Transcript Principles of Marketing

Principles of
Marketing
Lecture-32
Summary
of
Lecture-31
Place….Distribution
Channel….Marketing
Channel
Right
Place
Right
Cost
Right
Product
Right
Time
Right
Condition
Compete on value (not just
price.)
Save customers time and
energy.
Make shopping fun.
Today’s Topics
Marketing
Communications
Simple Marketing
System
Communication
Product/Service
Producer/Seller
Money
Feedback
Consumer
Promotion and
Its Goals
Informs
Builds Relationships
Persuades
Reminds
Informing
Persuading
Basic
Promotion
Objectives
Reminding
Why is it so Hard to
Get A Consumer’s
Attention?
Sensory overload (too
many stimuli but limited
info. processing ability)
Lack of consumer
interest or motivation to
process stimuli
Perceptual defense
The Marketing
Communications
Mix
Advertising
Any Paid Form of Nonpersonal Presentation by an
Identified Sponsor.
Personal Selling
Personal Presentations by a
Firm’s Sales Force.
Sales Promotion
Short-term Incentives to
Encourage Sales.
Public Relations
Building Good Relations with
Various Publics by Obtaining
Favorable Unpaid Publicity.
Direct Marketing
Direct Communications With
Individuals to Obtain an
Immediate Response.
Integrated
Marketing
Communications
The concept under which a
Company Carefully
Integrates and Coordinates
Its Many Communications
Channels to Deliver a Clear,
Consistent, and Compelling
Message About the
Organization and Its
Products.
Advertising
Packaging
Event
Marketing
Message
Direct
Marketing
Public
Relations
Personal
Selling
Sales
Promotion
The Communication
Process
Source
Feedback
Receiver
Encoding
Message
Noise
Decoding
Channel
Encoding The
Message
– Words
– Sounds
– Colors
– Space
– Themes
– Symbols
– Pictures
– Numbers
– Gestures
– Movement
The Message
Channel or
Medium
DECODING
– Words
– Sounds
– Colors
– Space
– Themes
– Symbols
– Pictures
– Numbers
– Gestures
– Movement
OBJECTIVE
ENCODING
=
DECODING
Source
Encoding
Message
Channel
Noise
Feedback
Decoding
Receiver
Marketing
Communications
Objectives
 Increase Market Penetration
 Develop Repeat Purchase Behavior
 Establish Customer Relationships
 Increase Rate of Consumption
 Encourage Product Trial
 Stimulate Impulse Buying
 Stimulate Demand
 Differentiate the Product
 Establish a Product Image
 Influence Sales Volume
 Establish, Modify, or Reinforce
Attitudes
 Stimulate Interest
 Establish Understanding
 Build Support & Acceptance
Steps in Developing
Effective
Communication
Step 1. Identifying the Target Audience
Step 2. Determining the Communication
Objectives (Buyer Readiness Stages)
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Step 3. Designing a Message
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Message Structure
Draw Conclusions
Argument Type
Argument Order
Attention
Interest
Message Format
Headline, Copy, Color,
Words, & Sounds,
Body Language
Desire
Action
Step 4. Choosing Media
Personal Communication
Channels
Nonpersonal Communication
Channels
Step 5. Selecting the Message Source
Step 6. Collecting Feedback
Setting the Total
Promotion Budget
Affordable
Method
CompetitiveParity
Method
Percentageof-Sales
Method
Objectiveand-Task
Method
AIDA Model
Attention
Interest
Desire
Action
Promotion
 Marketing activities used to
communicate positive, persuasive
info about an organization, its
products and its activities to a
target audience
 Purpose: to directly or indirectly
create sales, influence
consumers.
Setting the
Promotion Mix
Advertising
Reaches Many Buyers, Expressive
Impersonal
Personal Selling
Personal Interaction, Builds Relationships
Costly
Sales Promotion
Provides Strong Incentives to Buy
Short-Lived
Public Relations
Believable, Effective, Economical
Underused by Many Companies
Direct Marketing
Nonpublic, Immediate, Customized,
Interactive
Advertising
A paid form of non-personal
communication about an
organization and/or its
products to a target
audience through a mass
medium.
Personal selling
The direct presentation of a
product to a prospective
customer by a
representative of the
selling organization.
Sales promotion
Demand-stimulating activity
designed to supplement
advertising and facilitate
personal selling.
Public relations
A planned communication effort
by an organization to contribute
to generally favorable attitudes
and opinions toward an
organization and its products.
Direct Marketing
Direct connections with carefully
targeted individual consumers
to obtain an immediate
response and cultivate lasting
customer relationship
Relative
Importance of
Promotion Tools
Consumer Goods Business Goods
– Advertising
– Personal selling
– Sales promotion
– Sales promotion
– Personal selling
– Advertising
– Publicity
– Publicity
Changing Face of
Marketing
Communications
New Marketing Communications Realities
Marketers Have Shifted
Away From Mass
Marketing
Less Broadcasting
Improvements in
Information Technology
Has Led to
Segmented Marketing
More Narrowcasting
Enough for
today. . .
Summary
Promotion and
Its Goals
Informs
Builds Relationships
Persuades
Reminds
The Marketing
Communications
Mix
Advertising
Any Paid Form of Nonpersonal Presentation by an
Identified Sponsor.
Personal Selling
Personal Presentations by a
Firm’s Sales Force.
Sales Promotion
Short-term Incentives to
Encourage Sales.
Public Relations
Building Good Relations with
Various Publics by Obtaining
Favorable Unpaid Publicity.
Direct Marketing
Direct Communications With
Individuals to Obtain an
Immediate Response.
The Communication
Process
Source
Encoding
Message
Channel
Noise
Feedback
Decoding
Receiver
Steps in Developing
Effective
Communication
AIDA Model
Attention
Interest
Desire
Action
Next….
Advertising
Principles of
Marketing
Lecture-32