Transcript Promotion
Principles of Marketing Promotion PS10 Product and Service Promotion The learner will be able to identify types of promotion and advertising, visual merchandising, legalities, and publicity. Chapter 14 Version 6e ©2002 South-Western 1 Learner Objectives: Discuss the elements of the promotional mix Explain the types of advertisting media Identify examples of public relations Identify examples of sale promotions Discuss the use of personal selling Chapter 14 Version 6e ©2002 South-Western 2 1 Promotion Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. Chapter 14 Version 6e ©2002 South-Western 3 1 Promotional Strategy A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion Chapter 14 Version 6e ©2002 South-Western 4 1 The Role of Promotion Overall Marketing Objectives • • • • Promotional Mix •Advertising •Public Relations •Personal Selling •Sales Promotion Marketing Mix Product Distribution Promotion Price Target Market Chapter 14 Version 6e Promotion Plan ©2002 South-Western 5 2 Promotional Mix Advertising Public Relations Personal Selling Sales Promotion Chapter 14 Version 6e Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. ©2002 South-Western 6 2 Promotional Mix Advertising Elements of the Promotional Mix Public Relations Personal Selling Sales Promotion Chapter 14 Version 6e ©2002 South-Western 7 2 Advertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer. Chapter 14 Version 6e ©2002 South-Western 8 Do these sound familiar? I’m Lovin It Have it Your Way When You’re Here, You’re Family Get Your Own Box Get the Door Think Outside the Bun Chapter 14 Version 6e ©2002 South-Western 9 2 Advertising Media Traditional Advertising Media Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards Chapter 14 Version 6e Electronic Advertising Media Internet Emails Fax machines ©2002 South-Western 10 2 Public Relations The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance. Chapter 14 Version 6e ©2002 South-Western 11 2 Public Relations Functions of Public Relations Executes programs to “win” public Evaluates public attitudes Identifies areas of public interest Chapter 14 Version 6e ©2002 South-Western 12 2 Publicity Public information about a company, good, or service appearing in the mass media as a news item. Chapter 14 Version 6e ©2002 South-Western 13 2 Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. Chapter 14 Version 6e ©2002 South-Western 14 2 Sales Promotion Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness. Chapter 14 Version 6e ©2002 South-Western 15 2 Sales Promotion Sales Promotion Targets End Consumers Company Employees Trade Customers Chapter 14 Version 6e ©2002 South-Western 16 2 Sales Promotion Free samples Contests Premiums Trade Shows Popular Tools for Consumer Sales Promotion Chapter 14 Version 6e Vacation Giveaways Coupons ©2002 South-Western 17 6 Sales ($) Stage in the Product Life Cycle Time Chapter 14 Version 6e ©2002 South-Western 18 Sales ($) Product Life Cycle and the Promotional Mix 6 Maturity Introduction Growth Decline Time Light Heavy use of Advertising, advertising, prePR for introduction awareness; Publicity sales promotion for trial Chapter 14 Version 6e Advertising, PR, Brand loyalty Personal Selling for distribution ©2002 South-Western Ads decrease. Sales Promotion, Personal Selling Reminder & Persuasive AD/PR decrease Limited Sales Promotion, Personal Selling for distribution 19 4 Learning Objective Explain the goal and tasks of promotion. Chapter 14 Version 6e ©2002 South-Western 20 4 Goals and Tasks of Promotion Informing Reminding Target Audience Persuading Chapter 14 Version 6e ©2002 South-Western 21 4 Goals and Tasks of Promotion Informative Objective • Increase awareness • Explain how product works • Suggest new uses • Build company image Chapter 14 Version 6e ©2002 South-Western 22 4 Goals and Tasks of Promotion Persuasion Objective • Encourage brand switching • Change customers’ perception of product attributes • Influence buying decision • Persuade customers to call Chapter 14 Version 6e ©2002 South-Western 23 4 Goals and Tasks of Promotion Reminder Objective • Remind customers that product may be needed • Remind customers where to buy product • Maintain customer awareness Chapter 14 Version 6e ©2002 South-Western 24 5 Learning Objective Discuss the AIDA concept and its relationship to the promotional mix. Chapter 14 Version 6e ©2002 South-Western 25 Chapter 14 Version 6e ©2002 South-Western 26 Chapter 14 Version 6e ©2002 South-Western 27 5 The AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. Chapter 14 Version 6e ©2002 South-Western 28 5 The AIDA Concept Action Desire Interest Attention Chapter 14 Version 6e ©2002 South-Western 29 5 AIDA and the Promotional Mix Awareness Interest Desire Action Advertising Very effective Very effective Somewhat effective Not effective Public Relations Very effective Very effective Very effective Not effective Sales Promotion Somewhat effective Somewhat effective Very effective Very effective Personal Selling Somewhat effective Very effective Very effective Somewhat effective Chapter 14 Version 6e ©2002 South-Western 30 6 Learning Objective Describe the factors that affect the promotional mix. Chapter 14 Version 6e ©2002 South-Western 31 Factors Affecting the Promotional Mix 6 Nature of Product Stage in PLC Target Market Factors Factors Affecting Choice of Promotional Mix Type of Buying Decision Promotion Funds Push or Pull Strategy Chapter 14 Version 6e ©2002 South-Western 32 6 Nature of the Product Factors that influence promotional mix Product characteristics – Business product vs. consumer product Costs and risks Social risk Chapter 14 Version 6e ©2002 South-Western 33 6 Target Market Characteristics FOR: Widely scattered market Informed buyers Repeat buyers Advertising Sales Promotion