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Role of Promotion in Marketing Mix

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

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Role of Promotion in Marketing Mix

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  1. MKTG Lamb, Hair, McDaniel 2008-2009 14 CHAPTER Integrated Marketing Communications Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University

  2. Learning Outcomes Discuss the role of promotion in the marketing mix Discuss the elements of the promotional mix Describe the communication process Explain the goal and tasks of promotion LO1 LO2 LO3 LO4

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

  4. Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. The Role of Promotion Promotion LO1

  5. A plan for the optimal use of the elements of promotion: • Advertising • Public Relations • Sales Promotion • Personal Selling The Role of Promotion Promotional Strategy Competitive Advantage LO1

  6. 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 Promotion in the Marketing Mix LO1

  7. High product quality Rapid delivery Low prices Excellent service Unique features Competitive Advantage LO1

  8. REVIEW LEARNING OUTCOME LO1 The Role of Promotion in the Marketing Mix

  9. Combination of promotiontools used to reach the target market and fulfill theorganization’s overall goals. • Advertising • Public Relations • Sales Promotion • Personal Selling The Promotional Mix Promotional Mix LO2

  10. The Promotional Mix Advertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer. LO2

  11. Advertising Media NewAdvertising Media Traditional Advertising Media • Television • Radio • Newspapers • Magazines • Books • Direct mail • Billboards • Transit cards • Internet • Banner ads • Viral marketing • E- mail • Interactive video LO2

  12. Reach large number of people Low cost per contact Can be micro-targeted Advantages Disadvantages Advertising • Total cost is high • National reach is expensive for small companies LO2

  13. Public Relations Public Relations 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. LO2

  14. 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 LO2

  15. http://www.nabiscoworld.com Online Sales Promotion SalesPromotion Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness. LO2

  16. Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons Sales Promotion End Consumers Company Employees Trade Customers LO2

  17. Personal Selling Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. LO2

  18. Personal Selling Traditional Selling Relationship Selling LO2

  19. REVIEW LEARNING OUTCOME LO2 Elements of the Promotional Mix

  20. http://www.mcdonalds.com Online Communication Communication The process by which we exchange or share meanings through a common set of symbols. LO3

  21. Categories of Communication Interpersonal Communication Mass Communication Marketing Communication LO3

  22. As Senders As Receivers • Inform • Persuade • Remind • Develop messages • Adapt messages • Spot new communication opportunities Marketing Communication LO3

  23. Noise Sender EncodingMessage Message Channel Decoding Message Receiver Feedback Channel The Communication Process LO3

  24. Characteristics of the Elementsin the Promotional Mix LO3

  25. Advertising Communication Mode Indirect and impersonal Low Communication Control Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control Yes Yes Sponsor Identification Reaching Large Audience Fast Message Flexibility Same message to all audiences Characteristics of the Elementsin the Promotional Mix LO3

  26. Public Relations Communication Mode Usually indirect, impersonal Moderate to low Communication Control Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control No No Sponsor Identification Reaching Large Audience Usually fast Message Flexibility Usually no direct control Characteristics of the Elementsin the Promotional Mix LO3

  27. Sales Promotion Communication Mode Usually indirect and impersonal Moderate to low Communication Control Feedback Amount Little to moderate Feedback Speed Varies Message Flow Direction Mostly one-way Message Content Control Yes Yes Sponsor Identification Reaching Large Audience Fast Message Flexibility Same message to varied target Characteristics of the Elementsin the Promotional Mix LO3

  28. Personal Selling Communication Mode Direct and face-to-face High Communication Control Feedback Amount Much Feedback Speed Immediate Message Flow Direction Two-way Message Content Control Yes Yes Sponsor Identification Reaching Large Audience Slow Message Flexibility Tailored to prospect Characteristics of the Elementsin the Promotional Mix LO3

  29. Corporate Blogs Sponsored by a company or one of its brands and maintained by one or more of the company’s employees. NoncorporateBlogs Independent and not associated with the marketing efforts of any particular company or brand. The Impact of Blogging LO3 LO3

  30. REVIEW LEARNING OUTCOME LO3 The Communication Process

  31. Informing Reminding Target Audience Persuading http://www.tide.com Online Goals and Tasks of Promotion LO4

  32. Informing Reminding Target Audience PLC Stages: Introduction Early Growth PLC Stages: Maturity Persuading PLC Stages: Growth Maturity LO4 Goals and Tasks of Promotion

  33. Informative Promotion • Increase awareness • Explain how product works • Suggest new uses • Build company image Goals and Tasks of Promotion LO4

  34. Persuasive Promotion • Encourage brand switching • Change customers’ perceptions of product attributes • Influence immediate buying decision • Persuade customers to call Goals and Tasks of Promotion LO4

  35. Reminder Promotion • Remind customers that product may be needed • Remind customers where to buy product • Maintain customer awareness Goals and Tasks of Promotion LO4

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

  37. Action Desire Conative (doing) Interest Affective (feeling) Attention http://www.nascar.com http://www.sears.com Cognitive (thinking) Online LO5 The AIDA Concept

  38. REVIEW LEARNING OUTCOME LO5 The AIDA Concept

  39. 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 LO6

  40. 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 LO6 Stage in the Product Life Cycle

  41. Advertising Sales Promotion Less Personal Selling LO6 Target Market Characteristics For… • Widely scattered market • Informed buyers • Brand-loyal repeat purchasers

  42. Advertising Routine Sales Promotion Advertising Neither Routine nor Complex Public Relations Complex Personal Selling Print Advertising LO6 Type of Buying Decision

  43. LO6 Available Funds • Trade-offs with funds available • Number of people in target market • Quality of communication needed • Relative costs of promotional elements

  44. PUSH STRATEGY Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer Consumer buys from retailer Orders to manufacturer PULL STRATEGY Manufacturer promotes to consumer Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer Orders to manufacturer LO6 Push and Pull Strategies

  45. REVIEW LEARNING OUTCOME LO6 Factors Affecting Promotional Mix

  46. Integrated Marketing Communications 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. LO7

  47. 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 LO7

  48. REVIEW LEARNING OUTCOME LO7 Integrated Marketing Communications

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