1.

Overview of promotion
i. Definition

CHAPTER8 ii. Developing marketing communication

iii. Promotion budget
2. Promotion mix OVERVIEW OF PROMOTION
Promotion i.
ii.
Advertising
Sales promotion

Strategy
iii. Public relations
iv. Personal selling
v. Direct marketing & online marketing

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OVERVIEW of Promotion: An activity that communicate the merits of the products or services and persuade the customers to buy the products

Definition Communication Process

 Promotion
Sender’s field of experience Receiver’s field of experience
 Activities that communicate the merits of the product and persuade target customers to
buy it.
MESSAGE
 Promotion Mix/Marketing Communications Mix SENDER Encoding Decoding RECEIVER

 The specific blend of promotion tools that the company uses to persuasively MEDIA
communicate customer value and build customer relationships.
 Integrated Marketing Communications (IMC) Noise

 Carefully integrating and coordinating the company’s many communications channels

to deliver a clear, consistent, and compelling message about the organization and its Feedback Response
products.

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3 Consider, clear 4 -Information are message and contained in media

-Sender encode message to send to receiver and receiver decode
messages via media to unobtained what sender to convey=> Receiver
response the message by giving feedback and send back to sender
 Developing Promotion Program Identify the Target Audience

Determine the Choose Collect  The audience  Affect the communicator’s

communication objectives media feedback  Current users / potential buyers decisions on:
 Decider / influencer.  what will be said
 Individuals / groups / public  how it will be said
 when it will be said
 where it will be said
 who will say it

Identify the target Design a Select the message

audience message source

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Determine the Communication Objectives Design a Message

 Determine the desired response  Desirable qualities of a good  Decision

 Buyer-readiness stages message  Message content (what to say)
 The stages consumers normally pass through on their way to making a purchase.  AIDA model (Attention – Interest –  Message structure (how to say it)
Desire – Action)
 Awareness – Knowledge – Liking – Preference – Conviction – Purchase  Message format (how to say it)
Appeal is the content theme that
will produce the desired response

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 Design a Message Choose Media

 Message content: Message appeal =  Message format  Personal communication channels =  Nonpersonal communication channels
content theme that will produce the Channels through which two or more = Media that carry messages without
desired response  Print: headline, copy, illustration, size, personal contact or feedback
people communicate directly with
 Rational appeals: relate to the audience’s self- position, color, shape, movement,… each other, including face to face, on  Major media
interest.
 Emotional appeals: attempt to stir up either  Radio: words, sounds, voices the phone, via mail or e-mail, or even  Print media (newspapers, magazines, direct-mail)
negative or positive emotions that can through an Internet “chat.”  Broadcast media (television, radio)
motivate purchase  TV/in person: body language, facial
expressions, gestures, dress, posture,  Introductory channels: company  Display media (billboards, signs, posters)
 Moral appeals: direct to an audience’s sense of salespeople
what is “right” and “proper.” hairstyles,…  Online media (e-mail, company Web sites, and
online social and sharing networks)
 Message structure  Expert channels: independent experts
 Product, package: texture, scent, (consumer advocates, online buying  Atmospheres: designed environments that
 Conclusion drawing: Close vs. open color, size, shape,… guides) create or reinforce the buyer’s leanings toward
 Order of presentation: First vs. last buying a product.
 Social channels (WOM): neighbors,
 Message sideness: one-sided vs. two-sided friends, family members, associates.  Events: staged occurrences that communicate
messages to target audiences.

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9 10 communication Channels =/= Distribution Channels

Select the Message Source Collect Feedback Evaluate the media,

communication if its effective or not
 Message source  Source attributes 3 key features:  Research effect of message on target audience
 Source = communicator who delivers  Credibility  Remember the message, see the message, points to recall, feelings about the message
the message.
 Likeability  Past and present attitudes toward product and company.
 Power  Behavior resulting from the message: bought the product, talked to others about it,
Overview: Character in departments
visited the store.
(representative of the company to send
messages to customers)  Feedback on marketing communications
 Suggest changes in the promotion program or in the product offer itself.

