MKTG (2).pdf

Promotion and communication: Promotion: communication used to build and maintain relationships by informing and persuading one or more target audiences Communication: a sharing of meaning ○ Between a sender and a receiver ○ Involves both the encoding and decoding pr...

Promotion and communication: Promotion: communication used to build and maintain relationships by informing and persuading one or more target audiences Communication: a sharing of meaning ○ Between a sender and a receiver ○ Involves both the encoding and decoding processes ○ Via a selected medium Functions of promotion: To persuade consumers to choose one brand over others (selective demand) To remind consumers to continue using certain products (brand loyalty) To inform consumers about new products (primary demand) To build relationships with customers To assist with other elements of the marketing mix (increase support offered by retailers) The communication process: Elements of the communication process: Source/sender - a person, group or organisation with a meaning it tries to share Receiver - the individual, group or organisation that decodes a coded message Encoding process - converting meaning into a series of signs or symbols that are meaningful to the intended receiver Message - the communication in physical form that goes from sender to receiver Communications channel - the medium of transmission that carries the encoded message from the source to the receiver or audience Decoding process - converting signs or symbols into concepts and ideas, assigns meaning Noise - anything that reduces a communications clarity and accuracy Feedback - the receivers response to a message as perceived by the sender ○ Personal selling  Questions, comments, objections Gestures, frowns ○ When mass media are used Sales Customer inquiries, store visits, coupon redemptions, reply cards Website/Facebook visits, likes, tweets Research based Integrated marketing communications (IMC) The coordination of promotional efforts for maximum informational and persuasive impact on customers The major goal is to send a consistent message to customers (to avoid confusing them) and to other stakeholders Foster long-term customer relationship and more efficient use of promotional resources Integrated marketing communications: A process that evaluates the strategic role of a variety of communication disciplines and combines them to provide clarity, consistency and maximum communications impact Project a consistent, unified image to the marketplace (one voice) In IMC, there are two types of integration: ○ Message integration (tactical) ○ Strategic integration Selecting Promotional Mix Activities: An integrated promotional campaign requires the right combination of mix elements Push or pull promotional strategy? Push; ○ Mainly focusing on channel members, trying to push the products into the market Pull; ○ Mainly focusing on end-consumers, trying to create demand for their products in the market Advertising: Paid (identified sponsor) non-personal communication about an organisation and its product transmitted to a target audience Advantages ○ Control ○ Create images and appeals ○ Brand equity  ○ Connects with the consumer ○ Wide reach, low cost per person Disadvantages ○ Impersonal, and one way communication ○ Cost of media and production ○ Credibility ○ Clutter ○ Weak force ○ Difficult to measure effectiveness Major advertising decisions: Hierarchy of Effects (setting objectives) Creating the advertising message (encoding): Copy - the verbal portion of ads Artwork - illustrations, images, layout (physical arrangement) Illustrations - photos, drawings, graphs, charts, tables Layout - the physical arrangement of an ad's illustration and copy Appeal Message appeal styles (ways to encode the message, main creative emphasis) Rational appeal ○ Promotes factual information, reasons why Emotional appeal ○ Stirs emotions such as humour, fear, warmth, irritation and sexual arousal Profiles of the main media types:  Costs of administration and enforcement are borne by the industry rather than government (tax payers) ○ More flexible to change than legislation ○ Responds to both industry needs and public opinion ○ Limited government interference ○ Free to complain ○ Faster process ○ More responsive than government Public relations PR activities to build good relations with the company's various and mange unfavourable rumours, stories and events ○ It is used to promote products, people, places, ideas, activities, organisations and even nations Publicity is favourable or unfavourable public commentary, rumours, and stories about a brand, a company or its employees that are not controlled by the sponsor Pros; ○ Credibility ○ Lower cost ○ Difficult to imitate for competition ○ Engage consumers and make them a part of the brand story and its telling Cons; ○ Less control ○ Variety of specialists required ○ Can be relatively time consuming  might end here… Tools: news (press) release A short piece of copy distributed to others to publish and disseminate, publicising an event or a product Press releases are often used to spread news about a company or its products Bad publicity: Have a plan Gather information Get top management involved ○ Demonstrate concern for the safety of lives or other affected areas Respond quickly Coordinate all communications Be honest ○ Provide accurate, timely info to all targeted internal and external audiences Look for good news to offset bad ○ Maintain a positive image of the org. as a good corporate/community citizen Personal selling: Paid personal communication that attempts to inform customers and persuade them to purchase products in an exchange situation A salesperson is an individual representing a company to customers by performing one or more of the following activities, prospecting, communicating, selling, servicing, information gathering and relationship building Personal selling in the promotion mix: Provides greatest freedom to adjust message Customise delivery and message, greater influence Most precise focus on sales prospects Feedback from salespeople can improve the marketing mix Often the closest relationship with customers Usually most expensive element in the promotion mix Limited reach Time consuming ○ Advantages:  Financial incentives for strade to stock product Stimulates short-term consumer sales Creates excitement - extra benefit or incentive 'insurance' for ad campaign (e.g. coupon) ○ Disadvantages: Considerable expense for short term gain at expense of long-term brand equity Shifts rather than increases sales Can lead to trade wars Can be over used Can be easily copied