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Introduction to PromotionShort SemesterNovrita Widiyastuti, M.Sie-mail: novritawidiyastuti@yahoo.com / novrita.w@lspr.eduTwitter / IG : @novritaonehttps://www.slideserve.com/novrita
Integrated Marketing Communication “A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines— for example, general advertising, direct response, sales promotion, and public relations—and combines these disciplines to provide clarity, consistency, and maximum communications impact.” ~ American Association of Advertising Agencies ~
Promotion Mix: The Tools for IMC • Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. • While implicit communication occurs through the various elements of the marketing mix, most of an organization’s communications with the marketplace take place as part of a carefully planned and controlled promotional program. • The basic tools used to accomplish an organization’s communication objectives are often referred to as the promotional mix
Promotional Mix • Marketers usually use the various promotional-mix elements—advertising, sales promotion, direct marketing, publicity/public relations, and personal selling—to inform consumers about their products, their prices, and places where the products are available. • Each promotional-mix variable helps marketers achieve their promotional objectives, and all variables must work together to achieve an integrated marketing communications program.
Advertising ManagementOverview, Effective and Creative Messages Advertising is a paid, mediated form of communication from an identifiable source, designated to persuade the receiver to take some action, now or in the future.
Advertising ManagementOverview, Effective and Creative Messages Advertising function In general, advertising is valued because it is recognized as performing five critical communications functions: • Informing • Influencing • Reminding and increasing salience (uniqueness) • Adding value • Assisting other company efforts / other promotions
Advertising ManagementOverview, Effective and Creative Messages Creating Effective advertising Advertising is effective if it accomplishes the advertiser’s objectives. At a minimum, effective advertising satisfies the following considerations: • It extends from sound marketing strategy; if it is compatible with other elements of an integrated promotional strategy. • Effective advertising takes the consumer’s view; must be stated in a way that the consumers are looking for when making decisions.
Advertising ManagementOverview, Effective and Creative Messages • It finds a unique way to break through the clutter; advertisers continually compete for the consumer’s attention. • Effective advertising never promises more than it can deliver; at this point speaks for itself, both with respect to ethics and in terms of smart business sense. • It prevents the creative idea from overwhelming the strategy; the purpose of advertising is to inform, inspire and ultimately sell products, not to be creative for the sake of being clever. Sometimes advertising agencies place excessive emphasis on winning awards.
Advertising ManagementOverview, Effective and Creative Messages Getting messages to “Stick” Beyond being creative, advertisers want their advertising to “stick”. Sticky ads = the audience comprehends the advertiser’s intended message that they are remember with the hopeadvertiser can change the target audience’s opinion or behavior.
Advertising ManagementOverview, Effective and Creative Messages There are six common features of messages that tend to stick and relatively lasting impact. • Simplicity; sticky advertisements are both simple and profound (KISS). An advertisement can be said to be simple when it represents the brand’s core idea or key positioning statement. • Unexpectedness; sticky advertisement generate interest and curiosity when they deviate from audience members’ expectations. Sticky messages also are creative.
Advertising ManagementOverview, Effective and Creative Messages • Concreteness; sticky ideas possess concrete images as compared to abstract representations. Concretizing is based on the straight forward idea that it is easier for people to remember and retrieve tangible rather than abstract information. Concretizing is accomplished by using tangible, substantive words and demonstrations. • Credibility; it should be believable. They have a sense of authority and provide reasons why they should be accepted as fact.
Advertising ManagementOverview, Effective and Creative Messages • Emotionally; people care about ideas that generate emotions and tap into feelings. • Storytelling; story have plots, characters and setting. Advertisers also occasionally tell stories in order to capture the key elements of their brands.
Advertising ManagementMessage Appeals and Endorsers Endorsers The role of celebrity endorsers in advertising Advertised brands frequently receive endorsements from a variety of popular public figures. Products receive the explicit or tacit support of non celebrities, also known as typical-person endorsers. Endorser selection considerations: • Celebrity and audience matchup; the brand manager must pose when selecting an endorser, will the target market positively relate to the endorser?
Advertising ManagementMessage Appeals and Endorsers • Celebrity and brand matchup; advertiser requires that the celebrity’s behavior, values, appearance and decorum / politeness be compatible with the image desired for the advertised brand. • Celebrity credibility; this is a primary reason for selecting a celebrity endorser. • Celebrity attractiveness; attractive is multifaceted and includes more than physical attractiveness.
