Chapter 14 MKT Notes

BASIC MARKETING

Chapter 14 Promotion Introduction to Integrated Marketing Communication

McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

VIDEO Ski and golf resort how you can utilize the promotional mixes to be effective: Boyne USA Resorts Success depends on marketing communication programs, they dont have a

product that it on a self if we dont sell that room that day it is gone forever, a golfer is not a skier there are different levels of expectations, create a difference that is the goal of marketing and positioning, have to create awareness

How can they promote each destination resort to increase revenue? Sales and marketing and advertising were separate groups, we determine with the individuals by season and by business, have to use all forms of media

People have a perception of what Boyne is and use it as an umbrella to create an identity of what Boyne is, they target a specific market within their regions

Use marketing research to tell us the age, preferences, how do you talk to a snowboarder vs a skier

Use TV, radio, personal selling, promotions, and special events to advertise, direct customer contact over 50% customers are repeat customers; internet is the most powerful tool that companies can use to advertise

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Marketing Strategy Planning Process 14-3

How do you promote your product or your brand

This is the first of three chapters that discuss issues important for Promotion. The Promotion part of the marketing mix involves telling target customers that the right Product is available at the right Place at the right Price.

Promotion and Marketing Strategy Planning (Exhibit 14-1)

CH 16: Advertising & Sales Promotion

Promotion methods

Managing promotion

Effective communication

Blending promotion

CH 15: Personal Selling and Customer Service

CH 14: Promotion Intro. to Integrated Marketing Communications

14-4

Summary Overview There are many decisions that a marketing manager must make concerning Promotion, and it is an important part of marketing strategy planning. Key Issues Marketing managers usually blend a variety of different promotion methods to achieve promotion objectives because each method has its own strengths and limitations. In this chapter we introduce major promotion options and how to integrate them into an effective whole. The discussion will consist of four main sections: (1) Promotion methods; (2) Managing promotion; (3) Effective communication; (4) Blending promotion.

Integrated Marketing Communications

Integrated

Marketing

Communications

The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer

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IMC Popularity Growth

Proliferation of thousands of media choices

Fragmentation of the mass market

Slash of advertising spending in favor of promotional techniques that generate immediate response


Factors Affecting the Choice of Promotional Mix

Nature of the product

Stage in PLC

Target market characteristics

Type of buying decision

Promotion funds

Push or pull strategy


Nature of the product- promotional product vary from one product to another, if you want to market an engine you dont send them a brochure to get your point across

Exhibit 16.5 Product Life Cycle and the Promotional Mix

Light Advertising; Pre-introduction publicity

Advertising, PR, brand loyalty; personal selling for distribution

Heavy Advertising; PR for awareness; sales promotion for trial

Ads decrease; sales promotion; personal selling; reminder & persuasive

AD/PR decrease; limited sales promotion; personal selling for distribution

Use a lot of advertising to get the product, then go to heavy advertising as it grows even higher get more advertising, as the product matures there is a decrease in advertising just send out persuasive ads, in decline mode more press releases because the product is declining and get sales effort away

Different promotional mixes are utilized

Target Market Characteristics

For u Widely scattered

market

u Informed buyers u Brand-loyal repeat

purchasers

Advertising

Sales Promotion

Less Personal Selling


When the smart car was first announced they went to major cities and gave free rides in the smart car, they knew the target market people were looking for cheap transportation and didnt have to worry about parking; look at the target market and see what is the market we are going after, advertising mixes depends on the target market

Type of Buying Decision

Advertising

Sales promotion Routine

Personal selling

Neither Routine nor Complex

Advertising

Public Relations

Print Advertising Complex


Available Funds

uTrade-offs with funds available uNumber of people in target

market uQuality of communication

needed uRelative costs of promotional

elements


What is the cost to run a TV ad? Can you afford that there is a cost that is associated with that

Exhibit 16.6 Push Strategy versus Pull Strategy


Push strategy- manufacture aggressively sells the product tries to convince the wholeseller and retailer

Pull- manufacture promote the product directly to the user

Use the two strategies push and pull the demand for the product use both of these you will be very successful

The Role of Promotion

Promotional Strategy


A plan for the optimal use of the elements of promotion: u Advertising u Public Relations u Personal Selling u Sales Promotion

1

Promotion perform, persuade, and remind the different ways of promoting this is advertising, public relations, personal selling, sales promotion

The Promotional Mix

Combination of promotion tools used to reach the target market and fulfill the organizations overall goals. Includes:

u Advertising u Public relations u Personal selling u Sales promotion u Social media

Promotional

Mix


The Promotional Mix

Most commonly distributed by traditional media, though increasingly through non-traditional media, such as Web sites, e-mail, blogs, and interactive video, kiosks in malls and supermarkets

Advertising


Advertising Media

Traditional Advertising Media

New Advertising

Media u Television u Radio u Newspapers u Magazines u Books u Direct mail u Billboards u Transit cards

u Internet u Banner ads u Viral marketing u E-mail u Interactive video


Mobility is important in getting people where they are, people are very mobile, advertising is everywhere

Advertising

Advantages Disadvantages

u Reach large number of people

u Low cost per contact

u Can be micro-targeted

u Total cost is high

u National reach is

expensive for small companies


Public Relations

Evaluates public attitudes, identifies areas within the organization that public may be interested in, and executes a program to earn public understanding

Public

Relations


The Function of Public Relations

Maintain a positive image Educate the public about the

companys objectives Introduce new products Support the sales effort Generate favorable publicity


Communication


Communication

the process by which meanings are exchanged or shared through a common set of symbols.

