Promotion Management M | Assistant Professorpy Master of Business Administration Institute of engineering & Technology LucknowIntroduction * Promotionis one of the four elements of marketing mix (product, price, promotion and place). * Itis the communication link between sellers and buyers for the purpose of influencing, informing or pepuadinga potential buyer's = purchasing decision. * The ‘promotional mix’ is a term used to describe the set of tools that a business can use to effectively communicate the benefits of its products or services to the customers. * Promotion Mix is also called as Marketing Communication Mix. * Marketing Communication refers to the means adopted by the companies to convey messages about the products and the brands they sell, either directly or indirectly to the customers with the intention to persuade them to purchase.Contd... Marketing communication offer solutions to the following questions: * Why shall the product be used? * How can the product be used? M * Who can use the product? + Where can the product be used? And * When can the product be used?Elements of Marketing Communication Mix Events and ExperiencesContd.. i: It is an indireet, paid method used by the firms to inform the customers about their goods and services via television, radio, print media, online websites etc. + Advertising is one of the most widely used methods of communication mix wherein the coinplete information about the firm’s product and services can be communicated easily with the huge target audience coverage. ’ M v7 Sales Promotion: The sales promotion includes the several short-term incentives to persuade the customers to initiate the purchase of the goods and services. + This promotion technique not only helps in retaining the existing customers but also attract the new ones with the additional benefits. + Rebates, discounts, paybacks, Buy- one —get- one free scheme, coupons, ete. are some of the sales promotion tools. (© sexmned win oHEN SanneContd.. Events and Experiences: Several companies sponsor the events such as sports, entertainment, nonprofit or community events with the intention to reinforce their brand in the minds of the customers and create a long term association with them. * The name of the firm sponsoring the event can be seen on the playground boundaries, player’s jerseys, trophies, ans in the entertainment shows, / hoardings on stage, etc. Public Relations and Publicity: The companies perform several social activities with a view to creating their positive brand image in the market. + The activities that companies are undertaking such as, constructing the public conveniences, donating some portion of their purchase to the child education, organizing the blood donation camps, planting trees, etc. are some of the common moves of enhancing the Public Relations.Contd... Direct Marketing: With the intent of technology, the companies make use of emails, fax, mobile phones, to communicate directly with the prospective customers without involving any third party in between. Interactive ‘Marketing: Interactive Marketing jas recently gained popularity as a marketing communication tool, wherein the customers can interact with the firms online and can get their queries resolved online. _* Amazon is one of the best examples of interactive marketing wherein the customers make their choice and can see what they have chosen or ordered in the recent past. O scanned with one seaonerContd... Word-of- Mouth Marketing: It is one of the most widely practiced method of communication tool wherein customer share their experiences with their peers and friends about the goods and services they bought recently. + This method is very crucial for the firms because the image of the brand depends on what customer feels about the brand and what message he convey to others. Personal Selling: This is the traditional method of marketing communication wherein the salesmen approach the prospective customers directly and inform them about the goods and services they are dealing in. + It is considered as one of the most reliable modes of communication because it is done directly either orally, i., face to face or in writing via emails or text messages. O scanned th OnE caerPromotion Mix Elements . AdvertisingTools for Each nse of Ea | ual face al fe [a] a Broad om m Show | faeeaunt Bens eens Tear sae lay Program a eee © scanned nt oKEN SamerIntegrated Marketing Communication (IMC) * Integrated’ marketing communications (IMC) is a process through which organizations accelerate retums by taking a customer-centric approach to alignin; their niarketing and communication objectives with their business or institutional goals. *, : ; j a * Concept under which a company carefully Integrates & coordinates its many communication, channels to deliver a clear , consistent & compelling message about the organization & its Product * The American Association of Advertising Agencies defines IMC as “a comprehensive plan that evaluates the strategic roles of a sariety of communication disciplines and combines these disciplines to provide clarity, consistency and maximum conimunication impact.” © scanned th OnE ScannerPublic Relations (OF scan ith nen Sener. Factors Influencing Promotion Mix + Nature of Product + Type of the Market + Stage of the Product Life Cycle + Budget! + Push versus Pull Strategy M éElements of Communication Process Elements in the Communication Process © scanned ith one SenerSteps in Developing Effective Communication 5.Selecting the message