Marketing Management

Session 13: Promotion Policy

Professor: Valentí Camps

EMBA Marketing Pág. 1

PROMOTION

• Promotion mix
• Media selection
• Advertising- Copy Strategy
• Research in Promotion

EMBA Marketing Pág. 2

PROMOTION MIX
• Definition:
– Determining the right mix for different types of promotion
• Objective:
– Combine the different types of promotion in order to complement them
in the most efficient way

EMBA Marketing Pág. 3

 PROMOTION MIX

• Promotion mix
– Advertising: Any paid form of nonpersonal presentation and
promotion of ideas, goods or services by an identified sponsor
– Personal selling: Oral presentation in a conversation with one or
more prospective purchasers for the purpose of making sales
– Sales promotion: Short-term incentives to encourage purchase or
sales of a product or service
– Public relations: Building good relations with a company’s various
publics by obtaining favorable publicity, building up a good
“corporate image”, and handling or heading off unfavorable
rumors, stories, and events

EMBA Marketing Pág. 4

PROMOTION MIX
• Requirements:
– Product factors
– Market factors
– Customers factors
– Budget factors
– Marketing-mix factors
– Environment factors

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PROMOTION MIX
• Requirements:
– Product factors:
• Nature

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PROMOTION MIX
• Requirements:
– Product factors:
• Nature
• Perceived risk
Sales folder
intranet

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PROMOTION MIX
• Requirements:
– Product factors:
• Nature
• Perceived risk
• Durable/Non durable

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PROMOTION MIX
• Requirements:
– Product factors:
• Nature
• Perceived risk
• Durable/Non durable
• Usual purchased quantity

loading

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PROMOTION MIX
• Requirements:
– Market factors:
• Position in lifecycle

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PROMOTION MIX
• Requirements:
– Market factors:
• Position in lifecycle
• Market share

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PROMOTION MIX
• Requirements:
– Market factors:
• Position in lifecycle
• Market share
• Market concentration

Atomization Prescription

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PROMOTION MIX
• Requirements:
– Market factors:
• Position in lifecycle
• Market share
• Market concentration
• Competition intensity

Nr. 1 in share-of-voice One-to-one

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PROMOTION MIX
• Requirements:
– Market factors:
• Position in lifecycle
• Market share
• Market concentration
• Competition intensity
• Demand forecast

EMBA Marketing Pág. 14

PROMOTION MIX
• Requirements:
– Customers factors:
• Consumer vs. Industrial market

EMBA Marketing Pág. 15

PROMOTION MIX
• Requirements:
– Customers factors:
• Consumer vs. Industrial market
• Quantity of customers

EMBA Marketing Pág. 16

PROMOTION MIX
• Requirements:
– Customers factors:
• Consumer vs. Industrial market
• Quantity of customers
• Concentration of customers

EMBA Marketing Pág. 17

PROMOTION MIX
• Requirements:
– Customers factors:
• Consumer vs. Industrial market
• Quantity of customers
• Concentration of customers

EMBA Marketing Pág. 18

PROMOTION MIX
• Requirements:
– Customers factors:
• Consumer vs. Industrial market
• Quantity of customers
• Concentration of customers
– Budget factors
• Financial resources
• Future of traditional communication

EMBA Marketing Pág. 19

PROMOTION MIX
• Requirements:
– Customers factors:
• Consumer vs. Industrial market
• Quantity of customers
• Concentration of customers
– Budget factors
• Financial resources
• Future of traditional communication

EMBA Marketing Pág. 20

PROMOTION MIX
• Requirements:
– Customers factors:
• Consumer vs. Industrial market
• Quantity of customers
• Concentration of customers
– Budget factors
• Financial resources
• Future of traditional communication
– Marketing-mix factors:
• Relative price/Relative quality
• Distribution strategy
• Brand lyfecycle
• Market geographic scope
– Environmental factors

EMBA Marketing Pág. 21

PROMOTION MIX
• Requirements:
– Customers factors:
• Consumer vs. Industrial market
• Quantity of customers
• Concentration of customers
– Budget factors
• Financial resources
• Future of traditional communication
– Marketing-mix factors:
• Relative price/Relative quality
• Distribution strategy
• Brand lifecycle
• Market geographic scope
– Environmental factors:
• Emotional situation of society (Christmas)

