chapter 13 · chapter 13 promotion – introduction to integrated marketing communication ......

Chapter 13Promotion –

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.

13-2

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.

13-3

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.

13-4

Promotion and Marketing

Strategy Planning (Exhibit 13-1)

CH 14: Personal

Selling and

Customer Service

CH 13: Promotion

Intro to Integrated

Marketing

Communications

Promotion

methods

Managing

promotion

Effective

communication

Blending

promotion

CH 15: Advertising,

Publicity, & Sales

Promotion

13-5

Several Promotion Methods Are

Available

Mass Selling

Personal Selling

Sales Promotion

Different

Methods of

Promotion Advertising Publicity

13-6

Someone Must Plan, Integrate, and

Manage the Promotion Blend

Sales Promotion

Managers

Advertising

ManagersSales Managers

Marketing

Managers

Integrated

Marketing

Communications

13-7

Which Method to Use Depends

on Promotion Objectives

Persuading

Informing

Reminding

13-8

Reminding May Be Enough

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

13-9

Relation of Promotion Objectives,

Adoption Process, and AIDA

Model(Exhibit 13-2)

Promotion

Objectives

Adoption

Process

AIDA Model

InformingAwareness

Interest

Attention

Interest

PersuadingEvaluation

TrialDesire

RemindingDecision

ConfirmationAction

{}}

13-10

Interactive Exercise: AIDA

13-11

The Traditional Communication

Process (Exhibit 13-3)

Noise

Source

Receiver

Encoding

Message

channel

Decoding

Feedback

13-12

This Same Message May Be

Interpreted Differently(Exhibit 13-4)

Encoder

Common

frame of

reference

Decoder

13-13

Checking Your Knowledge

Ron Popeil has been a pioneer in the use of direct-response 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. message channel

B. encoding

C. decoding

D. feedback

E. noise

13-14

Encoding and Decoding

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

13-15

Feedback

Integrated Direct-

response Promotion

Targeted Direct-

response Promotion

Outbound

Promotion

Model

13-16

A Model of Customer-Initiated

Interactive Communication (Exhibit 13-5)

NoiseSource’s

message

Message

channel

Search

Select a

topic

Receiver

(customer)

13-17

Ethical Issues in Promotion

Exaggerated claims

Invading consumer

privacy

Source credibility

Promotion

frequently

dances on

ethical

boundaries

13-18

Pushing in the Channel Focuses

Promotion at Intermediaries (Exhibit 13-6)

Finalconsumers

request (pull)product

Businesscustomers

request (pull)product

Producer’s promotion blendPersonal selling, sales promotion, advertising,

and publicity

Wholesalers’

promotion

push

Retailers’

promotion

push

Wholesalers’

promotion

push

Promotionto businesscustomers

Promotion to channel members

Promotionto final

customers

13-19

An Example of Pushing and

Pulling

13-20

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. pulling.

B. noise.

C. pushing.

D. encoding.

E. decoding.

13-21

The Adoption Curve (Exhibit 13-7)

Innovators

(3–5%)

Laggards ornonadopters

(5–16%)

Earlyadopters(10–15%)

Earlymajority

(34%)

Latemajority

(34%)

Time

Pe

rce

nt

ad

op

tio

n

5

20

50

90

13-22

Opinion Leaders Matter

13-23

Stimulating Adoption of an

Image

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

13-24

Promotion Varies Over the Life Cycle

“This new

idea is good”

“Our brand is

best”

“Our brand is

better, really”

Reminder:

“Stick with

our brand.”

13-25

Setting the Promotion Budget

Percentage of Sales

Task Method

13-26

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.

13-27

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.

Key Terms

1. promotion

2. personal selling

3. mass selling

4. advertising

5. publicity

6. sales promotion

7. sales managers

8. advertising managers

9. public relations

10. sales promotion managers

11. integrated marketing communications

12. AIDA model

13. communication process

14. source

15. receiver

16. noise

17. encoding

18. decoding

19. message channel

20. pushing

13-28

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