Advertising ManagementMessage Appeals and Endorsers • Cost considerations; how much it will cost to acquire a celebrity’s service is an important consideration but it should it dictate the final choice. • Working ease or difficulty factor; some celebrities are relatively easy to work with, whereas others are difficult, stubborn, arrogant and unmanageable. • Saturation factor; the number of other brands that the celebrity is endorsing. Overexposed? • The trouble factor; will the celebrity get into trouble after an endorsement relation is established.
Ready? Sales Promotion
Sales Promotion Management Sales Promotions is marketing activities intended to stimulate quick buyer action by offering extra benefits to customer Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers, contest, trade show, in-store displays, rebates, samples, and discounts Manufacturers use sales promotions to induce the trader or consumer to buy a brand and to encourage the manufacturer’s sales force to sell the product aggressively.
Sales Promotion Management - Sampling, Couponing and Other Promotions Sampling Most practitioners agree that sampling is the premier sales promotion for generating trial usage. Sample distribution is almost a necessity when introducing new products. Sampling is effective because it gives consumers an opportunity to experience a new brand personally. Sampling is includes any method used to deliver an actual or trial product to consumers.
Other Promotion Tools -Word of Mouth Management Word of mouth influence Research has established that word of mouth influence (WOM) is complex and difficult to control. On other occasions WOM is beneficial to a brand and in such an event the objective is to facilitate as much positive information as possible and to build favorable “buzz” about a brand.
Other Promotion Tools -Word of Mouth Management The role of opinion leaders in WOM dissemination An opinion leader is a person within a social network of family, friends and acquaintances who has particular influence on other individuals’ attitudes and behavior. In social media it is called “Buzzer” Opinion leaders perform several important functions: they inform other people about products, provide advice and reduce the follower’s perceived risk in purchasing a product and they offer positive feedback to support decisions that followers have already made.
Other Promotion Tools -Word of Mouth Management Creating buzz Buzz creation is the systematic and organize effort to encourage people to talk favorably about a particular brand and to recommend its usage to others who are part of their social network. For example: Breadtalk and J.Co
Other Promotion Tools - Event and Sponsorships Event and sponsorships are two constituent elements, Sponsorship involves two main activities: • An exchange between a sponsor (such as brand) and a sponsee (such as a music event) whereby the latter receives a fee and the former obtains the right to associate itself with the activity sponsored and • The marketing of the association by the sponsor. Both activities are necessary if the sponsorship fee is to be a meaningful investment.
Other Promotion Tools - Event and Sponsorships Event sponsorship Event sponsorship includes supporting many events, such as golf, tennis tournament, Olympics, entertainment, art cultural and many more. Thousands of companies invest in event sponsorships which is defined as a form of brand promotion that ties a brand to a meaningful events or high interest public activity.
Other Promotion Tools - Event and Sponsorships Selecting sponsorship events A company sponsoring an event to develop relationships with consumers, enhance brand equity and strengthen ties with the trade. Successful event sponsorships require a meaningful fit among the brand, the event and the target market.
Other Promotion Tools - Event and Sponsorships Creating customized events/ Brand Activations Some companies develop their own events rather than sponsoring existing events. There are two major reasons that the company choose to customize their own events: First, it having a customized event provides a brand total control over the event. It removes the problem of clutter from too many sponsors and also developed to match perfectly the brand target audience and to maximize the opportunity to enhance the brand’s image and sales. Second, there is a good change that a specially designed events is more effective but less costly than a pre-existing event.
Other Promotion Tools - Event and Sponsorships Measuring whether an event has been successful requires some ways: • Specify the objective that sponsor intended to accomplish. • There has to be a baseline against which to compare some outcome measure. This baseline is a pre-measure of brand awareness, brand associations, or attitudes prior to sponsoring an event. • Use a simple head count of how many people attended an event. The total cost of the event is then divided by the number of attendees to obtain a measure of efficiency. • Used measures include tracking sales volume following an event, determining how many hits to the brand’s website occurred post event.
Other Promotion Tools - Event and Sponsorships Ambushing events A number of companies around the world engage in what is called ambush marketing, or simply ambushing. Ambushing take place when companies that are not official sponsors of an event undertake marketing efforts to convey the impression that they are.
The Fundamental Promotion - Segmenting Segmenting means dividing the market into groups of people who have similar characteristic in certain key product-related areas. By using segmentation strategy, a company can more precisely match the needs and wants of the customer with its products.
