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 중앙대학교 경영 대학 2 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 중앙대학교 경영 대학 3 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 중앙대학교 경영 대학 4 What is the role of promotion? The Role of Promotion 중앙대학교 경영 대학 5 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 중앙대학교 경영 대학 6 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 중앙대학교 경영 대학 7 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 중앙대학교 경영 대학 8 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 중앙대학교 경영 대학 9 The following is an example of the public relations of Chung-Ang University. Magnitude of Advertising United States: United States: $294 billion $294 billion ($1,000 per person) ($1,000 per person) Global: Global: $360 billion $360 billion Example 1. Marketing Communications Mix-Advertising 중앙대학교 경영 대학 10 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 [...]... decide what to say (content), and how to say it (structure and format) Design Message : Message Structure and Format 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,... it (message structure or format) Design Message: Message Content and Structure Message content is an appeal or theme that will produce the desired response RATIONAL APPEALS EMOTIONAL APPEALS MORAL APPEALS 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 It attempts to stir... It is directed to the audience’s sense of what is “right” and “proper.” 14 중앙대학교 경영 3 Developing Effective Communications The following ad appeals to which types of “appeals?” How would the rational ad for this product talk about? Example Design Message : Message Content 15 중앙대학교 경영 3 Developing Effective Communications The following two ads appeal to which types of “appeals?” Example Design Message... process and its elements are described below The Elements of Communication Process Model 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 . promotion. McDaniel/ Lamb/ Hair, 2011, 2013 중앙대학교 경영 대학 3 What is Competitive Advantage? ” Competitive Advantage Strategic Competitive Advantage – It is the set of unique features of a company and. 11. Promotional Planning for Competitive Advantage IMC — The concept under which a company carefully integrates and coordinates. 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