Transcript Promotion
Chapter16 Promotion Marketing vs. Promotion Marketing concept vs. promotion concept The marketing mix product place price promotion Marketing vs. Promotion (cont’d) The promotion mix Advertising Personal selling Sales promotion Direct marketing Internet marketing Publicity Marketing vs. Promotion (cont’d) Types of sales promotion Consumer products consumer-oriented trade-oriented Industrial products Promotion and the Demand Curve Price Price Price D D1 D D2 0 Quantity A. To be more inelastic Exhibit 14-3 14-8 D D 0 Quantity B. to the right 0 Quantity C. Both to the right and more inelastic Integrating the Elements of the Promotion Mix Stages of the buying decision prepurchase purchase postpurchase Size of decision-making unit Integrating the Elements of the Promotion Mix (cont’d) The product life cycle Product characteristics complexity risk The target audience consumer vs. business pull vs. push Push vs. Pull Strategies Push Manufacturer Wholesaler Retailer Consumer Push vs. Pull Strategies Pull Manufacturer Wholesaler Retailer Consumer Promotional Objectives Sales targets Market share targets Communication targets awareness information brand preference share of voice share of mind share of heart Promotional Objectives (cont’d) Direct objectives Indirect objectives Indirect objectives are used more often Promotional Objectives (cont’d) Situations where direct objectives may be appropriate: Advertising by retailers Direct-response advertising Sales-promotion advertising Business-to-business advertising Promotional Objectives (cont’d) Should state: Target audience Objective Degree of change Time frame Promotional Objectives (cont’d) Example: Target -- 30 million U.S. households Communication objective -- The detergent buyer should identify Brand X as a lowsudzing detergent Desired change -- from 10 to 40 percent Time frame -- 1 year Advertising Media Television Radio Outdoor billboards transit advertising Magazines Newspapers Direct mail Internet banners links to related websites Advertising Media (cont’d) Criteria for selecting media Cost Compatibility with media habits of target audience Compatibility with product Compatibility with message Types of Advertisements Product advertisements Institutional advertisements Pioneering Competitive Reminder Advocacy Advertising Appeals Rational appeals Moral appeals Emotional appeals Emotional Appeals Joy Love Humor Sex Pride Guilt Fear Execution Styles Slice-of-life Lifestyle Musical Personality symbol Humor Endorsements (expertise, trustworthiness, likeability) Media Terminology Reach Rating Frequency Gross Rating Points (GRPs) Impact Cost per thousand Wasted coverage Budgeting Methods Percentage of sales method Match-competitors method Affordability method Share of market method Objective and task method Budgeting Methods (cont’d) Objective and task method Identify the objectives Determine the tasks that will have to be performed Determine the cost of performing those tasks Budgeting Methods (cont’d) Example of objective and task method Identify the objectives Target -- 30 million U.S. households Communication objective -- The detergent buyer should identify Brand X as a lowsudzing detergent Desired change -- from 10 to 40 percent Time frame -- 1 year Budgeting Methods (cont’d) Example of objective and task method (cont’d) Determine the tasks that will have to be performed reach 80% of the market with the advertising message determine the frequency or average # of impressions needed (frequency = 30) determine the number of Gross Rating Points (GRPs) (80 X 30 = 2,400 GRPs) Budgeting Methods (cont’d) Example of objective and task method (cont’d) Determine the cost of performing those tasks determine the average cost of a GRP ($3,000 per GRP) multiply by the number of GRPs ($3,000 X 2,400 = $7,200,000) Media Scheduling Steady (drip) scheduling GRPs Time Media Scheduling Flighting or “intermittent” schedule GRPs Time Media Scheduling Pulse or “burst” schedule GRPs Time Sales Promotion Consumer products Industrial products Sales Promotion (cont’d) Consumer products Consumer-oriented coupons premiums samples contests/sweepstakes rebates etc Sales Promotion (cont’d) Consumer products (cont’d) Trade-oriented point-of-purchase (POP) advertising allowances display allowances merchandise assistance quantity discounts Sales Promotion (cont’d) Industrial products Trade shows Displays/exhibits Brochures and technical promotional material Other Promotional Tools Direct marketing Publicity E-Commerce -- or is e-commerce much broader than promotion? Personal selling Consumer Behavior Issues (p. 349) Learning Hierarchy Learn Feel Do Relevant to high-involvement products in industries where product differentiation exists Consumer Behavior Issues (p. 349) Dissonance-Attribution Hierarchy Do Feel Learn Relevant to high-involvement products in industries where little product differentiation exists (e.g., refrigerators) Consumer Behavior Issues (p. 349) Low-Involvement Hierarchy Do Feel Attitude change occurs only after product experience Relevant to low-involvement products in industries where little product differentiation exists (e.g., soft drinks).