Transcript Promotion Means Effective Communications

Promotion Means Effective
Communications
Marketing
Chapter 15
Role of Promotion
Promotion
– Any form of communication used to
inform, persuade, or remind
Role of Promotion
To Inform
– First task of promotion
– Often done when product is in
introduction stage of life cycle
To Persuade
– Attempts to encourage customer to take
specific action
– Important during growth stage of life
cycle
Role of Promotion
To Remind
– Final role of promotion activities
– Frequently used in maturity stage of life
cycle
Communication Process
The transfer of a message from
sender to a receiver
– Sender
Originator of the message
– Encoding
Putting message into language or symbols
that are familiar to the intended receiver
Communication Process
– Message Channel
The medium the sender chooses to transmit
the message
– TV, radio, billboard, Internet, newspaper,
magazine, direct mail, sales presentation
– Decoding
Interpreting the message or converting it
into meaning or ideas
Communication Process
– Receiver
Person/persons to whom the encoded
message is directed
– Noise
Interference that can cause the message to
be interpreted by receiver incorrectly
– Feedback
Receiver’s reactions or response to the
source’s message
Types of Communication
Interpersonal Communication
– Involves two or more people in some
kind of person-to-person exchange
Mass Communication
– Communication to a huge audience,
usually through mass media such as
magazines, radio, television, or
newspaper.
Types of Promotion
Advertising
– Any paid form of non-personal
communication sent through a mass
medium by an organization about its
product
Types of Promotion
Advertising
– Advantages
Reaches millions of people
Can reach geographically diverse people at
the same time
Repeats messages many times
Types of Promotion
– Disadvantages
High cost
Target audience may not be at the right
place to receive message
Impersonal in nature
Publicity
Non-paid form of communication
about a business or organization or
its products
– Usually a news story
Advantages
– Creates goodwill (positive feelings)
Disadvantages
– Organization had little control over story
– generated by media
Personal Selling
Person-to-person communication with a
potential customer in an effort to inform,
persuade, or remind them to purchase an
organization’s product.
Advantages
– Personal contact
– Customer feedback is immediate
Disadvantages
– Per person cost is high
– Every sales encounter does not result in a sale
Sales Promotion
Activities or materials that offer
consumers a direct incentive to buy a
good or service
Advantages
– Generates immediate short-term sales
– Used to support other parts of the promotional
campaign
Disadvantages
– Cost
If the promotion does not result in a significant sales
increase, the business will lose money.
Advertising is a Marketing Tool
Marketing Responsibilities
– Marketing Strategy
Show the products value
– Stand Out in the Crowd
Focus on features/attributes that makes
product unique
– Target the Customer
Focus on the type of customer most likely to
purchase the product
– Contribute to Revenue
Creating sales
Advertising as a Marketing Tool
– Brand Loyalty
Image and repeat customers
– Enhance Customer Satisfaction
Reinforcing consumer decision to buy your
product
– Life of Product
Good advertising generates revenue and
profit