PROMOTION

MODULE 5

TOPICS COVERED

MEANING OF PROMOTION IMC PROMOTION MIX OR COMMUNICATION MIX AIDA MODEL AND L AND S MODEL DAGMAR APPROACH ESSENTIALS FOR MESSAGE NOISE, ATMOSPHERICS AND EVENT MANAGEMENT Description of all Promotional Tools

PROMOTION
Promotion is that marketing communication
activity that attempts to inform and remind individuals and persuade them to accept, resell, recommend or use a product, service, idea or institution. Promotional communication has the triple purpose to perform. To inform, to persuade and to remind.

Integrated Marketing Communication (IMC)

Integrated Marketing Communications (IMC),
according to The American Marketing Association , is a concept of marketing communications planning that recognises 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, public relations and publicity, word of mouth , event management, direct marketing- and combines these disciplines to provide clarity, consistency and maximum communications effect.

 Integrated marketing communication can be defined as

a holistic approach to promote buying and selling in the digital economy. This concept includes many online and offline marketing channels. Online marketing channels include any e-marketing campaigns or programs, from pay-per-click, affiliate, email, banner to latest web related channels , blog, and Internet TV. Offline marketing channels are traditional print (newspaper, magazine), mail order, public relations, industry analyst relations billboard, radio, and television

 Integrated Marketing Communications is a simple concept. It

ensures that all forms of communications and messages are carefully linked together. At its most basic level, Integrated Marketing Communications, or IMC, as we'll call it, means integrating all the promotional tools, so that they work together in harmony. Promotion is one of the Ps in the marketing mix. Promotions has its own mix of communications tools. All of these communications tools work better if they work together in harmony rather than in isolation. Their sum is greater than their parts - providing they speak consistently with one voice all the time, every time. A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.

Reasons For The Growing Importance of IMC

From media advertising to multiple forms of communication (including

promotions, product placements, mailers...) From mass media to more specialized media, which are centered around specific target audiences. From a manufacturer-dominated market to a retailer-dominated market. The market control has transferred into the consumer's hands. From general-focus advertising and marketing to data-based marketing. From low agency accountability to greater agency accountability. Agencies now play a larger role in advertising than ever before. From traditional compensation to performance-based compensation. This encourages people to do better because they are rewarded for the increase sales or benefits they cause to the company. From limited Internet access to widespread Internet availability. This means that people can not only have 24/7 access to what they want, but that advertisers can also target potential buyers just as much.

Disadvantages of IMC
Some marketers resist IMC because it
requires changing accepted ways of doing things, decrease emphasis on advertising, puts an increased focus on communications and requires major changes within advertising agencies.

IMC PLANNING PROCESS

Situation Analysis (Marketing Plan Review) SWOT Analysis (Analyze internal capabilities and

weaknesses in relation with opportunities and threats) Analysis of Communication process (establish goals, message, channels) Budget determination Develop IMC (using all tools) Implement IMC Monitor, measure and control IMC

Promotion Mix or Communication Mix

The Marketing Communication Mix consists of eight major tools: Advertising Personal Selling Sales Promotion Events and Experiences Public Relations and Publicity Direct Marketing Interactive Marketing Word of Mouth Marketing

MODEL- 1. AIDA
AIDA MODEL of Hierarchy of Consumer Response or Four Stage Model (developed in 1920s) 1. Attention--- Cognitive Level 2. Interest--- Affective Level 3. Desire----- Affective Level 4. Action----- Connative Level The model says attract attention, gain interest, arouse desire and result in action.

MODEL- 2. Levidge and Steiner

Robert Levidge and Gary Steiner gave a model variant of AIDA for marketing of consumer durables, office and industrial products or Six Stage Model of consumer response Knowledge Cognitive Level Awareness Cognitive Level Preference Affective Level Liking Affective Level Conviction Connative Level Purchase Connative Level

1. 2. 3. 4. 5. 6.

DAGMAR
DAGMAR was put forward by Russell H. Colley in his
book titled Defining Advertising Goals for Measured Advertising Results in 1961 under the sponsorship of Association of National Advertisers. The term DAGMAR corresponds with the abbreviation of the title .

DAGMAR views advertising has to perform a

In the DAGMAR approach, the communication task is

Communication task and not a Sales task, therefore advertising goal should be separate and specific, should be written, a defined audience and a specific time period.
based on a specific model of the communication process which is also referred to as Hierarchy of Effects Model

Hierarchy of Effects Model

Controversies to DAGMAR
The first controversy centered around the theme: What should be the objective of advertising- communication as propounded by DAGMAR or it should be sales? Others are DAGMAR Approach is less practicable, Inhibits creative ideas, use of hierarchy of effects model.

