Transcript Basic Marketing, 13th edition

Chapter 14:
Promotion—
Introduction to
Integrated Marketing
Communications
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
Basic Promotion Methods
Target
Market
Product
Place
Personal
Selling
Promotion
Mass
Selling
Advertising
Price
Sales
Promotion
Publicity
Exhibit 14-1
14-2
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
Sales Promotion Activities
Aimed at Final
Consumers or Users
Contests
Coupons
Aisle displays
Samples
Trade shows
Point-of-purchase
materials
Banners and
streamers
Trading stamps
Sponsored events
Aimed at
Intermediaries
Price deals
Promotion allowances
Sales contests
Calendars
Gifts
Trade shows
Meetings
Catalogues
Merchandising aids
Aimed at Company’s
Own Sales Force
Contests
Bonuses
Meetings
Portfolios
Displays
Sales aids
Training materials
Exhibit 14-2
14-3
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
The Traditional Communication Model
Source
Encoding
Message
channel
Decoding
Receiver
Noise
Feedback
Exhibit 14-3
14-4
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
Customer-Initiated Interactive Communication
Receiver
(Customer)
Source’s
Message
Search
Noise
Select a
topic
Message
channel
Exhibit 14-5
14-5
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
Promotion and the Demand Curve
Price
Price
Price
D1
D2
D2
0
D2
D1
D1
Quantity
A. To be more elastic
0
Quantity
B. To the right
0
Quantity
C. Both to the right
and more elastic
Exhibit 14-6
14-6
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
Promotion and the AIDA Model
Promotion Objectives
Informing
Persuading
Adoption Process
AIDA Model
Awareness
Interest
Evaluation
Trial
Decision
Confirmation
Attention
Interest
{
}
Desire
}
Action
Reminding
Exhibit 14-7
14-7
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
Message Interpretation
Encoder
The same
message may be
interpreted
differently by the
encoder and the
decoder
Common
frame of
reference
Decoder
14-8
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
Push-Pull Strategies
Producer’s Promotion Blend
Exhibit 14-8
14-9
Wholesalers’
Promotion
Push
Promotion to
Channel Members
Wholesalers’
Promotion
Push
Retailers’
Promotion
Push
Business
Customers
Pull
Promotion to
Final Customers
Promotion to
Business Customers
Personal Selling, Sales Promotion, Advertising, Publicity
Final
Consumers
Pull
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
The Adoption Curve
Innovators
(3-5%)
Percent Adoption
90
Early
Adopters
(10-15%)
Early
Majority
(34%)
Late
Majority
(34%)
Laggards/
Nonadopters
(5-16%)
50
20
5
0
Exhibit 14-9
14-10
Time
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
Setting the Promotion Budget
Percentage of Sales
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Match Competitors
Per Unit
Uncommitted Resources
Task Method
14-11
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.