4 advertising, promotion and public relation

8/2/2019 4 Advertising, Promotion and Public Relation

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Ibrahim Sameer

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Introduction Advertising, sales promotion and public relation forms

three elements of the ‘marketing communication mix’.

Communications can be broadly defined as:

“The process of establishing a commonality or oneness

of thought between a sender and a receiver” .

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Introduction (cont…) Two ideas are highlighted:

Communication is a process that has elements and inter-

relationships that can be modelled and examined in a

structured manner.

Oneness of thought must be develop between sender and

receiver for true communication to occur, which implies

that a sharing relationship must exist between them.

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Marketing Communications

Overview

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Sender -Marketing

firmMessage Receiver




Overview (cont…) The sender (source) is a person or group having a

thought to share with some other person or group (thereceiver).

The message is a expression of the sender’s thoughts.

It may take the form of the printed or spoken word, a

magazine advertisement or a television commercial.

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Overview (cont…) More detail Model of the communication process

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Source -Encoding

Message ChannelReceiver -Decoding

Feedback




Overview (cont…) Encoding is the process of putting though into symbolic form of

controlled by the sender.

Decoding is the process of transforming message symbols back intothough by the receiver.

The message is the manifestation of the encoding process and the

instrument used sharing thought with receiver.

The channel is the path through which the message moves from sender

to receiver.

Feedback recognize the two way nature of communications.

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Overview (cont…) In marketing, it is acknowledged that often an

advertising message is not received by customers as

originally intended. Based on market feedback, the

message can be re – examined and corrected.

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Process

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Traditionally promotion has been viewed as the organization’s

link with prospective buyers.

Promotion is now seen as only one element of an organization’s

effort to communicate with customers and to view it simply as

promotion is to take too narrow perspective.

Marketing mix variables, as well as other actions, must be seen aspart of the total message the company conveys to consumers

about its ‘offering’.



The Marketing Communications

Mix Advertising is a viable form of mass communications that is

non– personal and paid for by an identified sponsor.

Personal selling is communication in which a seller attempts to

persuade prospective buyers to purchase the company’s product

or service.

Sales promotion relates to short – term marketing activities that

act as incentives to stimulate quick buyer actions. Eg: discount

coupons, free samples.

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Mix (cont…) These promotional activities (advertising, personal selling and

sales promotion) are variables over which the company has

control.

Publicity is a form of non – personal communication to a large

group of people, but unlike advertising, it is not paid for by the

company.

Publicity is usually in the form of news or editorial comment

about a company’s products or service.

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Mix (cont…) Marketing effectiveness depends on communication. The buyer perception of

the seller is influenced by the amount and type of information provided by the

seller and the buyer’s reaction to that information.

Marketing involves decision making, whereas marketing communication is the

process of implementing marketing decisions. Therefore it requires

enactments of communication process. The company’s message is acombination of product, price, place and promotional stimuli to the

marketplace and communication take place when consumers in the market

interpret these stimuli.

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Defining Marketing

Communications A practical definition define marketing communication as:

“Presenting an integrated set of stimuli to a market target

with the intent of evoking a desired set of responses within

that market target. Setting up channels to receive, interpret

and act on messages from the market to modify currentcompany messages and identify new communications

opportunities” .

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Defining Marketing

Communications (cont…) The above definition recognized that the company is both a sender and

a receiver of market related messages.

As a sender, a firm in a competitive environment must attempt to

persuade consumers to buy the company’s brands to achieve profits.

As a receiver, the company must attune itself to the market to realign

its messages to its market targets, adapt them to changing market

conditions and take advantages of new opportunities.

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Message Source The nature of the source of a message in the communications

process can have a great inf luence on receiver.

Some communications are more persuasive than others, and

how successful they are depends on how credible the audience

perceive them to be.

Some television advertisements attempt to increase the

credibility by using ‘candid’ interviews with householder or

customers.

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Message Source (cont…) One approach is to ask ‘consumers’ to compare their

brand of product with another, both in disguised form.

The ‘consumer’ acts surprised when they learn that the

sponsor’s brand performs better than their regular

brand. In these commercials advertisers areattempting to imply a degree of objectivity to establish

credibility for their message.

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Advertising A feature of advertising is that it is paid for by a sponsor

attempting to convey a message to the recipient.

Advertising can rarely create sales by itself. Whether or not the

customer buys depends on the product, price, packaging,

personal selling, after – sales service, financing and other aspect

of marketing.

Advertising is just one element of communications, that perform

certain part of communicating.

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Advertising (cont…) The amount of communication performed by

advertising varies, depending on the nature of theproduct, frequency of purchase and price.

Where the product is sold through mail – order or

direct mail almost the whole task is achieved by

advertising.

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Advertising (cont…)The contribution of advertising is likely to be greatest when:

1. Buyer awareness of the company’s product is low.

2. Industry sales are rising rather than remaining stable or

declining.

