basic marketing for use only with perreault/cannon/ mccarthy texts, © 2011 mcgraw-hill companies,...
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BASIC MARKETING
For use only with Perreault/Cannon/ McCarthy texts, © 2011 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin
Chapter 14Promotion – Introduction to Integrated Marketing Communication
At the end of this presentation, you should be able to:
1. Know the advantages and disadvantages of the promotion methods a marketing manager can use in strategy planning.
2. Understand the integrated marketing communications concept and why most firms use a blend of different promotion methods.
3. Understand the importance of promotion objectives.
4. Know how the communication process affects promotion planning.
5. Know how direct-response promotion is helping marketers develop more targeted promotion blends.
At the end of this presentation, you should be able to:
6. Understand how customer-initiated interactive communication is different.
7. Know how typical promotion plans are blended to get an extra push from wholesalers and retailers and help from customers in pulling products through the channel.
8. Understand how promotion blends typically vary over the adoption curve and product life cycle.
9. Understand how to determine how much to spend on promotion efforts.
10. Understand important new terms.
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
Several Promotion Methods Are Available
Mass SellingMass Selling
Personal SellingPersonal Selling
Sales PromotionSales Promotion
Different methods of promotion Advertising Publicity
• Contests• Coupons• Aisle displays• Samples• Trade shows• Point-of-purchase
materials• Banners & streamers• Frequent buyer
programs• Sponsored events
• Contests• Coupons• Aisle displays• Samples• Trade shows• Point-of-purchase
materials• Banners & streamers• Frequent buyer
programs• Sponsored events
Sales Promotion Tries to Spark Immediate Interest (Exhibit 14-2)
• Price deals• Promotion allowances• Sales constests• Calendars & gifts• Trade shows• Meetings• Catalogs• Merchandising aids• Videos
• Price deals• Promotion allowances• Sales constests• Calendars & gifts• Trade shows• Meetings• Catalogs• Merchandising aids• Videos
Aimed at wholesalers or retailers
Aimed at wholesalers or retailers
• Contests & Bonuses• Meetings• Portfolios & Displays• Sales aids • Training materials
• Contests & Bonuses• Meetings• Portfolios & Displays• Sales aids • Training materials
Aimed at company’s own sales force
Aimed at company’s own sales force
Aimed at consumers or users
Aimed at consumers or users
Someone Must Plan, Integrate, and Manage the Promotion Blend
Sales Promotion Managers
Sales Promotion Managers
Advertising Managers
Advertising ManagersSales ManagersSales Managers
Marketing ManagersMarketing Managers
IntegratedMarketing
Communications
Which Method to Use Depends on Promotion Objectives
PersuadingPersuading
InformingInforming
RemindingReminding
Promotion Objectives Relate to the Adoption Process and AIDA Mode (Exhibit 14-3)
Promotion Objectives
Adoption Process
AIDA Model
Informing
Awareness
Interest
Attention
Interest
Persuading
Evaluation
Trial Desire
Reminding
Decision
Confirmation Action
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The Traditional Communication Process (Exhibit 14-4)
NoiseNoise
SourceSource
ReceiverReceiver
EncodingEncoding
Message channel
Message channel
DecodingDecoding
FeedbackFeedback
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 product’s benefits in detail. The choice of the infomercial is related mainly to the _________ element of the communication process.
A. message channelB. encodingC. decodingD. feedback E. noise
Integrated Direct-Response Promotion Is Very Targeted
Target DirectlyWith a DatabaseTarget Directly
With a Database
More Than Direct Mail
More Than Direct Mail
Ethical ConcernsEthical Concerns
A Model of Customer-Initiated Interactive Communication (Exhibit 14-6)
NoiseNoiseSource’s message
Source’s message
Message channel
Message channel
SearchSearch
Select a topic
Select a topic
Receiver (customer)
Receiver (customer)
Checking Your Knowledge
Fido, Inc. is a producer of dog food and is getting ready to introduce a new brand. The firm’s marketing research department learns that a competitor is planning to launch another brand about two weeks after Fido’s launch. Fido’s 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.
Promotion Varies Over the Life Cycle
““This new This new idea is good”idea is good”
““Our brand is Our brand is best”best”
““Our brand is Our brand is better, really”better, really”
““Let’s tell Let’s tell those who those who
still want our still want our product”product”
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 method—budgets 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. PersuadingB. RemindingC. MaximizingD. InformingE. Communicating
Study Question 4
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