BM4513 Marketing Lecture 5: Promotion PDF

Official (Closed) and Non-Sensitive BM4513 Marketing Lecture 5: Promotion (I) – Engaging Consumers with The...

Official (Closed) and Non-Sensitive BM4513 Marketing Lecture 5: Promotion (I) – Engaging Consumers with The Promotion Mix - Advertising & PR Official (Closed) and Non-Sensitive Learning Outcome 1. Define the four Promotion Mix and describe the major Promotion Tools. 2. Discuss the changing communications landscape and the need for integrated marketing communications. 3. Define the role of advertising and describe the major decisions involved in an advertising programme. 4. Define the role of PR and explain how PR is used to communicate with relevant publics. Official (Closed) and Non-Sensitive The Promotion Mix Also known as Marketing Communications Mix, it refers to The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. Each category involves specific promotional tools. Includes the following: 1. Advertising - Any paid form of nonpersonal Advertising includes digital, broadcast, print, outdoor, presentation and promotion of ideas, goods, or services and other forms. by an identified sponsor. 2. Public Relations (PR) - Activities designed to engage Public relations includes news updates, stories, the company’s various publics and build good relations sponsorships, events, and webpages. with them. 3. Sales Promotion - Short-term incentives to Sales promotion includes discounts, coupons, encourage the purchase or sale of a product or service. displays, demonstrations, and events. 4. Personal Selling - Personal customer interactions by the firm’s sales force to engage customers, make sales, Personal selling includes sales presentations, trade and build customer relationships. shows, and incentive programs. Official (Closed) and Non-Sensitive The New Marketing Communications Model With advances in digital technology and mass markets becoming more fragmented, businesses and marketers are shifting towards more focused marketing than mass marketing: Better informed consumers: With the help of the internet and social media, consumers communicate and exchange brand related information. Advances in digital technology: Marketers adopting a “digital-first” approach to reach smaller communities in more engaging ways. Mix of both traditional mass and digital media: Integrating all communications channels to best engage customers, communicate brand messages and enhance customer experiences. Official (Closed) and Non-Sensitive The New Marketing Communications Model Marketers must view themselves more broadly as content marketing managers: Create, inspire and share brand messages and conversations with consumers across a fluid mix of paid, owned, earned and shared channels and media. Official (Closed) and Non-Sensitive Integrated Marketing Communications (IMC) Integrated Marketing Communications (IMC) is a strategic approach used in marketing to ensure consistency in messaging across multiple channels and mediums. It involves the coordination and integration of all marketing communication tools, avenues, functions, and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost. Official (Closed) and Non-Sensitive What is Advertising? 1. Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor/advertiser. 2. Paid Media - Advertising involves paying for space or time in various media platforms to deliver a specific message. This distinguishes it from earned or owned media. 3. Wide Reach - Advertising is designed to reach a broad audience, often across different demographics and geographic locations. 4. Creative Content - Advertising often involves creative content that aims to capture attention and make memorable impressions. 5. Various Formats and Platforms - Advertising can take many forms such as print ads in newspapers and magazines, commercials on TV and radio, banners and pop-ups on websites, and posts on social media platforms. Official (Closed) and Non-Sensitive Advertising Campaign Planning Decisions Official (Closed) and Non-Sensitive Setting Advertising Objectives Advertising objectives can be classified by 3 main purpose - 1. To inform 2. To persuade 3. To remind Official (Closed) and Non-Sensitive Setting the Advertising Budget Affordable Method Set the promotion budget at the level they think they can afford. Percentage-of-sales Method Set their budget at a certain percentage of current or forecasted sales. Competitive-Parity Method Set their promotion budgets to match competitors’ outlays. Objective-and-task Method Set its promotion budget based on what it wants to accomplish Official (Closed) and Non-Sensitive Factors affecting Advertising Budget 1. Product Life Cycle stage - new brands/products typically require larger budgets to build awareness and to gain trial. Mature products may require relatively low budgets. 2. Markets & Competitions - brands in markets with many competitors and high advertising clutter must advertised more heavily. 3. Types of products - undifferentiated products may require heavy advertising to set them apart, whereas a well differentiated product can highlight its differences or unique selling points to consumers. 