1 / 70

Integrated Marketing Communications: Promotional Mix and Pricing Strategies

This chapter discusses integrated marketing communications, the promotional mix, and pricing strategies in marketing management. It covers topics such as advertising, sales promotion, personal selling, public relations, ethical issues, and consumer perceptions of price.

fdianne
Download Presentation

Integrated Marketing Communications: Promotional Mix and Pricing Strategies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Part 4 Marketing Management

  2. Chapter 14 Promotion and Pricing Strategies

  3. Chapter Objectives • Discuss how integrated marketing communications relates to a firm’s promotional strategy. • Explain the concept of a promotional mix and outline the objectives of promotion. • Summarize the different types of advertising and advertising media. • Describe the role of sales promotion, personal selling, and public relations in promotional strategy. • Identify the Profitabilitynfluence the selection of a promotional mix. • Discuss the major ethical issues involved in promotion. • Outline the different types of pricing objectives and discuss how firms set prices in the marketplace. • Summarize the four alternative pricing strategies. • Discuss consumer perceptions of price.

  4. Integrated Marketing Communications • Promotion—communication link between buyer and seller that performs the function of informing, persuading, and influencing a purchase decision. • Focusing on Primary Demand • Focusing on Selective Demand

  5. Integrated Marketing Communications • Coordination of all promotional activities – media advertising, direct mail, personal selling, sales promotion, and public relations – to produce a unified customer-focused message. • Focuses on customer needs to create a unified promotional message • Firms need a broad view of promotion to implement IMC

  6. The Promotional Mix • Promotional Mix—combination of personal and nonpersonal selling techniques designed to achieve promotional objectives. • Personal Selling—interpersonal promotional process involving a seller’s face-to-face presentation to a prospective buyer. • Nonpersonal selling—consists of advertising, sales promotion, direct marketing, and public relations

  7. Comparing the Components of the Promotional Mix

  8. The Promotional Mix • Objectives of Promotional Strategy • Providing Information • Differentiating a Product • Increasing Sales • Stabilizing Sales • Accentuating the Product’s Value

  9. Five Major Promotional Objectives

  10. The Promotional Mix • Objectives of Promotional Strategy • Providing Information • Major portion of U.S. advertising is information-oriented • Differentiating a Product • Positioning: establishing a place in the minds of customers by communicating meaningful distinctions about the attributes, price, quality, or use of a good or service

  11. The Promotional Mix • Objectives of Promotional Strategy • Increasing Sales • Most common objective of a promotional strategy • Stabilizing Sales • Sales contests often used during slack periods • Sales promotion materials often distributed to customers to stimulate sales during off-seasons

  12. The Promotional Mix • Objectives of Promotional Strategy • Accentuating the Product’s Value • Promotional strategies can enhance product values by explaining often unrecognized ownership benefits

  13. The Promotional Mix • Promotional Planning • Increasing complexity and sophistication of marketing communications requires careful planning to coordinate IMC strategies • Product Placement • Guerrilla Marketing

  14. Advertising • Advertising—paid nonpersonal communication delivered through various media and designed to inform, persuade, or remind members of a particular audience.

  15. The 15 Largest Advertisers in the United States

  16. Advertising • Types of Advertising • Product Advertising—consists of messages designed to sell a particular good or service • Institutional Advertising—involves messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities

  17. Advertising • Advocacy Advertising (Cause Advertising): promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process

  18. Advertising • Advertising and the Product Cycle • Product and Institutional Advertising fall into one of three categories, based on whether the ads intend to inform, persuade, or remind • Informative Advertising—used to build initial demand for a product in the introductory phase of the product life cycle

  19. Advertising • Advertising and the Product Cycle • Persuasive Advertising—attempts to improve the competitive status of a product, institution, or concept, usually in the growth and maturity stages of the product life cycle • Comparative Advertising—form of persuasive product advertising that compares products directly with their competitors

  20. Advertising • Advertising and the Product Cycle • Reminder-oriented advertising—often appears in the late maturity or decline stages of the product life cycle to maintain awareness of the importance and usefulness of a product, concept, or institution

  21. Advertising • Advertising Media • Must choose how to allocate advertising budget • All media offer advantages and disadvantages • Must consider cost and which media is best suited for communication

  22. Advertising Media

  23. Advertising • Advertising Media • Newspaper • Continue to dominate local advertising • Ads easily tailored for local tastes and preferences • Can coordinate newspaper messages with other promotional efforts • Disadvantage: relatively short life span

  24. Advertising • Advertising Media • Television • America’s leading national advertising medium • An expensive advertising medium • Price for a 30-second ad during weeknight prime time on network television generally ranges from $100,000 to more than $500,000

  25. Advertising • Advertising Media • Radio • Average U.S. household owns five radios • Captive audience of listeners as they commute to and from work • In major markets, many stations serve different demographic groups with targeted programming

  26. Advertising • Advertising Media • Magazines • Includes consumer publications and trade journals • Can often customize their publications and target advertising messages to different regions of the country • A natural choice for targeted advertising

  27. Advertising • Advertising Media • Direct Mail • Average American household receives about 550 pieces of direct mail each year, including 100 catalogs • e-mail another option • Must overcome junk-mail and spam classification

  28. Advertising • Advertising Media • Outdoor Advertising • Just over 2 percent of total advertising spending • Share is growing • Majority of spending is for billboards • Other types include: signs in transit stations, stores, airports, and sports stadiums • Disadvantages include: • Brief messages are required • Mounting concern for aesthetic and environmental issues

