Transcript Chapter 1
Lamb, Hair, McDaniel 2011-2012 CHAPTER 16 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 © Phil Ashley/Lifesize/Getty Images Integrated Marketing Communications The Role of Promotion Promotional Strategy A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion LO1 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 2 Exhibit 16.1 Role of Promotion in the Marketing Mix LO1 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 3 Competitive Advantage High product quality Rapid delivery Low prices Excellent service Unique features LO1 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 4 The Promotional Mix Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Includes: Advertising Public Relations Personal Selling Sales Promotion LO2 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 5 The Promotional Mix Most commonly distributed by traditional media, though increasingly through nontraditional media, such as Web sites, e-mail, blogs, and interactive video kiosks in malls and supermarkets. LO2 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 6 Advertising Media Traditional Advertising Media LO2 Chapter 16 Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards New Advertising Media Internet Banner ads Viral marketing E- mail Interactive video Copyright ©2012 by Cengage Learning Inc. All rights reserved 7 Advertising Advantages Reach large number of people Low cost per contact Disadvantages Total cost is high National reach is expensive for small companies Can be microtargeted LO2 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 8 Public Relations Helps an organization communicate with customers, suppliers, stockholders, government officials, employees, and the community. LO2 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 9 The Function of Public Relations LO2 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 10 Sales Promotion Marketing activities— other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness. LO2 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 11 Sales Promotion Free samples Contests End Consumers Premiums Trade Shows Vacation Giveaways Trade Customers Company Employees Coupons LO2 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 12 Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. LO2 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 13 Personal Selling Traditional Selling Relationship Selling Attempts to persuade the buyer into a specific point of view. Win-lose outcome. Long-term relationships, create a win-win outcome LO2 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 14 Communication Communication is… the process by which meanings are exchanged or shared through a common set of symbols. LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 15 Marketing Communication Categories of Communication Interpersonal Communication Mass Communication LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 16 Marketing Communication As Senders As Receivers Inform Develop messages Persuade Adapt messages Remind Spot new communication opportunities LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 17 Exhibit 16.2 Communication Process LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 18 Exhibit 16.3 Characteristics of the Elements in the Promotional Mix LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 19 Characteristics of the Elements in the Promotional Mix Advertising Communication Mode Communication Control Feedback Amount Indirect and impersonal Low Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Message Flexibility Fast Same message to all audiences LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 20 Characteristics of the Elements in the Promotional Mix Public Relations Communication Mode Communication Control Feedback Amount Usually indirect, impersonal Moderate to low Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control No Sponsor Identification No Reaching Large Audience Message Flexibility Usually fast Usually no direct control LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 21 Characteristics of the Elements in the Promotional Mix Sales Promotion Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Usually indirect and impersonal Moderate to low Little to moderate Varies Mostly one-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Message Flexibility Fast Same message to varied target LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 22 Characteristics of the Elements in the Promotional Mix Personal Selling Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Direct and face-to-face High Much Immediate Two-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Message Flexibility Slow Tailored to prospect LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 23 Web 2.0 Web 2.0 tools include: • Blogs (online journals) • Podcasting (online radio) • Vodcasts (online videos) • Social Networks (Facebook, MySpace) LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 24 Blogging Corporate Blogs Sponsored by a company or one of its brands and maintained by one or more of the company’s employees. ConsumerGenerated Blogs Independent and not associated with the marketing efforts of any particular company or brand. LO3 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 25 Goals and Tasks of Promotion Informing Reminding Target Audience Persuading LO4 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 26 Goals and Tasks of Promotion Informing Reminding PLC Stages: PLC Stages: Introduction Early Growth Maturity Target Audience PLC Stages: Growth Maturity Persuading LO4 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 27 Goals and Tasks of Promotion Beyond the Book LO4 Chapter 16 Informative Promotion Increase awareness Explain how product works Suggest new uses Build company image Copyright ©2012 by Cengage Learning Inc. All rights reserved 28 Goals and Tasks of Promotion Beyond the Book LO4 Chapter 16 Persuasive Promotion Encourage brand switching Change customers’ perceptions of product attributes Influence immediate buying decision Persuade customers to call Copyright ©2012 by Cengage Learning Inc. All rights reserved 29 Beyond the Book LO4 Chapter 16 Goals and Tasks of Promotion Reminder Promotion Remind customers that product may be needed Remind customers where to buy product Maintain customer awareness Copyright ©2012 by Cengage Learning Inc. All rights reserved 30 LO5 The AIDA Concept AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. Attention Interest Desire Action Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 31 Exhibit 16.4 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 32 The AIDA Concept Action Desire Interest Attention Conative (doing) Affective (feeling) Cognitive (thinking) LO5 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 33 Factors Affecting the Promotional Mix Describe the factors that affect the promotional mix LO6 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 34 Factors Affecting the Choice of Promotional Mix Nature of the product Stage in PLC Target market characteristics Type of buying decision Promotion funds LO6 Chapter 16 Push or pull strategy Copyright ©2012 by Cengage Learning Inc. All rights reserved 35 Exhibit 16.5 LO6 Product Life Cycle and the Promotional Mix Heavy use of Advertising; PR for Light Advertising; awareness; sales preintroduction promotion for trial publicity Chapter 16 Advertising, PR, brand loyalty; personal selling for distribution Ads decrease; sales promotion; personal selling; reminder & persuasive Copyright ©2012 by Cengage Learning Inc. All rights reserved AD/PR decrease; limited sales promotion; personal selling for distribution 36 Target Market Characteristics For… Advertising Widely scattered market Sales Promotion Informed buyers Less Personal Selling Brand-loyal repeat purchasers LO6 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 37 Type of Buying Decision Advertising Routine Sales Promotion Neither Routine nor Complex Advertising Public Relations Personal Selling Complex Print Advertising LO6 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 38 Available Funds Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements LO6 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 39 Exhibit 16.6 Push Strategy versus Pull Strategy LO6 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 40 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. LO7 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 41 IMC Popularity Growth Proliferation of thousands of media choices Fragmentation of the mass market Slash of advertising spending in favor of promotional techniques that generate immediate response LO7 Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 42