marketing chapter 8

elements of the promotional mix

elements of the promotional mix

1. advertising

2. sales promotion

3. personal selling

4. public relations

integrated marketing communications (IMC)

coordinating the various promotion-mix elements to provide consumers with a clear and consistent message about a firms products

different types of advertising

1. television advertising

2. internet advertising

3. print advertising

4. radio advertising

5. outdoor advertising

6. nontraditional advertising

tv advertising

adv

• ability to combine sight, sound, and motion

• demonstrate a product in use

• narrowcasting

disadv

• cost

• rapid growth of DVRs

• consumers abandoning traditional tv service

product placement

advertising technique in which a company promotes its products through appearances on tv shows, movies, or other media

internet advertising

adv

• second largest global adv medium

• paid search advertising

• paid display advertising

• direct marketing

disadv

• banner and pop up ads

print advertising

adv

• newspapers effective for small businesses to advertise to local community

• firms can run ads in specific audiences

• magazines can target very specific audiences

• magazines have longer shelf life

disadv

• fewer Americans using newspapers as primary info source

• newspaper ads compete with editorial content

• magazines have long lead time

• marketers can’t control ad placement in magazines

radio advertising

adv

• often most cost effective choice

• allows market segmentation based on geography

disadv

• audio only

• digital presents in cars make it easier to switch away from ad

outdoor advertising

adv

• flexible

• cost efficient

disadv

• short exposure time

• wasted coverage

sales promotion

set of non personal communication tools designed to stimulate quicker or more frequent purchases of a product

types of sales promotions

1. coupons

2. rebates

3. samples

4. contests and sweepstakes

5. premiums

6. loyalty programs

7. trade sales promotions (trade shows, allowances, training)

coupons

documents that entitle the customers who carry them to a discount

rebates

customers to recoup a specified amount of money after making a single purchase, customers often fail to redeem them

samples

Costco

contests and sweepstakes

• contests: sale promotions in which consumers compete against one another and must demonstrate skill to win

• sweepstakes: sale promotions based on chance, only requirement is that you enter

premium

promotional item that is given as an incentive for performing a particular act, typically buying a product

loyalty programs

designed to strengthen customer relationships, allow consumers to accumulate points or other benefits for doing business with the same company

trade shows

event at which organizations in a specific industry promote their offerings to firms they hope will buy them

allowances

typically involve paying retailers for financial losses associated with consumer sales promotions or reimbursing a retailer for an in-store or local expense to promote a specific product

personal selling

involves direction communication between the salesperson and the customer

• expensive element of promotion mix

• consistent message among salespeople

• results in immediate feedback

• importance of relationship selling (building trusting relationships with customers over a long period of time)

public relations

non personal communication focused on promoting positive relations between a firms and its stakeholders

public relations tools

1. annual reports

2. speeches

3. blogs

4. brochers

5. media kits

6. sponsorships

7. event markting

8. publicity

annual reports

allows org to share with its stakeholders what its achieved over the past year

speeches

provide an avenue for members of an org to market their message directly to a group in a longer form speech

blogs

emerging social media tool where individuals can share thoughts and knowledge with the public

brochures

intended to inform and/or engage the public

media kits

a package of information provided to reporters and the general press

sponsorships

organization paying to have its name associated w projects, programs, or facilities

event marketing

developing a themed exhibit, display or presentation to promote an organization to its target market

publicity

disseminating unpaid news items through some form of media to gain attention or support

impact of social media on public relations

• quick and cost effective way to provide engaging content about impact of a product or service

• essential to monitor social media for negative feedback

crisis management

marketers must communicate to stakeholders as quickly as possible

measuring advertising effectiveness

1. conduct a pretest before

2. conduct a posttest after

   1. recognition test: showing consumers the print advertisement and asking if they recognize the ad.

   2. unaided recall test: require consumers to recall ads from memory, without any clues

   3. aided recall tests: respondents receive clues to help stimulate their memory

   4. reach: percentage of the target market that has been exposed to a promotional message at least once during a specific time period.

   5. frequency: measures how often the audience is exposed to a promotional message during a specific time period.

   6. revenue per ad dollar: calculated by comparing total revenue to the amount of money spent on advertising.

recognition test

showing consumers the print advertisement and asking if they recognize the ad.

unaided recall test

consumers recall ads from memory without any clues

aided recall test

consumers receive clues to help stimulate their memory

reach

percentage of the target market that has been exposed to a promotional message at least once during a specific time period

frequency

measures how often the audience is exposed to a promotional message during a specific time period

revenue per dollar

calculated by comparing total revenue to the amount of money spent on advertising

measuring social media effectiveness

• google analytics track user activity in real time

• Kred measures both social influence and outreach, providing a score for each on a users profile

• Buzzsumo is an excellent way to analyze and monitor Facebook pages

Promotion-Mix Budgeting strategies

1. affordable method: a top down approach common in small businesses

2. percentage of sales method: one of the most widely used, disadvantage when firms sales decline

3. objective and task method: considered the best, bottom up approach to promotional budgeting

affordable method

top down approach common in small businesses

percentage of sales method

one of the most widely used, disadvantage when firms sales decline

objective and task method

considered the best, bottom up approach to promotional budgeting