PROMOTION

1
PROMOTION

• David Forlani
• University of Colorado at Denver and Health
  Sciences Center

2
Overview

• Promotion Defined
• Promotional Strategy Goals
• Developing and Implementing a Promotional Plan

3
What is Promotion

• Promotion involves both education and persuasion.
  That is, informing potential customers about your
  offerings and convincing them to think and/or act
  favorably toward these offerings.
• For new offerings, the focus is be on education,
  and for mature offerings, persuasion.

4
Promotion Strategies

• Push Incentives are placed in the channel. This
  has the effect of pushing the product from the
  provider to the end user. Channel intermediaries
  shoulder most of the promotional effort.
• Pull Incentives are directed toward the end
  user. This has the effect of pulling the
  product through the channel and requires that the
  provider shoulder the majority of the promotional
  effort.

5
Goal of Promotion

• In general, to motivate purchase.
• Promotional activities should shift and/or twist
  the demand curve for an offering.
• This is reflected in a market either demanding
  more of the good at a given price or being
  willing to pay more for a given quantity.
• Is not met if there is only movement down the
  demand curve.

6
Promotional Plan

• Specifies how each element of the Promotion Mix
  (Advertising, Personal Selling, Sales Promotion
  and Public Relations) will be used to achieve
  certain promotional objectives within a targeted
  market.

7
Creating a Promotional Plan
8
Define the Audience

• The audience should match the target market as
  closely as possible.
• It will to the extent that the characteristics of
  the target market (accessibility segmentation
  criteria) can be used in selecting communication
  vehicles.

9
Set the Promotional Objectives

• Being S.M.A.R.T. means setting goals that are
• Specific identify the change we want to effect
  in the customer group of interest.
• Measurable assess the degree of change.
• Attainable ensure that the objective is doable.
• Relevant ensure that the objective is consistent
  with other firm initiatives.
• To be completed in a given Time Frame

10
Sample Promotional Objectives

• Increase brand awareness or recall
• Create or Change an Attitude / Image
• Highlight the salience of an Attribute or improve
  its evaluation
• Gain trial, Close a sale, Increase the repeat
  purchase rate
• Build confidence or trust
• Establish expectations

11
Promotion Mix

• Set of tools used to communicate the promotional
  message.
• Advertising Paid, non-personal delivery
• Personal Selling Paid, personal delivery
• Sales Promotion Short term value-enhancing
  incentives
• Public Relations Non-paid, non-personal delivery

12
(No Transcript)
13
(No Transcript)
14
Strategic Considerations
15
Linking Mix Elements to Objectives

• Determine which element (s) of the promotion mix
  should be used to fulfill each SMART objective.
• Map the objectives to the mix element.
• Estimate the amount of each element needed to
  meet its mapped objective.
• This process results in a promotion mix and
  provides a foundation for estimating the budget.

16
Set the Promotional Budget

• This a philosophical question.
• If you believe that Sales ? Promotion, then a
  percent of sales method for setting the budget is
  fine.
• If on the other hand, you believe that Promotion
  ? Sales, then the promotional budget should be
  set relative to the objectives it needs to meet.
• The process is likely iterative.

17
Implement the Plan and Evaluate the Results

• Follow up is valuable both in assessing the
  effectiveness of what was done and in planning
  for future promotional efforts.

18
Designing the Message

• The promotional objectives are met through the
  message.
• It is what is communicated to the target audience
  through the elements of the promotion mix.
• Consideration of how communication occurs can
  help to inform the design process.

19
Basic Communication Model
20
The Copy Platform

• Structures the Promotional Campaigns Message and
  is Associated with Advertising. It incorporates
• Basic issue or problem advertising must address
• Advertising objectives
• Target audience
• The BIG IDEAor key benefits, selling proposition
• Creative strategy statement (campaign theme,
  appeal, and execution technique)
• Supportive information (justification)

21
The BIG IDEA

• Is how the Advertising meets its promotional
  objectives given its audience and constraints.
• Translates the ads purpose into its Creative
  Strategy (how it will do what it is supposed to).
  
• The Creative Strategy is built around a theme
  that contains an appeal.
• The theme is the ads context, or setting.
• The appeal taps into the audiences motives to
  initiate and guide behavior / learning.

22
Motives / Appeals

• All ads have appeals. Appeals tap motives which
  initiate responses (e.g., recall to purchase).
• Typical Motives achievement, expertise, fear,
  functionality, health, humor, mystery,
  performance, pride, safety/security, self
  fulfillment/expression, sex, spiritual comfort
  (peace, tranquility).

23
Illustrating the Copy Platform 1 of 2

• Lysol is introducing a new bathroom cleaner that
  kills germs but is non-toxic.
• What could we say about the product? (BIG IDEA)
• If the target market is women with young
  children, how would we say it? (Creative
  Strategytheme and appeal)

24
Illustrating the Copy Platform 2 of 2

• To meet the objective of 30 awareness in the
  target market in 6 months, advertising has been
  selected as the promotional mix element.
• What Medium and Vehicle could be used to reach
  the stay at home moms in the target?
  (Communication Model)