Lamb, Hair, McDaniel Chapter 15 Marketing Communications 2014-2015 1© Cengage Learning 2015. All...

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Lamb, Hair, McDaniel Chapter 15 Chapter 15 Marketing Marketing Communicati Communicati ons ons 2014-2015 1 © Cengage Learning 2015. All Rights Reserved.

Transcript of Lamb, Hair, McDaniel Chapter 15 Marketing Communications 2014-2015 1© Cengage Learning 2015. All...

Page 1: Lamb, Hair, McDaniel Chapter 15 Marketing Communications 2014-2015 1© Cengage Learning 2015. All Rights Reserved.

Lamb, Hair, McDaniel

Chapter 15Chapter 15

Marketing Marketing CommunicationsCommunications

2014-2015

1 © Cengage Learning 2015. All Rights Reserved.

Page 2: Lamb, Hair, McDaniel Chapter 15 Marketing Communications 2014-2015 1© Cengage Learning 2015. All Rights Reserved.

• Discuss the role of promotion in the marketing mix

• Describe the communication process • Explain the goal and tasks of promotion • Discuss the elements of the promotional mix• Discuss the AIDA concept and its relationship to

the promotional mix• Discuss the concept of integrated marketing

communications• Describe the factors that affect the promotional

mix

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The Role of PromotionThe Role of Promotion

Promotional StrategyPromotional Strategy

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Exhibit 15.1Exhibit 15.1Role of Promotion in the Marketing MixRole of Promotion in the Marketing Mix

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Goals and Tasks of PromotionGoals and Tasks of Promotion

ConnectingConnecting

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

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Page 6: Lamb, Hair, McDaniel Chapter 15 Marketing Communications 2014-2015 1© Cengage Learning 2015. All Rights Reserved.

Goals of PromotionGoals of Promotion

The ultimate goal of promotion is to create competitive advantage. The tasks are as follows.•Informing: Increase awareness, Explain how product works, Suggest new uses, Build company image•Reminding: Remind customers about its need, Remind customers where to buy product, Maintain customer awareness•Persuading: Encourage brand switching, Change customers’ perceptions of product attributes, Influence immediate buying decision, Persuade customers to call•Connecting: Form relationships through social media, Encourage transparent information exchange, Customers become brand advocates

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Competitive AdvantageCompetitive Advantage

Unique featuresUnique features

Excellent serviceExcellent service

Low pricesLow prices

Rapid deliveryRapid delivery

High product qualityHigh product quality

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Exhibit 15.2Exhibit 15.2Communication ProcessCommunication Process

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Exhibit 15.1Exhibit 15.1Role of Promotion in the Marketing MixRole of Promotion in the Marketing Mix

© 2015 by Cengage Learning Inc. All Rights Reserved.

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AdvertisingAdvertising

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.

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Public RelationsPublic Relations

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

earn public understanding.

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Sales PromotionSales Promotion

Marketing activities—other than personal selling, advertising, and public relations—that

stimulate consumer buying and dealer effectiveness.

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Personal SellingPersonal Selling

Planned presentation to one or more prospective buyers for the

purpose of making a sale.

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Social MediaSocial Media

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Promotion tools used to facilitate conversations among people online.

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Exhibit 15.3Digital Media Types

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Social Media is concentrated here, between owned and earned media, with some (but not much) paid media depending on the strategy.

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Exhibit 15.4Exhibit 15.4Characteristics of the Elements in the Characteristics of the Elements in the Promotional MixPromotional Mix

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The The AIDAAIDA Concept Concept

AttentionInterestDesireAction

AttentionInterestDesireAction

Model that outlines the process for

achieving promotional goals in

terms of stages of consumer

involvement with the message.5

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The AIDA ConceptThe AIDA Concept

Action

Desire

Interest

Attention Cognitive (thinking)

Affective (feeling)

Conative (doing)

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Exhibit 15.5Exhibit 15.5The Promotional Mix and AIDAThe Promotional Mix and AIDA

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Attention Interest Desire Action

Advertising

Public Relations

Sales Promotion

Personal Selling

Social Media

Very Effective Somewhat Effective Not Effective5

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Integrated Marketing Integrated Marketing CommunicationsCommunications

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 GrowthIMC 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.

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Factors Affecting the Choice of Promotional Mix

Nature of the productNature of the product

Stage in PLCStage in PLC

Target market characteristicsTarget market characteristics

Type of buying decisionType of buying decision

Promotion fundsPromotion funds

Push or pull strategyPush or pull strategy

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Exhibit 15.6Exhibit 15.6Product Life Cycle and the Promotional MixProduct Life Cycle and the Promotional Mix

Light Advertising; Pre-introductionpublicity

Advertising, PR, brandloyalty;personal selling fordistribution

Heavy Advertising;PR forawareness;sales promotionfor trial

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

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

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Goals and Tasks of Promotion

3ConnectingConnecting

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity

PLC StagesPLC Stages:All

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Exhibit 15.7Exhibit 15.7Push Strategy versus Pull StrategyPush Strategy versus Pull Strategy

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Page 26: Lamb, Hair, McDaniel Chapter 15 Marketing Communications 2014-2015 1© Cengage Learning 2015. All Rights Reserved.

Ch 15 Discussion Questions

1. What is Promotional Mix? Discuss the Elements of the Promotional Mix.

2. What is Promotional Mix? Explain goals and tasks of promotional mix in marketing.

3. Describe the Communication Process. Why a marketer should study the communication process?

4. Explain the AIDA concept/model and its relationship to the promotional mix.

5. Discuss the Factors Affecting the Choice of Promotional Mix.

6. Explain how the promotion changes at various stages of the Product Life Cycle.