Note to Instructor Discussion Question What sales promotions have you seen in the last two months? They will often mention similar coupon books, fast food contests, and demonstrations in stores.
Note to Instructor This link is to McDonald’s Web page for press releases. Before clicking you might ask the students what kind of information McDonald’s might issue press releases about. You can then see the press releases which talk about finances, marketing strategies, and organizational issues.
Note to Instructor This Web link is to boston.com—a regional news Web site. This site usually has extensive banner advertising and sponsorships. A good question to ask students is “Why is this considered direct marketing.” Tell them that it is targeted, expects an immediate response, and is measurable.
Sender is the party sending the message to another party. Encoding is the process of putting thought into symbolic form. Message is the set of symbols the sender transmits. Media is the communications channels through which the message moves from sender to receiver. Decoding is the process by which the receiver assigns meaning to the symbols. Receiver is the party receiving the message sent by another party. Response is the reaction of the receiver after being exposed to the message. Feedback is the part of the receiver’s response communicated back to the sender Noise is the unplanned static or distortion during the communication process, which results in the receiver’s getting a different message than the one the sender sent.
Fundamental Of Marketing MKT243 Chapter 9 Marketing CommunicationDHD2009 MKT243 Fundamental Of Marketing 1
Slide Outline• Roles of Promotion• The Promotion Mix• Marketing communication process• Promotional goals, and The-AIDA concept• Factors affecting the promotional mix DHD2009 MKT243 Fundamental Of Marketing 2
Promotion• Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response DHD2009 MKT243 Fundamental Of Marketing 3
The Role of Promotion Overall Overall Promotional Mix Promotional Mix Marketing Marketing Objectives Objectives •• Advertising Advertising •• Public Relations Public Relations Marketing Mix •• Sales Promotion Sales Promotion Marketing Mix •• Product •• Personal Selling Personal Selling Product •• Distribution Distribution •• Promotion Promotion •• Price Price Target Market Target Market Promotion Plan Promotion Plan1 DHD2009 MKT243 Fundamental Of Marketing 4
The Promotion Mix• The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships DHD2009 MKT243 Fundamental Of Marketing 5
Promotional Mix Advertising Advertising Public Relations Public Relations Sales Promotion Sales Promotion Personal Selling Personal Selling2 DHD2009 MKT243 Fundamental Of Marketing 6
Goals and Tasks of Promotion Informing Informing Reminding Reminding Target Target Audience Audience Persuading Persuading4 DHD2009 MKT243 Fundamental Of Marketing 7
Tasks of Promotion1. INFORMING To increase awareness of new brand, product class, etc. (informative promotion)2. PERSUADING To stimulate the purchase or an action (persuasive promotion)3. REMINDING To keep the product and brand name in the public’s mind (reminder promotion) DHD2009 MKT243 Fundamental Of Marketing 8
The Promotion Mix Major Promotion ToolsAdvertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.Advertising-Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.• Broadcast• Print• Internet• Outdoor DHD2009 MKT243 Fundamental Of Marketing 9
The Promotion Mix Major Promotion ToolsSales promotion is the short-term incentives to encourage the purchase or sale of a product or serviceSales promotion-Activity that stimulate consumer buying and dealer effectiveness• Discounts• Coupons• Displays• Demonstrations DHD2009 MKT243 Fundamental Of Marketing 10
The Promotion Mix Major Promotion ToolsPersonal selling is the personal presentation by the firm’s sales force for the purpose of making sales and building customer relationshipsPersonal selling-A purchase situation involving a personal, paid for communication between two people in an attempt to influence each other.• Sales presentations• Trade shows• Incentive programs DHD2009 MKT243 Fundamental Of Marketing 11
The Promotion Mix Major Promotion ToolsPublic relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and eventsPublic relations-Marketing function that evaluates public attitudes, identifies areas within the organization the public may interested in, and executes a program of action to earn public understanding and acceptance • Press releases • Sponsorships • Special events • Web pages DHD2009 MKT243 Fundamental Of Marketing 12
The Promotion Mix Major Promotion ToolsDirect marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—through the use of direct mail, telephone, direct-response television, e-mail, and the Internet to communicate directly with specific consumers• Catalog• Telemarketing• Kiosks DHD2009 MKT243 Fundamental Of Marketing 13
Marketing Communication• CommunicationThe process by which we exchange or share meanings through a common set of symbols DHD2009 MKT243 Fundamental Of Marketing 14
The Communication Process DHD2009 MKT243 Fundamental Of Marketing 15
The AIDA Concept Action Desire Interest Attention5 DHD2009 MKT243 Fundamental Of Marketing 16
Steps in Developing Effective Marketing Communication Designing a MessageAIDA Model• Get Attention• Hold Interest• Arouse Desire• Obtain Action DHD2009 MKT243 Fundamental Of Marketing 17
The AIDA• Attention-Advertiser must first gain the attention of the target market. A firm cannot sell something if the market does not know that the good or service exists.• Interest-Simple awareness of a brand seldom leads to a sale next step is to create interest in the product. DHD2009 MKT243 Fundamental Of Marketing 18
Cont…• Desire Arose feeling to purchase the product• Action Some potential target market customers may have been convinced to buy but had not yet made the actual purchase. DHD2009 MKT243 Fundamental Of Marketing 19
Factors Affecting the Choice of Promotional Mix Nature of the product Nature of the product Stage in PLC Stage in PLC Target market factors Target market factors Type of buying decision Type of buying decision Promotion funds Promotion funds Push or pull strategy Push or pull strategy6 DHD2009 MKT243 Fundamental Of Marketing 21
Factors Affecting the Promotional Mix• Nature of the product Characteristic of the product itself can influence the promotion mix DHD2009 MKT243 Fundamental Of Marketing 22
Factors Affecting the Promotional Mix• Stage in product life cycle Stages i. Introductory Promotion-to inform the target audience that stage the product is available (advertising +PR) ii. Growth stage Mix tools-Personal selling iii. Maturity stage Greater competition, need to be persuasive (reminder advertising and Sales promotion) iv. Decline stage Reduce advertising (Personal Selling+Sales promotion DHD2009 MKT243 Fundamental Of Marketing 23
Target Market Characteristics For… • Widely scattered market • Informed buyers Advertising Advertising • Repeat buyers Sales Promotion Sales Promotion Less Personal Selling Less Personal Selling6 DHD2009 MKT243 Fundamental Of Marketing 24
Type of Buying Decision Routine Routine Type of buying decision Type of buying decision Neither routine Neither routine affects promotional affects promotional choice nor complex nor complex choice Complex Complex6 DHD2009 MKT243 Fundamental Of Marketing 25
Factors Affecting the Promotional Mix• Target market characteristics Characteristic of targeted groups/ market• Type of buying decision Routine, limited or extensive• Available fund Cost or budget set by the marketers and the organization• Push and Pull strategy Push strategy-A marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler/ retailer to carry and sell particular merchandise Pull strategy-A marketing strategy that stimulate consumer demand to obtain product distribution DHD2009 MKT243 Fundamental Of Marketing 26
Push vs. Pull• Push Strategy Manufacturer Wholesaler Retailer Consumer promotes to promotes to Promotes to buys wholesaler to retailer consumer retailer Orders to manufacturer• Pull Strategy Consumer Retailer Wholesaler Manufacturer demand demand product demand product promotes to product to from from consumer retailer wholesaler manufacturer Orders to manufacturer DHD2009 MKT243 Fundamental Of Marketing 27