention
- distortion
- recall
- contextual issues
Steps of the promotional program:
- identify target audience and characteristics, and perception of
product, context etc.
- define communications objectives (not aware, awareness, interest,
evaluation, trial, adoption). Seeking cognitive,
affective or behavioral response
- message:
- content (rational / emotional / moral)
- structure (one or
two sided)
- format (headline, copy, sound)
- source (trusted / likable / expert)
- select media (comunications channels)
- establish budget (affordable / % sales / competitive / objective
and task)
Consider:
- push versus pull
- stage of purchase process
- stage of product life cycle
- product complexity and risk
- market position
Advertising
Need to consider the following issues when considering whether to
advertise:
- Does the product possess unique, important features to focus on
Unique Selling Point (USP)
- Are the hidden qualities important to the buyers
- Is the general demand trend for the product adequate
- Is the market potential for the product adequate
- Is the competitive environment favorable
- Is the organization able and willing to spend the required money
to
launch an advertising campaign
Issues to consider for advertisers:
- Reach: national, regional, local
- audience: industrial, consumer
- product: product, brand, institution
- objectives: awareness, interest, evaluation, trial, adoption
(inform, persuade or remind)
Decision making for advertising:
- objectives setting
- budget decision (stage in product life cycle, market share,
competition and clutter, needed frequency, product substitutability)
- message decision
- message generation
- message evaluation and selection ... USP ?
- message execution: structure depending on media (print: headline,
illustrations, sub headline, body copy, signature)
defined objective, defined product positioning, build product
differentiation, consistent through campaign, strong
integration, appropriate target market, simple product centered
message, positioning of brand name within message
- social responsibility issues ... a wider context of evaluation
- media decision
- reach (# of ppl exposed at least once), frequency (total number of
times reached) and impact (quality of impact)
- media types (TV (22%), Newspaper (23%), Direct Mail (20%), Outdoor,
Magazines (6%),
Radio (7%), WWW)
- media Vehicles (programs, WSJ, Yahoo, Vogue): cpm relevant market
etc.
- media timing
- geographic allocation: national versus spot buying
- ad effectiveness evaluation
Useful advertising links: adforum, Advertising Age, tbwa/chiat/day, Fallon, Organic, Mad Dogs and Englishmen
After reviewing NetRatings, discuss the state of
advertising on the web.
Sales Promotion
Shorter term tools to stimulate demand (consumer, trade and orgs. sales
force.) Potential impact on brand and shift demand ?
Sales Promotion spend exceeds advertising spend and is growing faster ...
why ?
Consumer promotional tools include:
- samples
- coupons (redemption rates ?)
- rebates
- cash refunds
- product warranties (high risk items)
- premiums (mcdonalds)
- prizes
- frequent user programs
- free trials
- point of purchase displays
Discussion Topic: Take a look at Sweepstakesbuilder: What roles
does a service like this provide for web-sites? Why would web-sites
participate?
Trade promotional tools include:
- reduced price
- advertising support
- free goods
- push money
Public Relations
Can build awareness and preference in hte marketplace, repositioning
products, and defending them.
Tools include:
- news
- speeches
- events
- public service activities
Proactive versus reactive approach?
Media relations
Dealing with bad publicity?
Sales
Need to determine salesforce:
- objectives; prospecting, communicating, selling, servicing,
information gathering
- strategies: solo, team
- structure: territory (size / shape), product, customer
- size
- compensation: salary, commission, bonus, expenses
Personal selling includes:
- prospecting and qualifying
- preapproach: learn about prospect
- approach: greeting
- presentation: tell the story
- overcoming objections
- closing
- follow-up and maintenance
Importance of negotiations
Standards versus flexibility
Relationship management versus single transaction
Technologies impact on selling? (knowledge of customer / CRM /
flexibility)