EMBA Marketing Pág. 22

PROMOTION

• Communication mix
• Identification of target audience
• Message selection
• Media selection
• Factors in establishing the communication mix:
– Type of Product/Market
– Pull or push strategy
– Situation of buyer interest
– Situation in product lifecycle
• Advertising
• Promotion
• Public relations
• Merchandising

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 PROMOTION

• Steps in developing effective communication:

– Sender
– Encoding
– Message
– Media
– Decoding
– Receiver
– Feedback
– Noise

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 PROMOTION

• Identifying the target audience

• Determining the response sought
– Awareness
– Knowledge
– Liking
– Preference
– Conviction
– Purchase

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 PROMOTION

• Choosing a message
– Message content
• Rational appeals
• Emotional appeals
• Moral appeals

audi-con-cuerdas-publiTV.wmv

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 PROMOTION

• Choosing a message
– Message content
• Rational appeals
• Emotional appeals
• Moral appeals

– Message structure and format

audi-con-cuerdas-publiTV.wmv

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 PROMOTION

• Choosing media:
– Personal communication channels
• Salespeople
• Independent experts
• Word-of-mouth influence

– Non-personal communication channels

• Major media (print/broadcast/display)
• “Atmospheres” (Designed environments)
• Events

EMBA Marketing Pág. 28

 PROMOTION
• Choosing media:
– Personal communication channels
• Salespeople
• Independent experts
• Word-of-mouth influence
– Non-personal communication channels
• Major media (print/broadcast/display)
• “Atmospheres” (Designed environments)
• Events
• Selecting the message source: Testimonials/Credibility
el almendro

EMBA Marketing Pág. 29

 PROMOTION
• Choosing media:
– Personal communication channels
• Salespeople
• Independent experts
• Word-of-mouth influence

– Non-personal communication channels

• Major media (print/broadcast/display)
• “Atmospheres” (Designed environments)
• Events

• Selecting the message source: Testimonials/Credibility

• Collecting feed-back

EMBA Marketing Pág. 30

 PROMOTION

• Setting the total communication budget and mix

– Affordable method
– Percentage-of-sales method
– Competitive-Parity method
– Objective-and-task method

EMBA Marketing Pág. 31

 PROMOTION
• Advertising
– Setting objectives
• Informative advertising
• Persuasive advertising
• Comparison advertising

EMBA Marketing Pág. 32

 PROMOTION
• Advertising
– Setting objectives
• Informative advertising
• Persuasive advertising
• Comparison advertising
• Reminder advertising

– Setting the Advertising Budget

• Stage in the product life cycle
• Market share
• Competition and noise
• Advertising frequency

EMBA Marketing Pág. 33

 PROMOTION
• Advertising
– Setting objectives
• Informative advertising
• Persuasive advertising
• Comparison advertising
• Reminder advertising

– Setting the Advertising Budget

• Stage in the product life cycle
• Market share
• Competition and noise
• Advertising frequency

EMBA Marketing Pág. 34

 PROMOTION
• Advertising
– Setting objectives
• Informative advertising
• Persuasive advertising
• Comparison advertising
• Reminder advertising

– Setting the Advertising Budget

• Stage in the product life cycle
• Market share
• Competition and noise
• Advertising frequency
• Product differentiation (Gemma Perfect)

EMBA Marketing Pág. 35

 PROMOTION
• Advertising
– Creating the message
• Message generation (What do we say?)
• Message evaluation and selection
• Message execution (How do we say it?)
– Slice of life
– Lifestyle
– Fantasy
– Mood or image
– Musical
– Personality symbol
– Technical expertise
– Scientific evidence
– Testimonial evidence

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 PROMOTION

• Advertising
– Selecting Media
• Target group, reach, frequency, media impact
• Media selection
• Support selection
• Timing

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RESEARCH USED IN
COMMUNICATION

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CONCEPT OF EFFECTIVENESS
ADVERTISING WILL BE MORE OR LESS EFFECTIVE
DEPENDING ON WHETHER IT ALLOWS OR NOT TO
ACHIEVE A POSTERIORI THE DESIRED RESULTS.

TYPES OF EFFECTS:
• ABSOLUTE.- IMPACT ON RESULTS. VERY
DIFFICULT TO MEASURE.
• RELATIVE .- EASIER TO MEASURE.

