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Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
Marketing Promotion
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Marketing Promotion

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    • 1. Promotion and Integrated Marketing Communication Advertising Public Relations/ Publicity Personal Selling Sales Promotion Direct Marketing Chapters 12, 13 & 14
    • 2. MARKETING COMMUNICATIONS MARKETING COMMUNICATIONS •• MARKETER INITIATED TECHNIQUES USED TO MARKETER INITIATED TECHNIQUES USED TO SET UP CHANNELS OF INFORMATION AND SET UP CHANNELS OF INFORMATION AND PERSUASION WITH TARGETED AUDIENCES PERSUASION WITH TARGETED AUDIENCES TO INFLUENCE ATTITUDES AND BEHAVIOR TO INFLUENCE ATTITUDES AND BEHAVIOR “Promotion” “Promotion”  Message and Media  Message and Media •• MARKETING COMMUNICATIONS MIX MARKETING COMMUNICATIONS MIX “Tool Box” of Media and Techniques “Tool Box” of Media and Techniques  Integration and Coordination  Integration and Coordination  Based on Communications Model  Based on Communications Model
    • 3. MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS Informing Informing Persuading Persuading Reminding Reminding
    • 4. 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 Develop Sales Leads Stimulate Interest Establish Understanding Build Support & Acceptance
    • 5. ELEMENTS OF THE MARKETING COMMUNICATIONS MIX 1. Advertising 1. Advertising 5. Direct Marketing 5. Direct Marketing 4. Personal Selling 4. Personal Selling 2. Public Relations 2. Public Relations 3. Sales 3. Sales Promotion Promotion Integrated Marketing Communications (IMC) is the strategic integration of multiple means of communicating with target markets
    • 6. MARKETING COMMUNICATIONS PLANNING Marketing Plan Review Marketing Plan Review Situation Analysis Situation Analysis Communications Process Communications Process Analysis Analysis METHODS Budget Development Budget Development Program Development Program Development PUSH vs. PULL Integration & Implementation Integration & Implementation Monitoring, Evaluating, Monitoring, Evaluating, Controlling Controlling
    • 7. Push and Pull Strategies • Push strategy is directed toward the channel members – Provide incentives for those in the distribution channels to buy the product • Pull strategy is directed toward the ultimate purchaser – The focus is on creating demand at the household or ultimate consumer level
    • 8. Approaches to Determining the Promotional Budget • Percentage of sales – A fixed amount of money per past or projected sales • Probably the most widely used as it is simple • But, what about cause and effect? • All available funds/All you can afford – Budget what is left over for promotional expenditures • New companies often put all available funds into promotion to penetrate the market • But, you can miss opportunities or overspend
    • 9. Approaches to Determining the Promotional Budget • Competitive parity/Follow the competition – Adopt the average ratio for promotional expenses to sales for the industry or main competitor; or the same absolute amount as a competitor • But, what if they do not know what they are doing and/or strategies and tactics are different? • Objective and task – 1) Determine objectives; 2) Determine relationship between expenditures and ability to achieve objective; 3) Set a budget that allows the achievement of these goals
    • 10. Psychological Processes • The high involvement decision process Need -> search -> evaluation -> purchase -> outcomes • The adoption process Awareness -> interest -> evaluation -> trial -> adoption -> post-adoption confirmation • Buyer readiness states/Hierarchy of effects Awareness -> knowledge -> liking -> preference -> conviction -> purchase • AIDA Awareness -> Interest -> Desire -> Action
    • 11. Selection of the Promotional Mix • PRODUCT CHARACTERISTICS – Industrial good/technical good • Need personal selling; customers want to receive information, inspect and compare the products – Consumer package goods/frequently purchase items • Advertising and sales promotion to reach market – Unit value • Low cost must use mass media approaches, with high unit cost personal selling is effective – Customization • Customized often requires personal selling
