promotion. promotion is the communication process of marketing…
TRANSCRIPT
Remember: Information changes what we know.
Suppose one transmits 1000 bits (0s and 1s). If these bits are known in advance (absolute probability), then no information has been transmitted. If, however, each is equally and independently likely to be 0 or 1, 1000 bits (in the information theoretic sense) have been transmitted. Between these two extremes, information can be quantified as follows. If X is the set of all messages {x1,...,xn} that X could be, and p(x) is the probability of x given some condition, then the entropy of X is defined:
Basically
What this means is:
Entropy is a measure of information transmitted.
The lowest probability message carries the most information.
Communication: Meaning is transferred fromone person to another
Source
Encoding
Message: the physical form of a communication
Medium: communication vehicleTV Radio Internet Magazines NewspapersMail Billboards Flyers Person-to-person
Decoding
Receiver
Noise
Promotion Objectives:
1.Create Awareness2.Stimulate Demand3.Encourage Product Choice4.Identify Prospects (Customers)
Promotion Objectives:
5. Counter Competition6. Reduce Sale Fluctuations 7. Persuade8. Change Attitudes9. Educate10. Facilitate Channels
Selecting the Promotional Mix Elements
1. Internal factorsResourcesObjectives of the firm or campaignPolicies
Selecting the Promotional Mix Elements
2. Market CharacteristicsSizeLocationDemographics
http://www.census.gov/2010census/
Selecting the Promotional Mix Elements
3. Product CharacteristicsLife cycleGood/Service/IdeasCompetition & Intensity of CoverageProduct Usage
Selecting the Promotional Mix Elements
4. Cost and Availability of MethodsSocial MediaCPMEffective Hits
Sales Promotion:Short-term incentives and programs to encourageinterest and the purchase of a product or service
Publicity (PR):Promotion through commercially significant vehicles of mass media, not paid for directlyby sponsor
Promotional Mix
3. Personal AppealsWOMGetting people to talk about productViral Marketing: fun or entertaining
messages that spread form oneperson to another
Guerrilla Marketing: “ambushing”
http://en.wikipedia.org/wiki/Guerrilla_marketing
Integrated Marketing Communications IMC
Use of the promotion mix to create and maintain long-termrelationships with customers by satisfying customerneeds and/or wants.
Integrated Marketing Communications IMC
Goals:
1.One unified voice2.Begins with customer3.Develop a relationship with customers4.Create two-way communication5.Include all stakeholders, not just customers6.Generate a continuous stream of communication7.Measure results from ACTUAL feedback
Integrated Marketing Communications IMC
How:
1.Identify the target audiences2.Establish objectives
What are we trying to do:Hierarchy of EffectsAwarenessInformCreate desirePurchaseBuild loyalty
Integrated Marketing Communications IMC
How:
1.Identify the target audiences2.Establish objectives3.Budget
Budget Types:
1. Affordability (28% goods, 28% industry)2. Arbitrary Allocation (16% consumer goods, 24% industry)3. Ratio to Sales (52% consumer goods, 32 industry)4. Competitive Comparison5. Marginal Analysis6. Objective Task
Integrated Marketing Communications IMC
How:
1.Identify the target audiences2.Establish objectives3.Budget4.Create the campaign5.Feedback and Evaluations
“Use facts, not fantasy. Don’t sermonize; advertise.”
“If an ad doesn’t sell, if it doesn’t ultimately ring the cashregister, it is a waste of money.”
Jeffrey Fox
Product advertisements: are advertisements that focus on selling a good or service and which take three forms:
(1) pioneering (or informational), (2) competitive (or persuasive), (3) reminder.
15-40
Institutional advertisements:
are advertisements designed to build goodwill or an image for an organization rather than promote a specific good orservice.
15-42
Institutional Advertisements
• Advocacy
• Pioneering Institutional
• Competitive Institutional
• Reminder Institutional
15-43
Chevron and BridgestoneWhat is the type and purpose of each advertisement?
