Promotion strategy

Elements of the Promotional Mix

Impersonal Personal

Advertising Sales promotion Store atmosphere Web site SEM Publicity SEM

Paid

Personal selling E-mail marketing

Unpaid

Word of mouth

Planning a Retail Promotional Strategy

Advertising
Paid, nonpersonal communication transmitted through out-of-store mass media by an identified sponsor Key aspects
Paid form Nonpersonal presentation Out-of-store mass media Identified sponsor

Advertising
Advantages Attracts a large audience Gains pass along readership (for print) Low cost per contact Many alternatives available Control over message content; message can be standardized Message study possible Editorial content surrounds ad Self-service operations possible Disadvantages Standardized messages lack flexibility Some media require large investments Geographic flexibility limited Some media require long lead time Some media have high throwaway rate Some media limit the ability to provide detailed information

Advertising Media Comparison Chart

Medium
Radio

Market Coverage
Regional, local and national

Particular Suitability
Retailers focusing on identifiable segments Retailers of goods and services with wide appeal All types of goods and service-oriented retailers Amusement and touristoriented retailers, well-known firms

TV

Regional, local and national

World Wide Web

Global

Outdoor

Entire metro area or single neighborhood

Advertising Media Comparison Chart

Medium
National Magazines

Market Coverage
Nationwide

Particular Suitability
National chains

Local Magazines

Entire metro area or region, zoned editions sometimes available Single neighborhood

Restaurants, entertainmentoriented firms, specialty shops, mail-order firms Restaurants, dry cleaners, service stations, and other neighborhood firms

Flyers/ Circulars

Advertisings Role

Create awareness
Create preferences for company, products, etc. Facilitate interactive marketing communications

Increased sales efficiency

Defining Advertising Objectives

Marketing managers realize: 1. Advertisings mission flows directly from the overall marketing strategy. 2. Advertisings job is to:
a. b. c. d. Create awareness Provide information Influence attitudes Remind buyers about product and company

Advertising Objectives
1. Realistic 2. Measurable 3. Specific outcomes during specific times

Defining the Target Market

One objective of advertising is to reach influentials who are often difficult to contact via personal selling. Influentials are interested in specific features and attributes that solve certain problems. Advertising needs to focus upon that issue. Marketers must understand who the target market is and how to reach them for an advertising campaign to be effective.

Creative Strategy Statements

Provide guidelines for the company and advertising agency to position (or reposition) the product. All creative efforts should include: 1. Copy 2. Theme 3. Color, design, etc. 4. Media 5. Tactics

Determining Advertising Expenditures

Developing the Message

Three Considerations:
Perception Benefits focus

Understanding buyer motivations

Buying Motives
Of all the challenges, this is one of the most difficult to understand. Understanding the buyer is a very complex matter because the standard rules change as the environment changes. One way to address this problem is to employ marketing research to delineate influencers criteria for buying in each segment.

Effective Ads
Effective ads should be: A. B. C. D. E. F. Logical Rational Provide a clear description of the product Present product benefits clearly Details product quality Provide performance measures

Selecting Advertising Media for Business Markets

B2B media are selected by target audiences
Should we use trade publications, direct mail, Internet or all of them? What is the best way to spend advertising money to generate the desired response (customer contacts)?

Shifting of Advertising to Digital Form

B2B marketers are always looking for ways to communicate better with customers & prospects. Use of Internet microsites (specialized web pages that prospects jump to from an email or PR piece that contain videos) is providing excellent results. Use of online videos help customers and prospects from around the world solve their business problems. Videos are particularly effective for telling the story and producing serious leads.

Use of Search Engines

Using proper key words or key phrases within the site is an absolute necessity for driving leads to that site. Ideas for successful Internet advertising include: 1. 2. 3. 4. 5. Make sure site is search-crawler friendly Good key words must tie into solutions sought Create a relevant, targeted keyword list that reflects problem, product, etc. Write clear, compelling ads that use key words and isolate your value proposition Track results and measure everything

Advertising Considerations
Include: Cost/1000 contact is one consideration

Circulation based on the TARGET audience

Does the medium also have Internet viewing? Frequency and scheduling is another complicated issue

Interactive Marketing
In order to successfully accomplish this, it is important to have all the systems in place first. a. b. c. d. e. f. g. They include: E-mail acknowledgements Order entry Order fulfillment Money exchanges Follow-up contact Q&A service Troubleshooting systems

Measuring Effectiveness
Rarely do ads result in immediate business. But, it does create awareness hopefully leading to preference. Measurements can be direct or indirect. Direct communication is measured by: percent awareness. Indirect communications are measured by:
word-of-mouth and understood perceptions.