    • 12. Selection of the Promotional Mix • CUSTOMER CHARACTERISTCS – Industrial versus consumer market • Consumers are easier to reach (decision maker) through media sources; industrial buyers typically have a more formal buying process, requiring personal selling – Number of customers • For a small number of customers, personal selling can play a much more important role – Geographical dispersion • Not only affects the type of promotional effort, but the media choices
    • 13. Advertising Defined • ADVERTISING – Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor • Magazines, newspaper, outdoor posters, direct mail, radio televisions, etc. • Key issues – The time or media space is paid for – The sponsor is identified and has control over the promotional activity
    • 14. DEVELOPING AN ADVERTISING CAMPAIGN Design Creative Strategy Select Target Market Determine Advertising Objectives Evaluate Advertising Effectiveness Determine Advertising Budget Select & Schedule Media
    • 15. ADVERTISING STRATEGY ADVERTISING STRATEGY •• MESSAGE STRATEGIES MESSAGE STRATEGIES  Objective vs. Subjective Messages  Objective vs. Subjective Messages  Comparative Message Techniques  Comparative Message Techniques  Emotional Techniques: Mood, Fear, Humor  Emotional Techniques: Mood, Fear, Humor  Celebrity Endorsements vs. Non-Celebrity Images  Celebrity Endorsements vs. Non-Celebrity Images •• MEDIA STRATEGIES MEDIA STRATEGIES  Broadcast: Television, Radio  Broadcast: Television, Radio  Print: Newspapers, Magazines, Journals  Print: Newspapers, Magazines, Journals  Specialized: Outdoor, Transit, Direct Mail, Internet  Specialized: Outdoor, Transit, Direct Mail, Internet
    • 16. ADVERTISING STRATEGY ADVERTISING STRATEGY •• RELATIVE STRENGTHS AND WEAKNESSES OF RELATIVE STRENGTHS AND WEAKNESSES OF STRATEGIES STRATEGIES Effectiveness and Efficiency: Reach and Effectiveness and Efficiency: Reach and Frequency Frequency Target Capabilities Target Capabilities Cost Cost Believability Believability Appropriateness for Message (Image, Details) Appropriateness for Message (Image, Details)
    • 17. Reach & Frequency • Reach: number of different target consumers who are exposed to a message at least once during a specific period of time • Frequency: number of times an individual is exposed to a given message during a specific period of time • Cost per contact: cost of reaching one member of the target market – Allows comparison across advertising strategy vehicles
    • 18. EVALUATING ADVERTISING EFFECTIVENESS Pretesting Pretesting Posttesting Posttesting Sales Effectiveness Sales Effectiveness Evaluations Evaluations Tools: •Focus Groups •Screening •Persuasion Scores Tools: •Unaided Recall Tests •Aided Recall Tests •Inquiry Evaluations Tools: •Monitor Sales
    • 19. PUBLIC RELATIONS PUBLIC RELATIONS •• EFFORTS TO IMPROVE AND MANAGE EFFORTS TO IMPROVE AND MANAGE RELATIONSHIPS WITH PUBLICS RELATIONSHIPS WITH PUBLICS Customers Customers Stock Holders Stock Holders Community Community Government Government News Media News Media •• PROACTIVE vs. REACTIVE PROACTIVE vs. REACTIVE DuPont vs. Exxon DuPont vs. Exxon •• PUBLICITY PUBLICITY Not Overtly Sponsored Not Overtly Sponsored High Credibility High Credibility
    • 20. PUBLIC RELATIONS Public Relations Functions Press Press Relations Relations Advising Advising Management Management Lobbying Lobbying Product Product Promotions Promotions Corporate Corporate Communications Communications
    • 21. Personal Selling • PERSONAL SELLING – Oral presentation in a conversation with one or more prospective purchasers for the purpose of making a sale – Personal selling represents the most popular promotional effort in terms of financial expenditures and number of people employed – Personal Selling is: • (1) Dyadic, (2) Flexible, (3) Focused (personalized), and (4) Often results directly in a sale • Other promotional elements move the customer toward the sale, personal selling closes the sale
    • 22. PERSONAL SELLING AND PERSONAL SELLING AND SALES MANAGEMENT SALES MANAGEMENT •• FUNCTIONS AND CONTRIBUTIONS OF FUNCTIONS AND CONTRIBUTIONS OF PERSONAL SELLING PERSONAL SELLING “Boundary Spanner” Role, Relationship “Boundary Spanner” Role, Relationship Management (Trust) Management (Trust) Two-Way Information Channel (Diffusion Two-Way Information Channel (Diffusion of Product and Market Information) of Product and Market Information) Facilitate Exchange Facilitate Exchange
