promotional planning for competitive advantage

promotional planning for competitive advantage COLLEGE OF BUSINESS ADMINISTRATION CHUNGANG UNIVERSITY PROF HYUNSUK SUH promotional planning for competitive advantage COLLEGE OF BUSINESS ADMINISTRATION CHUNGANG UNIVERSITY PROF HYUNSUK SUH promotional planning for competitive advantage COLLEGE OF BUSINESS ADMINISTRATION CHUNGANG UNIVERSITY PROF HYUNSUK SUH

11 Promotional Planning for Competitive Advantage

IMC —

The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

COLLEGE OF BUSINESS ADMINISTRATION

CHUNG-ANG UNIVERSITY PROF HYUNSUK SUH

What is “Promotion?”

Promotion

 Promotion:

Communications by marketers that informs, persuades, and reminds

potential buyers of a product in order to influence their opinion or elicit a

response.

 Promotional Strategy:

It is a plan for the optimal use of the promotional mix elements: advertising,

public relations, personal selling, and sales promotion.

McDaniel/ Lamb/ Hair, 2011, 2013

What is “Competitive Advantage?”

Competitive Advantage

Strategic Competitive Advantage –

It is the set of unique features of a company and its products that are perceived

by the target market as significant and superior to the competition Such

features can include high product quality, rapid delivery, low prices, excellent service, or feature not offered by competition

For exam ple, fast-food restaurant Subway promises

fresh san dwiches that are better for you than other

fast-food restaurants Subway effectively

commun icates this “FRESHNESS” to its target

custome rs.

McDaniel/ Lamb/ Hair, 2011, 2013

What is the role of promotion?

The Role of Promotion

Then, what is “Marketing Communications?”

Definition: Marketing Communications

 Marketing Communications:

The means by which firms attempt to inform, persuade, and remind customers, directly or indirectly, about the products and brands they sell.

All marketing communications tool must be carefully integrated.

Kotler and Armstrong, 2010

 Marketing Communications:

It is the process by which we exchange or share meanings through a common set of symbols Marketers communicate its selling message to potential

customers, they do it through various its promotional programs.

McDaniel/ Lamb/ Hair, 2011, 2013

Marketing communications perform

many functions for customers

Customers can be told or shown

how and why a product is used, by

what kind of person, where and

when; customers can learn about

who makes the product and what

company and brand stand for; and

customers can be given an

incentive or reward for trial or

usage Marketing communications

allow companies to link their

brands to other people, places,

events, brands, experiences,

feelings and things.

Although ‘advertising’ is often a central element of a marketing communications

program, it is not the only one.

Marketing Communications Mix

1 Marketing Communications Mix

The promotional tools from the previous page are explained below.

Major Promotional Tools

1 Marketing Communications Mix

Advertising is any paid

form of non-personal

presentation and

promotion of ideas,

goods, or services by an

identified sponsor

Broadcast

Print

Internet

Outdoor

Sales promotion is the short-term incentives to encourage the purchase

or sale of a product or service

Discounts Coupons Special events Year-end sales

Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

Press releases Sponsorships Web pages

The promotional tools from the previous page are explained below.

Major Promotional Tools

1 Marketing Communications Mix-Advertising

Personal selling is the

personal presentation

by the firm’s sales force

for the purpose of

making sales and

building customer

relationships

Sales presentations

Trade shows

Incentive programs

Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—

through the use of direct mail, telephone, e-mail, and the Internet to communicate directly with specific consumers

Telemarketing Direct Mail E-mail

The following is an example of the public relations of Chung-Ang University.

Magnitude of Advertising

United States:

$294 billion ($1,000 per

Example

1 Marketing Communications Mix-Advertising

To communicate effectively, marketers need to understand how communication works The communication process and its elements are described below.

•Communications efforts should be viewed from the perspective of managing

customer relationships over time.

•The communication process begins with an audit of all potential contacts a customer

might have with the brand.

•Effective communication requires knowledge of how communication works.

Communication Process Model: MACROMODEL

The more the sender’s field of experience overlaps with that of the receiver, the more effective the message would likely to be

2 Marketing Communications Process

To communicate effectively, marketers need to understand how communication works The communication process and its elements are described below.

Sender is the party sending the message to another party

Encoding is the process of putting thought into symbolic form

Message is the set of symbols the sender transmit.

Media is the communications channels through which the message moves from

sender to receiver

Decoding is the process by which the receiver assigns meaning to the symbols

Receiver is the party receiving the message sent by another party

Response is the reaction of the receiver after being exposed to the message

Feedback is the part of the receiver’s response communicated back to the sender

Noise is the unplanned static or distortion during the communication process, which

results in the receiver’s getting a different message than the one the sender sent

The Elements of Communication Process Model

2 Marketing Communications Process

Marketers should understand the fundamental elements of effective communications : MICROMODEL.

Consumer Response Models: MICROMODEL

3 Developing Effective Communications

Remember in Chapter 6 where we’ve learned 4 different types of buying decision

behavior? Let’s review the concept with that of communication model.

3 Developing Effective Communications

Types of Buying Decision Behavior

L-F-D

(L)-D-F

When putting the message together, the marketing communicator must decide what to

say (message content) and how to say it (message structure or format).

Design Message: Message Content and Structure

Message content is an appeal or theme that will produce the desired

response

It relates to the audience’s self-interest They show the product will produce the desired benefits Examples are message

showing a product’s quality, economy, value, or performance.

RATIONAL

APPEALS

It attempts to stir up either negative or positive emotions that can motivate purchase Communicators may use positive emotional appeals such as love, pride, joy, and humor

EMOTIONAL

APPEALS

It is directed to the audience’s sense of what is “right” and

“proper.”

MORAL

APPEALS

3 Developing Effective Communications

The following ad appeals to which types of “appeals?” How would the rational ad for this product talk about?

Design Message : Message Content

3 Developing Effective Communications

Example

Design Message : Message Content

3 Developing Effective Communications

Example

The following two ads appeal to which types of “appeals?”

Message Structure: Key decisions are required with respect to three message structure issues:

1 Whether or not to draw a conclusion

2 Whether to put strongest arguments first or last

3 One-sided vs two-sided argument

Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc.

The message should get Attention, hold Interest, arouse Desire, and obtain Action (AIDA model) The marketing communicator must decide what to say (content), and how to say it (structure and format).

Design Message : Message Structure and Format

3 Developing Effective Communications

Marketers can choose from two basic promotion mix strategies – Push or Pull.

Promotion Mix Strategies

3 Developing Effective Communications