3. The opportunities for product differentiation are strong.4. Discretionary incomes are high.

5. A new product or new service idea is being introduced.

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Sales Promotion Sales promotion is a dynamic and flexible sales tool.

Two related definitions are:

1. The short – term achievement of marketing objectives

by schematic means.

2. Immediate or delayed incentives to purchase,

expressed in cash or kind.

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Sales Promotion (cont…)The main elements of Sales promotion are as follows:

1. Self liquidating offer (low price)

2. On pack offer

3. In pack offer

4. Trading stamp

5. Gift coupons / voucher

6. Premium offer (eg: two for one)

7. Direct mail

8. Packing (eg: pack – flashes)

9. In – store display materials

10. Exhibitions

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Sales Promotion Planning A typical planning sequence of stages of sales promotion is:

1. Analyze the problem / task

2. Define objectives

3. Set the budget4. Examine the type of promotion likely to be used

5. Define support activities (eg: advertising, incentives)

6. Testing (eg limited stores or panel test for short period)

7. How to measure success of the campaign

8. Plan time table

9. Present details of the sales promotion to sales force, retailer etc

10. Implement the promotion

11. Evaluate the results

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Importance of Sales Promotion Advantages:

1. Easily measured response

2. Quick achievement of objectives

3. Flexible application

4. Can be relatively cheap

5. Direct support of sales force

Disadvantages:

1. Price discounting can be cheapen brand image

2. Short term advantages only

3. Retailer might not want to corporate

4. Difficulty in communicating brand image

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Public Relation (PR) The Institute of Public Relation (IPR) defines PR as:

“PR practice is the deliberate, planned and sustained effort to establish

& maintain mutual understanding between an organization and its

public”

Communication is central to PR, whose purpose is to establish a two

way communication to resolve conflicts of interest by seeking common

ground of mutual interest.

A further implication is that PR exists whether an organization want it

or not.

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Public Relation (PR) (cont…) Simply by carrying out day to day operations, an

organization communicates certain messages to those

who interact with the organization & they will form

opinions about the organization & its activities.

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Past Paper Q & ADecember 2009 / Q3

(a) Identify and briefly describe the five elements of the

‘marketing communications mix’. (10 marks)

(b) For a clothing brand, demonstrate how each of the

five elements of the marketing communications mix,that you have identified in (a) above, can be effectively used. Justify your answer. (15 marks)

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Past Paper Q & A (cont…) Answer

(a) The five elements of the marketing mix are: Advertising: this is a paid for communication using a medium such as television, radio

or press.

Sales Promotion: These are communications activities with the purpose of temporarily increasing sales revenue. Sales promotion activities include: activities like buy one getone free, discounts and coupons.

Public Relations: These are communications activities undertaken to in order to build arelationship with an organization's stakeholders (customers, suppliers, general publicetc.). Public relations activities can include press releases, media interviews andcorporate hospitality events.

Direct Marketing: These are activities whereby an organization communicates directly

with their customers, tailoring the communication as closely as possible to the individualcustomer segment. Direct marketing activities can include: direct mail shots and emailmarketing campaigns.

Personal Selling: This is a face to face communication between the organization (salesperson) and the customer with the objective of persuading a customer to make thepurchase decision.

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Past Paper Q & A (cont…) Answer (b)

Advertising: Customers will need to be aware of the clothing brand and recognize the brand in the

retail store. Also, it will be important for an organization to build an image for its clothing brand that

matches the profile of the target market. As building awareness of and image for clothing require visual communication, media such as television and press are best suited. The organization should

choose media that are aimed at the profile of the target market, such as lifestyle magazines.

Public Relations: In order to build awareness, recognition and an image for the clothing brand, the

organization will wish to ensure as much press coverage as possible, and to position its brand as a

fashion brand. Public relations activities can help achieve these objectives by, for example, sendingpress releases and free samples to the appropriate media for the fashion editors to use in their photo

shoots, arranging fashion shows for the press, and even sending free samples to celebrities hoping

they will be photographed wearing them. Sponsorship and celebrity endorsements can also be sought

to help develop a brand image for the clothing brand.

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Past Paper Q & A (cont…) Answer (b) – cont..

Sales Promotion: Sales promotions can be aimed at the customers but also at the staff in the retailers in order to

encourage them to sell more products. Sales incentives such as winning free holidays, or free gifts could be offered to

staff who make the most sales. Sales promotions can also be offered to customers to try and encourage them to

purchase products, such as buy one get one half price; however, the organization must take care not to devalue the

brand, because in fashion, high price is often associated with quality.

Personal Selling: Fashion brands are usually sold via a retailer and therefore the organization is dependent on the

retailer’s staff to sell the product. It is important that the clothing organizations try to ensure that they choose retail

outlets that employ staff with good personal selling skills and also spend time ensuring their staff are as familiar with

the products and comfortable in recommending them to their customers. The organization can also work with retail

outlets to ensure retail sales staff are well trained and incentivised to sell the products with activities such as staff

training and sales promotions as mentioned above.

