basic marketing for use only with perreault/cannon/ mccarthy texts, © 2011 mcgraw-hill companies,...

36
BASIC MARKETING For use only with Perreault/Cannon/ McCarthy texts, © 2011 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Chapter 14 Promotion – Introduction to Integrated Marketing Communication

Upload: toby-cobb

Post on 17-Dec-2015

229 views

Category:

Documents


1 download

TRANSCRIPT

BASIC MARKETING

For use only with Perreault/Cannon/ McCarthy texts, © 2011 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

Chapter 14Promotion – Introduction to Integrated Marketing Communication

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 most firms use a blend of different promotion methods.

3. Understand the importance of promotion objectives.

4. Know how the communication process affects promotion planning.

5. Know how direct-response promotion is helping marketers develop more targeted promotion blends.

At the end of this presentation, you should be able to:

6. Understand how customer-initiated interactive communication is different.

7. Know how typical promotion plans are blended to get an extra push from wholesalers and retailers and help from customers in pulling products through the channel.

8. Understand how promotion blends typically vary over the adoption curve and product life cycle.

9. Understand how to determine how much to spend on promotion efforts.

10. Understand important new terms.

Marketing Strategy Planning Process

Promotion and Marketing Strategy Planning (Exhibit 14-1)

CH 16: Advertising & Sales Promotion

Promotion methods

Managing promotion

Effective communication

Blending promotion

CH 15: Personal Selling and Customer Service

CH 14: Promotion Intro. to Integrated Marketing Communications

Several Promotion Methods Are Available

Mass SellingMass Selling

Personal SellingPersonal Selling

Sales PromotionSales Promotion

Different methods of promotion Advertising Publicity

• Contests• Coupons• Aisle displays• Samples• Trade shows• Point-of-purchase

materials• Banners & streamers• Frequent buyer

programs• Sponsored events

• Contests• Coupons• Aisle displays• Samples• Trade shows• Point-of-purchase

materials• Banners & streamers• Frequent buyer

programs• Sponsored events

Sales Promotion Tries to Spark Immediate Interest (Exhibit 14-2)

• Price deals• Promotion allowances• Sales constests• Calendars & gifts• Trade shows• Meetings• Catalogs• Merchandising aids• Videos

• Price deals• Promotion allowances• Sales constests• Calendars & gifts• Trade shows• Meetings• Catalogs• Merchandising aids• Videos

Aimed at wholesalers or retailers

Aimed at wholesalers or retailers

• Contests & Bonuses• Meetings• Portfolios & Displays• Sales aids • Training materials

• Contests & Bonuses• Meetings• Portfolios & Displays• Sales aids • Training materials

Aimed at company’s own sales force

Aimed at company’s own sales force

Aimed at consumers or users

Aimed at consumers or users

Sales Promotion

Someone Must Plan, Integrate, and Manage the Promotion Blend

Sales Promotion Managers

Sales Promotion Managers

Advertising Managers

Advertising ManagersSales ManagersSales Managers

Marketing ManagersMarketing Managers

IntegratedMarketing

Communications

Which Method to Use Depends on Promotion Objectives

PersuadingPersuading

InformingInforming

RemindingReminding

Reminding May Be Enough

© 2011 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Promotion Objectives Relate to the Adoption Process and AIDA Mode (Exhibit 14-3)

Promotion Objectives

Adoption Process

AIDA Model

Informing

Awareness

Interest

Attention

Interest

Persuading

Evaluation

Trial Desire

Reminding

Decision

Confirmation Action

{}}

Interactive Exercise: AIDA

The Traditional Communication Process (Exhibit 14-4)

NoiseNoise

SourceSource

ReceiverReceiver

EncodingEncoding

Message channel

Message channel

DecodingDecoding

FeedbackFeedback

Encoding & Decoding Depend on a Common Frame of Reference (Exhibit 14-5)

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 channelB. encodingC. decodingD. feedback E. noise

Encoding and Decoding

© 2011 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Integrated Direct-Response Promotion Is Very Targeted

Target DirectlyWith a DatabaseTarget Directly

With a Database

More Than Direct Mail

More Than Direct Mail

Ethical ConcernsEthical Concerns

A Model of Customer-Initiated Interactive Communication (Exhibit 14-6)

NoiseNoiseSource’s message

Source’s message

Message channel

Message channel

SearchSearch

Select a topic

Select a topic

Receiver (customer)

Receiver (customer)

How Typical Promotion Plans Are Blended and Integrated (Exhibit 14-7)

Other Promotional Elements of Pushing

Pulling – Demand Pulls the Product through the Channel (Exhibit 14-7)

An Example of

Pulling

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.

Adoption Processes Can Guide Promotion Planning (Exhibit 14-8)

Appeal for Innovators

Stimulating Adoption of an Image

© 2011 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Promotion Varies Over the Life Cycle

““This new This new idea is good”idea is good”

““Our brand is Our brand is best”best”

““Our brand is Our brand is better, really”better, really”

““Let’s tell Let’s tell those who those who

still want our still want our product”product”

Nature of Competition Requires Different Promotion

Setting the Promotion Budget

Percentage of SalesPercentage of Sales

Task MethodTask Method

Budget based on percent of past or expected sales most common approach

main advantage is ease

can lead to major problems, including cutbacks when more money is needed

Task method—budgets for what needs to be accomplished usually the sensible approach

requires that activities be evaluated against objectives

Same ideas apply in budgeting other types of marketing activities

Setting the Promotion Budget

Which of the following is the main type of "mass selling"?

A. Personal selling.B. Publicity.C. Sales promotion.D. Advertising.E. Both B and D.

Study Question 1

A car company sent three automobile magazines some technical information and explanations about the features of its innovative new model. One of the magazines later printed a story about the car. This is an example of: 

A. personal selling.B. advertising.C. publicity.D. sales promotion.E. None of the above

Study Question 2

Blending the firm's promotion efforts to convey a complete and consistent message is the goal of: 

A. Sales management communications.B. Sales promotion communications.C. Integrated promotional marketing.D. Integrated marketing communications.E. Integrated sales promotion. 

Study Question 3

What basic promotion objective should be emphasized by a producer introducing a really new product which satisfies customer needs better than any existing product? 

A. PersuadingB. RemindingC. MaximizingD. InformingE. Communicating

Study Question 4

What basic promotion objective should be sought by a producer whose Product is very similar to its many competitors' Products? A. PersuadingB. PromotingC. CommunicatingD. InformingE. Reminding

Study Question 5