Transcript Chapter 16
Chapter 16 Promotional Planning Promotion COMMUNICATION that informs, persuades and reminds potential customers of a product in order to influence their opinion or elicit a response The Role of Promotion in the Marketing Mix Overall Marketing Objectives • • • • Marketing Mix Product Place Promotion Price Target Market Promotional Mix • • • • Advertising Public Relations Sales Promotion Personal Selling Promotion Plan The Elements of Promotion Advertising Informative or persuasive message carried by a nonpersonal medium. The Elements of Promotion Personal selling: Person-to-person interaction with buyer or seller. Purpose: to persuade buyer to accept a point of view The Elements of Promotion Publicity: Message about a product not paid for by a sponsor. Public Relations: Activities involved in actively seeking publicity. The Elements of Promotion Sales Promotion: Promotional activities intended to stimulate buyer purchases or dealer effectiveness. Communication The process by which we exchange or share meanings through a common set of symbols. Marketing Communication Categories of Communication Interpersonal Communication Mass Communication The Communication Process Noise Sender Encoding Message Message Channel Feedback Channel Decoding Message Receiver The Impact of Blogging Corporate Blogs Noncorporate Blogs Sponsored by a company or one of its brands and maintained by one or more of the company’s employees. Independent and not associated with the marketing efforts of any particular company or brand. Goals and Tasks of Promotion Informing Reminding Target Audience Persuading Goals and Tasks of Promotion Informing PLC Stages: Introduction Early Growth PLC Stages: Growth Maturity Reminding Target Audience Persuading PLC Stages: Maturity The AIDA Concept AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. The AIDA Concept Action Desire Interest Attention Conative (doing) Affective (feeling) Cognitive (thinking) Online Factors Affecting the Choice of Promotional Mix Nature of the product Stage in PLC Target market factors Type of buying decision Promotion funds Push or pull strategy Stage in the Product Life Cycle Sales ($) Maturity Introduction Growth Decline Time Light Advertising; preintroduction publicity Heavy use of Advertising; PR for awareness; sales promotion for trial Advertising, PR, brand loyalty; personal selling for distribution Ads decrease; sales promotion; personal selling; reminder & persuasive AD/PR decrease; limited sales promotion; personal selling for distribution Type of Buying Decision Routine Neither Routine nor Complex Complex Advertising Sales Promotion Advertising Public Relations Personal Selling Print Advertising Available Funds Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements 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 Orders to manufacturer Wholesaler demands product from manufacturer Integrated Marketing Communications Integrated Marketing Communications The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.