Transcript Promotion Intro to Integrated Marketing Communications Promotion

Chapter 13
Promotion –
Introduction to
Integrated
Marketing
Communication
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
At the end of this presentation,
you should be able to:
1. know the advantages and disadvantages
of the promotion methods a marketing
manager can use in strategy planning.
2. understand the integrated marketing
communications concept and why firms
use a blend of different promotion
methods.
3. understand the importance of promotion
objectives.
4. know how the traditional communication
process affects promotion planning.
5. understand how customer-initiated
interactive communication is different.
13-2
At the end of this presentation,
you should be able to:
6. know how typical promotion plans are
blended to get an extra push from
wholesalers and retailers, as well as help
from customers in pulling products through
the channel.
7. understand how promotion blends typically
vary over the adoption curve and product
life cycle.
8. understand how to determine how much
to spend on promotion efforts.
9. understand important new terms.
13-3
Promotion and Marketing
Strategy Planning (Exhibit 13-1)
CH 13: Promotion
Intro to Integrated
Marketing
Communications
Promotion
methods
13-4
CH 14: Personal
Selling and
Customer Service
Managing
promotion
Effective
communication
CH 15: Advertising,
Publicity, & Sales
Promotion
Blending
promotion
Several Promotion Methods Are
Available
Personal Selling
Mass Selling
Different
Methods of
Promotion
Advertising
Publicity
Sales Promotion
13-5
Someone Must Plan, Integrate, and
Manage the Promotion Blend
Advertising
Managers
Sales Managers
Integrated
Marketing
Communications
Marketing
Managers
13-6
Sales Promotion
Managers
Which Method to Use Depends
on Promotion Objectives
Informing
Persuading
Reminding
13-7
Reminding May Be Enough
13-8
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Relation of Promotion Objectives,
Adoption Process, and AIDA
Model(Exhibit 13-2)
Promotion
Objectives
Informing
Persuading
Reminding
13-9
{
Adoption
Process
Awareness
AIDA Model
Interest
Evaluation
Interest
Trial
Decision
Attention
}
}
Confirmation
Desire
Action
Interactive Exercise: AIDA
13-10
The Traditional Communication
Process (Exhibit 13-3)
Feedback
Source
Encoding
Noise
Message
channel
Decoding
Receiver
13-11
This Same Message May Be
Interpreted Differently(Exhibit 13-4)
Encoder
Common
frame of
reference
Decoder
13-12
Checking Your Knowledge
Ron Popeil has been a pioneer in the use of directresponse television “infomercials.” Over the years his
infomercials have promoted many products, including
the Showtime Rotisserie Barbecue, a food dehydrating
machine, and the world-famous “Veg-O-Matic.” The
chief advantage of the infomercial is that it provides
plenty of time to describe and demonstrate a product’s
benefits in detail. The choice of the infomercial is
related mainly to the _________ element of the
communication process.
A.
B.
C.
D.
E.
13-13
message channel
encoding
decoding
feedback
noise
Encoding and Decoding
13-14
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Feedback
Integrated Directresponse Promotion
Targeted Directresponse Promotion
Outbound
Promotion
Model
13-15
A Model of Customer-Initiated
Interactive Communication (Exhibit 13-5)
Receiver
(customer)
Source’s
message
Select a
topic
13-16
Search
Noise
Message
channel
Ethical Issues in Promotion
Source credibility
Promotion
frequently
dances on
ethical
boundaries
Exaggerated claims
Invading consumer
privacy
13-17
Pushing in the Channel Focuses
Promotion at Intermediaries (Exhibit 13-6)
Producer’s promotion blend
Personal selling, sales promotion, advertising,
and publicity
Promotion to channel members
Promotion
to business
customers
Wholesalers’
promotion
push
Wholesalers’
promotion
push
Retailers’
promotion
push
13-18
Business
customers
request (pull)
product
Final
consumers
request (pull)
product
Promotion
to final
customers
An Example of Pushing and
Pulling
13-19
Checking Your Knowledge
Fido, Inc. is a producer of dog food and is getting ready
to introduce a new brand. The firm’s marketing research
department learns that a competitor is planning to
launch another brand about two weeks after Fido’s
launch. Fido’s marketing department quickly mails a set
of dated coupons to several thousand consumers in a
purchased database of dog owners, encouraging them
to ask for the new Fido brand in their favorite store and
to stock up on the new brand using the coupons. This is
an example of:
A.
B.
C.
D.
E.
13-20
pulling.
noise.
pushing.
encoding.
decoding.
Percent adoption
The Adoption Curve (Exhibit 13-7)
Innovators
(3–5%)
Early
adopters
(10–15%)
Early
majority
(34%)
90
50
20
5
Time
13-21
Late
majority
(34%)
Laggards or
nonadopters
(5–16%)
Opinion Leaders Matter
13-22
Stimulating Adoption of an
Image
13-23
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Promotion Varies Over the Life Cycle
“This new
idea is good”
13-24
“Our brand is
best”
“Our brand is
better, really”
Reminder:
“Stick with
our brand.”
Setting the Promotion Budget
Percentage of Sales
Task Method
13-25
You should now be able to:
1. know the advantages and disadvantages
of the promotion methods a marketing
manager can use in strategy planning.
2. understand the integrated marketing
communications concept and why firms
use a blend of different promotion
methods.
3. understand the importance of promotion
objectives.
4. know how the traditional communication
process affects promotion planning.
5. understand how customer-initiated
interactive communication is different.
13-26
You should now be able to:
6. know how typical promotion plans are
blended to get an extra push from
wholesalers and retailers, as well as help
from customers in pulling products through
the channel.
7. understand how promotion blends typically
vary over the adoption curve and product
life cycle.
8. understand how to determine how much
to spend on promotion efforts.
9. understand important new terms.
13-27
Key Terms
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
13-28
promotion
personal selling
mass selling
advertising
publicity
sales promotion
sales managers
advertising managers
public relations
sales promotion
managers
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
integrated marketing
communications
AIDA model
communication process
source
receiver
noise
encoding
decoding
message channel
pushing
Key Terms
21.
pulling
22.
adoption curve
23.
innovators
24.
early adopters
25.
early majority
26.
late majority
27.
laggards
28.
nonadopters
29.
primary demand
30.
selective demand
31.
task method
13-29