Transcript No Slide Title

Leveraging Marketing and Sales
Assets: Integrated Persuasion
A sale is persuasion – its convincing
another person to engage in a
commercial transaction
We balance the negative emotions of
risk against the positive emotions of
reward.
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Sales and Marketing Lubricates the Path
The promotion mix and marketing mix should
act as one.
• Identify market
• Develop market
• Market and sell
• Service the market
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Foundations of Persuasion
•
•
•
•
•
Reciprocity
Commitment and consistency
Social proof
Liking and empathy
Authority scarcity
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Persuasive Impact
• Familiarity
• Face-to-face
• Role of risk
– Approved/preferred vendors
– Word-of-mouth
– Formal procurement procedures
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Communication Vehicles
Types of Promotions
1. Advertising
any nonpersonal presentation of information
about a product, brand, company, or store
2. Personal Selling direct personal interaction between a
potential buyer and a salesperson
3. Publicity
4. Sales Promotions
unpaid form of communication about the
marketer’s company, products or brands
action-focused
marketing
events
whose purpose is to have a direct
impact on the behavior of a firm’s
customers
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Sales Promotions
Direct Influence on Behavior
Trade Promotions - Marketing tactics, such as
advertising or display allowances, designed to
get channel members to provide special support
for products or services
Consumer Promotions - Marketing tactics,
such as coupons and free samples, designed to
have a direct impact on consumer purchase
behavior
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Types of Consumer Promotions
• Samples. Consumers are offered regular or trial sizes
of the product either for free or at a nominal price.
Hershey Foods has handed out 750,000 candy bars on
170 college campuses.
• Price deals. Consumers are given discounts from the
product’s regular price.
Coke and Pepsi are frequently available at discounted
prices.
• Bonus packs. Bonus packs consist of additional
amounts of the product provided in the package or
container.
Gillette Atra occasionally adds a few extra blades to its
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blade packs without increasing the price.
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Consumer Promotions, cont.
• Rebates and refunds. Consumers, either at
purchase or by mail, are given cash refunds for
purchasing products.
Consumers are often offered rebates on certain car
makes or models.
• Sweepstakes and contests. Consumers are
offered chances to win cash and/or prizes either
through chance selection or games of skill.
Marriott Hotels teamed with Hertz Rent-A-Car in a
scratch-card sweepstakes that offered over $90
million in prizes.
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Consumer Promotions, cont.
• Premiums. A premium is a reward or a gift that
comes from purchasing a product.
Procter & Gamble offered a free package of
Diaperene baby washcloths with the purchase
of any size Pampers.
• Coupons. Consumers are offered cents-off or
added value incentives for purchasing specific
products.
Lenscrafters offered newspaper coupons for
$20 off the purchase of contact lenses from its
stores.
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Trade Promotions
Price-off (off-invoice or off-list) Straight
discount during a period
Allowances (display or advertising)
Agreement to feature a manufacturer’s
product
Free Goods extra cases of merchandise for
quantity purchases or featuring a product
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Trade Promotions (cont)
Trade Shows Industry associations organize
annual trade shows where product can set up
booths and displays to demonstrtae their
products
Sales Contests Prizes for those who exceed
certain goals
Specialty Advertising low-cost items bearing
the company’s name and address to be given
to prospects and customers
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Goals of Promotional Communications
1.
Stimulate category need
2.
Develop brand awareness
3.
Develop favorable brand attitudes
4.
Increase the intention to purchase the brand
5.
