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    Unit 8 -The Promotional Programme

    Lecture # 8

    March 8, 2012

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    LEARNING OBJECTIVES

    At the end of this unit students should be able to:

    1. Outline the initial steps in developing effectivecommunication

    2. Explain the major promotional tools

    3. Describe the major decisions in advertising

    4. Outline the major public relations tools and decisions

    5. Explain the role and nature of personal selling

    6. Discuss the issues involved in managing the sales force7. Apply the principles of personal selling process

    8. Outline the steps in the selling process

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    THE PROMOTIONAL PROGRAMME

    Advertising

    Adapted from a Guest Presentation from

    Manager - Sales & Marketing

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    Class Objectives for Today

    Describe the major decisions in advertising.

    Outline the major public relations tools anddecisions.

    Discuss competitor analysis.

    Discuss the concept of competitiveintelligence.

    Explain the fundamentals of competitivestrategies based on competitive position in themarket.

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    THE MOTOR SALES STORY

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    The Major Decisions in Advertising

    Setting the Advertising Objectives.

    Setting the Advertising Budget

    Developing Advertising Strategy

    Creating the Advertising Message

    Selecting Advertising Media

    Evaluating Advertising Effectiveness and Return onAdvertising Investment

    International Advertising Decisions

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    The Major Decisions in Advertising

    Setting the Advertising Objectives

    Motor Sales establish its objectives based on their:

    a. position in the market place

    b. target market

    c. positioning strategy

    d. marketing mix product, price, place and promotion

    All of which define the job that advertising must do inMitsubishis total marketing program.

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    The Major Decisions in Advertising

    Setting the Advertising Objectives

    Motor Sales overall objective is to showcase the

    brand.

    To build brand awareness about the various types ofvehicles in the Mitsubishi line.

    These objectives are defined with the customers beingthe main focus while building relationships andcommunicating customer value.

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    The Major Decisions in Advertising

    Setting the Advertising Objectives

    Motor Sales establishes different types of advertising

    objectives based on the companys primary purpose.

    The primary purpose is based on whether the aim is toinform, persuade or remind.

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    The Major Decisions in Advertising

    Informative Advertising

    Motor Sales uses the inspiration + informationapproach II Strategy.

    Inspiration comes through using the performing arts:music, drama, dance, song etc.Latest Ad includesRichie Stephens

    The information comes through popular activitiesmixed with music to inspire using prominententertainment personalities.

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    The Major Decisions in Advertising

    Informative Advertising

    One of our major advertising strategy/medium is tohave launches as a means of informing our customers;showcase the brand and explain the vehicles in asocial setting.

    At these launch parties: the press is invited, selectedconsumers and customers.

    Website is another source of informing the customers.

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    The Major Decisions in Advertising

    Persuasive Advertising

    Mitsubishi is a hard sell brand despite having a nameand so many efforts are placed into persuasiveadvertising.

    The purpose of the persuasive advertising is to changecustomers perceptions of the brand.

    Customers perceive that Toyota is the best brand and sothe aim is to break down that perception using the factsfrom a local and international perspective.

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    The Major Decisions in Advertising

    Persuasive Advertising Mitsubishis major competitors are:

    a. Toyota

    b. Suzuki

    c. Hondad. Nissan

    The current market position is as follows:

    1. Toyota Jamaica

    2. Suzuki

    3. Mitsubishi

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    The Major Decisions in Advertising

    Persuasive Advertising Reasons for market share

    1. Toyota Jamaica Fleet Business

    1. Suzuki Large government and business marketsJDF, Jamaica Constabulary Force, cheapest SUV inthe market: 2.5 million

    1. Mitsubishi used to be # 5 in the market but positionhas moved to # 3 and will be # 2 by the end of 2008.

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    The Major Decisions in Advertising

    Persuasive Advertising

    Persuasive advertising has helped Motor Sales to shift

    its position in the market. How?

    The World is saying that Mitsubishi is the best. In realityMitsubishi is better.