Message Essentials
1. Message Considerations: The marketer
has to penetrate through the target audiences perceptual veil because everything that is said is not grasped and retained in consumers mind. Selective attention, distortion and retention occurs everytime a person is exposed to message.

 2. Message Content: In deciding the right

content , the marketer has to choose words and appeal, a theme , idea or any unique proposition that will make the message stand out in the noise created by the competition in media. Therefore, Right Words play a key role. Appeal: Fear, Humor, Rational, Emotion, Ethical appeals can be used.

3. Message Structure: This refers to the body of the message. There are conclusion drawing messages, one or to sided arguments etc. 4. Message Format: creative part of the message and includes decisions like headlines, colour, text, visuals and styling. 5. Source of the Message: An excellent message communicated by a weak man would create no tremors and thus source should be strong. Characteristics of effective spokesperson: 1. Credibility 2. Likability 3. Attractiveness 4. Trustworthiness 5. Expertise

Message Strategies
1. Cognitive Strategies 2. Affective Strategies 3. Conative Strategies

Cognitive Strategy
Cognitive Message Strategy is the presentation of
rational arguments or pieces of information to consumers. In this strategy, advertising key message is about the products attributes or the benefits. Foods may be described as healthful, pleasant tasting, low calorie etc. There are 5 major forms of cognitive strategies: Generic messages: direct promotions of products attributes or benefits without claim of superiority. Campbell soup can declare soup is good food. Generic message strategy can also be used to create brand awareness.

 Preemptive messages claim superiority based on a

products specific attributes or benefit. For example, Crest toothpaste is known as cavity fighter. USP: is an explicit testable claim of uniqueness that can be supported in some manner. Reebok claims it is the only shoe that uses DMX technology, which provides a better fit. Hyperbole: Hyperbole approach makes an untestable claim based upon some attribute or benefit. Radio channels, discs promoting the best nights in town. These claims do not have to be substantiated. Comparative ads: Directly or indirectly comparing good or service to the competition.

Affective Strategy
Affective message strategies invoke feelings or emotions and match those
feelings with the good, service or company. Such ads are prepared to enhance the likeability of the product, recall of the appeal, or comprehension of the advertisement. Affective strategies fall into two categories: A. Resonance Advertising: attempts to connect a product with a consumers experiences to develop stronger ties between the product and the consumer. Any strongly held memory or emotional attachment is a candidate for resonance advertising. The use of music from 1960s takes baby boomers back to the time they had in growing up. B. Emotional Advertising: attempts to elicit powerful emotions that eventually lead to product recall and choice. Many emotions can be connected to products including trust, reliability, friendship, happiness, romance, passion etc. ex coke, pepsi where real difference does not exist

Conative Advertising
Conative message strategies are designed to
lead more directly to some type of consumer response. The goal is to elicit behaviour. A conative strategy is present in any TV ad for music CDs that seeks to persuade viewers to call a toll free number to purchase the music. These ads typically encourage quick actions stating that CD cannot be purchased at stores and is only available for limited time.

Executional Framework

An executional framework is the manner in which an ad appeal is presented. Each appeal can be matched with the appropriate executional framework.: 1. Animation: Pillsbury Doughboy. 2. Slice of life: ( advertisers attempt to provide solutions to everyday problems consumers or businesses face). Daag ache hot hain by Surf Excel. 3. Dramatization: ( Uses a higher level of excitement and suspense to tell a story). whats in your wallet advertisements for Capital One credit cards did manage to create the level of excitement.

 Testimonials: when a customer is present in the ad and he tells

about a positive experience with the product. Harpic uses testimonials, services uses testimonials. Authoritative: Expert authority like physician, dentist, engineers etc. Demonstration: demonstration execution shows how a product works. For example, one recent ad featured a new form of dust cloth that could be attached to handle or used separately. Fantasy: Fantasy executions are designed to lift the audience beyond the real world to a make believe experience. Dream vacation spot, cruise, pizzas etc. Informative: ads presents information in the straightforward manner.

Noise, Atmospherics and Event Management

Noise: If we open a magazine, newspaper or switch on a
television there are so many advertisements and not every advertisement is noticed. This is noise in the media. Atmospherics: Packaged environment that creates the buyers perception of the firm and its products. Johnson and Johnson s clean building depicts the products are tender, caring and healthy. Event Management: special events organised to communicate message and getting undivided attention.

1. ADVETISEMENT
According to Institute of Practitioners in Advertising (IPA): "The means of providing the most persuasive possible selling message to the right prospects at the lowest possible cost". Kotler and Armstrong provide an alternative definition: "Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor".