Direct Marketing: Direct mail activities can also be used to gain awareness and recognition and build an image. The

clothing organization can send customers leaflets and catalogues containing photos of the clothing range. Direct

marketing techniques can also be adopted, such as developing a website to promote the clothing range, enabling

customers to view products online, and email marketing campaigns can be used to inform customers of new range

launches and sales promotional incentives.

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Past Paper Q & A (cont…)December 2008 / Q 8

(a) Using a model of your choice, explain the stages inthe communications process. (15 marks)

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Past Paper Q & A (cont…) Answer

The communications process involves the following stages:

A Sender - is the communicator or person who has a message to send. It is important the sender understands the process of communication

and any barriers to communication when he is planning the message and the medium he will use.

A Message - is the information to be communicated. It is important that the communicator is clear on the communication objectives he

wishes to achieve, e.g. informing a customer about a new product so that he can ensure his message is clear.

A Medium - is the mechanism a sender will use to communicate his message, such as the television or press. The sender needs to understand

the advantages and disadvantages of each medium and ensure that the medium is suitable for the message to be communicated, for example

it is not appropriate to use a 30 second television advertisement to communicate detailed technical information.

An Audience/Receiver - is the receiver of the message and in marketing terms is known as the ‘target audience’. Once the target audience is

identified it is easier to choose an appropriate medium or method of communication and also to produce an appropriate message, e.g. if the

target audience is children then the right television channel and timing of the message can be chosen, e.g. cbeebies children’s channel at 4pm

(not 9pm at night) and the message should be simple and clear enough for them to understand.

Feedback - is an important part of the communication process and one that is often forgotten. It is important for marketers to know if their

message has been received and understood by their target market, or if it has generated the required response, e.g. trial of a new product.

Therefore senders need to consider mechanisms for feedback when developing a message and communication. An example of how this is

done is by sometimes testing the message or advertisement in advance on a sample target audience to measure their response.

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Past Paper Q & A (cont…) June 2008/ Q4

(a) Explain what is meant by “sales promotion” and give three examples of sales promotion

tools. (5 marks)

(b) Outline four advantages and four disadvantages of using sales promotion as a marketing

tool. (8 marks)

(c) Using a product or brand of your choice, describe how a sales promotion campaign could

be developed. Your answer should include:

objectives for your sales promotion

sales promotion tactics

consideration of how you would measure success

implications for other elements of the marketing communications mix. (12 marks)

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Past Paper Q & A (cont…) Answer (a)

Sales promotion is part of the Promotion element of the marketing

mix. It is a promotional tool often used to generate short-term revenue

by offering incentives for customers to purchase, repeat purchase or

purchase larger quantities.

Sales promotion objectives are set in terms of amount of revenue to be

generated, amount of trial of a product, amount of sales units etc.

Examples of sales promotion include: money-off coupons, discounts,

loyalty cards, free samples, in-store demonstrations.

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Past Paper Q & A (cont…) Answer (b) Advantages:

Generation of immediate revenue

Increase in market share, sometimes in the short term, but if customers are happy they may switchproduct in the long term.

Cash flow; as sales promotion generates immediate revenue it is a good tool to use if an organizationhas cash flow problems.

Stock clearance; sales promotion such as discounting can be used to clear old stock, which isparticularly useful for perishable products such as fashion.

Disadvantages:

Any revenue or market share gain may be short term and could be lost when the sales promotionfinishes.

It is easy for competitors to react quickly. Long-term damage may be done to the position of a product or brand as it may be devalued during

the promotion.

Sales promotion does not generate customer loyalty and indeed can encourage customer disloyalty asthey wait for sales promotions before purchasing.

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Past Paper Q & A (cont…) Answer (c)

The example I would like to use is Pampers nappies. Pampers is an established brand in the UK for selling nappies for babiesand toddlers. It also has the highest market share and therefore at first glance it may appear that sales promotion is notnecessary.

However, the objective for Pampers nappies is to retain their market share and therefore customer retention is a priority. Asnappies are a commodity item there is a danger that the product is price elastic and customers will switch to competitive brands

if they are cheaper.

Pampers therefore use sales promotion to encourage customers to continue to purchase their brand.

The main way they do this is to issue money-off tokens to existing customers, which have to be spent within a certain time. Theaim is that customers will wish to “cash in” the token and therefore are likely to repeat purchase.

It should be noted that in order for this sales promotion to be effective it does rely on support from other elements of the

promotional mix such as direct mail as the tokens are often sent by post to customers whose details have been captured throughsources such as loyalty cards.

Pampers nappies will be able to measure the effectiveness of this promotion because each money-off token contains a bar-codeand therefore the organization is able to capture the information to see how many tokens have been used.

Finally, it is worth noting that Pampers do use other forms of sales promotion such as free samples which are distributed viamagazines, baby clinics etc.

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Past Paper Q & A (cont…) June 2008 / Q 5 (c)

Briefly describe the five elements of the marketing

communications mix. (10 marks)

Answer : Refer slide 28

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Q & A

4 advertising, promotion and public relation

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