School of International Business

1
School of International Business BA (HONS)
Business Studies with Specialisms MKT301 LECTURER
Edel Griffin OFFICE International Business
Centre Tel [phone] Email
e.griffin_at_ulster.ac.uk
2
School of International Business BA (HONS)
Business Studies with Specialisms MKT301 LECTURE
8 Promotion
3

• Lecture Outline
• Role of Promotion
• Communications Process
• Promotion and the Product Adoption Process
• Aims of Promotion Communication
• Promotional Mix
• Push vs Pull Policy
• Developing an Advertising Campaign

4
The Four Ps - Promotion
5
Role of Promotion

• The role of promotion in a company is to
  communicate with individuals, groups or
  organisations to directly or indirectly
  facilitate exchanges by informing and persuading
  one or more of the audiences to accept the
  companys products.
• Marketers try to communicate with selected
  audiences about their company and its goods,
  services and ideas in order to facilitate
  exchanges.

6
Role of Promotion

• Promotion can play a comprehensive communications
  role.
• Some promotional activities can be directed
  towards helping a company justify its existence
  and maintain positive, healthy relationships
  between itself and various groups in the
  marketing environment.

7
Role of Promotion

• Although a company can direct a single type of
  communication, such as an advertisement, towards
  numerous audiences, marketers often design a
  communication precisely for a specific target
  market.
• Effective promotional activities are based on
  information from the marketing environment, often
  obtained from an organisations marketing
  information system.
• The degree to which marketers can effectively use
  promotion to maintain positive relationships
  depends largely on the quantity and quality of
  information an organisation takes in.

8
The Communications Process
9
The Communications Process

• Communication can be viewed as the transmission
  of information
• Both the sender and the receiver of the
  information must share an understanding of the
  symbols used to transmit information, usually
  pictures or words.

10
The Communications Process

• When a source chooses an inappropriate medium of
  transmission, several problems may arise.
• A coded message may reach some receivers, but
  not the right ones.
• A coded message may reach the intended receivers
  in an incomplete form because the intensity of
  the transmission is weak.

11
Promotion and the Product Adoption Process

• One long run purpose of promotion is to
  influence and encourage buyers to accept or adopt
  goods, services and ideas.
• The ultimate effectiveness of promotion is
  determined by the degree to which it affects
  product adoption among potential buyers or
  increases the frequency of current buyers
  purchases.

12
Promotion and the Product Adoption Process

• To establish realistic expectations about what
  promotion can do, product adoption should not be
  viewed as a one-step process.

13
Product Adoption Process

• The product adoption process, a series of stages
  in the acceptance of a product, is commonly
  divided into the following five stages

14
Effective promotional tools for reaching
consumers in various stages of the product
adoption process
15
Product Adopter Categories

• Depending on the length of time it takes them to
  adopt a new product, people can be divided into
  five major adopter categories
• ?

16
Product Adopter Categories

• Innovators are the first to adopt a new product
  they enjoy trying new products and tend to be
  venturesome.
• Early adopters choose new products carefully and
  are viewed as the people to check with by those
  in the remaining adopter categories.
• People in the early majority adopt just prior to
  the average person they are deliberate and
  cautious in trying new products.
• Late majority people, who are quite sceptical
  about new products, eventually adopt them because
  of economic necessity or social pressure.
• Laggards, the last to adopt a new product, are
  oriented towards the past.

17
Product Adoption Process
18
Aims of Promotion Communication

• There are five basic promotion communication
  aims, known as the five communication effects
• Category needthe consumers perception of his
  or her need for a product in a certain category
• Brand awarenessthe consumers ability to
  identify a manufacturers or retailers brand in
  sufficient detail to distinguish it from other
  brands

19
Aims of Promotion Communication

• Brand attitudea consumers particular impression
  of a brand, formed by emotions and logic or
  cognitive beliefs
• Brand purchase intentionthe consumers decision
  and efforts to purchase the particular product
• Purchase facilitationcircumstances that make it
  possible for the consumer to purchase the
  product availability, location, price and
  familiarity of vendor

20
The Promotional Mix

• Several types of promotional methods can be used
  to communicate with individuals, groups and
  organisations.
• The specific combination of ingredients an
  organisation uses to promote a product is the
  promotional mix.

21
Possible Ingredients of Promotional Mix
22
Promotional mix ingredients

• Advertising is a paid form of non-personal
  communication about an organisation and its
  products that is transmitted to a target audience
  through a mass medium such as television, radio,
  newspapers, magazines, direct mail, public
  transport, outdoor displays, catalogues or the
  Internet.

23
Personal Selling

• Personal selling involves informing customers
  and persuading them to purchase products through
  personal communication in an exchange situation.
• The cost of reaching one person through personal
  selling is considerably more than through
  advertising, but personal selling efforts often
  have a greater impact on customers.
• Personal selling provides immediate feedback,
  which allows marketers to adjust their message to
  improve communication and to determine and
  respond to customers needs for information.