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 Setting the Total Promotion Budget

 Affordable financial situations

 Setting the prom. budget at the level management thinks the company can afford.
 Percentage-of-Sales to revenue and come up with the percentage
 Setting the prom. budget at a certain % of current or forecasted sales or as a % of the unit sales
PROMOTION BUDGET price.
 Competitive-Parity
 Setting the promotion budget to match competitors’ outlays.
 Objective-and-Task define whats objective and come up with an activity what to achieve
 Developing the prom. budget by (1) defining specific promotion objectives, (2) determining
the tasks needed to achieve these objectives, and (3) estimating the costs of performing these
tasks. The sum of these costs is the proposed promotion budget.

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13 => Based on the budget to make and design an appropriate 14

promotional energy

Integrating the Promotion Mix

 Factors that influence the choice of promotion tools

 The nature of each promotion tool
 Promotion mix strategies
 Type of product/market
PROMOTION MIX
 The product life-cycle stage
 Stages of buyer readiness

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 Push: A promotion strategy that calls for spending a lot on customer advertising and
promotion to induce final consumers to buy the product and creating a demand vacuum
that "pulls" the product through the channel (MAIN AUDIENCE)
=> If company uses wholesaler or intermediaries to provide product directly to
customers. In case they target intermediaries that as receiver of promotion, they have
responsibility to deliver product to end-users

The Nature of Each Promotion Tool Promotion Mix Strategies Chiến lược truyền thông

 Advertising Producer marketing activities Reseller marketing activities

 Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. PUSH PUSH STRATEGY
(personal selling, trade (personal selling, advertising,
 Sales promotion A promotion strategypromotion,
that callsother)
for using the sales force and
salestrade promotion
promotion, other) to push the
 Short-term incentives to encourage the purchase or sale of a product or a service. product through channels. The producer Retailer
promotes&the product to channel members who in
Producer Consumer
 Direct marketing
turn promote it to final consumers. Wholesaler
 Connecting directly with carefully targeted segments or individual consumers, often on a one-to-one,
interactive basis.
 Personal selling
 Personal presentations by the firm’s sales force for the purpose of making sales and building customer
relationships.
Demand PULL Retailer
STRATEGY & Demand
Producer Consumer
 Public relations Wholesaler
A promotion strategy that calls for spending a lot on consumer advertising and promotion to
 Building good relations with the company’s various publics by: obtaining favorable publicity, building up a induce final consumers to buy the Producer
product,marketing
creating aactivities
demand vacuum that “pulls” the product
good corporate image, and handling or heading off unfavorable rumors, stories, and events. through the channel.
(consumer advertising, sales promotion, other) PULL Targeted
ends-
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consumers
17 18 Pull: A promotion strategy that nhắm tới người tiêu dùng và thúc đẩy người tiêu dùng
mua hàng

Other Factors

TYPE OF PRODUCT/MARKET PRODUCT LIFE-CYCLE STAGE

PR Pers. S Sales Pr. Ad.

+ Ad
PROMOTIONAL TOOLS
Consumer

+ PR
+ SP
+ PS
Business

= Ad + SP - Ad
= PR - Ad x PR
- SP = SP

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 Advertising Advertising

 Definition  Pros:  Cons:

 Any paid form of nonpersonal presentation and promotion of ideas, goods, or services  Can reach masses of geographically  Impersonal.
dispersed buyers at a low cost per
by an identified sponsor. exposure.  Cannot be directly persuasive.
 Enables to repeat a message many times.  Carry on only one-way
 Say something positive about the seller’s communication with audience.
size, popularity, and success.
 Audience does not pay attention or
 Consumers view products as more respond.
legitimate.
 Dramatize products through the artful use  Costly, require large budgets.
of visuals, print, sound, and color.
 Build up a long-term image for a product
and trigger quick sales.
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Sales Promotion Sales Promotion