    • 23. THE MARKETING-COMMUNICATIONS MIX: Relative Emphasis in Consumer and Business Markets BUSINESS MARKETS CONSUMER MARKETS EMPHASIS EMPHASIS ADVERTISING ADVERTISING PROMOTIONS PROMOTIONS DIRECT MKT. DIRECT MKT. SALES SALES FORCE FORCE COMPLEMENT
    • 24. PERSONAL SELLING AND PERSONAL SELLING AND SALES MANAGEMENT SALES MANAGEMENT •• ROLES OF SALESPERSON ROLES OF SALESPERSON Psychologist Psychologist Consultant Consultant Educator // Teacher Educator Teacher Problem Solver Problem Solver Team Leader Team Leader •• TYPES OF SELLING POSITIONS TYPES OF SELLING POSITIONS New Business (Prospector) New Business (Prospector) Existing Business (Order Taker) Existing Business (Order Taker) Detailing Detailing Support (Marketing, Technical) Support (Marketing, Technical)
    • 25. STEPS IN THE SELLING PROCESS: STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACH A RELATIONSHIP APPROACH •• INITIATING RELATIONSHIPS INITIATING RELATIONSHIPS  Prospecting  Prospecting  Pre-Call Planning  Pre-Call  ApproachPlanning  Approach •• DEVELOPING CUSTOMER RELATIONSHIPS DEVELOPING CUSTOMER RELATIONSHIPS  Sales Communications and Presentations  Sales Communications and Presentations  Gaining and Managing Commitment  Gaining and Managing Commitment •• ENHANCING CUSTOMER RELATIONSHIPS ENHANCING CUSTOMER RELATIONSHIPS  Follow-Up  Follow-Up  Support  Support •• TRADITIONAL vs. RELATIONSHIP APPROACHES TRADITIONAL vs. RELATIONSHIP APPROACHES •• Consultative (needs-satisfaction) vs. Manipulative (product-focused) Consultative (needs-satisfaction) vs. Manipulative (product-focused)
    • 26. SALES MANAGEMENT ISSUES SALES MANAGEMENT ISSUES •• RECRUITING AND HIRING RECRUITING AND HIRING Difficult to Predict Success Difficult to Predict Success •• DEPLOYMENT DEPLOYMENT Territory Design Territory Design •• AUTOMATION AUTOMATION Use of Technology to Link Buyer, Salesperson, and Use of Technology to Link Buyer, Salesperson, and Organizations (Customer Relationship Organizations (Customer Relationship Management and Supply Chain Management) Management and Supply Chain Management) •• EVALUATION AND COMPENSATION EVALUATION AND COMPENSATION Outcome-Based vs. Behavior-Based Outcome-Based vs. Behavior-Based
    • 27. Sales Promotion • SALES PROMOTION – Those marketing activities - other than advertising, public relations/publicity, and personal selling - that stimulate consumer purchasing and dealer effectiveness • Displays, shows and exhibitions, coupons, contests, samples
    • 28. THE GROWTH IN SALES PROMOTION Reasons for the Growth in Sales Promotion: Consumer Factors Consumer Factors Accountability Accountability Impact of Technology Impact of Technology Short-Term Focus Short-Term Focus Increased Retail Power Increased Retail Power
    • 29. OBJECTIVES OF CONSUMER PROMOTIONS Encourage Stimulate Repurchase Trial Complementary Increase Products Consumption Support Flexible Pricing Neutralize Impulse Competitors Purchasing
    • 30. CONSUMER SALES PROMOTION TECHNIQUES Price Deals Advertising Specialties Coupons Rebates Sampling CrossPromotions Premiums Contests, Games, Sweepstakes
    • 31. OBJECTIVES OF TRADE PROMOTIONS Avoid Price Avoid Price Reductions Reductions Gain/Maintain Gain/Maintain Distribution Distribution Defend Against Defend Against Competitors Competitors Influence Influence Reseller Promotion Reseller Promotion Increase Reseller Increase Reseller Inventory Inventory Influence Influence Price Discount Price Discount
    • 32. LIMITATIONS OF SALES PROMOTION Cannot Reverse Declining Sales Cannot Reverse Declining Sales Trend Trend Cannot Overcome Inferior Cannot Overcome Inferior Product Product May Encourage Competitive May Encourage Competitive Retaliation Retaliation May Hurt Profit May Hurt Profit
    • 33. Direct Marketing • Techniques used to get consumers to make a purchase from their home, office or other nonretail setting – Direct mail, catalogs, mail order, telemarketing, electronic retailing
    • 34. TECHNIQUES OF DIRECT MARKETING Electronic Electronic Media Media Telemarketing Telemarketing Print Print Media Media Direct Mail Direct Mail Direct Selling Direct Selling Broadcast Broadcast Media Media

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