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    SM 12

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    Farhan Fayyaz
    The document discusses promotion strategies for luxury brands. It provides details on Louis Vuitton's promotion approach, which includes a 20% increase in advertising spending while allocating only 5% of revenues to advertising. The rest of the document outlines the key components of a promotion strategy, including advertising, sales promotion, public relations, personal selling, direct marketing, and interactive/internet marketing. It also provides frameworks for determining objectives, budgets, and effective measurement of promotion strategies.

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    Attribution Non-Commercial (BY-NC)
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    SM 12

    Uploaded by

    Farhan Fayyaz
    25 views16 pages
    The document discusses promotion strategies for luxury brands. It provides details on Louis Vuitton's promotion approach, which includes a 20% increase in advertising spending while allocating only 5% of revenues to advertising. The rest of the document outlines the key components of a promotion strategy, including advertising, sales promotion, public relations, personal selling, direct marketing, and interactive/internet marketing. It also provides frameworks for determining objectives, budgets, and effective measurement of promotion strategies.

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    The document discusses promotion strategies for luxury brands. It provides details on Louis Vuitton's promotion approach, which includes a 20% increase in advertising spending while allocating only 5% of revenues to advertising. The rest of the document outlines the key components of a promotion strategy, including advertising, sales promotion, public relations, personal selling, direct marketing, and interactive/internet marketing. It also provides frameworks for determining objectives, budgets, and effective measurement of promotion strategies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    25 views16 pages

    SM 12

    Uploaded by

    Farhan Fayyaz
    The document discusses promotion strategies for luxury brands. It provides details on Louis Vuitton's promotion approach, which includes a 20% increase in advertising spending while allocating only 5% of revenues to advertising. The rest of the document outlines the key components of a promotion strategy, including advertising, sales promotion, public relations, personal selling, direct marketing, and interactive/internet marketing. It also provides frameworks for determining objectives, budgets, and effective measurement of promotion strategies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    12

    Promotion,
    Advertising, and
    Sales Promotion
    Strategies
    1
    Louis Vuitton
    the world’s biggest, most profitable luxury brand
    BENCHMARKING VUITTON
    Brand 2003 Sales Percent Operating
    Billions Change* Margin
    Louis Vuitton $3.80 +16% 45.0%
    Prada 1.95 0.0 13.0
    Gucci 1.85 -1.0 27.0
    Hermés 1.57 +7.7 25.4
    Coach 1.20 +34.0 29.9

    Vuitton increased advertising 20% in 2003 spends only


    5% of revenues on advertising about half the industry
    average
    2
    Promotion Strategy is ―

    Initiating and
    maintaining a flow of
    communications
    between a brand and
    its target market
    3
    Composition of Promotion Strategy

    Interactive/Internet
    Marketing
    Direct Advertising
    Marketing

    Promotion
    Components
    Personal Sales
    Selling Promotion

    1. Public
    4
    Relations
    PROMOTION STRATEGY FLOWCHART

    MARKET TARGETING AND POSITIONING


    STRATEGIES
    COMMUNICATION
    OBJECTIVES

    ROLE OF PROMOTION
    COMPONENTS

    Advertising Sales Public Personal Direct Interactive/


    Promotion Relations Selling Marketing Internet
    PROMOTION Marketing
    BUDGET
    Coordination
    PROMOTION COMPONENT with Product,
    STRATEGIES Distribution,
    and Price
    INTEGRATED MARKETING COMMUNICATIONS Strategies

    EVALUATE EFFECTIVENESS OF PROMOTION 5


    STRATEGY
    COMMUNICATION OBJECTIVES CAN BE…..

     Need recognition
     Finding buyers
     Brand building
     Evaluation of alternatives
     Purchase decision
     Retention of customers
    6
    ROLE OF THE PROMOTION COMPONENTS

     Expected contribution for each of the


    promotion components.
     Which communication objective(s) will be
    the responsibility of each component?
     What part of the budget will go to each
    component?

    7
    Factors Guiding the Role of Each
    Component

     Market Target(s)
     Positioning
     Role of Promotion in Positioning
     Product Characteristics
     Stage of Life Cycle
    8
    DETERMINING THE PROMOTION
    BUDGET
    Objective
    and Task

    All You Can


    Budgeting Percent of
    Afford
    Sales
    Approaches

    Follow the
    Competition 9
    ADVERTISING STRATEGY

    Setting Objectives and Budgeting


    Creative Strategy
    Media/Programming Strategy
    Role of the Agency
    Program Implementation and
    Effectiveness
    10
    ADVERTISING
    Target Audience
    STRATEGY
    Advertising FLOW
    Objectives

    Advertising Budget

    Creative Strategy

    Advertising Media and


    Programming Schedules

    Implement and
    Evaluate Strategy 11
    Effectiveness
    Advertising Objectives examples
    Expose communication
    to target audience

    Create awareness

    Change attitude(s)

    Increase Sales

    Generate profits
    12
    MEDIA / SCHEDULING DECISIONS

     Television
     Cable tv
     Radio
     Print newspapers magazines
     Online , Website
     Outdoors
    13
    ADVERTISING STRATEGY IMPLEMENTATION AND
    EFFECTIVENESS

     Decide how to measure effectiveness


    before implementing the strategy.
     Assign responsibility for tracking
    performance.
     Assessing the quality of advertising is
    important.
     Exposure to advertising is not a very
    sensitive measure of effectiveness.
    14
    Rating
    Services
    Test
    Marketing Sales and
    Expense Analysis
    MEASURING
    ADVERTISING
    EFFECTIVENESS

    Controlled Recall
    Tests Tests
    15
    SALES PROMOTION STRATEGY

    SALES PROMOTION consists of short term incentives

    USED JOINTLY WITH ADVERTISING

    Is RARELY a primary strategy

    The strategy process is similar to the design of


    advertising strategy.

    16

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