BM4513 Marketing - Lecture 5: Promotion

BM4513 Marketing - Lecture 5: Promotion

• The lecture focuses on engaging consumers using the promotion mix, specifically advertising and PR.
• Learning outcomes include defining the four promotion mix tools, discussing the changing communication landscape, defining the role of advertising, and defining the role of public relations (PR).
• The promotion mix (also called the marketing communications mix) is a blend of promotion tools to communicate customer value and build relationships.
• The four promotion mix tools are:
  • Advertising: Any paid form of non-personal presentation and promotion of goods, services, or ideas by an identified sponsor. Includes digital, broadcast, print, outdoor, and other forms.
  • Public Relations (PR): Activities designed to engage various publics and build positive relationships. Includes news updates, stories, sponsorships, events, webpages.
  • Sales Promotion: Short-term incentives to encourage purchase or sales. Includes discounts, coupons, displays, demonstrations, and events.
  • Personal Selling: Personal customer interactions by the firm's sales force for making sales and building customer relationships. Includes sales presentations, trade shows, and incentive programs.

The New Marketing Communications Model

• Marketers are shifting from mass marketing to focused marketing due to increased digital technology and fragmented markets.
• Consumers are better informed and communicate brand-related info online.
• Advances in digital technology allow for more engaging, personalized marketing, targeting smaller communities.
• A mix of traditional mass and digital media channels is utilized for effective engagement.
• The new model emphasizes the importance of paid, owned, earned, and shared channels.

Advertising

• Advertising is a paid form of non-personal presentation for products or services by a sponsor.
• Includes various media (paid media): digital, broadcast, print, outdoor.
• Designed for broad reach and creative content to capture attention and create a memorable impression.
• Advertising employs different formats (banners, pop-ups, websites, prints, videos).

Advertising Campaign Planning Decisions

• Objectives set communication and sales objectives.
• Budget decisions are made using affordable approach, percentage-of-sales method, competitive parity, objective and task methods.
• Media decisions include impact/engagement strategies, major media types, specific media vehicles, and timing.
• Advertising evaluation measures communication impact, sales/profit impact, and return on advertising.

Setting Advertising Objectives

• Advertising objectives are categorized into three main purposes: informing, persuading, and reminding.

Setting the Advertising Budget

• Methods used to set the budget include the affordable method, percentage-of-sales method, competitive-parity method, and objective-and-task method.

Factors Affecting Advertising Budget

• Brand new products or services will usually need a larger budget
• Markets with many competitors and high advertising clutter will require more advertising.
• Undifferentiated products may need heavier advertising to stand out, while differentiated products can highlight differences.
• During economic downturns, advertising budgets are often among the first to be reduced.

Message & Media Decisions

• Advertainment: Advertising and entertainment blended together, entertaining and useful.
• Brand integrations: Brands are interwoven into entertainment or content.
• Native advertising: Content created to look and feel like other content

Major PR Tools

• News
• Public service activities (e.g. charity drives, CSR programs)
• Special events
• Written materials (brochures, catalogs, press releases)
• Corporate identity materials (logos, mascots)
• Digital platforms (YouTube, Facebook, Instagram)

Public Relations

• PR activities aim to build relationships and favorable public image through various functions.
• PR activities include press relations, product/brand publicity, public affairs, lobbying, investor relations, and development.
• Effective PR relies on building good relations with stakeholders.
• Using PR to manage reputation
• PR Tools to achieve goals

Message and Content Strategy

• Key steps in advertising media selection include determining reach, frequency, impact and engagement, choosing among major media types, selecting specific media vehicles, and deciding on media timing.