    Pajero is a better seller than a Prado. Motor Sales has been able to change consumers

    perceptions by substantiating this argument with the

    truth of the matter.

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    The Major Decisions in Advertising

    Reminder Advertising

    This form of advertising is used for Motor Sales matureand established products such as the Lancer and theGallant.

    It helps to maintain customer relationships and keepconsumers thinking about the brand and the variety ofMitsubishi motor vehicles.

    It is also used to move consumers to immediate actionstay with the brand: We are the champions of theWorld

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    The Major Decisions in Advertising

    Setting the Advertising Budget

    This refers to the dollars and other resources allocatedto Motor Sales advertising programme.

    Setting the budget is a challenging task as it involvesconvincing senior executives to approve the funds foradvertising.

    Advertising is a heavy cost because of Motor Salesniche market strategies and advertising strategies andobjectives.

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    The Major Decisions in Advertising

    Developing Advertising Strategy

    This refers to the strategy by which Motor Salesaccomplishes its advertising objectives.

    It consists of two major elements:

    a. Creative advertising:

    Motor Sales employs the creative minds of itsyouthful marketing and sales staff who are veryinnovative and abreast of current happenings in the

    market place. This process is facilitated and guided by an energetic

    and vibrant marketing manager.

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    The Major Decisions in Advertising

    Developing Advertising Strategyb. Selective advertising media

    Motor Sales does not uses advertising agencies. Instead the

    company uses strategies that integrate creative ideas with

    media placement.

    Eliminating advertising agencies has many costadvantages.

    Motor Sales directs its advertising efforts through theyouthful perspective of its youth staff.

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    The Major Decisions in Advertising

    Developing Advertising Strategy

    b. Selective advertising media This function is carried out by the marketing department.

    Motor Sales believes it has the expertise and thecompetency among its staff to develop the ads for mediaplacement.

    Motor Sales provides staff development training andbuilds its human capital so that they are more inclined tobe innovative and take risks.

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    The Major Decisions in Advertising

    Developing Advertising Strategy

    b. Selective advertising media

    The major advertising media used are:

    TV TVJ, CVM, All Cable TV

    Print Gleaner, Observer, Herald

    Magazines Ocean Style, Buzz Magazine, BusinessSuite, Jamaica Business

    Billboards electronic

    Websites/internet

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    The Major Decisions in Advertising

    Developing Advertising Message

    The first step is to plan a message strategy.

    The messages are conceptualised by the marketingmanager and his marketing team.

    The messages are designed to upsetopponents/rivals/competitors.

    Messages are used to play games with the competitors.

    The messages are designed with a subtle mockerytone but employing tact and diplomacy.

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    The Major Decisions in Advertising

    Developing Advertising Message Examples of mockery messages:

    Prado - is a shoes.

    Suzuki and Hondawhen I hear these names, I thinkof bikes, I did not know that they sell motor

    vehicles/SUVs/Cars, trucks and pick-ups

    HondaHas never left the showroom prior to Motor

    Sales mass guerilla marketing

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    The Major Decisions in Advertising

    Developing Advertising Message

    These common responses and messages have causedthe competitors to come out of their comfort zone.

    A creative concept is also utilized in designingadvertising messages. The creative concept is thecompelling big that will bring the advertising messagestrategy to life in a distinctive and memorable way thus

    Motor Sales new advtg. Slogan

    We are the Champions of the World and new billboard

    Welcome to Mitsubishi Country

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    The Major Decisions in Advertising

    Selecting Advertising Media

    The major steps in advertising media selection are:

    1. Deciding on reach, frequency and impact2. Choosing among major media vehicles

    3. Deciding on media timing

    4. Demographics of media listenership, viewership and

    readership5. Customer surveys which informs and determines which

    advtg. media works best.

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    The Major Decisions in Advertising

    International Advertising Decisions

    Motor Sales will NOT use international or standardizedadvertising without taking into consideration theJamaican/local context.

