Promotional strategy
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Promotional strategy. Module 8. Session overview. The role of promotion in the marketing mix Elements in the promotional mix Integrated marketing communications Factors influencing the promotional mix. Role of promotion in the marketing mix.

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Session overview
Session overview

  • The role of promotion in the marketing mix

  • Elements in the promotional mix

  • Integrated marketing communications

  • Factors influencing the promotional mix

Role of promotion in the marketing mix
Role of promotion in the marketing mix

  • Promotion is the communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinion (toward the product) or elicit a (favourable) response

  • Focus on differential advantages

    • unique selling proposition (USP)

    • reason to buy our brand (selective demand)

Five elements of the promotion mix
Five elements of the promotion mix

Direct marketing


Sales promotion

Five major elements of promotion mix

Personal selling

Public relations

Personal selling
Personal selling

  • Oral presentation

    • personal - face-to-face or over the phone

  • Aim

    • gain rapport

    • overcome objections

    • close the sale


  • Impersonal, one-way mass communication

    • wide reach, low CPM (cost per thousand reached)

  • Paid by an identified sponsor or company

  • Aim

    • build brand image

    • longer-term strategy

  • Examples:

    • broadcast media (TV, radio)

    • print media (newspapers, magazines, brochures)

    • yellow pages, cinema and outdoor

Sales promotion
Sales promotion

  • Short-term incentive

  • Aim

    • stimulate sale or trial

      • shorter-term strategy - buy now!

  • Examples:

    • competitions

    • 2 for 1 deals

    • price specials

    • premiums

Public relations
Public relations

  • ‘function that evaluates public attitudes, identifies areas that the public may be interested in, and executes a program of action to earn public understanding and acceptance’ (Summers et al. 2006, p. 312)

  • Aim

    • monitor attitudes and build good relations

    • build corporate image

    • good corporate citizen

  • Examples:

    • sponsorship

      • McDonalds, BlueScope

    • publicity, press releases

Direct marketing
Direct marketing

  • Direct marketing

    • gain an immediate response

    • selective and personalised

    • direct mail, telemarketing, SMS, direct selling, home-shopping etc.

Factors affecting the promotional mix
Factors affecting the promotional mix

  • Nature of the product

    • consumer versus business products

    • cost and risks associated with using the product

  • Stage in product life cycle

    • exhibit 9.7, p.324

  • Target market characteristics

    • how informed/knowledgeable?

    • how brand loyal?

    • what are their media habits?

    • how can we reach them?

Factors affecting the promotional mix cont
Factors affecting the promotional mix cont….

  • Type of buying decision

    • complex versus routine

      • high versus low involvement

  • Promotional budget

    • cost of media

    • absolute versus relative costs (CPM)

  • Push v pull strategies

    • exhibit 9.8, p.327

Integrated marketing communications
Integrated marketing communications

  • ‘Method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused’

  • Consistency

    • consistent theme, message, jingle, colour scheme etc.

    • examples

      • Commonwealth Bank ‘which bank’

      • Toyota ‘Oh what a feeling’

  • Synergy

    • all elements of the IMC mix work together to deliver a more powerful message than the sum of the individual elements.

    • each element has its role, its advantages and disadvantages

The communication process
The communication process




Message channel





Elements in the communication process
Elements in the communication process

  • Sender (source)

    • company, spokesperson

  • Encoding the message

    • putting ideas into symbols

  • Message

    • set of symbols that are transmitted

  • Message channel (media)

    • channel of communication

Communication process cont
Communication process cont.

  • Decoding the message

    • receiver interprets symbols

      • assigns meaning to the message

  • Receiver

    • response - reaction/action

    • feedback - communicated back to sender

  • Noise

    • communication barrier or distortion

    • occurs at all stages

Promotional goals

  • Inform

  • Persuade

  • Remind

  • Refer to exhibit 9.5, p. 319

Session overview1
Session overview

  • AIDA model

  • Message issues

  • Message appeals

Aida model
AIDA Model





Message issues
Message issues

  • What will we say?

    • key benefits

      • functional

      • psychological

    • important attributes

  • What is our usp (unique selling proposition)?

  • What response are we seeking?

  • Do we want to support our current positioning strategy or reposition?

Message appeals
Message appeals





Three types