Less Personal Selling Chapter 14 Version 6e ©2002 South-Western 34 6 Type of Buying Decision Routine Type of Buying Decision affects Promotional Mix Choice Chapter 14 Version 6e Advertising Sales Promotion Advertising Not Routine or Complex Public Relations Complex Personal Selling ©2002 South-Western 35 6 Available Funds Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements Chapter 14 Version 6e ©2002 South-Western 36 6 Push and Pull Strategies PUSH STRATEGY Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer Consumer buys from retailer Orders to manufacturer PULL STRATEGY Manufacturer promotes to consumer Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer Orders to manufacturer Chapter 14 Version 6e ©2002 South-Western 37 7 Learning Objective Discuss the concept of integrated marketing communications. Chapter 14 Version 6e ©2002 South-Western 38 Integrated Marketing Communications 7 A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused. Chapter 14 Version 6e ©2002 South-Western 39 7 IMC Popularity Growth Proliferation of thousands of media choices Fragmentation of the mass market Slash of advertising spending in favor of promotional techniques Chapter 14 Version 6e ©2002 South-Western 40 1 Differential Advantage High Product Quality Rapid Delivery Features that provide Differential Advantage Low Prices Excellent Service Unique Features Chapter 14 Version 6e ©2002 South-Western 41 Chapter 14 Version 6e ©2002 South-Western 42 2 Personal Selling Traditional Selling Chapter 14 Version 6e Relationship Selling ©2002 South-Western 43 3 Characteristics of Advertising Advertising Communication Mode Indirect and non-personal Communication Control Low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Message Flexibility Chapter 14 Version 6e Fast Same message to all audiences ©2002 South-Western 44 Characteristics of Public Relations Public Relations Communication Mode Communication Control Usually indirect, non-personal Moderate to low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control No Sponsor Identification No Reaching Large Audience Message Flexibility Chapter 14 Version 6e Usually fast Usually no direct control ©2002 South-Western 45 3 2 Advertising Advantages Disadvantages Ability to reach large number of people Total cost is high Cost per contact is low Can be micro-targeted Chapter 14 Version 6e ©2002 South-Western 46 Chapter 14 Version 6e ©2002 South-Western 47 3 Learning Objective Describe the communication process. Chapter 14 Version 6e ©2002 South-Western 48 3 Communication The process by which we exchange or share meanings through a common set of symbols. Chapter 14 Version 6e ©2002 South-Western 49 3 Marketing Communication Categories of Communication Interpersonal Communication Chapter 14 Version 6e Mass Communication ©2002 South-Western 50 3 The Communication Process As Senders As Receivers Inform Develop messages Persuade Adapt messages Remind Spot new communication opportunities Chapter 14 Version 6e ©2002 South-Western 51 3 The Sender and Encoding Sender The originator of the message in the communication process. Encoding The conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs. Chapter 14 Version 6e ©2002 South-Western 52 3 The Communication Process Noise Sender Encoding Message Message Channel Decoding Message Receiver Message Channel Chapter 14 Version 6e ©2002 South-Western 53 Chapter 14 Version 6e ©2002 South-Western 54 Characteristics of Personal Selling Personal Selling Communication Mode Direct and face-to-face Communication Control High Feedback Amount Much Feedback Speed Immediate Message Flow Direction Two-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Message Flexibility Chapter 14 Version 6e Slow Tailored to prospect ©2002 South-Western 55 3 4 Goals and Tasks of Promotion Informing PLC Stages: Introduction Early Growth PLC Stages: Growth Maturity Chapter 14 Version 6e Reminding PLC Stages: Maturity Target Audience Persuading ©2002 South-Western 56 Learning Objectives 1. Discuss the role of promotion in the marketing mix. chapter 14 2. Discuss the elements of the promotional mix. 3. Describe the communication process. Chapter 14 Version 6e ©2002 South-Western 57 2 Learning Objective Discuss the elements of the promotional mix. Chapter 14 Version 6e ©2002 South-Western 58 2 Learning Objective Discuss the elements of the promotional mix. Chapter 14 Version 6e ©2002 South-Western 59 1 Learning Objective Discuss the role of promotion in the marketing mix. Chapter 14 Version 6e ©2002 South-Western 60 Chapter 14 Version 6e ©2002 South-Western 61 Learning Objectives (continued) 4. Explain the goal and tasks of promotion. chapter 14 5. Discuss the AIDA concept and its relationship to the promotional mix. 6. Describe the factors that affect the promotional mix. 7. Discuss the concept of integrated marketing communications. Chapter 14 Version 6e ©2002 South-Western 62 Chapter 14 Version 6e ©2002 South-Western 63 Characteristics of Sales Promotion 3 Sales Promotion Communication Mode Communication Control Feedback Amount Usually Indirect and non-personal Moderate to low Little to moderate Feedback Speed Message Flow Direction Varies Mostly one-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Message Flexibility Chapter 14 Version 6e Fast Same message to varied target ©2002 South-Western 64 McDonald’s Chapter 14 Version 6e ©2002 South-Western 65 Burger King Chapter 14 Version 6e ©2002 South-Western 66 Olive Garden Chapter 14 Version 6e ©2002 South-Western 67 Cheese-Its Chapter 14 Version 6e ©2002 South-Western 68 Domino’s Chapter 14 Version 6e ©2002 South-Western 69 Taco Bell Chapter 14 Version 6e ©2002 South-Western 70 Integrated Marketing Communications chapter 14 Chapter 14 Version 6e Prepared by Deborah Baker Texas Christian University ©2002 South-Western 71