Importance of Promotion Decisions, Marketing Management Video Lecture | Marketing Management - B Com

now introducing the one the only
never-before-seen video on promotion
yes lazy Almaty we're going to take a
look at promotion and that's to give you
a little taste of what you can expect
today so we're going to identify the
promotional goal status so this is the
first part of promotion as far as this
unit goes so please make sure you get
out your notes your pen your paper
follow the storm philosophy and sit back
and enjoy so today we are going to talk
about the importance of promotion what
is so important about those ads you see
on TV we're going to look at the
promotional process and this will be a
recurring theme that we revisit
throughout this part of the unit we're
then going to look at the goals of
promotion there are five we're going to
look at each in detail so let's put this
into context you're watching TV a
commercial appears on screen it's catchy
it's interesting it's creative what is
so important about that commercial or
let's say you're driving down the
highway and you drive by a billboard
again you're driving by it so quickly is
there any importance to that billboard
or you walk into your local Costco let's
say and there's all sorts of free
samples around you are they just giving
that food away for free are they not
losing some money on that what is so
important about that well this is all
about promotion and promotion tries to
influence consumer decisions they try to
influence what retail store you'll visit
they try to influence what product you
will purchase promotion tries to
influence you in terms of identifying
what product is on sale and try to
influence your purchase decision
promotion does not replace a solid
product it does not replace a solid
marketing campaign you need to make sure
you have a solid product and marketing
campaign and promotion will support it
but it does not replace it and
oftentimes too often many companies will
get into the proverbial
pot of hot water where they have a
fantastic promotion and they influence
all sorts of consumers to buy their
product but the product is just not that
good so what is so important about
promotion why do so many companies spend
all sorts of money on
advertising on sales promotions on
public relations well it comes down to
the various situations of the product
are they're identical brands are they're
very similar brands and therefore the
only way to set yourself apart is
through your promotional techniques is
your brand mass marketed if it is this
is a great way to appeal to those masses
through promotion can your brand or
product can be easily described if it
can that's something you can do through
your promotion and therefore influence
more people to buy your product is it
low-priced
if it's low price then there's probably
more competitive in that market and
therefore you can explain the low prices
you can explain what's so much better
but yours versus something else luxury
products they don't really need to
promote it their products nearly as much
because they have that element of
prestige of quality and therefore they
don't need to promote it is it a new
product you have to get your product out
there how else to do that but to spread
the word through promotion and is the
market competitive again if there's
identical brands if its mass marketed if
it's low priced right there's probably a
lot of competition and this is a great
way promotion is a great way to set
yourself apart so there are five
elements to promotional process and
before we get into the promotional goals
we need to understand the process this
promotion starts with the intent what
are you trying to achieve through
promotion then you move on to the
message which is what are you trying to
convey to the consumer then we look at
the media how are you going to convey it
then we look at the reception how well
do your consumers receive the message
and then your action about getting the
consumer to purchase that product going
to that next level so today we're going
to focus on the intent in your marketing
objectives or goals these goals are one
of five either awareness and positioning
brand trial brand preference brand
reminder or repositioning and all this
has to do with your intent what are your
goals of your promotion so one of your
goals might be brand awareness or
positioning this is about informing your
market
what's the brand's name where is it
available when is it available what
features and benefits ie utility
does your brand have and what does it
look like so we often see introducing or
presenting or now better than ever these
are terms that are used to describe this
brand awareness and positioning and
oftentimes through brand awareness of
positioning promotion will see repeated
details about the brand and we try to
repeat them as often as possible trying
to drill it into the consumers mind part
of this as well as to deliver the
positioning message and if you can't
remember the positioning product
positioning please look back in your
notes but the positioning message to the
consumer and so oftentimes we'll see
truly Canadian or the only Canadian
brand and this is a way to appeal to the
consumer really try and get them to
understand the positioning of the
product another goal could be the brand
trial goal which is trying to get
consumers to just try the product the
belief here is that you feel you have
such a quality product that if the
consumers just try it they will probably
like it and then they will probably buy
your product so what we see with brand
trial are the editions of coupons trying
to influence consumers to purchase the
product through the use of coupons or
we'll see free samples and so that's
something that is synonymous with
walking into a store like Costco where
you see free samples or any other
grocery store or a trial period so
download this software and you'll have
the free trial period for 30 days
refunds and rebates if you try it and
don't like it we'll refund you in full
and test drives and this is something we
see all the time with cars come into the
dealership try the car and who knows you
might buy it another goal of promotion
is brand preference trying to convince
your consumer that your product is
better than your competitors and this is
where we're looking at the value
equation this is where you really want
to draw in the positives what's so good
about your product however if you're
going to state this if you're going to
state yours is number one or yours is
the best or yours is the coolest or
whatever you use as far as an adjective
goes you need to be able to support it
and so oftentimes we see statistical
data to support this now chosen by not
ten dentists or recommended by nine out
of ten doctors right this is support and
this will help the brand preference goal
we often see this with celebrity
endorsements as well because if a
celebrity such as Beyonce is using
L'Oreal more consumers are likely to use
those kind of products if Mike Holmes is
guaranteeing the product you are more
comfortable in buying that product or
Brad Pitt is connecting with your
emotional heartstrings there's a chance
you'll go and buy that product because
Brad Pitt has told you so next is brand
reminder do you remember the brand's you
use as a child some brands have become
obsolete and we recognize this with the
product life cycle but some brands are
still around and these brands need to
remind consumers that they are still
available so they'll mention the
traditional and historic elements of the
brand try tested and true right or got
milk try to remind consumers that their
product is still available that it still
has all these benefits to it and that
they should still buy it and lastly is
brand repositioning so again many
products get to the end of their product
lifecycle and become extinct some
products however recognize that they are
still wanted in the marketplace and
maybe it just takes a slight change to
the promotional aspects or elements and
reposition the products is more no hip
or cool Old Spice for example did this
very effectively right they reposition
their product and all of a sudden their
dollars are pouring in so when trends
change when new technology emerges when
markets transform marketers have to
reposition the products make it more
appealing to the new age of consumer so
this brings us to the end of the video
what is your favorite advertisement on
TV right now why do you like it how
about celebrity endorsements how do
these effectively sell products do you
buy into them do you think that they
really do sell products so think about
these questions make sure you've
summarized your notes make sure you've
added your own discussion questions and
be prepared to discuss tomorrow so
that's it that's all that's everything
we'll see you tomorrow