15-44
https://www.facebook.com/photo.php?v=461220498290&set=vb.431744650466&type=3&theater
http://www.bridgestonetire.com/about/news/tv-commercials#
Got Milk? and U.S. ArmyWhat is the type and purpose of each advertisement?
15-45
http://milkdelivers.org/got-milk-campaign/
World Wide Fund, Candie’s, and GeicoWhat is the appeal and purpose of each advertisement?
15-46
http://www.youtube.com/watch?v=kWBhP0EQ1lA
http://www.geico.com/about/commercials/#.UozzWcSfjfs
Advertising Advantages:
1.Cost/contactCPM = (cost/unit)/reach X 1000
Example: Jay Leno $35,000/ 30 sec reaches 3.6 millionSuper Bowl $3.8 mill/ 30 sec reaches 108 million
CPM for Leno = $ 9.72CPM for SB = $ 35.19
Advantages:
1.Cost/contact2.Repetition 3.Versatility4.Atmosphere
http://www.livingroomcandidate.org/commercials/1964
http://www.livingroomcandidate.org/commercials/1984
Disadvantages:
1.Cost2.Flexibility3.Clutter4.Credibility “Alternative Explanation”5.High Waste6.Lack of Action
Disadvantages:
1.Cost2.Flexibility3.Clutter4.Credibility “Alternative Explanation”5.High Waste6.Lack of Action7.Problem measuring effectiveness
DEVELOPING THEADVERTISING PROGRAM
1. Identifying the Target Audience
2. Specifying the Advertising Objectives
3. Setting the Advertising Budget
15-63
DEVELOPING THEADVERTISING PROGRAM
4. Designing the ads
Humorous appeals
Increases credibility
Increases memory
Increases likability
15-64
DEVELOPING THEADVERTISING PROGRAM
4. Designing the ads
Fear appeals
Protection racket
15-65
http://www.youtube.com/watch?v=ivAx1zgdWoM
DEVELOPING THEADVERTISING PROGRAM
4. Designing the ads
Sex appeals
Careful!
15-66
http://smallbusiness.chron.com/examples-sex-appeal-advertising-works-60861.html
http://advertising.about.com/od/advertisingprojects/a/Sex-In-Advertising.htm
Television, direct mail, and newspapers account for more than 65% of all advertising
expenditures (in $millions)
15-68
Public Relations and Publicity
Promotion through commercially significant vehicles of mass media, NOT paid for directly by sponsor.
Public Relations and Publicity
Promotion through commercially significant vehicles of mass media, NOT paid for directly by sponsor.
Public Relations and Publicity
Promotion through commercially significant vehicles of mass media, NOT paid for directly by sponsor.
1. Should be proactive2. Should have a “hook”3. Should have a consistent theme4. Should be integrated into total promotion effort5. Should be done constantly
Disadvantages:
1.Lack of control2.Placement
I have been in the Enquirer twice.I don’t think it added to mynon-existent career….
Other functions of PR and Publicity
1.Advice and council2.Publications3.Relations with publics4.Public opinion5.Publicity
Other functions of PR and Publicity
6. Miscellaneous
Speaker bureausCorporate donationsScholarshipsAwards, etc.
Honorary Degree for Bee Gees
Public Relations can be done with great impact
and at little cost, but….
Who does the publicity office think they work for?
Public Relations can be done with great impact
and at little cost, but….
Who does the publicity office think they work for?
As a manager, make sure that the office believes it worksfor the organization, NOT for you.
Publicity can become habit forming.Some people can become addicted to it.
Sales PromotionShort-term incentives and programs
to encourage interest and the purchaseof a product or service.
Sales Promotion
Compared to advertising:
1.Both are paid2.Both attempt to change attitudes and behavior3.Ads: Long-term objectives
SP: Short-term objectives4.Ads: Can stand alone SP: Is a part of a larger promotional mix
Sales Promotion
Type Target
Trade shows TradeIncentives TradePush Money TradePOP Trade, ConsumersPremiums Trade, ConsumersPromotional products Trade, ConsumersContests (sweepstakes) Trade, ConsumersRebates Trade, ConsumersCoupons Consumers, Trade