principles of marketing lecture-32. summary of lecture-31

Principles of Marketing

Lecture-32

Summaryof

Lecture-31

Place….Distribution Channel….Marketing Channel

Right Product

Right Cost

Right Place

Right Condition

Right Time

Compete on value (not just price.)

Save customers time and energy.

Make shopping fun.

Today’s Topics

Marketing Communications

Simple Marketing Simple Marketing SystemSystem

Producer/Seller Consumer

Communication

Product/Service

Money

Feedback

Promotion and Its Goals

Builds Relationships

Persuades

Informs

Reminds

RemindingReminding

InformingInforming PersuadingPersuading

BasicPromotionObjectives

BasicPromotionObjectives

Why is it so Hard to Get A Consumer’s

Attention?

Sensory overload (too many stimuli but limited info. processing ability)

Lack of consumer interest or motivation to process stimuli

Perceptual defense

The Marketing Communications

Mix

AdvertisingAdvertising

Personal SellingPersonal Selling

Any Paid Form of Non-personal Presentation by an Identified Sponsor.

Any Paid Form of Non-personal Presentation by an Identified Sponsor.

Sales Promotion Short-term Incentives to Encourage Sales.

Public RelationsBuilding Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity.

Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response.

Personal Presentations by a Firm’s Sales Force.

Integrated Marketing

Communications

The concept under which a Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Products.

AdvertisingAdvertising

Personal Selling

Personal Selling

Public RelationsPublic

Relations

Sales Promotion

Sales Promotion

DirectMarketing

DirectMarketing

PackagingPackaging

EventMarketing

EventMarketing

Message

The Communication Process

Source Encoding Message

ChannelDecodingReceiver

Feedback Noise

Encoding The Message

–Words–Sounds–Colors–Space–Themes–Symbols–Pictures–Numbers–Gestures–Movement

The Message

–Words–Sounds–Colors–Space–Themes–Symbols–Pictures–Numbers–Gestures–Movement

Channel or Medium

DECODING

OBJECTIVE

ENCODING = DECODING

SourceSource EncodingEncoding MessageChannel

MessageChannel DecodingDecoding ReceiverReceiver

FeedbackFeedback

Noise

Marketing Communications

Objectives

Increase Market Penetration

Develop Repeat Purchase Behavior

Establish Customer Relationships

Increase Rate of Consumption

Encourage Product Trial

Stimulate Impulse Buying

Stimulate Demand

Differentiate the Product

Establish a Product Image

Influence Sales Volume

Establish, Modify, or Reinforce Attitudes

Stimulate Interest

Establish Understanding

Build Support & Acceptance

Steps in Developing Effective

Communication

Step 1. Identifying the Target AudienceStep 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives (Buyer Readiness Stages)

Step 2. Determining the Communication Objectives (Buyer Readiness Stages)

PurchasePurchase

Conviction

Preference

Liking

Knowledge

Awareness

Step 3. Designing a MessageStep 3. Designing a Message

AttentionAttention InterestInterest DesireDesire

Message ContentRational Appeals

Emotional AppealsMoral Appeals Message Structure

Draw ConclusionsArgument TypeArgument Order

Message FormatHeadline, Copy, Color,

Words, & Sounds,Body Language

ActionAction

Nonpersonal CommunicationChannels

Step 4. Choosing MediaStep 4. Choosing Media

Personal CommunicationChannels

Step 5. Selecting the Message SourceStep 5. Selecting the Message Source

Step 6. Collecting FeedbackStep 6. Collecting Feedback

Setting the Total Promotion Budget

Percentage-of-SalesMethod

Affordable Method

Competitive-Parity

Method

Objective-and-TaskMethod

AIDA ModelAttention

Interest

Desire

Action

Promotion

Marketing activities used to communicate positive, persuasive info about an organization, its products and its activities to a target audience

Purpose: to directly or indirectly create sales, influence consumers.

Setting the Promotion Mix

AdvertisingReaches Many Buyers, Expressive

Impersonal

AdvertisingReaches Many Buyers, Expressive

Impersonal

Personal SellingPersonal Interaction, Builds Relationships

Costly

Personal SellingPersonal Interaction, Builds Relationships

Costly

Sales PromotionProvides Strong Incentives to Buy

Short-Lived

Sales PromotionProvides Strong Incentives to Buy

Short-Lived

Public RelationsBelievable, Effective, EconomicalUnderused by Many Companies

Public RelationsBelievable, Effective, EconomicalUnderused by Many Companies

Direct MarketingNonpublic, Immediate, Customized,

Interactive

Direct MarketingNonpublic, Immediate, Customized,

Interactive

AdvertisingA paid form of non-personal

communication about an organization and/or its

products to a target audience through a mass medium.

Personal selling

The direct presentation of a product to a prospective

customer by a representative of the selling organization.

Sales promotion

Demand-stimulating activity designed to supplement advertising and facilitate

personal selling.

Public relationsA planned communication effort by an organization to contribute to generally favorable attitudes

and opinions toward an organization and its products.

Direct Marketing

Direct connections with carefully targeted individual consumers

to obtain an immediate response and cultivate lasting

customer relationship

Relative Importance of

Promotion Tools

Consumer Goods

–Advertising

–Sales promotion

–Personal selling

–Publicity

Business Goods

–Personal selling

–Sales promotion

–Advertising

–Publicity

Changing Face of Marketing

Communications

Marketers Have ShiftedAway From Mass

MarketingLess Broadcasting

Marketers Have ShiftedAway From Mass

MarketingLess Broadcasting

New Marketing Communications RealitiesNew Marketing Communications Realities

Improvements in Information Technology

Has Led to Segmented MarketingMore Narrowcasting

Improvements in Information Technology

Has Led to Segmented MarketingMore Narrowcasting

Enough for today. . .

Summary

Promotion and Its Goals

Builds Relationships

Persuades

Informs

Reminds

The Marketing Communications

Mix

AdvertisingAdvertising

Personal SellingPersonal Selling

Any Paid Form of Non-personal Presentation by an Identified Sponsor.

Any Paid Form of Non-personal Presentation by an Identified Sponsor.

Sales Promotion Short-term Incentives to Encourage Sales.

Public RelationsBuilding Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity.

Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response.

Personal Presentations by a Firm’s Sales Force.

The Communication Process

SourceSource EncodingEncoding MessageChannel

MessageChannel DecodingDecoding ReceiverReceiver

FeedbackFeedback

Noise

Steps in Developing Effective

Communication

AIDA ModelAttention

Interest

Desire

Action

Next….

Advertising

Principles of Marketing

Lecture-32