Transcript nielsen NetRatings

Using Integrated
Marketing Communications
to Promote Products
Chapter 16
Chapter 16 Learning Goals
1. What are the goals of promotional
strategy?
2. What is the promotional mix, and what
are its elements?
3. What are the types of advertising?
4. What are the advertising media, and
how are they selected?
5. What is the selling process?
Chapter 16 Learning Goals (cont’d.)
6. What are the goals of sales promotion,
and what are several types of sales
promotion?
7. How does public relations fit into the
promotional mix?
8. What factors affect the promotional mix?
9. What are three important trends in
promotion?
Learning Goal 1
• What are the goals of promotional strategy?
– Promotional strategy is designed to inform, persuade,
or remind target audiences about a company’s
products
– Goals of promotion
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Create awareness
Get people to try products
Provide information
Keep loyal customers
Increase use of a product
Identify potential customers
Promotion:
the attempt by marketers to
inform, persuade, or remind
consumers and industrial users
to engage in the exchange
process
Goals of Promotion
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Create awareness
Get consumers to try products
Provide information
Keep loyal customers
Increase amount and frequency of
use
• Identify target customers
Keeping Loyal Customers
Some companies establish customer
loyalty through social identity.
Social identity: aspects of self-definition
that derive from membership in social
groups
Example: “It’s a Jeep thing. You wouldn’t
understand.” This slogan implies Jeep
owners are an elite group with common
qualities.
Learning Goal 2
• What is the promotional mix, and what are its
elements?
– Promotional mix is the combination of the following to promote a
product
• Advertising
– Paid form of nonpersonal promotion by an identified sponsor
• Personal selling
– Face-to-face presentation with a prospective buyer
• Sales promotion
– Marketing activities that stimulate consumers to buy
• Public relations
– Marketing function that links policies of the organization with public interest
– Develops programs designed to earn public understanding and acceptance
Components of Promotional Mix
1. Advertising
2. Personal selling (face-to-face)
3. Sales promotion
includes coupons, free samples,
demonstrations
4. Public relations
Discussion Question
How could Compaq use each component
of the promotional mix to introduce a
new computer to the market?
Advertising - educate consumers
Personal selling - persuade retailers to
stock the new computer
Sales promotion - in-store
demonstrations, rebates
Public relations - issue a press release
about the new product
Learning Goal 3
• What are the types of advertising?
– Institutional advertising
• Creates a positive picture of a company
– Advocacy advertising
• Takes a stand on controversial social or economic issues
– Product advertising
• Features a specific good or service
– Comparative advertising
• Company’s product is compared with competing, named
products
– Reminder advertising
• Used to keep a brand name in the public’s mind
1. Advertising
Advertising:
any paid form of nonpersonal
promotion by an identified
sponsor
1. Advertising
Types of Advertising:
1. Product advertising
– promotes a specific good or service
2. Institutional advertising
– promotes a company’s image
• Advertising businesses received approx. $34
billion in 1997, about 45% more than in 1988
($19 billion) (Source: US Census, www.census.gov)
Learning Goal 4
• What are the advertising media, and how are they
selected?
– Main types of advertising media
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Newspapers
Magazines
Radio
Television
Outdoor
Direct mail
– Two main factors in selecting media
• Cost of medium
• Audience reached by medium
1. Advertising
Advertising Media
Types of media:
newspaper, magazine, radio, television,
outdoor advertising, direct mail,
Internet
Factors influencing choice of media:
– cost
– audience reached
1. Advertising
Advertising Regulation
Some types of complaints made against
advertisers by consumers and competitors:
• unsupported claims regarding the popularity
and performance of goods and services
• unfair comparisons to competitors’ goods and
services
• exaggerated, unrealistic visual depiction of
products
• overstatements that need qualification
• broad claims based on one testimonial
Source: The Better Business Bureau, www.bbb.org
2. Personal selling
Personal Selling:
a face-to-face presentation to a
prospective buyer
Learning Goal 5
• What is the selling process?
