Economic Systems 18/02/2016 PROMOTION. What to produce? When? Where? For whom? MARKETING MIX
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1 MidAtlantic Women in Agriculture Conference Dr. Kim Morgan, Extension Economist Allyssa Mark, Ag. & Applied Econ. M.S. 11 February 2016 PRICE PROMOTION MARKETING MIX PRODUCT PLACE Economic Systems What to produce? When? Where? For whom? 1
2 The Role of Product Promotion Marketing communications The means by which firms attempt to inform, persuade, and remind consumers about the products and brands they sell Promotion Tools Include 1. Advertising 5. Online and social 2. Sales promotion media marketing 3. Events and 6. Mobile marketing experiences 7. Direct and 4. Public relations and database marketing publicity 8. Personal selling 2
3 1. Identify the target audience Marketing communications can be used to move the target through a series of responses. The order that the consumer moves through these responses depends on whether the good or service is: low involvement high involvement experiential 3
4 2. Set the promotion objectives Establish need for product or service Build brand awareness Build brand attitude Influence brand purchase intention Promotion Objective Samples Objective Influence Beliefs Influence Feelings Influence Behavior Sample Achieve 25% awareness of Product A among the target audience within 4 months. Achieve 18% preference for Product E among the target audience within 3 months. Achieve 9% trial of Product C among the target audience within 6 months. 3. Design the Promotion What to Say: search for appeals, themes or idea that tie into brand positioning 4
5 3. Design the Promotion How to Say It: way marketers translate messages into specific communication 3. Design the Promotion Who Should Say It: credible source crucial to message acceptance expertise, trustworthiness, and likability 4. Select the promotion channels Personal communications Non-personal channels 5
6 5. Establish budget Affordable method Percentage-of-sales method 6. Decide on promotion tools mix Advertising Sales promotion Events and experiences Public relations and publicity Online and social media marketing Mobile marketing Direct and database marketing Sales force Non-Personal Promotion Tool Advertising Repeat message many times Dramatize company, product, service Focused communication across geographic boundaries 6
7 Non-Personal Promotion Tool Sales Promotion Ability to be attention-getting Incentive Invitation Non-Personal Promotion Tool Events and experiences Relevant, personally invested in outcome Engaging, real-time Indirect soft sell Non-Personal Promotion Tool Public relations and publicity Authentic & credible Ability to reach hard-to-find buyers Dramatization farm story 7
8 Non-Personal Promotion Tools Tool Advertising Sales Promotion Public Relations Events & Experiences Use Efficiently get messages to large audience. Stimulate immediate purchase, reward repeat purchases, motivate sales personnel. Build positive image, strengthen ties with stakeholders. Live connection with target market Personal Promotion Tools Direct and database marketing Personal Proactive Complementary Personal Promotion Tools Personal selling Customized Relationship-oriented Response-oriented 8
9 Personal Promotion Tools Online and social media marketing Rich information/entertainment Interactive, responsive Up to date, quick diffusion Personal Promotion Tools Mobile marketing Timely and reflect locale Influential at point of purchase Pervasive Personal Promotion Tools Tool Direct Marketing Personal Selling Use Reach targeted audiences, encourage direct response. Reach customers one-to-one to make sales, strengthen relationships. 9
10 Select Promotion Tools Mix Market Scale Local Regional National Global Target Audience Demographic Geographic Psychographic Behavioral Media habits Media Choices TV Radio Outdoor Newspaper Internet Magazine Direct mail Other Message Content Select Promotion Tools Mix Notes on Social Media.. Content is largely or exclusively created by users - interaction can lead to positive or negative word-of-mouth. Lacks the high degree of control afforded by traditional advertising. Social media are rarely the sole source of marketing communications for a brand Only some consumers want to engage with some brands, and, even then, only some of the time 10
11 Notes on Word-of-Mouth Identify and devote effort to influentials Supply key people with product samples Work through community influentials Develop WOM referral channels Provide compelling info to pass along THANK YOU!!! Dr. Kim Morgan 11
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