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Promotion : Introduction to Advertising and PR

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Bushra Burge

on 12 May 2013

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Transcript of Promotion : Introduction to Advertising and PR

Direct Marketing Marketing Mix

Promotional Mix

Advertising
Public Relations
Sales Promotion
Personal Selling Advertising Above the line Below the line Through the line Personal Selling Sales Promotion Public Relations “Personal presentation by the firms sales force for the purpose of making sales and building customer relationships”
... By retail sales staffs / company sales personnel
- Sales presentations
- Trade shows Involves face to face dialogue.
Gives flexibility of message.
Immediate feedback gained.
Very useful in business to business markets.
Very useful when products and services are complex.
Expensive, 1 contact can easily be £250 Example Shopper Complaints in the UK

Ignorant
unfriendly staff
Queuing up to pay
Poor customer service
High or rising prices
Poor choice of products
Staff standing around chatting
Too “pushy” sales people
Lack of personal service
Products out of stock Personal Selling: Strengths & Weaknesses Strengths
Targeted Message Information, Demonstration, Negotiation
Interactivity, Build Trust
Fast, Direct Feedback
Build Relationships with Customers
Can try to solve customer’s problems Weaknesses
High Cost (cost per contact)
Risk of Inconsistent Message
Hard to control
Reach & Frequency Sales Promotion Activities Introduction of new products - by encouraging trial
Attract new customers - by encouraging trial
Maintain competitiveness - by providing discounts or special pricing Reduce seasonality - by encouraging consumption out of season
Increase the amount people use your product, as opposed to competition
Encourage customers to stock up on a “mature product” Sales Promotion Activities The Institute of Sales Promotion defines sales promotion as 'a range of tactical marketing techniques, designed within a strategic marketing framework, to add value to a product or service, in order to achieve a specific sales and marketing objective.'

These activities are used as a means to accelerate sales. Sales Promotion Activities Sampling: one of the most effective methods

Try before you buy
Free merchandise samples (expensive)
Perfume samples in magazines
Test driving a car
Customer loyalty bonus schemes
Twin packs
Bulk buying
Discounts
Cash rebates
Prize draws
Point of sales displays Types of Point of Purchase (POP)
Window Displays
Floor and wall racks to display merchandise
Posters & Information Cards
Counter and check-out displays
Supermarket trolleys with video screen
Electronic overhead signs
In-store videos
Product dispensers
Indirect messages (aroma systems – fresh bread) Public Relations "...is the planned and sustained effort to establish and maintain good will and mutual understanding between an organisation and its publics."
( Jackson and Shaw)

To establish & to maintain a favourable image through a pre-planned, long-range program. Usually alongside other communications.

To Communicate with publics : consumers, suppliers, shareholders, trade customers, employees, union, government, pressure groups, local community, etc., fashion editors and journalists, - talks
- fashion shows
- sponsorship
- press releases ..leading to editorials
- charity partnerships
- store cards
- press shows
- news conferences
- celebrity endorsement
- product placement
http://www.peopletree.co.uk/content/79/people-tree--emma-watson-in-bangladesh Public Relations Advertising vs Sales Promotion Advertising is an almost universal tool.

Can be used to gain your customers' attention, attract customers' interest, create desire for your product and service and then prompt them to buy.

Message must be clear, suitable and effective.
Must be carefully planned and seen frequently. Fashion Advertising
‘Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor’(Kotler 2005)

‘ Advertising …attempts to inform and persuade a large number of people with a single communication.’ (Kenneth 1971)

‘Advertising presents the most persuasive possible selling message to the right prospects for the product or service at the lowest possible cost’ The Institute of Practitioners in Advertising Types of Media

Broadcast - TV & Radio
Print - Newspapers & Magazines
Outdoor - Billboards & Transit
New – CD-ROM, Internet, Digital TV etc
In-Store - POS & packaging
Other - Cinema, product placement, exhibitions, etc Types of Media

Short Term / Tactical
High Frequency, short time period (‘blitz’) aimed at building footfall and short term sales
e.g. Harvey Nichols - seasonal Sale

Long Term / Strategic
Lower Frequency, longer time period (‘slow burn’) aimed at building. Brand proposition
e.g. Make-up ads in Marie Claire Television

PROS
High Impact (color, sounds, motion)
High Reach achievable over short time
Cost Efficient (CPM)
Mass market with audience flexibility
Visual and audio capabilities
Short lead time

Cons
Lacks impact/audio dimension only
Difficult to get audience attention
Low prestige
Short exposure

PROS
Wide reach
High Coverage
Low Costs
Very Flexible
Short Lead Times
Good communication of detailed messages
Immediacy
Short term tactical opportunities CONS
Short lifespan
Ads get little exposure
Lower reach and frequency than television
Variable reproduction
Passive
Limited production quality (use of colour)

PROS
Flexible targetting opportunities
Image association
High quality environment/ reproduction
Long shelf life/ pass on readerships
Strong media/ reader relationships
Specific and specialized target audience
Low relative cost
Benefits from magazines credibility CONS
Slower frequency build up
Expensive to achieve high coverage
Long lead times
Limited flexibility
Limited control of location in magazine PROS
High reach & frequency
Low relative costs
Good coverage as a support medium
Location based
National, regional and local coverage possible
Increasing levels of site innovation
Big, bold, dominant media. Allows for clear branding messages CONS
Poor image (but improving)
Long production time
Difficult to measure
Message Limitation as only short exposure time
Cannot segment audience

Tries to be as controlled a message as possible. It delivers messages to large numbers of people at low cost per ‘contact’. It is a fast method of communicating with many people at the same time.

