Unit 8 -The Promotional Programme

Lecture # 8 March 8, 2012

LEARNING OBJECTIVES
At the end of this unit students should be able to:

1. Outline the initial steps in developing effective communication 2. Explain the major promotional tools 3. Describe the major decisions in advertising 4. Outline the major public relations tools and decisions 5. Explain the role and nature of personal selling 6. Discuss the issues involved in managing the sales force 7. Apply the principles of personal selling process 8. Outline the steps in the selling process

THE PROMOTIONAL PROGRAMME

Advertising
Adapted from a Guest Presentation from

Manager - Sales & Marketing

Class Objectives for Today

Describe the major decisions in advertising. Outline the major public relations tools and decisions. Discuss competitor analysis. Discuss the concept of competitive intelligence. Explain the fundamentals of competitive strategies based on competitive position in the market.

THE MOTOR SALES STORY

The Major Decisions in Advertising

Setting the Advertising Objectives. Setting the Advertising Budget Developing Advertising Strategy Creating the Advertising Message Selecting Advertising Media Evaluating

Advertising Effectiveness and Return on Advertising Investment International Advertising Decisions

The Major Decisions in Advertising

Setting the Advertising Objectives

Motor Sales establish its objectives based on their:

a. b. c. d.

position in the market place target market positioning strategy marketing mix product, price, place and promotion
All of which define the job that advertising must do in Mitsubishis total marketing program.

The Major Decisions in Advertising

Setting the Advertising Objectives

Motor Sales overall objective is to showcase the brand. To build brand awareness about the various types of vehicles in the Mitsubishi line. These objectives are defined with the customers being the main focus while building relationships and communicating customer value.

The Major Decisions in Advertising

Setting the Advertising Objectives

Motor Sales establishes different types of advertising objectives based on the companys primary purpose. The primary purpose is based on whether the aim is to inform, persuade or remind.

The Major Decisions in Advertising

Informative Advertising
Motor Sales uses the inspiration + information approach II Strategy.
Inspiration comes through using the performing arts: music, drama, dance, song etc. Latest Ad includes Richie Stephens

The information comes through popular activities mixed with music to inspire using prominent entertainment personalities.

The Major Decisions in Advertising

Informative Advertising
One of our major advertising strategy/medium is to have launches as a means of informing our customers; showcase the brand and explain the vehicles in a social setting.
At these launch parties: the press is invited, selected consumers and customers. Website is another source of informing the customers.

The Major Decisions in Advertising

Persuasive Advertising
Mitsubishi is a hard sell brand despite having a name and so many efforts are placed into persuasive advertising.
The purpose of the persuasive advertising is to change customers perceptions of the brand.

Customers perceive that Toyota is the best brand and so the aim is to break down that perception using the facts from a local and international perspective.

The Major Decisions in Advertising

Persuasive Advertising

a.
b. c.

d.
1. 2. 3.

Mitsubishis major competitors are: Toyota Suzuki Honda Nissan The current market position is as follows: Toyota Jamaica Suzuki Mitsubishi

The Major Decisions in Advertising

Persuasive Advertising

1. 1.

Reasons for market share Toyota Jamaica Fleet Business

Suzuki Large government and business markets JDF, Jamaica Constabulary Force, cheapest SUV in the market: 2.5 million

1.

Mitsubishi used to be # 5 in the market but position has moved to # 3 and will be # 2 by the end of 2008.

The Major Decisions in Advertising

Persuasive Advertising

Persuasive advertising has helped Motor Sales to shift its position in the market. How? The World is saying that Mitsubishi is the best. In reality Mitsubishi is better. Pajero is a better seller than a Prado. Motor Sales has been able to change consumers perceptions by substantiating this argument with the truth of the matter.

The Major Decisions in Advertising

Reminder Advertising

This form of advertising is used for Motor Sales mature and established products such as the Lancer and the Gallant. It helps to maintain customer relationships and keep consumers thinking about the brand and the variety of Mitsubishi motor vehicles.
It is also used to move consumers to immediate action stay with the brand: We are the champions of the World

The Major Decisions in Advertising

Setting the Advertising Budget

This refers to the dollars and other resources allocated to Motor Sales advertising programme.
Setting the budget is a challenging task as it involves convincing senior executives to approve the funds for advertising.

Advertising is a heavy cost because of Motor Sales niche market strategies and advertising strategies and objectives.

The Major Decisions in Advertising

Developing Advertising Strategy

This refers to the strategy by which Motor Sales accomplishes its advertising objectives. It consists of two major elements: a. Creative advertising: Motor Sales employs the creative minds of its youthful marketing and sales staff who are very innovative and abreast of current happenings in the market place. This process is facilitated and guided by an energetic and vibrant marketing manager.

The Major Decisions in Advertising

Developing Advertising Strategy
b.

Selective advertising media

Motor Sales does not uses advertising agencies. Instead the company uses strategies that integrate creative ideas with media placement.

Eliminating advertising agencies has many cost advantages. Motor Sales directs its advertising efforts through the youthful perspective of its youth staff.

The Major Decisions in Advertising

Developing Advertising Strategy
b.

Selective advertising media

This function is carried out by the marketing department.

Motor Sales believes it has the expertise and the competency among its staff to develop the ads for media placement. Motor Sales provides staff development training and builds its human capital so that they are more inclined to be innovative and take risks.

The Major Decisions in Advertising

Developing Advertising Strategy
b.

