Welcome to the segment promotion marketing. In this segment we will learn what is promotion? Again at a very fundamental level. We'll talk about cross country promotion issues. Cross industry promotion issues. And promotion helping other marketing mix elements. So, let's get started. Okay, so what is promotion, anyway? There are many different ways to think about promotion. But at the core, promotion is about communication. And there is a very famous model attributed to called the 5W model. It's called the 5W model, because we have all these words that start with the letter W. Who, which talks about who the sponsor is, who the brand is? What is the message? To whom, who is the target? So in that sense it's about STP which we learned up in marketing strategy. Which, which talks about the medium that is used. There are many to choose from, of course, so like TV, radio, magazines or newspapers, and lastly, what effect. What are the results from our overall promotion campaign? We can also think of promotion in terms of all the different weapons. So in that sense, it's like the marketing mix. Because I compare the marketing mix to the four different branches of the military, the airforce, the navy, the marines [INAUDIBLE] and,I'm missing a branch. So promotion can be like that too because not everything is advertising warfare. Sometimes you have to get in the trenches and that could be what personal selling is like. Many things have to be done with sales promotion, especially if you want immediate impact. And last but not least, if you want a third party to endorse your product that is often done through public relations, often shortened as PR. So it's knowing about the proper mixing of these different mixed elements. Okay, so going from Country A1 to Country A2, what does this imply? Well we could think of the five Ws, again who says what t o whom? Through which media? With what effect? And likewise in country A2, we have to ask whether the who, the what, the to whom, which medium, and what effect are equivalent. We can also ask about whether the promotion mixing that we used in A1. Let's say that we concentrated heavily on advertising, not so much on PR, can hold true in country A2. There maybe because we are lesser known brand. Instead of advertising, maybe a third party voice has to endorse our brand much stronger than was true in Country A1. So again, the mixing may be different. Okay, so as for an example of testing the equivalence between countries, let's say A and B, sorry [LAUGH]. Who I think we talked about before in terms of branding, they're not always using the same brands so in the U.S. Mars used Snickers in the U.K. they used marathon for a long time. So the sponsor may be different. What may be different if you have emphasized individual benefits in a country a like the U.S., in other regions, other countries such as those in Asia that are more collective, maybe group benefits have to be emphasized much more. If you've targeted children such as with things like toys and cereals, maybe in the US that's okay, but in many regions like in the EU, by law that's prohibited, and thereby you're limited to maybe targeting the buyers of these products such as the parents. In the US maybe you concentrated much more on TV, but in emerging countries they were leapfrogging technologies. So much so that maybe a lot of young consumers especially, or reachable, or accessible through the internet or a smartphone. And lastly in terms of effect whereas in the US or in the EU as an established brand, you're more concerned about market share, and emerging markets where you're just starting out. Maybe you should be more concerned about just getting your name known. Just getting a brand in that consideration set. So the key performance index here, more relevant one, maybe awareness share. Okay. So, in terms of cross industry implications. We know these words like Cross Promotion, Cross Media, and more and more Trans Media that talk about how media were promotion across industries can be combined. So in terms of cross promotion, a simple example may be as a food manufacturer, as a food brand, you may offer a coupon for a different category on your packaging, such as orange juice selling bacon because they are very complementary. And here is a very, okay so this is cross industry, and here is one of my favorite trans media examples of storytelling. And it pertains to Lego. And as we all know, Lego is known as a block toy. But more and more they are conducting a Trans Media Storytelling campaign. They created Legol and. So we have Disneyland in the US, if you go to Denmark you have Legoland, so everything is made with Lego, even the rides, so again it creates this more fun-like atmosphere of the brand, and if that wasn't enough, t hey launched a movie where they talked about the origins of Lego so you connected to that brand at a much more emotional, much more historical level. And lastly they created the Lego song which was popular everywhere. What I'm getting at here as we can see is that through this kind of integrated, and that is the key word here, integrated story telling. They create a face for the brand. So you are trying to create a face. So in a face you have a nose, you have a mouth, you have two ears, and through this transmedia storytelling, you can integrate the kind of face that you want to convey to your market. A face that only anyone, whether your a child or a parent, can love. Okay, so how does promotion help other marketing mix elements? Well, POD can be created through a tangible part of the product but as for the intangible part of the product, that can aided by of course promotions, especially advertising. By creating this very unique brand image. And related to that brand equity relies on how you promote, how you maintain the loyalty of your key consumers. Key consumers such as the gold. That I have often talked about. So to them I think they deserve special privileges, special brand promotions. That will increase the equity of the brand. As for promotion, helping pricing, promotion, especially advertising, costs a lot money. So, depending on how you promote, whether it's advertising or PR, that can make a lot of difference in terms of how much wiggle room you have. So, too much advertising can limit your wiggle room. But doing it with something else like especially PR, which a lot of people consider to be free, can increase your wiggle room. Of course sales promotion acts as a de facto price decrease. So if it is used very effectively given its a variable cost nature that can be very effective in terms of helping your pricing strategy. Lastly in terms of promtion helping place advertising, especially through the brand, can help to pull people into your store. So it increases the trading area. And also, in-store advertising can help consumers to focus in. Not only key sections within the store, key departments, but also key brands. So, summing up, the core of promotion is communication, and I summarize that as being the five W's. So, we always have to think in terms of the five W's. We also talked about the promotion mix. So it's not just advertising we're talking about. You have other elements within the promotion mix that you often have to use. From a cross country stand point, we need to test the equivalence of the five W's. And lastly from a cross industry stand point we've learned that how promotion can help to create this integrated brand story. And I used Lego to explain that.