    This decision is based on the following factors:

    Lifestyle Culture Consumer taste and purchase pattern Consumer behaviour perceptions, attitudes and

    beliefs

    Target market demographics Language Advertising restrictions, laws and regulations Economic conditions

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    The Major Decisions in Advertising

    Evaluating Media Effectiveness

    The following methods are used to measure impact,

    efficiency and effectiveness of advertising media tomeasure return on advertising investment:

    Customer surveys

    One-to-One discussions

    Observation and feedback

    Sales report/data

    Sales Force feedback

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    PUBLIC RELATIONSCOMPETITOR ANALYSIS

    Part 2

    P bli R l i

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    Public Relations

    Public Relationsis the vehicle that Motor Sales uses toget to the bottom of things to make customers happy.One unhappy customer can turn away many sales.

    Public Relations is extremely important to changeperception, and influence what the next purchase will be.

    Public relations has been used to make the brand live

    Ian Lyn individuals has been the face of the Mitsubishibrand, owing to his high level of charisma, wit and

    humour.

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    Public Relations

    Public Relationshas been used to dispel unfavourablerumours and negative perceptions: -

    Mitsubishi has bad transmissions or their vehicles have

    transmission problems

    This perception was changed by informing the public through

    press releases,

    one-to-one conversations and

    word of mouth publicity.

    Mitsubishi is a world class firm which has invested in frontline engineering. The perception was changed by providingfacts, evidence and data to the public.

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    Public Relations

    MitsubishihasCVT Transmissionwhich allowsvehicles to change gears without the punch and manyconsumers were not used to this type of gear changing.

    Mitsubishi manufactures engines, and other mechanicaldevices that has durability and has live up to standardsand expectations.

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    Public Relations

    Motor Sales marketing manager has responsibility for

    public relations. Some of the public relations functionsare:

    Press relations creating and placing newsworthyinformation in the news media to attract attention to the

    brand. Motor Sales has established strong partnershipswith the media.

    Product Publicity publicizing special products at

    trade shows, auto shows, banking halls/ bank shows,gas stations etc. Selected churches are given 10% offthe list price of vehicles and this is also financed throughselected banks.

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    Public Relations

    Public Affairs Mitsubishi community events in AllmanTown etc..

    Lobbying Building and maintaining relations withlegislators, governing bodies and regulatory agencies such asthe Automobile Dealers Association (ADA) and governmentofficials to influence legislation and regulation.

    Investor Relations maintaining relations with shareholdersand establish partnerships in in the financial community with

    entities such as NCB and Scotia Bank.

    Recently, Motor Sales received the NCB award andrecognition for highest new vehicle sales to individual

    consumers.

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    Public Relations

    Corporate image major sponsor to JamaicaAgricultural Society (JAS) / Denbigh 2008 AgriculturalShow:

    Motor Sales donated a new Mitsubishi Sportero, a pick-

    up valued at 3.5 million.

    Development Public relations with nonprofitorganizations to give financial support:

    1. Upliftment Jamaica, a non governmental organization(NGO) in St. Thomas

    1. Richie Stephens Foundation.

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    Competitor Analysis

    Analysis of competitors and market is obtained throughdata from the Automobile Dealers Association (ADA).

    Sales data is shared among industry representatives.

    Motor Sales is also unique in that it is has a marketinganalyst on board who provides market intelligence dataand identify competitive advertising strategies to boost

    sales.

    C i A l i

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    Competitor Analysis

    Sources of competitors information/intelligenceincludes:

    Customers

    Publications

    Marketing Analyst

    Sales force

    Sales report

    Field research data Trade shows

    Automobile trade shows

    Internet

    C i A l i

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    Competitor Analysis

    Competitive Strategies includes:

    Always trying to beat the competition

    Consistent training of staff to add value-added service.

    Keep prices very competitive.

    Providing value for money by giving customers morespecifications, accessories and features in the vehiclesand charge less.

    Protect market share constantly marketing new ideas:

    Mitsubishi has the best vehicles Champions in automobiles

    Only Winners drive a Mitsubishi

    C i A l i

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    Competitor Analysis

    Mitsubishi has the best vehicles Champions inautomobiles and Only Winners drive aMitsubishi.