1003MKT Lecture 9: Week 9 Marketing lecture notes
30 May 2018
School
Department
Course
Professor
Week 9 Marketing lecture notes
Promotion
Promotion
• A orgaizatios efforts to
o 1. Inform
o 2. Persuade, and
o 3. Remind consumers, and other stakeholder (employees, shareholder,
journalists etc.)
Notes from slide:
• Promotion: the marketing activities that make potential customers, partners and
soiet aare of ad attrated to the opas offerigs
• The 3 general objectives of promotion are informing, persuading and reminding, and
the obvious goals in almost all cases is to create demand (except in social marketing
campaigns, where the goals is often to reduce consumption of unhealthy categories
and/or behaviors, e.g. smoking, speeding when driving)
• Aside from creating (reducing) demand, each promotional campaign may have one
or more narrower objectives
• Specific objectives should be for any campaign. Otherwise you have no ideas of how
to measure the effectiveness of that expenditure. Measurement guides your future
efforts, and forms the basis for getting promoted (if itss suessful. You a poit
to your ROI as an employee, and how you exceed specific set targets in the time
frame
The communication model
Notes from slide:
The communication model:
• The sender (an individual or a firm) initiates the communication, aiming to ensure
that a clear and concise message is developed for the target audience through
advertising or other promotional activities
• The planned message is then encoded for the target audience (exactly what to say,
how to say it etc.). there is a possibility that the encoding of the intended message
results in a message that is in some way different to what was planned, and
ouiatio is ol suessful if it is reeied the a it was intended. For that
find more resources at oneclass.com
find more resources at oneclass.com
reason, all activities involved need to be coordinated and consistent. Any
inconsistency could result in sending mixed messages
• Encoding is done by the use of words (a script in the case of broadcast media), music
(such as jingles), and many other communication cues, such as actors and the
settings and props used in ads
• The message channel might include television, radio, newspapers and magazines,
personal sales representatives etc.
• The way the receiver or audience decodes the message is subject to their individual
characteristics and circumstances, and perception filters/problems, as we discussed
i a earlier leture. Differet audiee eers a iterpret the sae essage
in quite different ways.
• Once the message has been received, to complete the flow of communication the
receiver responds. Feedback may be in the form of behavior or communication. For
example, if the objective is to increase sales, the feedback to be measured is
whether there has been an increase in sales during the time of the communication
or promotional campaign
• The messages sent and received in the communication process may be distorted by
oise. Noise is a fator that reates a arrier to suessful ouiatio
• In terms of promotion, the model can be applied as follows
o Design the communication: formulating the communications to achieve the
desired response will require solving many problems:
▪ 1. What to say (message strategy and content)
▪ 2. Ho to sa it reatie strateg, eodig
▪ 3. Who should sa it essage soure, or seder
▪ 4. Where to advertise, how often, and how to obtain feedback
o Message source: whether or not to use a spokesperson?
▪ Many communications do not use a source beyond the company
itself. Other use known or unknown people. Messages delivered by
attractive or popular sources can potentially achieve higher attention
and recall
▪ What is iportat is the spokespersos rediilit.
▪ The three factors underlining credibility are: expertise- specialist
knowledge; trustworthiness- objectivity and honesty; and likability-
attractiveness (candor, humor, naturalness)
4 Tools in the promotions mix
• The promotions mix is a subset of the marketing mix (the 4Ps)
• The 4 main tools in the promotions mix are:
o 1. Advertising
o 2. Public relations
o 3. Sales promotion
o 4. Personal selling
• each tool has dis/advantages
Notes from slide:
• The Promotion Mix: The tools available to form a communications program are
known as the promotions mix. The four elements of a promotion mix are advertising,
public relations, sales promotion and personal selling. Although advertising is the
find more resources at oneclass.com
find more resources at oneclass.com
most visible form, other communicatio tools pla a ital role i a orgaisatios
marketing communication mix strategy. Managers must decide which, and how
much of each to use to achieve their intended communications objectives. Each has
advantages and disadvantages, and the choice rests on many factors including the
firs udget, the ature of the produt, ad ustoer tpes, ad the tpe of
promotions conducted by competitors. Firms with large promotion budgets usually
use multiple strategies. Small budgets will rely on fewer, simpler strategies. To get
a idea of the arig osts of prootioal edia, hek this artile if oure
interested
• During the lifecycle of the product, the choice of tools will probably vary, for
example, achieving high awareness is important in the early stages, and thus
advertising would be most appropriate since it has the greatest reach of all the tools
(but is also relatively expensive). The promotion mix will change over time as the
effectiveness or otherwise of the current promotional mix is evaluated. Formulating
an appropriate promotion mix can be a complex undertaking.
• Many marketing managers believe a campaign should spread its advertising
resources over a range of media. I think that's wrong. Every medium has its
advantages and disadvantages. For maximum efficiency, I believe a marketing
campaign should focus on the one medium that works best for its product or service.
• Five years ago, the average marketing department spent 38% of its advertising
budget on TV. Last year, the average marketing department spent exactly the same
percentage on TV, 38%.
• Is the trend to digital a good trend or not? It depends on the product. No one
medium is best for every product or service.
• TV is best for mass-market brands, especially brands that can use product
demonstrations to differentiate their brands from competition.
• Print is best for luxury brands like watches and jewelry.
• Radio is best for brands with a strong verbal message, especially if that message can
be expressed in rhyme or alliteration.
• The Internet is best for brands that have news value. For example, brands that
pioneer new categories. Furthermore, brands launched on the Internet do best with
video campaigns, not just typed messages.
1. Advertising
• Paid promotion of a business, product or brand to a mass audience
• Beefits: highest reah of all tools I the prootio i
o Reach: the total number of people exposed to the ad at least once in a given
time period
o Frequency: the number of times they are exposed to the ad in s given time
period
o Reach vs. Frequency: always a trade-off
• Limitations: impersonal, difficult to measure effectiveness, one-way messages
(mainly)
Notes from slide:
• While advertising is expensive, its ability to reach a lot of people makes it cost
effective (generally) based on price per exposure. It is also possible to aim
advertising at particular target markets by choosing appropriate media. The main
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Remind consumers, and other stakeholder (employees, shareholder, journalists etc. ) Otherwise you have no ideas of how to measure the effectiveness of that expenditure. Measurement guides your future efforts, and forms the basis for getting promoted (if its(cid:859)s su(cid:272)(cid:272)essful(cid:895). You (cid:272)a(cid:374) poi(cid:374)t to your roi as an employee, and how you exceed specific set targets in the time frame. For that reason, all activities involved need to be coordinated and consistent. Differe(cid:374)t audie(cid:374)(cid:272)e (cid:373)e(cid:373)(cid:271)ers (cid:272)a(cid:374) i(cid:374)terpret the (cid:858)sa(cid:373)e(cid:859) (cid:373)essage in quite different ways: once the message has been received, to complete the flow of communication the receiver responds. Feedback may be in the form of behavior or communication. Noise is a(cid:374)(cid:455) fa(cid:272)tor that (cid:272)reates a (cid:271)arrier to su(cid:272)(cid:272)essful (cid:272)o(cid:373)(cid:373)u(cid:374)i(cid:272)atio(cid:374) In terms of promotion, the model can be applied as follows: design the communication: formulating the communications to achieve the desired response will require solving many problems, 1.
