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THE COMMUNICATION PROCESS

THE COMMUNICATION PROCESS. Promotion Management. SEVEN ELEMENTS OF A DETAILED PROMOTION PLAN. 1. INTRODUCTION. EXECUTIVE SUMMARY The essence of the plan What the reader must remember OVERVIEW What is to be covered Gives structure to the context Complexity will decide length.

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THE COMMUNICATION PROCESS

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  1. THE COMMUNICATION PROCESS Promotion Management

  2. SEVEN ELEMENTS OF A DETAILED PROMOTION PLAN

  3. 1. INTRODUCTION • EXECUTIVE SUMMARY • The essence of the plan • What the reader must remember • OVERVIEW • What is to be covered • Gives structure to the context • Complexity will decide length

  4. 2. SITUATION ANALYSISInternal and External potential factors • DEMOGRAPHIC TRENDS • Could be single most important factor • Sales are where the numbers are! • HISTORICAL CONTEXT • No situation is new; all situations are unique • History of all principal players

  5. 2. SITUATION ANALYSIS (contd)Internal and External potential factors • INDUSTRY ANALYSIS • Technology, Regulations, Economic conditions, social trends • Convergence • Integration

  6. 2. SITUATION ANALYSIS (contd)Internal and External potential factors • MARKET CHARACTERISTICS TYPE OF CUSTOMER • Household • Trade • Business buyer GEOGRAPHIC CONSIDERATION • Local, Regional, National, International COMPETITION

  7. 2. SITUATION ANALYSIS (contd)Internal and External potential factors • PRODUCT CHARACTERISTICS PRODUCT CATEGORY • Convenience, Shopping, Specialty STAGE IN LIFE CYCLE • Changing promotion needs • Stimulating primary demand for the category as a whole during introduction

  8. 2. SITUATION ANALYSIS (contd)Internal and External potential factors • FIRM CHARACTERISTICS PUSH / PULL STRATEGY FUNDS AVAILABLE • Poor funds shifts emphasis to personal selling, trade shows, Web sales etc SALES STAFF SIZE (see next slide) PRODUCT LINE EXTENT Longer, wider line increases efficiency

  9. 2. SITUATION ANALYSIS (contd)Internal and External potential factors • DISTRIBUTION SYSTEM CHARACTERISTICS INTENSITY • Intensive • Selective TRADE CHANNEL LENGTH • More the channels, more the sales staff • Very short channels need complimenting TRADE PARTNER TYPE Longer, wider line increases efficiency

  10. 3. OBJECTIVES • BRAND IMAGE Perception of the brand by the consumer • BRAND AWARENESS Knowledge + Retrieval • BELIEFS Accumulated knowledge and feelings

  11. 3. OBJECTIVES • ATTITUDE • Evaluation of an object, person or issue • TRIAL USAGE • PURCHASE INTENT • Intents are closer to buying than attitudes • REPEAT PURCHASE • Second purchase is a reason for great rejoicing

  12. 3. OBJECTIVES • BRAND SWITCHING • Norm in some; rare in others • Time consuming task • USE FREQUENCY • Campaign can combine • Brand switching • Loyalty • Use Frequency

  13. 3. THREE WORKABLE OBJECTIVES • QUANTITATIVE BENCHMARKS • Possible only when variables quantifiable • Pre and Post Promotion knowledge of level of variable also essential INCREASE MARKET SHARE OF HEAVY USERS FROM 22% TO 25%

  14. 3. THREE WORKABLE OBJECTIVES • SPECIFY MEASUREMENT METHODS • Pointless trying to increase brand awareness and then examining sales figures • 70% of Ad objectives not acieved • Internet has further complicated measurement

  15. 3. THREE WORKABLE OBJECTIVES • SPECIFY TIME FRAME • Should be specified in advance • Range between 24 hours to several weeks • Result measurement not possible till end of promotion period

  16. 4. BUDGETING • METHODS • Percentage of Sales • Share of Voice • Competitive Parity • Funds available • Objective and Task

  17. 4. BUDGETING (contd) • BUDGETNG FOR ADVERTISING • Market research • Message research • Production Costs • Media Costs • Agency commission / Fees • Account persons travel / other expenses

  18. 4. BUDGETING (contd) • BUDGETNG FOR DIRECT MARKETING • Easiest to budget: simple cost-based estimates • Printing • Sorting • Bundling • Mailing • Fulfillment

  19. 4. BUDGETING (contd) • BUDGETNG FOR WEB SITES • Development and Maintenance • Building cost (Location centric) • Building Portal • Building B2C site • Maintaining site

  20. 4. BUDGETING (contd) • BUDGETNG FOR PUBLIC RELATIONS • Simple to calculate for routine press releases, press conferences, sponsoring events • Disasters difficult to budget • Disasters usually followed by separate Ad campaign

  21. 4. BUDGETING (contd) • BUDGETNG FOR PERSONAL SELLING • Usually a percentage of sales

  22. 5. STRATEGY • Clear and concise articulation of how the plan will achieve its objectives • Creative endeavor • Ad agencies have “Account Planners”

  23. 6. EXECUTION • Copy strategy • Media plan

  24. 7. EVALUATION • Criteria • Methods • Consequences • Contingencies

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