Chapter 16Promotional Planning

PromotionCOMMUNICATION

that informs, persuades and reminds potential customers of a product in order to influence their opinion or elicit a response

Overall Marketing Objectives

Overall Marketing Objectives

Marketing Mix• Product• Place• Promotion• Price

Marketing Mix• Product• Place• Promotion• Price

Target MarketTarget Market

Promotional Mix

• Advertising• Public Relations• Sales Promotion• Personal Selling

Promotion Plan

Promotional Mix

• Advertising• Public Relations• Sales Promotion• Personal Selling

Promotion Plan

The Role of Promotionin the Marketing Mix

The Elements of PromotionAdvertisingInformative or

persuasive message carried by a non-personal medium.

The Elements of PromotionPersonal selling:Person-to-person

interaction with buyer or seller.

Purpose: to persuade buyer to accept a point of view

The Elements of PromotionPublicity:Message about a

product not paid for by a sponsor.

Public Relations:Activities involved in

actively seeking publicity.

The Elements of PromotionSales Promotion:Promotional activities

intended to stimulate buyer purchases or dealer effectiveness.

CommunicationCommunication The process by

which we exchange or share meanings through a common set of symbols.

Categories of CommunicationCategories of

Communication

InterpersonalCommunicationInterpersonal

CommunicationMass

CommunicationMass

Communication

Marketing Communication

NoiseNoise

SenderSender EncodingMessageEncodingMessage

FeedbackChannel

FeedbackChannel

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver

The Communication Process

The Impact of Blogging

CorporateBlogs

CorporateBlogs

Sponsored by a company or one of its brands and maintained by one or more of the company’semployees.

Sponsored by a company or one of its brands and maintained by one or more of the company’semployees.

NoncorporateBlogs

NoncorporateBlogs

Independent and not associated with the marketing efforts of anyparticular company or brand.

Independent and not associated with the marketing efforts of anyparticular company or brand.

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

Goals and Tasks of Promotion

Goals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity

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

The AIDA Concept

15

The AIDA Concept

Action

Desire

Interest

Attention Cognitive (thinking)

Affective (feeling)

Conative (doing)

Online

Nature of the productNature of the product

Stage in PLCStage in PLC

Target market factorsTarget market factors

Type of buying decisionType of buying decision

Promotion fundsPromotion funds

Push or pull strategyPush or pull strategy

Factors Affecting the Choice of Promotional Mix

Light Advertising; pre-introductionpublicity

Heavy use of Advertising;PR forawareness;sales promotionfor trial

AD/PRdecrease;limited sales promotion; personal selling fordistribution

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

Advertising, PR, brandloyalty;personal selling fordistribution

IntroductionIntroduction GrowthGrowth

MaturityMaturityDeclineDecline

Sale

s (

$)

Sale

s (

$)

TimeTime

Advertising

Sales PromotionRoutineRoutine

Personal Selling

Neither Routinenor Complex

Neither Routinenor Complex

Advertising

Public Relations

Print AdvertisingComplexComplex

Trade-offs with funds available

Number of people in target market

Quality of communication needed

Relative costs of promotional elements

Available Funds

Push and Pull Strategies

Manufacturerpromotes to wholesaler

Manufacturerpromotes to wholesaler

Wholesaler promotes to

retailer

Wholesaler promotes to

retailer

Retailer promotes toconsumer

Retailer promotes toconsumer

Consumerbuys from

retailer

Consumerbuys from

retailer

PUSH STRATEGY

Orders to manufacturer

Manufacturerpromotes to

consumer

Manufacturerpromotes to

consumer

Consumer demands product

from retailer

Consumer demands product

from retailer

Retailer demands product

from wholesaler

Retailer demands product

from wholesaler

Wholesaler demands

product frommanufacturer

Wholesaler demands

product frommanufacturer

Orders to manufacturer

PULL STRATEGY

IntegratedMarketing

Communications

IntegratedMarketing

Communications

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

Integrated Marketing Communications