CHAPTER 14: Marketing Promotion
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1 CHAPTER 14: Marketing Promotion Delivering High Impact Messages 1
2 LOOKING AHEAD What is promotion? What is Integrated Marketing Communication? How do you effectively develop a promotional message? What are the elements of the promotional mix? What are emerging tools in the promotional mix? How do you choose an effective promotional mix? 2
3 PROMOTION: INFLUENCING CONSUMER DECISIONS Promotion the power to influence consumers to remind them, to persuade them, to inform them. A great ad campaign will make a bad product fail faster. It will get more people to know it s bad. Bill Bernbach, Marketing Industry Legend 3
4 PROMOTION IN CHAOS: DANGER OR OPPORTUNITY? Technology has empowered consumers to choose when they interact with media Since 2000, DVD sales and rentals have soared 675% Time on the Internet has grown 77% Videogame playing has increased 20% Consumers watching TV are zapping ads with TiVo 4
5 INTEGRATED MARKETING COMMUNICATIONS Coordinate promotional messages Create a coherent impression in customer s mind Identify key points of contact between product and target market Consumers combine or integrate - information from all sources to form a unified impression 5
6 A MEANINGFUL MESSAGE How your product is different from and better than the competition. Positioning Statement articulates how you want your target market to envision your product relative to the competition. 6
7 THE BEST BIG IDEAS Nike: Just do it. The Energizer Bunny. Budweiser: Whassup?! Motel 6: We ll leave the light on for you. 7
8 RATIONAL VS EMOTIONAL Rational: Science: Clinique: Allergy tested. 100% fragrance free Price: WalMart: Always low prices. Always. Engineering: BMW: The ultimate driving machine Emotional: Sex: Carl s Jr.: Paris Hilton. That s hot. Security: Allstate: You re in good hands. Humor: Vonage: People do stupid things. 8
9 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Volvo Federal Express Crest Neutregena 9
10 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Chocolate Nordstrom Domino s Pizza Volvo Federal Express Crest Neutregena 9
11 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Chocolate Service Domino s Pizza Volvo Federal Express Crest Neutregena 9
12 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Chocolate Service Home Delivery Volvo Federal Express Crest Neutregena 9
13 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Volvo Chocolate Service Home Delivery Safety Federal Express Crest Neutregena 9
14 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Volvo Federal Express Chocolate Service Home Delivery Safety Overnight Crest Neutregena 9
15 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Volvo Federal Express Crest Chocolate Service Home Delivery Safety Overnight Cavities Neutregena 9
16 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Volvo Federal Express Crest Neutregena Chocolate Service Home Delivery Safety Overnight Cavities Healthy 9
17 THE PROMOTIONAL MIX: COMMUNICATING THE BIG These tools can help communicate the Big Idea to your target market. Advertising Sales Promotion Direct Marketing Personal Selling Emerging Tools 10
18 EMERGING PROMOTIONAL TOOLS: THE LEADING EDGE Product Placement Advergaming Minimovies Buzz Marketing Sponsorships South Western, a division of Cengage Learning
19 EXPLOSION OF PRODUCT PLACEMENT Product Placement exploded with E.T and Reese s Pieces Risky Business (1983) You ve Got Mail (1998) James Bond Did you see Napoleon Dynamite? This is an interesting example of reverse product placement. 12
20 TOOLS KEEP EMERGING Ford reinvigorated their less-than-thrilling Focus vehicle by giving it free to 120 hip young employees of celebrities such as Madonna and Adam Sandler. The strategy drove nearly 300,000 sales in the first year. 13
21 TRADITIONAL PROMOTIONAL TOOLS Advertising Sales Promotion Public Relations Personal Selling 14
22 ADVERTISING Television Broadcast Cable Newspapers Direct Mail Radio Which media effectively reaches your target market? Yellow Pages Magazines Outdoor Internet 15
23 MEDIA SPENDING $2 billion was the cost of one 30-second commercial on the last episode of Friends, setting a record for a non-super Bowl broadcast 16
24 CONSUMER PROMOTION Premiums Promotional Products Samples Coupons Rebates Displays designed to stimulate immediate sales. 17
25 TRADE PROMOTION Special Deals Allowances Trade Shows Contests Sweepstakes Special Events designed to simulate wholesalers and retailers to push specific products. 18
26 PUBLIC RELATIONS (PR) The media looks for newsworthy stories Smart firms push potential news of their company The advantage of PR is that it is usually credible The disadvantage is that marketers don t control media perceptions 19
27 PERSONAL SELLING Person-to-Person presentation of products. Today selling means building relationships Personal selling is best for: High-ticket items Complex products High volume customers 20
28 SELLING PROCESS Prospect and Qualify Prepare Present Handle Objections Close Sale Follow-up 21
29 SALESPEOPLE Missionary Selling promoting goodwill for a company by providing information and assistance to customers. Consultative Selling involves shifting the focus from products to customers' needs. Team Selling a group of specialists from all areas of the business to respond to customer needs. 22
30 THE BEST BIG IDEAS Nike: Just do it. The Energizer Bunny. Budweiser: Whassup?! Motel 6: We ll leave the light on for you. 23
31 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Volvo Federal Express Crest Neutregena 24
32 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Chocolate Nordstrom Domino s Pizza Volvo Federal Express Crest Neutregena 24
33 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Chocolate Service Domino s Pizza Volvo Federal Express Crest Neutregena 24
34 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Chocolate Service Home Delivery Volvo Federal Express Crest Neutregena 24
35 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Volvo Chocolate Service Home Delivery Safety Federal Express Crest Neutregena 24
36 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Volvo Federal Express Chocolate Service Home Delivery Safety Overnight Crest Neutregena 24
37 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Volvo Federal Express Crest Chocolate Service Home Delivery Safety Overnight Cavities Neutregena 24
38 OWNING A WORD IN THE CONSUMERS MIND What word comes to mind when you think of each of the following companies? Hershey s Nordstrom Domino s Pizza Volvo Federal Express Crest Neutregena Chocolate Service Home Delivery Safety Overnight Cavities Healthy 24
39 CHOOSING THE RIGHT MIX: NOT JUST A SCIENCE!Product Characteristics!Product Life Cycle!Target Audience!Push vs. Pull!Competitive Environment!Budget 25
40 PUSH VS PULL STRATEGIES Push Strategy motivating distributors to push your products to the final consumers Pull Strategy creating demand from your final consumers so that they pull your product through the channel. 26
41 LOOKING BACK What is promotion? What is the climate of the current promotional environment? What is Integrated Marketing Communication? How do you effectively develop a promotional message? What are the elements of the promotional mix? What are emerging tools in the marketing mix? How do you choose an effective promotional mix? 27
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