24
Publicity

• Publicity is non-personal communication in news
  story form about an organisation and/or its
  products that is transmitted through a mass
  medium at no charge.
• Although both advertising and publicity are
  transmitted through mass communication, the
  sponsor does not pay the media costs for
  publicity and is not identified.
• Nevertheless, publicity should never be viewed
  as free communication.

25
Sales Promotion

• Sales promotion is an activity or material that
  acts as a direct inducement by offering added
  value to or incentive for the product to
  resellers, salespeople or consumers.
• Sales promotion appears to be growing in use
  more than advertising.
• Marketers frequently rely on sales promotion to
  improve the effectiveness of other promotional
  mix ingredients, especially advertising and
  personal selling.
• Marketers design sales promotion to produce
  immediate, short run sales increases.

26
Sponsorship

• Sponsorship is the financial or material support
  of an event, activity, person, organisation or
  product by an unrelated organisation or donor.
• Funds are made available to the recipient of the
  sponsorship in return for prominent public
  recognition of the benefactors generosity and
  display of the sponsors name, products and
  brands.

27
Direct Mail

• Direct mail is a method of communication used to
  entice prospective customers or charitable donors
  to invest directly in products, services or
  worthy causes.
• It can be used as a pre-sell technique prior to
  a sales call, to generate orders, qualify
  prospects for a sales call, follow up a sale,
  announce special or localised sales and raise
  funds for charities and not-for-profit
  organisations.

28
The Internet

• The Interneta network of computer networks
  stretching across the world, linking computers of
  different typeshas been identified by marketers
  as an opportunity for providing existing and
  potential customers with company, product and
  brand information.
• As a promotional mix ingredient, the Internet
  provides a tool that can be quickly up-dated or
  modified and that can produce material aimed at
  very tightly defined target groups or even
  individual consumers.

29
Direct Marketing

• Currently experiencing a surge in popularity,
  direct marketing now encompasses all the
  communications tools that enable a marketer to
  deal directly with targeted customers direct
  mail, telemarketing, direct response television
  advertising, door-to-door/personal selling and
  the Internet.

30
Selecting Promotional Mix Ingredients

• Marketers vary the compositions of promotional
  mixes for many reasons.
• An organisations promotional mix (or mixes) is
  not an unchanging part of the marketing mix.
• The specific promotional mix ingredients used
  and the intensity with which they are used depend
  on a variety of factors.

31
Selection Promotional Mix Ingredients

• Promotional resources, objectives and policies
• The quality of an organisations promotional
  resources affects the number and relative
  intensity of promotional methods that can be
  included in the promotional mix.

32
Selecting Promotional Mix Ingredients

• An organisations promotional objectives and
  policies also influence the types of promotion
  used.
• If a companys objective is to create mass
  awareness
• What type or types of promotion should it use?
• If a company hopes to educate consumers about the
  features of durable goods
• What type or types of promotion should it use?

33
Characteristics of the Target Market

• The size, geographic distribution and
  socio-economic characteristics of an
  organisations target market also help dictate
  the ingredients to be included in a products
  promotional mix.

34
Characteristics of the product

• Generally, promotional mixes for industrial
  products concentrate on personal selling, whereas
  advertising plays a major role in promoting
  consumer goods.
• Marketers of seasonal products may have to
  emphasise advertising, and possibly sales
  promotion, because off-season sales will not
  support an extensive year round salesforce.

35
Characteristics of the product

• The price of a product also influences the
  composition of the promotional mix.
• High priced products call for more personal
  selling because consumers associate greater risk
  with the purchase of such products.
• Low priced convenience items, retailers use
  advertising rather than personal selling.

36
Characteristics of the product

• The stage of the product life cycle affects
  marketers decisions regarding the promotional
  mix.
• introduction stage, a good deal of advertising
  may be necessary to make potential users aware of
  a new product.
• Growth and maturity stages, heavy emphasis on
  advertising for consumer non-durables,
  business-to-business products often require a
  concentration of personal selling and some sales
  promotion efforts during these stages.
• Decline stage, decrease advertising and use
  personal selling and sales promotion more
  frequently.

37
Cost Availability of Promotional Methods

• The cost and availability of promotional methods
  are major factors to analyse when developing a
  promotional mix.
• National advertising and sales promotion efforts
  require large expenditures however, if they
  reach extremely large numbers of people, the cost
  per individual may be quite small.
• Although there are numerous media vehicles, a
  company may find that no available advertising
  medium effectively reaches a certain market.

38
Push policy versus pull policy

• One element that marketers should consider when
  they plan a promotional mix is whether to use a
  push policy or a pull policy.
• With a push policy, a producer promotes the
  product only to the next institution down the
  marketing channel.

