Promotion Professor Joel Huber BA 360 Marketing Management

Promotion Professor Joel Huber BA 360 Marketing Management Fuqua School of Business • Introduction • Three C’s • Four P’s – – Product Placement Promotion Price • Summary Promotion–

Set the stage • Define the core benefit (vision, essence, core communication strategy) • Sell that vision internally • Generate a promotion mix to deliver the message Promotion– 2

Promotional Mix • Promotion mix – Advertising – Selling – Sales Promotion – Publicity – Direct Marketing • Product • Price • Distribution Promotion– 3

Steps in Developing Promotional Plan • 1. Identify Target Audience • 2. Determine The Communication Objective • 3. Design The Message • 4. Decide on The Promotional Mix • 5. Allocate The Promotional Budget • 6. Measure The Results • 7. Manage And Coordinate The Process Promotion– 4

1. Identify Target Audience • Potential new buyers – Nonusers vs. current competitor’s customers • Current users – Can you increase usage? • Influencers – People who may not buy but influence decisions of those who may Promotion– 5

2. Set the Objectives • Hierarchy of effects model Awareness Knowledge Implies Cognition Liking Affect Preference Conviction Purchase Action Promotion– 6

2. Set the Objectives IMMEASURABLE • Increase awareness • Motivate purchase behavior MEASURABLE • Increase top-of-mind among 18 -32 year olds by 25% within 3 months • Increase market share among first time purchasers from 2% to 5% within 1 year Promotion–

3. Design the Message • What To Say (Message Content) - Theme, Idea, Slogan • How To Say It Logically (Message Structure) Conclusion Drawing, One vs. Two Sided Messages - Appeal (Rational, Emotional, Moral) • How To Say It Symbolically (Message Format) Print (Color, Headline, Illustration, Demonstration, Testimonial, Payoff, Image); Radio (Voice, Vocalization, Script); TV (All above) • Who Should Say It? - Source Credibility Promotion– 8

3. Who should say it: Viagra "Courage, something shared by countless Americans. Those that risked their lives. Those that battled serious illness. " A soothing piano can be heard in the background. He goes on telling his worries battling prostate cancer. His second worry was postoperative side effects like E. D. , erectile dysfunction or as Bob Dole says, "Most often called impotence. " Promotion–

Step 4 - Decide On Promotional Mix • Advertising – Public, Pervasive, Expressive, Impersonal • Sales – Confronting, Cultivating, Consulting • Sales Promotion – Communication, Incentive, Invitation • Publicity and Public Relations – Credibility, Reach, Dramatization • Direct Marketing – Efficient, targeted, adaptive, Promotion– 10

AIDAS and the Mix Promotion– 11

Sampling Promotion– 12

Some Common Communication/Promotion Tools ___________________________ Advertising Print & broadcast ads Packaging-outer Packaging inserts Mailings Catalogs Motion pictures House magazines Brochures & booklets Posters & leaflets Directories Reprints of ads Billboards Display signs Point of purchase displays Audiovisual material Symbols & logos Sales Promotion Publicity Contests, games, Press Kits sweepstakes Speeches lotteries Seminars Premiums& gifts Annual reports Sampling Charitable Fairs/trade shows donations Exhibits Public relations Demonstrations Couponing Rebates Low-interest financing Entertainment Trade-in allowances Trading stamps Tie-ins Personal Selling ____ Sales presentations Sales meetings Telemarketing Incentive programs Salesmen samples Fairs & trade shows

Push v. Pull Promotion– 14

Consumer v. Industrial Promotion– 15

Promotional Mix For Business To Business Promotion– 16

Comparison of Two Most Commonly Used Promotion Tools Advertising • • • Builds equity Benefit emphasis High marketer control End-user is target Pull Can take a long time to have effect Trade Promotion • • • Not much equity built Price emphasis Low marketer control Trade is target Push Usually effective immediately Promotion–

5. Set the Budget • Affordable method – Budget what is thought affordable • Percentage of sales method • Competitive parity method • Objective and task method – Define specific objectives – Determine tasks necessary to achieve objectives – Estimate costs of performing these tasks Promotion– 18

6. Measure the Results • Attitude and awareness objectives – Simulated test markets (BASES) – Pre-promotion level vs. post-promotion level • Behavioral objectives – Changes in sales (noisy) Promotion– 19

7. Manage the process • Set and communicate core product value • The internal sell is often more important than the external one • Once communication goals have been set convey the message in as many ways as possible Promotion– 20

One. Touch Campaign Consumer Print Public Relations Internet Television One Look “Surround-Sound” Retail Conventions Direct Mail Detail Aids Professional Print Promotion– 21

Key Take Aways • The promotional mix • 7 Steps in developing a promotional plan – Identify target – Set objectives – Design message – Determine promotional mix – Allocate budget – Measure results – Manage the process Promotion– 22