– Prospecting and qualifying
– Approaching customers
– Presenting and demonstrating the product
– Handling objections
– Closing the sale
– Following up on the sale
2. Personal selling
Steps of the Selling Process
1. Prospecting and qualifying
2. Approaching customers
3. Presenting and demonstrating
4. Handling objections
5. Closing the sale
6. Following up the sale
2. Personal selling
Enhancing Personal Sales
When salespersons do favors for potential
clients, the clients may feel obligated to
reciprocate by buying the product.
Reciprocity is the social norm that positive
behavior should be re-payed in kind.
Example: salespersons may pay for lunch, give
free samples, go out of their way to do small
favors
Learning Goal 6
• What are the goals of sales promotion, and
what are several types of sales promotion?
– Goal of sales promotion: Immediate purchase
– Most popular types of sales promotions
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Coupons
Samples and premiums
Contests and sweepstakes
Trade shows
Conventions
Point-of-purchase displays
3. Sales promotion
Sales Promotion:
marketing activities that
stimulate consumer buying,
including coupons and samples,
displays, shows and exhibitions,
demonstrations, and other
types of selling efforts
3. Sales promotion
Promotional Goals Depend
on Type of Customer
Type of customer
1. loyal to your
brand
2. competitor’s
customer
3. brand switchers
4. price buyers
Promotional goal
 reinforce behavior,
increase consumption
 break loyalty, switch to
your brand
 buy your brand more
often
 appeal with low prices or
add value for same price
3. Sales promotion
Promotional Products Can Be Used To:
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Motivate sales teams
Draw customers to a store or event
Publicize an event
Increase brand awareness
Raise funds
Use as souvenirs and thank-yous
Gain attention for new products
Source: Alpha Promotional Products, www.logomall.com/about/APP3.htm
Learning Goal 7
• How does public relations fit into the
promotional mix?
– Public relations
• Mostly concerned with getting good publicity
for companies
– Public relations departments
• Furnish company speakers for business and
civic clubs
• Write speeches for corporate officers
• Encourage employees to take active roles in
civic groups
4. Public relations
Public Relations:
the linking of organizational
goals with key aspects of the
public interest and the
development of programs
designed to earn public
understanding and acceptance
4. Public relations
Public Relations Activities:
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Press relations
Product publicity
Corporate communication
Public affairs
Lobbying
Employee & investor relations
Crisis management
4. Public relations
Discussion Question
If you were public relations director for Nike, how
could you have responded to the negative
publicity of exploiting overseas labor?
Press relations - release information about how
Nike addressed the problem; release positive
information about Nike
Corporate communication & Employee/investor
relations - restore confidence among Nike
employees and shareholders
Crisis management - minimize damage; take
positive steps to control the problem
Learning Goal 8
• What factors affect the promotional
mix?
– Nature of the product
– Market characteristics
– Available funds
– Whether a push or a pull strategy is
emphasized
Factors That Affect the Promotional Mix:
• Nature of the product
• Market characteristics
• Available funds
• Push and pull strategies
Using a Pull Strategy
Sometimes a pull strategy can be used by
increasing demand for a product
through scarcity.
Scarcity principle: products seem more
valuable when their availability is limited
Example: The scarcity of Ty’s Beanie
Babies© increased their appeal among
consumers.
Learning Goal 9
• What are three important trends in
promotion?
– Integrated marketing communications (IMC)
• Produces a consistent, unified message that is customer
focused
– Growth of Web advertising
• Traditional advertising techniques don’t work well on the
Internet
• Advertisers must use rational branding
– Digital VCRs may make the measurement of
television audiences more difficult
Trends in Promotion:
1. Integrated marketing
communications
2. Growth of advertising on the
Internet
3. Impact of Digital VCRs on
television
Leaders in Advertising
on the Internet
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Source: The Nielsen//NetRatings Reporter, www.nielsen-netratings.com