CHAPTER 14: Marketing Promotion€¦ · • What is Integrated Marketing Communication? • How do...

© 2009 South Western, a division of Cengage Learning

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CHAPTER 14: Marketing Promotion

Delivering High Impact Messages


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LOOKING AHEAD

• What is promotion?

• What is Integrated Marketing Communication?

• How do you effectively develop a promotional message?

• What are the elements of the promotional mix?

• What are emerging tools in the promotional mix?

• How do you choose an effective promotional mix?


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PROMOTION: INFLUENCING CONSUMER DECISIONS

Promotion – the power to influence consumers

– to remind them, to persuade them, to

inform them.

“ A great ad campaign will make a bad product fail faster. It will get more

people to know it’s bad.”

Bill Bernbach, Marketing Industry Legend

““


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PROMOTION IN CHAOS: DANGER OR OPPORTUNITY?

• Technology has empowered consumers to choose when they interact with media

• Since 2000, DVD sales and rentals have soared 675%

• Time on the Internet has grown 77%

• Videogame playing has increased 20%

• Consumers watching TV are zapping ads with TiVo


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INTEGRATED MARKETING COMMUNICATIONS

• Coordinate promotional messages

• Create a coherent impression in customer’s mind

• Identify key points of contact between product and target market

Consumers combine – or integrate - information from all sources to form a unified impression


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Positioning Statement –articulates how you want your target market to envision your product relative to the competition.

A MEANINGFUL MESSAGE

How your product is different from and better than the competition.


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THE BEST BIG IDEAS

Nike: “Just do it.”

The Energizer Bunny.

Budweiser: “Whassup?!”

Motel 6: “We’ll leave the light on for you.”


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RATIONAL VS EMOTIONAL

Rational: Science: Clinique: “Allergy tested. 100% fragrance free”

Price: WalMart: “Always low prices. Always.”

Engineering: BMW: “The ultimate driving machine”

Emotional: Sex: Carl’s Jr.: Paris Hilton. “That’s hot.”

Security: Allstate: “You’re in good hands.”

Humor: Vonage: “People do stupid things.”


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OWNING A WORD IN THE CONSUMERS MIND

Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Crest

What word comes to mind when you think of each of the following companies?

Neutregena


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Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s Chocolate

Crest


Neutregena


9


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Service

Chocolate

Crest


Neutregena


9


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Home Delivery

Service

Chocolate

Crest


Neutregena


9


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Safety

Home Delivery

Service

Chocolate

Crest


Neutregena


9


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Overnight

Safety

Home Delivery

Service

Chocolate

Crest


Neutregena


9


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Overnight

Safety

Home Delivery

Service

Chocolate

Crest Cavities


Neutregena


9


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Overnight

Safety

Home Delivery

Service

Chocolate

Crest Cavities


Neutregena Healthy


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THE PROMOTIONAL MIX: COMMUNICATING THE BIG

• Advertising

• Sales Promotion

• Direct Marketing

• Personal Selling

• Emerging Tools

These tools can help communicate

the Big Idea to your target

market.


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EMERGING PROMOTIONAL TOOLS: THE LEADING EDGE

• Product Placement

• Advergaming

• Minimovies

• Buzz Marketing

• Sponsorships


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EXPLOSION OF PRODUCT PLACEMENT

Did you see Napoleon Dynamite? This is an interesting example of

reverse product placement.

• Product Placement exploded with E.T and Reese’s Pieces– Risky Business (1983)– You’ve Got Mail (1998)– James Bond


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TOOLS KEEP EMERGING

Ford reinvigorated their less-than-thrilling Focus vehicle by giving it free to 120 hip young employees of celebrities such as Madonna and

Adam Sandler.

The strategy drove nearly 300,000 sales in the first year.


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TRADITIONAL PROMOTIONAL TOOLS

• Advertising

• Sales Promotion

• Public Relations

• Personal Selling


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ADVERTISING

• Television– Broadcast

– Cable

• Newspapers

• Direct Mail

• Radio

• Yellow Pages

• Magazines

• Outdoor

• Internet

Which media effectively

reaches your target

market?


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MEDIA SPENDING

$2 billion was the cost of one 30-second commercial on the last

episode of Friends, setting a record for a non-Super Bowl broadcast


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CONSUMER PROMOTION

• Premiums

• Promotional Products

• Samples

• Coupons

• Rebates

• Displays

designed to stimulate immediate sales.


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TRADE PROMOTION

• Special Deals

• Allowances

• Trade Shows

• Contests

• Sweepstakes

• Special Events

designed to simulate wholesalers and retailers to push specific products.


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PUBLIC RELATIONS (PR)

• The media looks for newsworthy stories

• Smart firms push potential news of their company

• The advantage of PR is that it is usually credible

• The disadvantage is that marketers don’t control media perceptions


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PERSONAL SELLING

• Today selling means building relationships

• Personal selling is best for:

– High-ticket items

– Complex products

– High volume customers

Person-to-Person presentation of products.


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SELLING PROCESS

Prospect and Qualify

Prepare

HandleObjections

CloseSale

Follow-up

Present


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SALESPEOPLE

Missionary Selling – promoting goodwill for a company by providing

information and assistance to customers.

Consultative Selling – involves shifting the focus from products to customers' needs.

Team Selling – a group of specialists from all areas of the business to respond to customer needs.


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THE BEST BIG IDEAS

Nike: “Just do it.”

The Energizer Bunny.

Budweiser: “Whassup?!”

Motel 6: “We’ll leave the light on for you.”


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Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Crest


Neutregena


24


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s Chocolate

Crest


Neutregena


24


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Service

Chocolate

Crest


Neutregena


24


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Home Delivery

Service

Chocolate

Crest


Neutregena


24


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Safety

Home Delivery

Service

Chocolate

Crest


Neutregena


24


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Overnight

Safety

Home Delivery

Service

Chocolate

Crest


Neutregena


24


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Overnight

Safety

Home Delivery

Service

Chocolate

Crest Cavities


Neutregena


24


Federal Express

Volvo

Domino’s Pizza

Nordstrom

Hershey’s

Overnight

Safety

Home Delivery

Service

Chocolate

Crest Cavities


Neutregena Healthy


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CHOOSING THE RIGHT MIX: NOT JUST A SCIENCE

!Product Characteristics

!Product Life Cycle

!Target Audience

!Push vs. Pull

!Competitive Environment

!Budget


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PUSH VS PULL STRATEGIES

Push Strategy – motivating distributors to “push” your products to the final consumers

Pull Strategy – creating demand from your final consumers so that they “pull” your product through the channel.


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LOOKING BACK

• What is promotion? What is the climate of the current promotional environment?

• What is Integrated Marketing Communication?

• How do you effectively develop a promotional message?

• What are the elements of the promotional mix?

• What are emerging tools in the marketing mix?

• How do you choose an effective promotional mix?

CHAPTER 14: Marketing Promotion€¦ · • What is Integrated Marketing Communication? • How do...

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