Facilitate other behaviors
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Elaboration Likelihood Model
Motivation to
Elaborate
Elaboration = Amount of
Knowledge & Richness of
Interconnections
Ability to
Elaborate
Amount of
Elaboration
High
Low
Central Route
to Persuasion
Peripheral Route
to Persuasion
Message Arguments
Determine Persuasion
Peripheral Cues
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Determine Persuasion
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Elaboration Likelihood Model (continued)
Importance
Attention
Comprehension
Persuasion
High Involvement
Low Involvement
Higher involvement with
product or message
Lower involvement with
product or message
Focus on “central” productrelated information
Focus on “peripheral”
nonproduct information
• Deeper thoughts about
product attributes and
consequences
• Shallow thoughts
about nonproduct
information
• More elaboration
• Low elaboration
Product beliefs
Brand attitude
Purchase intentions
Nonproduct beliefs
Attitude toward ad
Brand attitude
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Purchase intention
A General Model of the
Communication Process
Feedback
Source
Sender of
the
communication
Message
Transmission
via media
Receiver
Information
content that is
transmitted as
well as the
creative form it
takes
Communication
channel the source
uses to deliver the
message to the
receiver
Target of the
communication, the
receiver
decodes the
message and
extracts the
information it
contains
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Basic Communication Model
Sender/Source Effect
Opinion Leaders
An opinion leader uses his or her knowledge and experience
to play a dominant role in word-of-mouth communication
Opinion Leaders are Persuasive:
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Credibility, trustworthiness
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Positive and negative product information
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Information and advice
•
Opinion leadership is category-specific
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Opinion leadership is a two-way street
Consumer Behavior and Product Placement.wmvhttp://www.youtube.com/watch?v=bFQQAzvqrx8
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Basic Communication Model
Sender/Source Effect
Sources of Influence (Social Power)
Expert power
Knowledge and experience
Referent power
Similarity to the recipient or an
aspirational figure
Reward power
financial such as money, discounts
or intangibles receipts such as
praise, recognition, peace of mind
Coercive power
control of punishment such as
ridicule or a slap to the back of
one’s head
Legitimate power expectation of leadership role
performance
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Basic Communication Model
Sender/Source Effect
1. Credible
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Expertness
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Objectivity
2. Attraction
http://www.youtube.com/watch?v=_PHnRIn74Ag
Oscar Mayer Commercial -1973
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Likeableness
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Similarity
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Familiarity
http://www.youtube.com/watch?v=3QHtbxIUyfs
http://www.youtube.com/watch?v=W-I0Y8drQHg
http://www.youtube.com/watch?v=CRW6YptKCas
3. Testimonials
http://www.youtube.com/watch?v=WVN4dLNWoDM
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Basic Communication Model (continued)
Sender/Source Effect (continued)
4. Sleeper Effect
High Credibility
Low Credibility
Time
With Reinstatement
Communication
Effectiveness
Communication
Effectiveness
No Reinstatement
High Credibility
Low Credibility
Time
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Basic Communication Model (continued)
Message Effect
1. Simplicity of presentation
2. Factual message
•
Message framing
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One-sided/two-sided
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Basic Communication Model (continued)
Message Effect (continued)
3. Comparative advertising
http://www.youtube.com/watch?v=W0-4xc9yCco
http://www.youtube.com/watch?v=aiIIMcelMjk
4. Techniques and style
http://www.youtube.com/watch?v=-gKQ8paZ8Lc
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Fear
http://www.youtube.com/watch?v=lw9ZeXB2uKs
http://www.youtube.com/watch?v=40DykbPa4Lc&feature=related
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Humor
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Agony
AlkaSeltzer "I Can't Believe I Ate The Whole Thing" TV Spot
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•
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Abrasive
Sex
http://www.youtube.com/watch?v=uWrJgFjxlS0
http://www.youtube.com/watch?v=PpBarEAicbo
http://www.youtube.com/watch?v=-FH6WA4p_eg
http://www.youtube.com/watch?v=47hnO5wjSGg
Audience participation http://www.youtube.com/watch?v=S2nBBMbjS8w
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Basic Communication Model (continued)
Channel Effect
1. Demographics and exposure
2. Channel reputation
3. Extent of involvement
4. Advertising budget
5. Repetition
6. Product placement
Word of Mouth Communication Part 4.wmv http://www.youtube.com/watch?v=fFZWUUu8sCI
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Basic Communication Model (continued)
Receiver
1. Comprehension
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Self image
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Intelligence and knowledge
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Demographics and exposure
2. Mood
3. Barriers to Communication
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Measuring Advertising Effects
Measurement Criteria:
1.
Sales
2.
Recall
3.
Persuasion
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