promotional strategy chapter six: “establishing objectives and budgeting for the promotional...

Promotional Strategy

Chapter Six:

“Establishing Objectives and Budgeting for the Promotional Program”

Objectives We Will Look At…

• Objectives of promotion (all types).

• Promotion mix objectives.

• Objectives in consumer problem solving.– Extended problem solving.– Limited problem solving.

• Objectives in advertising.

Promotional Objectives.

• Define, describe target market.

• Develop a clear message platform.

• Define expected communication results.

• Define expected outcomes in terms of trials and repurchase.

Objectives We Will Look At…

• Objectives of promotion (all types).

• Promotion mix objectives.

• Objectives in consumer problem solving.– Extended problem solving.– Limited problem solving.

• Objectives in advertising.

Promotion Mix Objectives

• Advertising: communicate by building awareness, understanding and interest and to motivate trial and repurchase.

• Personal selling: to provide needed information and a catalyst to closing the sale through face-to-face communication and negotiation.

• Sales promotion: to provide a trigger for buying action at the point of sale.

• Reseller support (trade promotion): to provide displays, personal selling where needed, special incentives, and other forms of point-of-sale support.

Promotion Mix Objectives

Consumer

Wholesaler

Retailer

Manufacturer

Manufacturer provides resellerSupport to wholesaler

Consumer

Wholesaler

Retailer

Manufacturer

Wholesaler provides resellerSupport to retailer

Consumer

Wholesaler

Retailer

Manufacturer

Manufacturer provides resellersupport to retailer

• Public relations and publicity: to build public support and acceptance, generally through nonpaid media.

Promotion Mix Objectives

Controversy:

Are we selling or are we communicating?

Controversy:

Are we selling or are we communicating?

The answer is: “Yes.”

Objectives We Will Look At…

• Objectives of promotion (all types).

• Promotion mix objectives.

• Objectives in consumer problem solving.– Extended problem solving.– Limited problem solving.

• Objectives in advertising.

Objectives in Extended Problem Solving:

1) Brand name awareness.

2) Knowledge of benefits.

3) Liking, interest, preference.

4) Intention to buy.

5) Purchase.

• Communication

• Changed behavior

Objectives in Limited Problem Solving:

1) Brand and benefit awareness.

2) Trial.

3) Evaluation.

Objectives We Will Look At…

• Objectives of promotion (all types).

• Promotion mix objectives.

• Objectives in consumer problem solving.– Extended problem solving.– Limited problem solving.

• Objectives in advertising.

Advertising Objectives.

• Institutional or image advertising: promotes organizational images, ideas, or political issues. Used to create or maintain an organizational or family brand image.

Advertising Objectives (continued).

• Advocacy: Promotes a company’s position on a public issue.

Advertising Objectives (continued).

• Product advertising: Promotes uses, features, benefits of product.

Advertising Objectives (continued).

• Pioneer advertising: tries to stimulate demand for a product category rather than a specific brand.

Advertising Objectives (continued).

• Competitive advertising: Tries to stimulate demand for a specific brand. Directly or indirectly compares with competing brands.

Advertising Objectives (continued).

Comparative advertising: Compares product characteristics of two or more specific brands.

Advertising Objectives (continued).

• Reminder advertising: Reminds customers of brands’s uses, characteristics, and benefits.

Advertising Objectives (continued).

• Reinforcement advertising: Assures users that their choice of brands is correct; tells them how to get most satisfaction from brand.

Budgeting decisions

• Judgmental.• Arbitrary• Percentage-of-sales.• All-you-can-afford.

• Data-oriented.• Competitive parity.• Objective-and-task.• Experiment and

testing.• Modeling and

simulations.

Probably a Combination is Best.

• Isolate objectives.• Determine expenditures.• Compare against industry.• Compare against projected future sales.• Reconcile against industry standards.• Plan payout.• Modify to conform to company policies.• Determine when expenditures will be made.• Plan contingencies.

End of program.