The Fundamental Promotion - Targeting • Target market is “the people who are most potential to buy/consume the company’s product/ services.” • Target audience is “potential people which would be exposed by promotion campaign”
The Fundamental Promotion - Targeting Targeting specific audiences can be considered the starting point for all promotion decisions. Targeting allows communicators to deliver their messages precisely and prevent wasted coverage on people outside the targeted audiences. The target audiences are refer to four sets of consumer characteristics, such as behaviorgraphic, psychographic, geodemographic and demographic.
The Fundamental Promotion - Targeting Demographic Targeting Major demographic aspects that have considerable relevance for communication practitioners are: Age, Gender, Education, Occupation
The Fundamental Promotion - Targeting Behaviorgraphic Targeting This targeting is based on how people behave (with respect to a particular product category or class of related products), through: online search activity or past purchase behavior For example: you have maintained impeccable records on every customer’s purchases. The records show precisely when customer have purchased, what items they have selected and how much they have spent.
The Fundamental Promotion - Targeting Psychographic Targeting In general, psychographic is refer to information about consumer attitudes, values, motivations and lifestyles. For example: a psychographic study of sports utility vehicles (SUVs) would assess the types of activities owner of SUVs participate in (camping, fishing or sporting events) and measure their values and attitudes toward issues related to owning or not owning an SUV (how much they value on safety and environment).
The Fundamental Promotion - Targeting Geodemographic Targeting This is a combination of geography and demography, which describes this form of targeting. Geodemographic targeting is that people who reside in similar areas, such as neighborhoods or postal ZIP code zones and share demographic similarities. Knowing where people live also provides some information regarding their general marketplace behaviors.
The Fundamental Promotion - Positioning Brand positioning is an essential preliminary activity to developing successful promotional program. By having a clear positioning, the brand management team is committed to conveying a consistent message in all forms of communications messages. Positioning is both a useful conceptual notion and an invaluable strategic tool.
The Fundamental Promotion - Positioning The term positioning suggests two interrelated ideas. First, the communicator whishes to create a specific meaning for the brand and have that meaning firmly lodged in the consumer’s memory (as positioned in consumer’s mind). Second, the brand meaning in consumer’s memories stands in comparison to what they know and think about competitive brands in the product category (as positioned against the competition).
The Fundamental Promotion - Positioning • Therefore, position involves two actions: • Position a brand in (consumer’s mind) • Against (competitive positioning strategies). • In other words, positioning is the activity of creating meaning for a brand in the collective minds of consumer in comparison to what they think and feel about competitive brands.
The Fundamental Promotion - Positioning • Benefit Positioning • Positioning with respect to brand benefits can be accomplished by appealing to any of three categories of basic consumer needs: functional, symbolic or experiential. • Positioning based on functional needs; this positioning attempts to provide solutions to consumers’ current consumption related problem or potential problems by communicating that the brand possesses specific benefits which capable to solve those problems. • For example: Crocs, appeals to consumers’ desire for lightweight, comfortable and odor resistant footwear.
The Fundamental Promotion - Positioning • Positioning based on symbolic needs; • the brand is positioned in terms of their ability to satisfy non functional or symbolic needs. Positioning in terms of symbolic needs attempts to associate brand ownership with a desired group, role or self image. • For example: personal beauty products, jewelry and motor vehicles.
The Fundamental Promotion - Positioning • Positioning based on experiential needs; consumers’ experiential needs represent their desires for products that provide sensory pleasure, variety and stimulation. • Experiential needs are promoted as being out of the ordinary and high in sensory value, such as looking elegant, feeling wonderful or smelling great. • For example; Magnum advertisement represents the brand positioning as especially flavorful chocolate ice cream. Consumers are promised the experience of tasting a special product.
The Fundamental Promotion - Positioning Brand Positioning Statement, elements: Target Market (a) Definition of the market you play in (b) Brand Promise (emotional or rational benefit) (c) The Reason to Believe (RTB) the brand promise (d)
SWOT Analysis - Internal • The strengths of a business are its positive traits, conditions, and good situations. For instance, being in a growth industry is a strength. Planners ask how they can leverage this strength in the brand’s advertising. • The weaknesses of a business are traits, conditions, and situations that are perceived as negatives. Losing market share is a weakness. If this is an important weakness, then planners ask how they can address it with advertising.
SWOT Analysis - External • An opportunity is an area in which the company could develop an advantage over its competition. Often, one company’s weakness is another company’s opportunity. Planners strive to identify these opportunities and leverage them in the brand’s advertising. • A threat is a trend or development in the environment that will erode business unless the company takes action. Competition and economic downturns are common threats