4. Economy outlook - advertising budgets is one of the first to be cut in tough economic times. In the short-term, cuts in advertising may appear to save the company money and resources. However, slashing ad spend often damages the brand's image and market share. Official (Closed) and Non-Sensitive Message & Media Decisions To break through the clutter, marketers employ the following techniques and strategies to provide content that is engaging, useful, entertaining: Advertainment make advertisements so entertaining or so useful Brand Integrations making the brand an inseparable part of some other form of entertainment or content. Native Advertising The brand content looks in form and function like the other natural content surrounding it. Official (Closed) and Non-Sensitive Advertainment Official (Closed) and Non-Sensitive Brand Integrations Official (Closed) and Non-Sensitive Native Advertising Official (Closed) and Non-Sensitive Message and Content Strategy To create effective advertising content, marketers will have to focus on 3 main steps: Craft a Creative Develop a Strategic Concept Message Choose Impactful Appeals - Bring message to life in - What to be a distinctive and communicated to - should have 3 memorable way characteristics consumers - meaningful, believable, - Identifying customer - Creative concept / Big and distinctive benefits Idea Official (Closed) and Non-Sensitive Message Execution Styles Slice of life Depicts a relatable scenario or conflict that the product can resolve, reflecting everyday life situations. Lifestyle Shows how the product fits within a particular way of life, appealing to consumers who identify with that lifestyle. Fantasy Creates a make-believe scenario to escape reality, illustrating the product in a dreamlike or imaginative setting. Mood or image Focuses on building a specific feeling or atmosphere around the product, often through visual aesthetics and minimal text. Musical Incorporates songs or jingles to make the advertisement more engaging and memorable. Personality symbol Utilizes a character or spokesperson whose traits are meant to embody the brand's identity or values. Technical expertise Highlights the brand's authority and knowledge in its field, often using detailed explanations or demonstrations. Scientific evidence Uses data, research findings, or scientific claims to validate the product's effectiveness and benefits. Testimonial evidence Features real users or celebrities endorsing the product, sharing personal experiences or recommendations. / endorsement Official (Closed) and Non-Sensitive Slice of Life Official (Closed) and Non-Sensitive Lifestyle Official (Closed) and Non-Sensitive Fantasy Official (Closed) and Non-Sensitive Mood or Image Official (Closed) and Non-Sensitive Musical https://www.youtube.com/watch?v=eCAcDb3arjQ https://www.youtube.com/watch?v=3A8iRGjbec0 Official (Closed) and Non-Sensitive Personality symbol https://www.youtube.com/watch?v=DWsUrMfDaG4 https://www.youtube.com/watch?v=Bv09DRd4lsM &t=9s Official (Closed) and Non-Sensitive Technical expertise https://www.youtube.com/watch?v=UjmaxCyJBc4 https://www.youtube.com/watch?v=Bv09DRd4lsM Official (Closed) and Non-Sensitive Scientific evidence https://www.youtube.com/watch?v=Bpj_JMIrBFU Official (Closed) and Non-Sensitive Testimonial evidence / endorsement https://www.youtube.com/watch?v=cYATyMUM0RI https://www.youtube.com/watch?v=qIVDxL2lgN4 Official (Closed) and Non-Sensitive Message and Content Strategy The major steps in advertising media selection are: 1.Determining reach, frequency, impact, and engagement 2.Choosing among major media types 3.Selecting specific media vehicles 4.Deciding on media timing. Official (Closed) and Non-Sensitive Public Relations Public Relations (PR), consists of activities designed to engage the company’s various publics and build good relations with them. PR may include any or all of the following functions: Press relations or press agency - Creating and placing newsworthy information in the media to attract attention to a person, product, or service. Product and brand publicity - Publicizing specific products and brands. Public affairs - Building and maintaining national or local community relationships. Lobbying - Building and maintaining relationships with legislators and government officials to influence legislation and regulation. Investor relations - Maintaining relationships with shareholders and others in the financial community. Development - Working with donors or members of nonprofit organizations to gain financial or volunteer support. Official (Closed) and Non-Sensitive Public Relations Building good relations with the company’s various stakeholders by obtaining favorable publicity, building up a good corporate image, and handling unfavorable rumors & occurrences (Crisis situations), stories and more. A case of good PR from DHL and a case of bad PR from Certis Cisco: https://stomp.straitstimes.com/singapor https://mustsharenews.com/certis- e-seen/most-uplifting-video-youll- officer-gun-arrested/ watch-today-dhl-driver-piggybacks- elderly-man-struggling Official (Closed) and Non-Sensitive Public Relations Public relations is about reputation. Businesses and marketers aim to earn understanding and support by influencing opinion and behaviour. Singtel’s PR campaign during Christmas A campaign by TWC2 to push for understanding and season to align its brand to the act of gifting. acceptance to give domestic helpers their weekly day off. https://www.youtube.com/watch?v=_w https://www.youtube.com/watch?v=jU JJV1C35MQ xkOSkD8Rc Official (Closed) and Non-Sensitive Major PR Tools News Public Service Acitivites (charity drive, CSR programme) Special Events Written materials (brochures, catalogs, press releases for the media) Corporate identity materials (Logo, mascot etc ) Digital platforms (YouTube, FB, Instagram, etc) Official (Closed) and Non-Sensitive Thank you Module Leader: Kenneth Nah [email protected]