1 / 54

Promotional Planning for Competitive Advantage

This chapter discusses the role of promotion in the marketing mix, the communication process, the goals of promotion, and the elements of the promotional mix. It also explores the concept of integrated marketing communications and the factors that affect the promotional mix.

basila
Download Presentation

Promotional Planning for Competitive Advantage

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. 10 MarketingLamb, Hair, McDaniel Designed by Eric Brengle B-books, Ltd. Prepared by Amit Shah Frostburg State University Promotional Planning for Competitive Advantage CHAPTER 16

  2. Learning Outcomes Discuss the role of promotion in the marketing mix Describe the communication process Explain the goal of promotion LOI LO2 LO3

  3. Learning Outcomes Discuss the elements of the promotional mix Discuss the AIDA concept and its relationship to the promotional mixDiscuss the concept of integrated marketing communications Describe the factors that affect the promotional mix LO4 LO5 LO6 LO7

  4. The Role of Promotion in the Marketing Mix LOI Discuss the role of promotion in the marketing mix

  5. Promotion The Role of Promotion LOI Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

  6. Promotional Strategy A plan for the optimal use of the elements of promotion: • Advertising • Public Relations • Sales Promotion • Personal Selling Competitive Advantage The Role of Promotion LOI

  7. Overall Marketing Objectives • Promotional Mix • Advertising • Public Relations • Sales Promotion • Personal Selling • Promotion Plan • Marketing Mix • Product • Place • Promotion • Price Target Market The Role of Promotionin the Marketing Mix LOI

  8. High product quality Rapid delivery Low prices Excellent service Unique features Competitive Advantage LOI

  9. LOI REVIEW LEARNING OUTCOMEThe Role of Promotion in the Marketing Mix

  10. Marketing Communication LO2 Describe the communication process

  11. Communication http://www.mcdonalds.com Online Communication LO2 The process by which we exchange or share meanings through a common set of symbols.

  12. Categories of Communication Interpersonal Communication Mass Communication Marketing Communication LO2

  13. As Senders As Receivers • Develop messages • Adapt messages • Spot new communication opportunities • Inform • Persuade • Remind Marketing Communication LO2

  14. Noise Sender EncodingMessage Message Channel Decoding Message Receiver Feedback Channel The Communication Process LO2

  15. Corporate Blogs Sponsored by a company or one of its brands and maintained by one or more of the company’semployees. NoncorporateBlogs Independent and not associated with the marketing efforts of any particular company or brand. The Impact of Blogging LO2

  16. LO2 REVIEW LEARNING OUTCOMEThe Communication Process

  17. The Goals of Promotion LO3 Explain the goals of promotion

  18. LO3 Informing Reminding Target Audience Persuading http://www.tide.com Online Goals of Promotion

  19. LO3 Informing Reminding PLC Stages: Introduction Early Growth Target Audience PLC Stages: Maturity Persuading PLC Stages: Growth Maturity Goals of Promotion

  20. Informative Promotion • Increase awareness • Explain how product works • Suggest new uses • Build company image Goals of Promotion LO3

  21. Persuasive Promotion Goals of Promotion • Encourage brand switching • Change customers’ perceptions of product attributes • Influence immediate buying decision • Persuade customers to call LO3

  22. Reminder Promotion Goals of Promotion • Remind customers that product may be needed • Remind customers where to buy product • Maintain customer awareness LO3

  23. The Promotional Mix LO4 Discuss the elements of the promotional mix

  24. Promotional Mix The Promotional Mix LO4 Combination of promotiontools used to reach the target market and fulfill theorganization’s overall goals. • Advertising • Public Relations • Sales Promotion • Personal Selling

  25. Advertising The Promotional Mix LO4 Any form of impersonal (one-way) paid communication in which the sponsor or company is identified.

  26. Advertising Media Traditional Advertising Media NewAdvertising Media • Television • Radio • Newspapers • Magazines • Books • Direct mail • Billboards • Transit cards • Internet • Banner ads • Viral marketing • E- mail • Interactive video LO4

  27. Public Relations Public Relations LO4 The marketing function thatevaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

  28. LO4 The Function of Public Relations • Maintain a positive image • Educate the public about the company’s objectives • Introduce new products • Support the sales effort • Generate favorable publicity

  29. Personal Selling A purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other. Personal Selling LO4

  30. Personal Selling LO4 Traditional Selling Relationship Selling

  31. SalesPromotion http://www.nabiscoworld.com Online Sales Promotion LO4 Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness.

  32. Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons LO4 Sales Promotion End Consumers Company Employees Trade Customers

  33. Characteristics of the Elementsin the Promotional Mix LO4

  34. Advertising Communication Mode Indirect and impersonal Communication Control Low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Message Flexibility Same message to all audiences Characteristics of the Elementsin the Promotional Mix LO4

  35. Public Relations Communication Mode Usually indirect, impersonal Communication Control Moderate to low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control No Sponsor Identification No Reaching Large Audience Usually fast Message Flexibility Usually no direct control Characteristics of the Elementsin the Promotional Mix LO4

  36. Sales Promotion Communication Mode Usually indirect and impersonal Communication Control Moderate to low Feedback Amount Little to moderate Feedback Speed Varies Message Flow Direction Mostly one-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Message Flexibility Same message to varied target Characteristics of the Elementsin the Promotional Mix LO4

  37. Personal Selling Communication Mode Direct and face-to-face Communication Control High Feedback Amount Much Feedback Speed Immediate Message Flow Direction Two-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Slow Message Flexibility Tailored to prospect Characteristics of the Elementsin the Promotional Mix LO4

  38. LO4 REVIEW LEARNING OUTCOMEElements of the Promotional Mix

  39. Promotional Goals and the AIDA Concept LO5 Discuss the AIDA concept and its relationship to the promotional mix

  40. Attention AIDA Concept Interest Desire Action The AIDA Concept LO5 Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.

  41. Action Desire Conative (doing) Interest Affective (feeling) Attention Cognitive (thinking) The AIDA Concept LO5

  42. LO5 REVIEW LEARNING OUTCOMEThe AIDA Concept

  43. Integrated Marketing Communications LO6 Discuss the concept of integrated marketing communications

  44. Integrated MarketingCommunications The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer. Integrated Marketing Communications LO6

  45. IMC Popularity Growth • Proliferation of thousands of media choices • Fragmentation of the mass market • Slash of advertising spending in favor of promotional techniques that generate immediate response LO6

  46. LO6 REVIEW LEARNING OUTCOME Integrated Marketing Communications

  47. Factors Affecting the Promotional Mix LO7 Describe the factors that affect the promotional mix

  48. LO7 Nature of the product Stage in PLC Target market factors Type of buying decision Promotion funds Push or pull strategy Factors Affecting the Choice of Promotional Mix

  49. LO7 Maturity Decline Growth Introduction Sales ($) Time Ads decrease; sales promotion; personal selling;reminder & persuasive Light Advertising; pre- introduction publicity Heavy use of Advertising; PR for awareness; sales promotion for trial Advertising, PR, brand loyalty; personal selling for distribution AD/PR decrease; limited sales promotion; personal selling for distribution Stage in the Product Life Cycle

  50. Advertising Sales Promotion Less Personal Selling Target Market Characteristics For… • Widely scattered market • Informed buyers • Brand-loyal repeat purchasers LO7

More Related