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CONCEPT OF EFFECTIVENESS
WAYS OF ADVERTISING EFFECTIVENESS:
• EFFECTIVENESS IN MEDIA PLANNING (POSSIBILITY
OF HAVING A CONTACT AND PERCEIVING THE AD).
• EFFECTIVENESS OF CREATIVITY (MESSAGE) :
ADEQUATE MESSAGE TO INTERESTS, USING THE
RIGHT CODE AND REPEATING THE CONTACT.
• GLOBAL CAMPAIGN EFFECTIVENESS; THE EFFECT
OF THE CAMPAIGN DEPENDS ON THE ADS, MEDIA
AND CALENDAR.

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CONCEPT OF EFFECTIVENESS
CRITERIA FOR MEASURING EFFECTIVENESS:
• NOTORIETY (NON AIDED/AIDED)
• ADVERTISING RECALL (GENERIC/IN DETAIL)

EMBA Marketing Pág. 41

CONCEPT OF EFFECTIVENESS
CRITERIA FOR MEASURING EFFECTIVENESS:
• NOTORIETY (NON AIDED/AIDED)
• ADVERTISING RECALL (GENERIC/IN DETAIL)

EMBA Marketing Pág. 42

CONCEPT OF EFFECTIVENESS
CRITERIA FOR MEASURING EFFECTIVENESS:
• NOTORIETY (NON AIDED/AIDED)
• ADVERTISING RECALL (GENERIC/IN DETAIL)
• IDENTIFICATION OF PRODUCT
• ASSIMILATION OF MESSAGE

EMBA Marketing Pág. 43

CONCEPT OF EFFECTIVENESS
CRITERIA FOR MEASURING EFFECTIVENESS:
• NOTORIETY (NON AIDED/AIDED)
• ADVERTISING RECALL (GENERIC/IN DETAIL)
• IDENTIFICATION OF PRODUCT
• ASSIMILATION OF MESSAGE
(Phone commercial)

EMBA Marketing Pág. 44

CONCEPT OF EFFECTIVENESS
CRITERIA FOR MEASURING EFFECTIVENESS:
• NOTORIETY (NON AIDED/AIDED)
• ADVERTISING RECALL (GENERIC/IN DETAIL)
• IDENTIFICATION OF PRODUCT
• ASSIMILATION OF MESSAGE
• PREDISPOSITION TO PURCHASE
• BUYING THE BRAND

EMBA Marketing Pág. 45

KEY METHODS: PRE-TEST
STUDIES DONE BEFORE BEGINNING THE
CAMPAIGN

METHODS BASED ON EXPLICIT OPINION:

FASTER AND CHEAPER, BUT LESS COMPLETE
• CLASSIFICATION BY ORDER OF PREFERENCE
• USE OF SCALES OF VALUE

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KEY METHODS: PRE-TEST

METHODS BASED ON BEHAVIOUR:

• WIDE GROUPS (MARKET TEST, ETC.)

• SMALL GROUPS, USING TECHNIQUES OF:
– AUTOMATIC REGISTER (TAQUISTOSCOPE,
PSICOGALVANOMETER, HIDDEN CAMERA, ETC...)
– FOLDER- TEST ( FOLDER WITH DIFFERENT ADS)
– FALSE MAGAZINE (PSEUDO-AD ON A REAL MAGAZINE)
– A. M. O. (CONTROLS THE TIME SPENT IN EVERY
MAGAZINE’AD)

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KEY METHODS: PRE-TEST

TYPES BASED ON THE MOMENT OF DOING THE TEST:

• OF CONCEPTS
• OF FIRST REACTIONS (ON STORY BOARD OR
ANIMATIC)

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 PROMOTION

• Sales promotion:
– Consumer
– Trade
– Salesforce
– Purpose: Short-term

EMBA Marketing Pág. 49

 PROMOTION

• Consumer promotion tools:

– Samples
– Coupons
– Cash refund/Rebates
– Price-packs
– “Loading”
– “Frequent flyer”
– POP
– Contests

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 PROMOTION

• Trade-promotion tools:
– Trade Shows
– Conventions
– Sales contests
– Incentive trips
– Etc., etc., etc.

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 PROMOTION

• Public relations
• Publicity
• Merchandising

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