Chapter 24 Promotional objectives and positioning Peggy Simcic

Chapter 24 Promotional objectives and positioning Peggy Simcic Brønn

Role of objectives z. Provide direction and an action focus z. Provide means by which decisions can be made consistently z. Determine the time period for completion z. Communicate the values and scope of activity z. Provide means for evaluating Peggy Simcic Brønn

Peggy Simcic Brønn

Promotional Objectives z. Three components: y. Corporate Objectives xbuyers of product or services y. Marketing Objectives xsales volume, market share, profitability, revenue y. Communication Objectives ximage, reputation and preferences of stakeholders Peggy Simcic Brønn

Setting of promotional objectives Three main reasons: z. Provide a means of communication and coordination between groups. z. Provide a guide for decision-making. z. Provide a benchmark. Peggy Simcic Brønn

Form of Objectives Communications School Sales School The only meaningful measure of the success of a promotional plan is the level of sales at the end of the period. Promotional activities are regarded as communications tasks, such as: z provision of information z generation of awareness z development of positive attitudes Peggy Simcic Brønn

z. Awareness -- necessary before purchase behavior can be expected. z. Comprehension -- knowledge about the product (or what organization does) z. Conviction -- that one product in class should be tried at next opportunity z. Action -- engage in purchase activity. Peggy Simcic Brønn

Peggy Simcic Brønn

Peggy Simcic Brønn

SMART objectives z. Specific z. Measurable z. Achievable z. Realistic z. Targeted and Timed The marketing communications objective for the period March 1998 (timed) is to create 65% (measurable and achievable) prompted awareness (specific) in the ABC 1, male 30 to 45 year old age group and those earning £ 25, 000 plus (targeted). Peggy Simcic Brønn

Positioning z. . . The act of designing the company’s offering and image so that they occupy a meaningful and distinct competitive position in the target customers’ minds. ’ Kotler (1997) z. It is about what the buyer thinks about the product and/or company. Peggy Simcic Brønn

Positioning strategies z Product features z Price/Quality z Use z Product class association z User z Competitor z Benefit z Cultural symbol Peggy Simcic Brønn

Peggy Simcic Brønn