Categories of Communication

Interpersonal Communication

Mass Communication

Marketing Communication


Interpersonal- eye to eye toe to toe Mass- group of people Whichever is appropriate these are ways communicating the message to someone

As Senders As Receivers

Develop messages

Adapt messages Spot new communication opportunities

Inform Persuade Remind

Marketing Communication


Exhibit 16.2 Communication Process


Encoding- converting senders thought Noise- anything that interferes, there will always

be competing things out there that can distort the message

Receiver- decodes the message Take the sender encode the message properly

and the receiver hopefully I agree and gets interest in the product

We are always sending messages

Communication and the Internet

Traditional advertising model: Impersonal Numbers driven Unquantifiable

consumer behavior

Internet and social media advertising: Personal Direct communication Feedback driven Highly visible communication


The AIDA Concept

Attention Interest Desire Action

Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.


The AIDA Concept

Action

Desire

Interest

Attention Cognitive (thinking)

Affective (feeling)

Conative (doing)


Goals and Tasks of Promotion

Informing

Reminding

Persuading

Target Audience

PLC Stages: Introduction early growth

PLC Stages: Growth maturity

PLC Stages:



Increase awareness

Explain how product works

Suggest new uses Build company image

Informative Promotion

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28



29

Encourage brand switching

Change customers perception of product attributes

Influence immediate buying decision

Persuade customers to call

Persuasive Promotion



30

Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

Reminder Promotion

Sales Promotion

Marketing activitiesother than personal selling, advertising, and public relationsthat stimulate consumer buying and dealer effectiveness.

Sales

Promotion


Sales Promotion

End Consumers

Company Employees

Trade Customers

Free samples

Contests

Premiums

Trade Shows

Vacation Giveaways

Coupons


Personal Selling

Planned presentation to one or more prospective buyers for the purpose of making a sale.

Personal

Selling


Personal Selling

Traditional Selling

Relationship Selling

Attempts to persuade the buyer into a specific point of view. Win-lose outcome

Long-term relationships create a win-win outcome


People do business with people that they like.

Social Media


Promotion tools used to facilitate conversations among people online.

Social Media

4

Social Media

u Blogs u Microblogs u Podcasts u Vodcasts u Social

Networks


Allow marketers to: Manage brand images Engage with consumers Generate interest

Checking Your Knowledge Ron Popeil has been a pioneer in the use of direct-response television infomercials. Over the years his infomercials have promoted many products, including the Showtime Rotisserie Barbecue, a food dehydrating machine, and the world-famous Veg-O-Matic. The chief advantage of the infomercial is that it provides plenty of time to describe and demonstrate a products benefits in detail. The choice of the infomercial is related mainly to the _________ element of the communication process. A. message channel B. encoding C. decoding D. feedback E. noise

Checking Your Knowledge Fido, Inc. is a producer of dog food and is getting ready to introduce a new brand. The firms marketing research department learns that a competitor is planning to launch another brand about two weeks after Fidos launch. Fidos marketing department quickly mails a set of dated coupons to several thousand consumers in a purchased database of dog owners, encouraging them to ask for the new Fido brand in their favorite store and to stock up on the new brand using the coupons. This is an example of:

A. pulling. B. noise. C. pushing. D. encoding. E. decoding.

Budget based on percent of past or expected sales most common approach main advantage is ease can lead to major problems, including cutbacks when more

money is needed

Task methodbudgets for what needs to be accomplished usually the sensible approach requires that activities be evaluated against objectives

Same ideas apply in budgeting other types of marketing activities

Setting the Promotion Budget

Which of the following is the main type of "mass selling"? A. Personal selling. B. Publicity. C. Sales promotion. D. Advertising. E. Both B and D.

Study Question 1

A car company sent three automobile magazines some technical information and explanations about the features of its innovative new model. One of the magazines later printed a story about the car. This is an example of: A. personal selling. B. advertising. C. publicity. D. sales promotion. E. None of the above

Study Question 2

Blending the firm's promotion efforts to convey a complete and consistent message is the goal of: A. Sales management communications. B. Sales promotion communications. C. Integrated promotional marketing. D. Integrated marketing communications. E. Integrated sales promotion.

Study Question 3

What basic promotion objective should be emphasized by a producer introducing a really new product which satisfies customer needs better than any existing product? A. Persuading B. Reminding C. Maximizing D. Informing E. Communicating

Study Question 4

What basic promotion objective should be sought by a producer whose Product is very similar to its many competitors' Products? A. Persuading B. Promoting C. Communicating D. Informing E. Reminding

Study Question 5

Chapter 14 MKT Notes

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