PROMOTION

and

IMC PLANNING
and

STRATEGY
3.1

The Promotion Plan

A PROMOTION PLAN IS:

Direct Extension of Firms Marketing Plan

A Specification of the Analysis, Strategy, and Tasks of the Promotional Effort Needed to Conceive and Implement an Effective Promotional Effort

SIX MAJOR ELEMENTS OF A PROMOTIONAL PLAN ARE:

Executive Summary and Overview Situation Analysis Objectives Budgeting Strategy Evaluation
3.2

Introduction

Stages in the Promotional Plan

Situation Analysis Objectives Budgeting Strategy Execution Evaluation

3.3

The Promotion Plan (cont)

EXECUTIVE SUMMARY & OVERVIEW

Executive Summary-States Most Important Aspects of the Plan Overview-What is to be Covered in the Plan in General Terms

SITUATION ANAYLSIS

Marketers and Agencies Lay Out Most Important Factors Defining the Situations Facing the Firm, and Include: Demographic Trends Historical Context Industry Analysis Market Characteristics Type of Consumer Geographic Considerations Competition
3.4

The Promotion Plan (cont)

SITUATION ANAYLSIS (cont) Product Characteristics Category Convenience Goods Shopping Goods Specialty Goods Stages in Product Life Cycle Characteristics of the Firm Push vs. Pull Strategy Funds Available Size of Sales Staff Extent of Firms Product Line
3.5

The Promotion Plan (cont)

SITUATION ANALYSIS (cont) Characteristics of the Distribution Intensity of Distribution Intensive Distribution Selective Distribution Exclusive Length of Trade Channel Types of Trade Partners

3.6

A Situation Analysis Needs to Consider the Type of Trade Partners that Will be Promoting The Marketers Brand

3.7

The Promotion Plan (cont)

OBJECTIVES

Lays the Framework for Executions in Promotional Campaign and Identifies Goals of a Marketer in Concrete, Measurable Terms Create & Maintain Image for Brand Increase Customer Awareness & Curiosity about a Brand Change Consumers Beliefs & Attitudes about a Brand Belief Knowledge & Feelings Accumulated about a Brand Attitude is Overall Evaluation of Brand Based on Knowledge/Emotions Influence Purchase Intentions Stimulate Trial Use Convert One-Time Users to Repeat Customers Switch Consumers from Competing Brands Encourage Brand Loyalty Stimulate More Frequent Use Increase Sales
3.8

Creating Awareness and Curiosity is a Common Promotional Objective

The Promotion Plan (cont)

OBJECTIVES KEY TERMINOLOGY
Brand Image Brand Awareness Top-of-the-Mind Awareness Beliefs Attitude Purchase Intent Trial Usage Repeat Purchase Brand Switching Brand Loyalty Increasing the Frequency of Use

3.10

The Promotion Plan (cont)

COMMUNICATIONS vs. SALES OBJECTIVES Increase Awareness of Brand Name to 40% of All Consumers in Western US Create Trial Use by 15% of all Teenagers 13-15 Communicate Superior Brand Performance Features to Target Audience with Series of Advertisements over Next Six Months
CHARACTERISITICS OF WORKABLE PROMOTIONAL OBJECTIVES

Establish Quantitative Benchmark Specify Measurement Methods & Criteria or Success

Specify a Time Frame
3.11

The Promotion Plan (cont)

BUDGETING - METHODS Percentage-of-Sales Approach Unit-of-Sales Approach Share of Market/Share of Voice Funds Available Objective & Task

3.12

The Promotion Plan (cont)

BUDGETING FOR ADVERTISING Marketing Research Message Research Production Costs: Production Companies, Talent, Site Costs Media Costs Agency Commissions/Fees Account Personnel Travel Expenses

3.13

The Promotion Plan (cont)

BUDGETING FOR SALES PROMOTION Coupon Value and Dealer Handling Charges Contest and Sweepstakes Material and Charges Brochures and Collateral Material Trade Shows & Exhibits Trade Channel Partner Meeting & Entertainment Premiums Point-of-Purchase Materials Trade Allowances Trade Incentives Trade Training Programs Refunds/Rebates
3.14

PremiumsLike This One Offered by Jell-OMust be Factored into Budget Planning for Promotion

3.15

The Promotion Plan (cont)

BUDGETING FOR DIRECT MARKETING

Uses a Simple Cost-Based Method Exact Bids Obtained - Printing, Sorting, Bundling & Mailing for Print Campaigns Bids Obtained for Telemarketing, Infomercial or Catalog Selling from External Facilitators

3.16

Budgeting for Direct Marketing Needs to Consider the Cost of Printing and Mailing Materials

3.17

The Promotion Plan (cont)

BUDGETING FOR WEBSITES & BANNER ADS Costs for Web Sites - $30K to $100K Costs for Banner Ads - $10 CPM to $30 CPM

3.18

The Promotion Plan (cont)

BUDGETING FOR PUBLIC RELATIONS

Most Difficult of All Budgets to Set - Most Expensive Public Relation Occurs During Crises Most PR Firms Work on Retainers - Set on an Annual Basis
3.19

The Promotion Plan (cont)

BUDGETING FOR PERSONAL SELLING Recruiting Costs Training Costs Travel Expenses Promotional Material - Samples, Catalogs, Product Brochures Salaries & Benefits Incentive Programs - Bonuses & Rewards
3.20

The Promotion Plan (cont)

STRATEGY

Mechanism by which Something is Done Account Planner Assists in Strategy Works in Advertising Agency & Synthesizes all Relevant Audience Research to Formulate Promotional Strategy

3.21

The Promotional Plan (cont)

EVALUATION

Marketer Determines How Promotional Program has Performed - Factor by Factor Main Basis for Evaluation - Communications and Sales Objectives Set for the Program Measuring the Effectiveness of Promotion & IMC
3.22

Evaluation of the IMC Program Will Include the Effect on Sales of Various Promotional Tools

IMC Management & Planning

STRATEGIC PLANNING OF IMC IS DIFFERENT FROM TRADITIONAL USE OF MULTIPLE PROMOTIONAL TOOLS

IMC Management Planning Requires Comprehensive & Detailed Knowledge Customers Prospects Knowledge about Customer & Prospects IMC Management Plan - Built Around Brand Communications Control of IMC Management & Planning - Centralized Firms Appointing IMC or Marcom Managers
3.24

IMC Management & Planning (cont)

MODEL OF IMC MANAGEMENT & PLANNING IMC Model Considers Complete Process Uses Promotion to Communicate to Target Markets Effectively Deploys Promotional Tools Corporate & Marketing Plans - Understood and Adopted as Part of IMC Plan Databases - Help Identify & Profile Target Markets Promotional Objective - Dictate Mix of Promotional Tools to Pursue for each Target
3.25