 Definition  Types  Consumer promotions  Trade promotions

 Short-term incentives to encourage the  Consumer promotion  Samples  Discount
purchase or sale of a product or a  Coupon  Allowance
 Trade promotion
service.  Cash refund/rebate
 Business promotion  Free goods
 Price pack/cents-off deal  Push money
 Premium
…
 Advertising specialty/promotional
product  Business promotions
 Point-of-purchase  Convention, Trade show
 Contest, sweepstake, game  Sales contest
 Event sponsorship …

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 Sales Promotion Public Relations (PR)

 Pros  Cons  Definition  Major Public Relations Tools:

 News
 Attract consumer attention  Short lived effects  Building good relations with the
 Speeches
company’s various publics by:
 Offer strong incentives to purchase  Not effective in building long-run  Special events: news conferences, grand
brand preference and customer obtaining favorable publicity, building openings,…
 Boost sagging sales up a good corporate image, and
relationships (< ad, pers. selling)  Materials
 Dramatize product offers handling or heading off unfavorable  Written materials: annual reports, brochures,
rumors, stories, and events. company newsletters and magazines.
 Audiovisual materials: slide-and-sound programs,
DVDs, and online videos
 Corporate identity materials: logos, stationery,
brochures, signs, forms, uniforms
 Public service activity
 Website, blog, social networks,…

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Public Relations (PR) Public Relations (PR)

 Pros:  Cons:  Functions:

 More real and believable; dramatize  Lack of control  Press relations or press agency: Creating and placing newsworthy information in the
news media to attract attention to a person, product, or service.
 Reach many prospects avoiding sales &  No standards for effective
ad measurement  Product publicity: Publicizing specific products.
 Public affairs: Building and maintaining national or local community relationships.
 Lobbying: Building and maintaining relationships with legislators and government
officials to influence legislation and regulation.
 Investor relations: Maintaining relationships with shareholders and others in the
financial community.
 Development: Working with donors or members of non-profit organizations to gain
financial or volunteer support.

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 Direct Marketing Direct Marketing

 Definition  Forms of direct marketing  Pros  Cons

 Connecting directly with carefully  Personal selling  Selective reach  Image factors
targeted segments or individual  Direct-mail marketing
 Segmentation  “Do not contact” lists
consumers, often on a one-to-one,  Catalog marketing
interactive basis.  Personalization
 Telephone marketing
 Customer database  Direct-response television (DRTV)
 Timing
marketing: home shoping  Measures of effectiveness: feedback is
 An organized collection of
comprehensive data about individual  Kiosk marketing: vending machine often immediate and always accurate.
customers or prospects, including  New digital direct marketing
geographic, demographic, technologies: mobile phone, podcast,
vodcast, iTV
psychographic, and behavioral data.
 Online marketing
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Personal Selling Personal Selling

 Definition  Salesperson  Pros:  Cons:

 Personal presentations by the firm’s  An individual representing a company  Most effective tool at certain stages of  Expensive (> advertising).
sales force for the purpose of making to customers by performing one or the buying process (preferences,
 Require a longer-term commitment.
sales and building customer more of the following activities: convictions, actions).
relationships. prospecting, communicating, selling,
 Involves personal interaction  can
servicing, information gathering, and observe and make quick adjustments.
relationship building.
 Build a long-term relationship with
customers.

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 Personal Selling Personal Selling

 Sales force management  Selling process

 Analyzing, planning, implementing, and controlling sales force activities.  The steps that salespeople follow when selling

Prospecting
Designing Recruiting Training Compensatin Supervising Evaluating Preapproach Approach
and qualifying
sales and salespeople g salespeople salespeople
force strategy selecting salespeople
and structure salespeople Presentation
Handling
and Closing Follow-up
objections
demonstration

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