MKTG 222 - Week 7

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Promotion

Communication by marketers that informs, persuades and reminds consumers of a product or to influence an opinion/response. 

Why?

  • Increase consumer demand=Increase sales
  • Remind consumers of the products and why they are special
  • Attract new buyers
  • Demonstrate the superior quality of product compared to a rival
  • Create/reinforce the brand image
  • Correct misleading media and resure conumsers after an incident
  • Develop or adapt the postioning of the product
  • Encourage stocking by retailers 
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IMC

The co-ordination and intergration of all marketing communication tools, avenues and sources.

Constructs a coherent brand identity in the marketplace by tying together and reinforcing all of an organisations images and messages. 

The Process

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The 4 'A's' of Positioning

  • Awareness : influenced by advertising, promotion, branding etc.
  • Availability : depends on distribution, price of commodities and physical handling
  • Affordability : depends on pricing
  • Acceptibility : influences by packaging and quality
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The '4 c's' of Promotion

  • Clarity : positioning must be clear in terms of both target market and differential advantage.
  • Consistency : to break through noise, a consistent method is required.
  • Credibility : the differential advantage must be credible in the minds of the consumer
  • Competitveness : differential advantage must be something of value to the customer
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Division of Tools

Above the line tools: promotions are visual/audio. e.g. TV, billboards, radio, print ads.

Below the line tools: tactile promotions. e.g. samples, coupons, loyalty programs

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IMC Tools

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IMC Tools - Advertising 1

A paid form of non-personal presentation and promotion of ideas, good/services by an indentified sponser

The 5 m's of Adversiting 

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IMC Tools - Advertising 2

Experimental Advertising

The premise of experiential marketing is to create a closer bond between the consumer and the brand by immersing them in a fun and memorable experience. 

E.g. Red bull's F1 team, highest recorded parachute jump. 

Characteristics of Experimental Marketing

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IMC Tools - Advertising 3

Stratgic Experimental Modules (SEMS)

Sense : Differentaties companies/ adds value e.g. the smell at LUSH

Feel : Links with customers feelings/emotions e.g John Lewis chrismas add

Think : Creates cognitive thinking/problem solving

Act : Physical experiences, showing customers a different way of doing things 

Relate : individual/personal, relate the customer to a broader social system(culture) 

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IMC Tools - Advertising 4

Advantages of Advertising

  • Advertiser controls the message
  • Cost effective to communicate with large audiences
  • Effective way to create brand images and symbolic appeals
  • An effective way to strike responsive chord with consumers

Disadvantages of Advertising

  • High costs of producing and running
  • Credibility problems and cosumers skepticism
  • Clutter
  • Difficulty in determining effectiveness.
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IMC Tools - Direct Marketing

Organisations communicate directly with target audiences to generate a resonse and/or transaction.

Methods include: direct mail, text messaging, database marketing, telemarketing, direct response ads (TV, Radio).

Pros

  • Changes in society have made consumers receptive
  • Allows us to target specific customers
  • Messages can be customised for specific customers
  • Effectiveness easy to measure

Cons

  • Very low response rates
  • Clutter
  • Image problems- especially with telemarketing
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IMC Tools - Interactive Marketing

Interactive media which allows for a two-way flow of communication where users can participate and modify the content of the information they recieve.

Pros:

  • Can be used for lots of IMC functions
  • Messages can be tailored for specific interests of customers
  • Higher levels of involvement
  • Provides large amount of information

Cons:

  • Some consumers lack access
  • Attention to internet ads very low
  • Clutter
  • Hard to measure audienc
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IMC Tools - Sales Promotion

If sales require a shock. Provides extra value/incentives to the sales force, distributors or consumers and can stimulate immediate sales. 

Consumers Oriented: in response to rising costs of advertising and clutter. Targeted to the users- coupons, sampling, contests.

Trade Oriented: response to competitor activities. Target towards relailers, wholesalers of distributors- promotion allowances, merchandise allowances, price deals, sales contests, trade shows. 

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IMC Tools - Sales Promotion

If sales require a shock. Provides extra value/incentives to the sales force, distributors or consumers and can stimulate immediate sales. 

Consumers Oriented: in response to rising costs of advertising and clutter. Targeted to the users- coupons, sampling, contests.

Trade Oriented: response to competitor activities. Target towards relailers, wholesalers of distributors- promotion allowances, merchandise allowances, price deals, sales contests, trade shows. 

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IMC Tools - Publicity

Non-personal communication regarding an organisation, product/service or idea not directly paid for or run under indentified sponsorship. 

Methods

  • News releases - stories sent to media who might print it
  • Feature articles - stories composed for a particular medium
  • Press confrences - meeting with invited reportors
  • Special Events - sponsorships e.g. Happy Meal toys

Pros:

  • Credibility 
  • Low cost
  • Leads to word-of-mouth

Cons:

  • Not always in control
  • Can be negative 
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IMC Tools - Personal Selling

Direct person-to-person communication whereby a seller attempts to assist and/or persuade perspective buyers to purchase a product/service.

Pros:

  • More flexible
  • Talior messages
  • More direct and immediate feedback
  • Sales effects can be targeted to specific people

Cons:

  • High costs per contact
  • Expensive way to reach large audiences
  • Difficult to deliver a consistent message to all customers.
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