source © scanned win OnE ScaerIdentify Target Audience * Audience may be Potential Buyer/ Current users, those who make buying decisions / Influence Buying decisions. + Theybe Individuals, groups, special public or general public. * Target audience have an Influenceon 5 W's & 1H: ¥What will bé'said? YHow it will be said? ¥Whenit will be said ? YWhereit will be said? YWhowill say it? © scanned th OnE ScannerDetermine communication Objectives £ Communication Objectives can be : ¥ To Inform ¥ To Persuade ¥To Educate M is ¥To Create Awareness + © The marketers should know where the target audience now stands & to what stage it needs to be moved. * The target audience can be in any of the six Buyer Readiness stageBuyer Readiness stage Buyer Readiness Stages M Awareness |Message Design * Ideally Message Design is based on AIDA framework. * Hence, the message should get attention, Hold interest , Arouse Desire, obtain Action. M jaLinking of Buyer Readiness stage & Message Design * Preference * Conviction * Awareness * Knowledge © scanned with one scannerMessage Design * In Putting Message together issues to be addressed are 1. What to say (Message content) 2. How'to say it ( Message sree Format) |Contd e Message content: It relates with the nature of information which is to be provided. Most commonly Based on appeals . Appeals Emotional appeal Rational Appeal Moral appeal © sean with one scanner* Message Structure & Format O seanne with oKE ScannerSelecting the Media * Selecting the channels of Presentation * They can be: 1. Personal Communication Channels 2. Non- Personal communication chafinels f© scanne with oxen scannerSelecting the Message Source * Eitherin both the channels of communication the message impact is dependent upon the audience perception towards the communicator. : Ph iy M * Highlycredible source is considered to be more persuasive . *Most of the companies Look for famous / successful celebrities (actor/actress, sportsperson, athletes), doctors, dentists, other health . O scanne with nen scannerCollecting Feedback * Research is done to study effect of Advertisement on target audience. * Involves asking questions like : a) Whetherthey remember the message? b) Howmanytimes theysawit? ! | c) What points they recall? d) How they felt about the message? e) Theirattitude (Past & Present ) towards the company ? etcAdvettisingAdvertising + Advertising consists of all activities involved in presenting to a group a non- personal, oral or visual, openly sponsored identified message regarding a product, seivice, or idea. The message, called an advertisement, is disseminated through one or more inedia and is paid for by the identified sponsor. i ; * Philip Kotler defines “Advertising is any paid form of non- personal, presentation and promotion of goods, services, or ideas by an identified sponsor.” + Advertising includes oral, written, or audio visual message addressed to the people forthe purpose of informing and influencing them to buy the products or to act favorably toward idea or institution.Characteristics of Advertising * Tool for Market Promotion * Non-personal * Paid Form * Wide Applicability + Varied Objectives * canbe expressed in written, oral, audible, or visual forms. + Use of Media + Elementof Truth M ce * One-way CommunicationObjectives of Advertising * To Inform Buyers * To Persuade or Convince Buyers * To Remind Buyers * To Face Competition i“ ¢ * To Achieve Sales Targets * To Build and Improve Brand Image * To Help or Educate People * To Assist Sales Force and MiddlemenMajor Decisions in Advertising Major Decisions in Advertising Management © scanned win one ScanerSelecting Advertising MediaTABLE}13:2) Profiles of Major Media\Types Medium Television Advantages Good mass-marketing coveraga; low cost per ‘exposure: combines sight, scund, ans mation: appeating to tha senses Focus on bids oe customer omruri immediacy; persona‘zation, interaction, and ¢ngaga- ‘ment capabiities; socal shaxing power; low cos! Floxiviily,imetness: good local market coverage; __ broad acceplabiliy: high betovabiity “High audience selectivity, Nexbiity: no ad competi- tion within the samo madium: allows personalization High geographic and demographic setectvity: ‘crecibity and prestigo: high-qualty reproduction; tong ile and good pass-2long readership Good local acceptance: high geographic and demographic selectivity: low cost Flexivity: high repeat exposure; lov cost; low mes sage compaiition; good positional seectivity Ontine, mobi'e, and social media Newspapers Direct mail Magazines Radio Outdoor Limitations High absolute costs; less audience setzcthity clutter; eoting exposuo: Stfcutt to administer ten controls content Potentiaty nasrov impact and conto: the aucfenca and exposure ‘Shor Ifo; poor reproduction quality; emall pass-along audenco Relatively high cost per exposure: unk mal” imago Long ad purchase lead tims; high cast: no guarantce of posit ‘Auséo only: eating expasuo: fovrattention (ho halt-heard” medium); fragmented audences: Little auctence setectiity; creative Emitations O scanned with one scanner* Factors in Making Media choices: Y Media habits of target consumers ¥ Nature of Product V Type of Message 4 vc ost * Selecting Specific Media Vehicles * Deciding on Media timings v Seasonality ¥ Pattern of Advertising : Continuity & Pulsating Contd.Advertising Evaluation . Pretesting: V Portfolio tests (print) ¥ Readability tests (print) Vv Theater tests (broadcast) M ¥ On-air tests ° Post Testing: ¥ Inquiry Tests V Recall tests VHits