39
Push policy versus pull policy

• With a pull policy, a business promotes directly
  to consumers in order to develop a strong
  consumer demand for its products.
• It does so through advertising, sales promotion,
  direct mail, sponsorship and packaging that helps
  manufacturers build and maintain market share.
• The policy is intended to pull the goods down
  through the channel by creating demand at the
  consumer level.
• A push policy can be combined with a pull policy

40
Push policy versus pull policy
41
Uses of Advertising

• Promoting Products Organisations
• Stimulating Primary Selective Demand
• Off-setting Competitors Advertising
• Making Sales Personnel More Effective
• Educating the Market
• Increasing the Uses of a Product
• Reminding Reinforcing Customers
• Reducing Sales Fluctuations.

42
Developing an Advertising Campaign

• An advertising campaign is an attempt to reach a
  particular target market by designing a series of
  advertisements and placing them in various
  advertising media.
• The number of steps and the order in which they
  are carried out may vary according to an
  organisations resources, the nature of its
  products, the types of target markets or
  audiences to be reached and the advertising
  agency selected.

43
Developing Implementing an Advertising Campaign
44
Identifying and analysing the advertising target

• The advertising target is the group of people at
  which advertisements are aimed.
• Advertisers analyse advertising targets to
  establish an information base for a campaign
• Generally, the more advertisers know about the
  advertising target, the better able they are to
  develop an effective advertising campaign.

45
Defining the advertising objectives

• Because advertising objectives guide campaign
  development, advertisers should define their
  objectives carefully to ensure that the campaign
  will accomplish what they want.
• Advertising objectives should be stated clearly,
  precisely and in measurable terms.
• Advertising objectives are usually stated in
  terms of either sales or communication.
• Advertising objectives must be realistic.

46
Creating the advertising platform

• An advertising platform consists of the basic
  issues or selling points that an advertiser
  wishes to include in the advertising campaign.
• A marketers advertising platform should consist
  of issues that are important to consumers.
• Because the advertising platform is a base on
  which to build the message, marketers should
  analyse this step carefully.

47
Determining the advertising budget

• The advertising budget is the total amount of
  money that a marketer allocates for advertising
  over a period of time.
• Many factors affect a businesss decision about
  how much to spend for advertising, including
  geographic size of the market, distribution of
  buyers within the market, type of product being
  advertised and the companys sales volume
  relative to that of competitors.

48
Developing the media plan

• To derive the maximum results from media
  expenditures, a marketer must develop an
  effective media plan.
• A media plan sets forth the exact media vehicles
  to be used for advertising and the dates and
  times when the advertisements will appear.

49
Developing the media plan

• When selecting media, the planner must first
  decide which kinds of media to use.
• The major types of media are radio, television,
  newspapers, magazines, direct mail, outdoor
  displays, public transport, the Internet or a
  combination of two or more of these. ( See
  pg496/7/8)
• After making the general media decision, the
  planner selects specific sub-classes within each
  medium.

50
Developing the media plan

• Media planners take many factors into account
  when devising a media plan.
• They analyse the location and demographic
  characteristics of people in the advertising
  target because the various media appeal to
  particular demographic groups in particular
  locations.
• They consider the size and type of audiences
  that specific media reach.

51
Creating the advertising message

• The basic content and form of an advertising
  message are a function of several factors.
• The products features, uses and benefits affect
  the content of the message.
• Demographic characteristics of people in the
  advertising influence both the content and the
  form.
• The objectives and platform of an advertising
  campaign also affect the content and form of its
  messages.

52
Creating the advertising message

• If a companys advertising objectives involve
  large sales increases, the message demands hard
  hitting, high impact language and symbols.
• When campaign objectives aim at increasing brand
  awareness, the message may use repetition of the
  brand name and words and illustrations associated
  with it.
• The advertising platform is the foundation on
  which campaign messages are built

53
Creating the advertising message

• The choice of media also influences the content
  and form of the message.
• Effective outdoor displays and short broadcast
  spot announcements require concise, simple
  messages.
• Magazine, newspaper and Internet advertisements
  can include more detail and long explanations.
• Since some publishers produce regional issues of
  magazines and newspapers, advertisements and
  editorial content can be tailored to a particular
  geographic area of the advertising target.

54
Executing the campaign

• The execution of an advertising campaign requires
  an extensive amount of planning and
  co-ordination.
• Implementation requires detailed schedules to
  ensure that various phases of the work are
  completed on time.
• Advertising management personnel must evaluate
  the quality of work and take corrective action
  when necessary.
• In some instances, changes have to be made during
  the campaign so that it meets campaign objectives
  more effectively or responds to consumer research
  feedback

55
Evaluating the effectiveness of the advertising

• There are a variety of ways to test the
  effectiveness of advertising
• Measuring achievement of advertising objectives
• Gauging the effectiveness of copy, illustrations
  or layouts
• Assessing certain media
• Advertising can be evaluated before, during and
  after the campaign.

56

• Lecture Outline
• Role of Promotion
• Communications Process
• Promotion and the Product Adoption Process
• Aims of Promotion Communication
• Promotional Mix
• Push vs Pull Policy
• Developing an Advertising Campaign