  29. Advertising • Advertising Media • Online and Interactive Advertising • Range from Web sites and CDs to information kiosks • Currently commands only 3 percent of media spending, but is the fastest-growing media segment

  30. Advertising • Advertising Media • Sponsorship—involves providing funds for a sporting or cultural event in exchange for a direct association with the event • Sports sponsorships attract two-thirds of total sponsorship dollars • Primary benefits: exposure to the event’s audience and association with the image of the activity

  31. Advertising • Advertising Media • Other Media Options • Infomercials: 30-minute programs that resemble regular TV programs, but are devoted to selling goods or services • Other Media options include: • Ads in movie theaters • Ads on airline movie screens • Printed programs, Subway tickets • Turnpike toll receipts • Automated teller machines

  32. Sales Promotion • Sales promotion—nonpersonal marketing activities other than advertising, personal selling and public relations that stimulate consumer purchasing and dealer effectiveness. • Potential advantages: • Short-term increased sales • Increased brand equity • Enhanced customer relationships

  33. Sales Promotion • Consumer-Oriented Promotions • Goals of a consumer-oriented sales promotion include: • Getting new and existing customers to try or buy products • Encouraging repeat purchases by rewarding current users • Increasing sales of complementary products • Boosting impulse purchases

  34. Spending on Consumer-Oriented Promotions

  35. Sales Promotion • Consumer-Oriented Promotions • Premiums—items given free or at a reduced price with the purchase of another product. • Coupons offer small price discounts • Rebates offer cash back to consumers • Sample—a gift of a product distributed by mail, door-to-door, in a demonstration, or inside packages of another product

  36. Sales Promotion • Consumer-Oriented Promotions • Games, Contests, and Sweepstakes • Offering cash, merchandise or travel as prizes to participating winners • Often used to introduce new goods and services and to attract additional customers • Court rulings and legal restrictions have limited the use of contests

  37. Sales Promotion • Consumer-Oriented Promotions • Promotional Products (Specialty advertising) • Because these specialty advertising products are useful, people tend to keep and use them • Gives advertisers repeated exposure • Originally designed to identify and create goodwill for advertisers • Now generates sales leads and develops traffic for stores and trade show exhibitors.

  38. Sales Promotion • Trade-Oriented Promotions • Trade promotion—sales promotion geared to marketing intermediaries • Used to encourage retailers to: • Stock new products • Continue carrying existing ones • Promote products effectively to consumers.

  39. Sales Promotion • Trade-Oriented Promotions • Point-of-purchase (POP) advertising— displays or demonstrations that promote products when and where consumers buy them • Takes advantage of many shoppers’ tendencies to make purchase decisions in the store • Trade shows—promote goods or services to intermediaries

  40. Personal Selling • Personal selling—interpersonal promotional process involving a seller’s face-to-face presentation to a prospective buyer. Used most often when: • Customers are relatively few in number and geographically concentrated • Product is technically complex, involves trade-ins, and requires special handling • Product is high in price • Product moves through direct-distribution channels

  41. Personal Selling • Sales Tasks • Order Processing—selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders • Creative Selling—personal selling involving situations in which a considerable degree of analytical decision making on the buyer’s part results in the need for skillful proposals of solutions for the customer’s needs

  42. Personal Selling • Sales Tasks • Missionary Selling—indirect form of selling in which specialized salespeople promote goodwill among indirect customers, often by assisting customers in product use

  43. Personal Selling • The Sales Process • Seven Steps in the Sales Process

  44. Personal Selling • The Sales Process • Prospecting, Qualifying, and Approaching • Prospecting involves identifying potential customers • Qualifying involves identifying potential customers who have the financial ability and authority to buy. • Before making the initial contact: • Careful preparations are made • Available data about a prospective customer and other pertinent information is analyzed

  45. Personal Selling • The Sales Process • Presentation and Demonstration • Involves communicating promotional messages • Major features of the product, highlights of the advantages, and examples of satisfied consumers are typically presented • Involves the prospect in the sales presentation • Reinforces the message that the salesperson has been communicating

  46. Personal Selling • The Sales Process • Handling Objections • Allows sales personnel to remove obstacles and complete the sale • Can become a positive part of the sales process • Allows the salesperson to present additional information

  47. Personal Selling • The Sales Process • Closing • Critical point in a selling relationship— the time at which the salesperson actually asks the prospect to buy • If the presentation effectively matches product features to customer needs, the closing should be a natural conclusion.

  48. Personal Selling • The Sales Process • Follow-up • Salesperson’s actions after the sale may well determine whether the customer will make another purchase • Building a long-term relationship • By calling soon after a purchase, the salesperson provides psychological reinforcement for the customer’s decision to buy • Also gives the seller a chance to correct any problems

  49. Personal Selling • Recent Trends in Personal Selling • Telemarketing • Outbound telemarketing—when a sales representative calls you at your place of business • Inbound telemarketing—when the customer calls a toll-free phone number to get information or place an order.

  50. Personal Selling • Recent Trends in Personal Selling • Relationship Selling—when a salesperson builds a mutually beneficial relationship with a customer through regular contacts over an extended period • Consultative selling—meeting customers’ needs by listening to them, understanding and caring about their problems, paying attention to details, suggesting solutions, and following through after the sale

More Related