Advertising decisions are methodical
Objectives setting – communication objectives
Budget decisions – affordable approach
Advertising strategy – message decision and media decision
Campaign evaluation – communication or sales impact

Telling the market about a new product
Suggesting new uses for a product
Informing the market of a price change
Explaining how the products works
Describing available services
Correcting false impressions
Building a company image
Building brand preference
Encouraging switching to your brand
Changing customer perceptions of product attributes
Persuading customers to purchase now
Persuading customers to receive a sales call Reminder advertising Reminding that the product maybe needed in the near future
Reminding customers where to buy the product
Keeping the product in customers’ minds during off-seasons
Maintaining top-of-mind product awareness Media Selection advertising Reach, Frequency and Media Impact
- % of target market over what period of time you want to impact
- frequency no of times your target audience will see the advert/

Reach x Frequency = Gross ratings point

Type of Media
- as above

Best Media Vehicle
- Which slot to place the advert eg during on or around fashion shows.

Media Timing
- Fashion products can be seasonal or pre product launch to generate interest. BUDGET EXAMPLE - NEW PRODUCT LAUNCH TASK/EVENT
Photographer £ 1,000.00
Photography extras £ 800.00
Models x 2 x 2 days £ 1,800.00
Slide copies x 50 sets £ 500.00
Folder x 1000 £ 800.00
Brochure design £ 450.00
Brochure print x 500 £ 850.00
Invite design £ 250.00
Invite print x 500 £ 180.00
Venue hire x 1 day £ 2,000.00
Catering x 1 day £ 1,200.00
Models x 6 x 1 day £ 5,000.00
Press samples £ 5,500.00
Equipment hire x 1 day£ 990.00
Staff costs pre launch £ 1,280.00
Staff costs at launch £ 1,600.00
EXAMPLE ONLY - NOT TRUE COSTS
Staff costs to follow up £ 2,560.00
TOTAL COSTS HOURS/STAFF COSTS
Preparation
4 weeks @ 8 hrs per day2 staff
£20 per hour£ 1,280.00
Includes planning, bookings, coordinating photoshoot, design and print, writing 2 x press releases
Event2 days @ 10 hrs per day2 staff
£40 per hour (more senior staff)£ 1,600.00
Includes coordinating caterers, models, venue and guests
Follow up8 weeks @ 8hrs per day2 staff£20 per hour £ 2,560.00
Includes running showroom appointments, writing 2 x press releases, send out press packs & samples Advertorial
http://trendland.com/paul-smith-for-evian-interview/# Advertorial "advertorial" = "advertisement" and "editorial.“

An advertorial is an advertisement written in the form of an objective opinion editorial, and presented in a printed publication —usually designed to look like a legitimately and independent news story.

A major difference between regular editorial and advertorial is that clients usually have content approval of advertorials.

Advertorials commonly advertise new products. Editorials Editorials are created by the magazine. Advertising tends to look cleaner, using simple lighting to really show off the clothing or make up. Editorial sells more of the mood and the situation the clothing would be worn in. Editorial Editorial is placed on merit (it’s newsworthy).
Editorial has high credibility.
Editorial is free.
Editorial is the key PR medium Consumers swamped by ads, and often skip over them.
Consumers confuse one ad with another.
Consumers are skeptical about ads.
Adverts have low credibility Celebrity Endorsement
http://www.brandrepublic.com.arts.idm.oclc.org/news/1156980/asos-shows-off-ellie-goulding-azelia-banks-global-christmas-campaign/ Asos is (29 October) launching its global Christmas campaign featuring singer Ellie Goulding and rapper Azelia Banks, in "shoppable films" that show off the brand's Christmas products.

The campaign features three videos that show Ellie Goulding, Azelia Banks and model Charlotte Free performing in separate executions that each allows consumers to use an interactive TV mechanic and switch channels to explore different outfits.

Fiona Marshall, head of womenswear marketing, Asos, said: "As a digital brand, ASOS videos are a key part of the engaging customer experience, and Future Collective – who are efficient, creative and flexible – have been an integral partner as an extension of our in-house team, in helping us to deliver shareable, shoppable content for #BestNightEver over the Christmas peak trading period." Charity Partnerships
http://www.arcadiagroup.co.uk/fashionfootprint/our-communities/charities-community Charity Partnerships Each year Arcadia Group donates garments to charities. In 2010-11, almost 60,000 garments were donated to charities such as Traid, Barnardo’s, BDF Newlife and the Salvation Army. Our employees also donate via our Workplace Giving scheme. With around 2,800 employees involved, this year they donated over £200,000.