Stage 1: Set Advertising Objectives

There are five main stages in a well-managed advertising campaign:

An advertising objective is a specific communication task to be achieved with a specific target audience during a specified period of time. Advertising objectives fall into three main categories: (a) To inform - e.g. tell customers about a new product (b) To persuade - e.g. encourage customers to switch to a different brand (c) To remind - e.g. remind buyers where to find a product

Establishing a communication budget

Managers often make unrealistic assumptions about a
communications budget. This occurs when a manger assumes a direct relationship between expenditures on advertising and subsequent sales revenue, which is highly unlikely. Several factors influence the relationship between expenditure on promotion and sales,: Goal of Promotion Threshold effects Carryover effects Wear out effects Decay effects Random events

 Communication goals often differ depending on the

stage in the buying process that is being addressed. Threshold effects: Early effects of advertising are minimal. At first, there may be little behavioral response, especially if only advertisements are used. Over a time, a consumer who is exposed enough times to a companys marketing message will recall the company and eventually become willing to make a purchase. Threshold point occurs quicker if good or service is innovative or companies introduce new products under an established strong brand name, so that consumers are willing to buy them immediately.

 Carry over effects: Many products are only

purchased when needed, such as washing machines and refrigerators. Promotions of these products must be designed to create carry over effects. This occurs when the consumer has been exposed to companys message for so long that when the time comes to buy, the individual remembers the key company.

 Wear out effects: Wear out effects also complicate the

advertising budgeting process. At a certain point, an advertisement or particular promotion simply becomes boring or old. In such cases consumers tend to ignore the ad. Decay effects: When a company stops advertising, consumers begin to forget the message. In some cases, the degree of decay is dramatic, in some cases, the carryover effects are strong enough that some time can lapse before the brand drops out of the conciousness of the consumer.

 Random Events: Random events affect

promotions. Sep,11.2001 attacks affected a variety of industries and individual companies. Promotional expenditures were cut back as nation recovered. Cultural Assimilator: A person who is familiar with the local language and culture of a given country who can help marketing efforts in that particular country.

Stage 2: Setting Advertising Budget:

a. b. c. d.

Affordable or Arbitrary Allocation Competitive Parity Method Percentage of Sales Method Objective and Task Method

Spending a lot on advertising does not guarantee success. Research suggests that the clarity of the advertising message is often more important than the amount spent. The advertising message must be carefully targeted to impact the target customer audience. A successful advertising message should have the following characteristics: (a) Meaningful (b) Distinctive (c) Believable Message essentials like right words and right appeal, message structure, formatting ,styling and source of the message are important This is the stage where creative part comes into being. Mostly companies outsource it to the Advertising Agencies

Stage 3: Determine the key Advertising Messages and Copy Testing and Development

 Advertising Agencies: Advertising agencies do the creative work.

Leading Advertising Agencies: Ogilvy and Mather DDB Needham Mudra Foote, Cone and Belding Ted Bates McCann Erickson Leo Burnett Grey Advertising Walter Thompson Company

 4 Approaches in Copy Development: 1. David Ogilvy: Founder of famous Ogilvy and Mather
(O AND M). In his famous book Confessions of an Advertising man, he gave 11 principles in 1964. The important amongst those were that: Do not create dull copies Avoid clowning Celebrities should endorse Be honest Do not Imitate etc. He was the staunch believer of Research

 2. William Bernbach: founder of Doyle Dane Bernbach

now known as DDB Needham agency, he demphasises research because it leads to me too brands. He avoided heavy repititions in his copy. 3. Leo Burnett: Founder of Leo Burnett agency was of the opinion to use common man in advertising as opposed to David Ogilvy. 4. Rooser Reeves: founder of Ted Bates agency, he propounded USP (Unique Selling Proposition) concept. USP should be unique that someone has never claimed it.

 Stage 4: Decide which Advertising Media to Use

There are a variety of advertising media from which to chose. A campaign may use one or more of the media alternatives. The key factors in choosing the right media include: (a) Reach - what proportion of the target customers will be exposed to the advertising? (b) Frequency - how many times will the target customer be exposed to the advertising message? (c) Media Impact - where, if the target customer sees the message will it have most impact? Media Mix means choosing from variety of vehicles like magazines, newspaper, audio visual, direct mail, radio etc.

The evaluation of an advertising campaign should focus on two key areas: (1) The Communication Effects - is the intended message being communicated effectively and to the intended audience? (2) The Sales Effects - has the campaign generated the intended sales growth. This second area is much more difficult to measure. Testing Methods: 1. Recognition Tests 2. Recall Tests: Aided or Unaided 3. Psychological and Attitude Measurement Tests

Stage 5: Evaluating and Measuring Advertising Effectiveness:

2. SALES PROMOTION
An activity designed to boost the sales of a product or service. It may
include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal letters on other methods. More than any other element of the promotional mix, sales promotion is about action.

