Communicating Customer Value Agenda The Promotion Mix Promotion

Communicating Customer Value

Agenda • The Promotion Mix • Promotion • Integrated Marketing Budget/Mix Communications • Socially Responsible • The Communication Marketing Process Communication • Effective Marketing Communication

Promotional Mix The five major promotional tools are: Advertising Sales Promotion Personal Selling Public Relations (PR) Direct Marketing • • •

The New Marketing Communication Model Several major factors are changing of today’s marketing communication 1. Consumers are changing 2. Marketing strategies are changing 3. Communication technology are causing remarkable changes in the ways in which companies and customers communicate with each other

New Marketing Communications • • Reach smaller consumers in more interactive way This includes traditional mass media and wide variety of more targeted, more personalized media

Integrated Marketing Communications Strategy • • Recognize all touchpoints which would allow the customer to encounter the company and brand Goal is to deliver a consistent and positive message through each contact

Developing Effective Market Communication

Steps to develop effective communication • • • Identify the target audience Determine the communication objectives Design a message Choose media to send message Select source Collect feedback

Determining the Communication objectives Buyer-readiness stages • • • Awareness Knowledge Liking Preference Conviction Purchase

Designing a Message • Goals of a message: AIDA o o Grasp attention Hold interest Arouse desire Obtain action

Designing a Message • Message Content o Rational appeal o Emotional appeal o Moral appeal • Message Structure o Draw conclusion or leave it to the audience o Present argument first or last o Admit only strengths or presents strengths while admitting faults

Choosing Media • Must select channels of communication • Personal communication • o Word-of-mouth influence o Buzz marketing Nonpersonal Communication o Major Media o Atmosphere o Events

Selecting Message Source • Who is going to deliver the message • Representation of brand • Usually well-known celebrities or athletes Red Bull uses athletes such as: • Ryan Sheckler- Skate Boarder • Jamie O’Brien- Surfer • Travis Pastrana- Motocross • Shaun White- Snowboarder

Collecting Feedback • What was the effect on the target audience? o Do they remember the message? o How many people bought the product? • • May suggest changes in promotion or product Allows for company to strengthen

Selecting Total Promotion Budget and Mix Setting the Total Promotion Budget • • Affordable Method- Budget is what they think they can afford Percentage-of-Sales Method- Budget is based at a percentage of current or forecasted sales Competitive-Parity Method- Budget is set to match competitor’s outlay Objective-and-Task Method- Budget is set for what is wanting to be accomplished

Commercial http: //www. youtube. com/watch? v=y. RX 1 j FEQApw

Shaping Overall Promotion Mix Strategies • Push Strategy- • Pull Strategy- “Pushing” product through marketing channels to final consumers Marketing activities are directed towards final consumer

Socially Responsible Market Communications Advertising promotion Sales Promotion Personal Selling

Time for Discussion. . . • What are the five promotional tools ? • • • o Which one do you believe Red Bull lacks in? How does Red Bull use the objective-task method effectively? Do you think the promotional program that Red Bull used in its early days would be a successful strategy for other companies? Why? What strategy made the Red Bull energy drink so successful?

What We Learned. . .