FASHION FOOTPRINT CHARITY – TENDER HEART, INDIA
Tender Heart is a community of teachers and volunteers who provide care for children with special needs and offer vocational training and skills to local women and children. Arcadia has been working closely with the school since 2009 to provide for its needs and to draw up a long-term plan for the school’s ongoing success.

BHS supports NSPCC and Breast Cancer Care.
Burton supports British Armed Forces.
Dorothy Perkins supports Breast Cancer Care.
Evans supports Breakthrough Breast Cancer (BBC) and Dress for Success.
Miss Selfridge supports The Lavender Trust
Outfit selects one charity partner each year and over 2010-11 raised an outstanding £170,000 for the Rainbow Trust.
Topman supports Teenage Cancer Trust.
Topshop supports Age UK.
Wallis supports Great Ormond Street Hospital Direct Marketing "Defined as any form of direct communication with a customer, aimed at creating a direct response that leads to long-term reslationship". (Jackson & Shaw)

e.g. Direct mail - printed or e-mail or telephone.

Targeted mail is very effective only if the customer data has been captured and stored and used accurately. More control of the message than advertising.

As more brands seek to monetise their customer data by sharing it with commercial partners they will need to gain consumers’ trust, and make sure the benefits are clear to all the parties involved. Direct Marketing http://www.ecircle.com/uploads/tx_csrportfolio/ecircle-case-karen-millen-en.pdf Database segmentation allows better targeting.
Example : Karen Millen worked with e-marketing company.
2 campaigns to collect customer data and then they were able to segment its database based on people who subscribed to the newsletter at the point of purchase and people who signed up as a result of a competition, and send them targeted personalised content. It identifified people who were most responsive to discounting and a group was set up to target this section of the database with further offer-based emails. Direct Marketing
http://www.marketingweek.co.uk/trends/dm-expectations-in-need-of-management/4004018.article CONS
Costs (Absolute cost & Production costs)
High Waste (Empty Chair Syndrome)
Clutter (High level of repetition necessary)
Increasing level of fragmentation
Long lead times (Production)
Not easy to target selected audiences Pros
Good for frequency.
Good targetting possible
Short leadtimes allows tactical/ promotional usage
Excellent platform for creativity.
An audience involving media
Low costs (absolute, relative and production)
Flexible (open to promotion tie-ins etc.) RADIO Newspaper Consumer Magazines Outdoor billboards Informative advertising Advertising communication Persuasive advertising

Complementary disciplines

E.g. Advertising creates brand values, works over long term to create awareness and positive feelings.
Sales Promotion delivers a call to action, short term to persuade people to behave in a particular way, and create sales.
Sales promotion offers buyers additional value, an inducement to generate immediate sale / purchase Ability to deliver a personal message

Ability to reach a large audience

Level of interaction

Credibility given by target audience Advertising Sales Promotion Public Relation Personal Selling Direct Marketing LOW LOW LOW HIGH HIGH HIGH MEDIUM MEDIUM LOW MEDIUM LOW LOW LOW HIGH HIGH LOW MEDIUM HIGH MEDIUM MEDIUM Characterisics of Comms Integrated Approach Direct Marketing Fastest growth area of marketing because new channels :

Online, mobile, CDs, DVDs, USBs.

However there has also been growth in telesales and unsolicited emails as well, and there is legislation to protect privacy of consumers.

UK
- illegal to call individuals registered with the Telephone Preferred Service and FPS
- also a Mail Preferred Service (voluntary)
- E-mail opt in/ opt out systems PROMOTION http://www.simplyzesty.com/advertising-and-marketing/the-top-50-campaigns-of-2012-so-far/#
http://fashion.telegraph.co.uk/galleries/TMG9314530/Fashion-ad-campaign-round-up-autumnwinter-2012.html
http://www.thevine.com.au/fashion/collections/fall-winter-2012-13-fashion-advertising-campaigns/ Word of Mouth Viral.....difficult to control but can initiate with seeding techniques.

Create a buzz/ conversation via Guerilla techniques.

Highly powerful and has been embraced by the web to its full extent.... even making or breaking civil unrest.

Every big retailer now has a consumer review option for its product. Limitations of advertising The nature of the message determines whether it succeeds or not.
Consumers are more skeptical and sophisticated.
Consumers cannot be easily manipulated.
Selective response by consumers.
Because it is mass information it cannot be personal.
Less interactive.
The message may not easily be understood Public Relations Press Packs - specific info for that season for that launch
Look books - key styles and looks
Prshots - downloadable print quality files
News Releases - press releases for one-off events
Sample collection - sent out for reviews and editorials
Press Days - one or two seasons ahead
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