The Marketing Mix -- Promotion

Three Functions of Promotion

 

Inform

 

Persuade

 

Remind


The Generalized Communications Model


Notice that there are several places in the model where the marketer can fail. All parts must be working for the communication to succeed.

What is the relationship between the above diagram and the concepts of segments, target segments, market position, and psychological position?


The Promotion Mix

-- Consists of more than just advertising!
It's Integrated Marketing Communications! Made up of one or more of the following:
  • Advertising
  • Public Relations       two clips that promote/ inform about Viagra
         What people think of it.
  • Personal Selling
  • All other sales promotions
      including:
    • coupons
    • special displays at POP
    • trade shows
    • financial incentives to the trade
    • financial incentives to customers --eg rebates and price reductions
    • premiums
    • specialty advertising
    • special sponsored events
    • special sponsored charities or causes
    • special tie-ins with other products or services
"Advertising casts a verbal and emotional net so wide that no American can escape it."

Responses Sought from advertising
Ideally ... Profits
Really
Awareness
Knowledge
Liking
Preference
Conviction
Purchase


Classifications of advertising and other promotion
by Target Audience
Business
Consumer

by Geographic Area
International
National
Regional
Local

by Medium
TV
Radio
Magazines
Newspapers
Direct Mail
Internet Web sites
Electronic Mail
Out-of Home (outdoor, transit, etc.)

by Function
Inform
Remind
Persuade

by User
Company
Non-profit cause
Government
Polititian
Individual


Media Objectives and Decisions
Reach, Frequency, Impact
Media Types
Media Vehicles
   e.g. which magazine
      which tv show
      Which web site or email list
Media timing
     continuous
     seasonal
     pulsed
     hybrid of above

Setting the Promotion Budget

Rules of Thumb
percent of sales
what company can afford
matching competition
Objective and Task budgeting (bottom up, decide what is needed)
Set objectives
Determine activities that will meet objective
Determine cost of those activities
Defend before top management


Effects Measurement

Copy testing
Before the campaign
direct ratings
portfolio tests
physiological response
After the campaign
recall
recognition
Sales effect testing
changes in sales over time
experiments to compare promotion mixes
    different cities
    split cable
    different direct mailers
    different email messages/types

Return to Notes list.