It is about stimulating customers to buy a product. It is not designed to be

informative a role which advertising is much better suited to. Sales promotion is commonly referred to as Below the Line promotion. Sales promotion can be directed at: The ultimate consumer (a pull strategy encouraging purchase also referred as Consumer Sales Promotion) The distribution channel (a push strategy also known as Trade Sales Promotion encouraging the channels to stock the product). This is usually known as selling into the trade

Methods of Sales Promotion

1. Price promotions: Price promotions are also commonly known as price discounting These offer either (1) a discount to the normal selling price of a product, or (2) more of the product at the normal price. 2. Coupons: Coupons are another, very versatile, way of offering a discount. - On a pack to encourage repeat purchase - A cut-out coupon The key objective with a coupon promotion is to maximise the redemption rate this is the proportion of customers actually using the coupon.

3. Gift with purchase: It is also known as a premium promotion in that the customer gets something in addition to the main purchase. 4. Competitions and prizes 5. Fairs and Trade Shows 6. Demonstrations 7. Trade in allowances 8. Money Refunds 9. Point of sales display 10.Sampling 11. Low interest financing

3. PERSONAL SELLING
Personal selling is oral communication with potential
buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale
selling is the personal or impersonal process of assisting or persuading a prospective customer to buy a product or service and to act favourable upon an idea that has commercial significance to the seller.

According to American Marketing Association: Personal

Personal Selling Process

1. Prospecting 2. Qualifying the Prospect 3. Approaching 4. Sales Presentation 5. Handling objections 6. Closing the Sales 7. Follow up

4. PUBLIC RELATIONS and PUBLICITY

Public Relations: Communication function that seeks to build good
relationships with an organisations publics including consumers, stockholders, and legislators. Publicity: unpaid communication appearing in the mass media about an organisation The advantages of publicity are low cost, and credibility (particularly if the publicity is aired in between news stories like on evening TV news casts). New technologies such as weblogs, web cameras, web affiliates, and convergence (phone-camera posting of pictures and videos to websites) are changing the cost-structure. The disadvantages are lack of control over how your releases will be used, and frustration over the low percentage of releases that are taken up by the media.

But the publicist cannot wait around for the news to present opportunities. They must also try to create their own news. Contest Art exhibitions Event sponsorship Arrange a speech or talk Make an analysis or prediction Conduct a poll or survey Issue a report Take a stand on a controversial subject Arrange for a testimonial Announce an appointment Invent then present an award Stage a debate Press kits Issue a commendation

 The following section lists numerous means by which you can

publicize events. Some of these ideas will be familiar to you, while others will hopefully provide you with some innovative and more creative ways of effectively publicizing activities. Inexpensive Publicity Techniques POSTERS: The essential purpose of a poster is the rapid telling of a single message using a limited number of elements. Posters are viewed more rapidly than are other methods of advertisement; hence, their message must be strong, simple, and brief. FLYERS: A smaller version of the poster is the flyer. They are usually made on 8 x 11 or 8 x 14 paper. An advantage is that they can be reproduced easily at minimal cost. TABLE Tents: Table tents should be made of a thick or heavy grade of paper that shall stand firm. Table tents can be placed in visible locations including the lounge, lobby, dining hall, and on desk tops.

 CALENDAR: A large calendar of activities located in a central

location is a particularly effective technique. BALLOONS: You can write a message on the balloon or put the message on a piece of paper inside the balloon. Balloons can be tied with string to door knobs, handed out at the entrance of the building, or handed out in dining hall lines. BANNERS: A large extension of the poster, these can be hung outside your residence hall or in your main lobby. A bedsheet or old shower curtain will make a good size banner. WORD OF Mouth: And of course, there is the time-honored wordof-mouth perhaps the oldest, yet most effective way to get the word out. Go door to door and personally inform people of the activity; and remind them frequently, so that they dont forget.

5. Events and Experiences

Sports Entertainment Festivals Arts Causes Company Museums Social campaigns

6. Direct Marketing
Use of Direct channels to reach consumers
without taking help of middlemen like: Direct Mail Telemarketing Catalog Marketing Websites Mobile devises

7. Word of Mouth Marketing

Social networks have become an important force in both B2C,B2B

and C2C marketing. Buzz Marketing: generates excitement, creates publicity and convey new brand related information. Viral Marketing: encourages consumer to pass along company developed products, services or audios, video or written information online. The information spreads like Viral fever and is very quick. Blogs and Chat Rooms: regularly updated online journals or diaries are also WOM technique. Shill Marketing or Stealth marketing: company paid people talking good about the product in public places without disclosing that they are paid. Mystery shoppers

8. Interactive Marketing
The internet provides much greater interaction and

individualisation. Placing Ads and Promotion Online Voice mail Blogs Mailings Catalogs Fax mail Electronic shopping Websites