Selective advertising media

The major advertising media used are: TV TVJ, CVM, All Cable TV Print Gleaner, Observer, Herald Magazines Ocean Style, Buzz Magazine, Business Suite, Jamaica Business Billboards electronic Websites/internet

The Major Decisions in Advertising

Developing Advertising Message

The first step is to plan a message strategy. The messages are conceptualised by the marketing manager and his marketing team. The messages are designed to upset opponents/rivals/competitors. Messages are used to play games with the competitors. The messages are designed with a subtle mockery tone but employing tact and diplomacy.

The Major Decisions in Advertising

Developing Advertising Message

Examples of mockery messages:

Prado - is a shoes. Suzuki and Honda when I hear these names, I think of bikes, I did not know that they sell motor vehicles/SUVs/Cars, trucks and pick-ups Honda Has never left the showroom prior to Motor Sales mass guerilla marketing

The Major Decisions in Advertising

Developing Advertising Message

These common responses and messages have caused the competitors to come out of their comfort zone.
A creative concept is also utilized in designing advertising messages. The creative concept is the compelling big that will bring the advertising message strategy to life in a distinctive and memorable way thus Motor Sales new advtg. Slogan We are the Champions of the World and new billboard Welcome to Mitsubishi Country

The Major Decisions in Advertising

1. 2. 3. 4.

Selecting Advertising Media

The major steps in advertising media selection are: Deciding on reach, frequency and impact Choosing among major media vehicles Deciding on media timing Demographics of media listenership, viewership and readership Customer surveys which informs and determines which advtg. media works best.

5.

The Major Decisions in Advertising

International Advertising Decisions

Motor Sales will NOT use international or standardized advertising without taking into consideration the Jamaican/local context. This decision is based on the following factors: Lifestyle Culture Consumer taste and purchase pattern Consumer behaviour perceptions, attitudes and beliefs Target market demographics Language Advertising restrictions, laws and regulations Economic conditions

The Major Decisions in Advertising

Evaluating Media Effectiveness

The following methods are used to measure impact, efficiency and effectiveness of advertising media to measure return on advertising investment: Customer surveys One-to-One discussions Observation and feedback Sales report/data Sales Force feedback

PUBLIC RELATIONS COMPETITOR ANALYSIS

Part 2

Public Relations

Public Relations is the vehicle that Motor Sales uses to get to the bottom of things to make customers happy. One unhappy customer can turn away many sales. Public Relations is extremely important to change perception, and influence what the next purchase will be. Public relations has been used to make the brand live Ian Lyn individuals has been the face of the Mitsubishi brand, owing to his high level of charisma, wit and humour.

Public Relations

Public Relations has been used to dispel unfavourable rumours and negative perceptions: Mitsubishi has bad transmissions or their vehicles have transmission problems

This perception was changed by informing the public through press releases, one-to-one conversations and word of mouth publicity. Mitsubishi is a world class firm which has invested in front line engineering. The perception was changed by providing facts, evidence and data to the public.

Public Relations

Mitsubishi has CVT Transmission which allows vehicles to change gears without the punch and many consumers were not used to this type of gear changing. Mitsubishi manufactures engines, and other mechanical devices that has durability and has live up to standards and expectations.

Public Relations

Motor Sales marketing manager has responsibility for public relations. Some of the public relations functions are: Press relations creating and placing newsworthy information in the news media to attract attention to the brand. Motor Sales has established strong partnerships with the media. Product Publicity publicizing special products at trade shows, auto shows, banking halls/ bank shows, gas stations etc. Selected churches are given 10% off the list price of vehicles and this is also financed through selected banks.

Public Relations

Public Affairs Mitsubishi community events in Allman Town etc.. Lobbying Building and maintaining relations with legislators, governing bodies and regulatory agencies such as the Automobile Dealers Association (ADA) and government officials to influence legislation and regulation. Investor Relations maintaining relations with shareholders and establish partnerships in in the financial community with entities such as NCB and Scotia Bank. Recently, Motor Sales received the NCB award and recognition for highest new vehicle sales to individual consumers.

Public Relations

Corporate image major sponsor to Jamaica

Agricultural Society (JAS) / Denbigh 2008 Agricultural Show: Motor Sales donated a new Mitsubishi Sportero, a pickup valued at 3.5 million.
Development Public relations with nonprofit organizations to give financial support: 1. Upliftment Jamaica, a non governmental organization (NGO) in St. Thomas
1.

Richie Stephens Foundation.

Competitor Analysis

Analysis of competitors and market is obtained through data from the Automobile Dealers Association (ADA). Sales data is shared among industry representatives. Motor Sales is also unique in that it is has a marketing analyst on board who provides market intelligence data and identify competitive advertising strategies to boost sales.

Competitor Analysis

Sources of competitors information/intelligence includes:

Customers Publications Marketing Analyst Sales force Sales report Field research data Trade shows Automobile trade shows Internet

Competitor Analysis

Competitive Strategies includes: Always trying to beat the competition Consistent training of staff to add value-added service. Keep prices very competitive. Providing value for money by giving customers more specifications, accessories and features in the vehicles and charge less. Protect market share constantly marketing new ideas: Mitsubishi has the best vehicles Champions in automobiles Only Winners drive a Mitsubishi

Competitor Analysis

Mitsubishi has the best vehicles Champions in automobiles and Only Winners drive a Mitsubishi.