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MKTG

MKTG. Lamb, Hair, McDaniel 2007-2008. 14. CHAPTER. Integrated Marketing Communications. Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University. Learning Outcomes. Discuss the role of promotion in the marketing mix

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MKTG

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  1. MKTG Lamb, Hair, McDaniel 2007-2008 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. The Role of Promotion in the Marketing Mix LO1 Discuss the role of promotion in the marketing mix

  5. 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

  6. 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

  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 Promotion in the Marketing Mix LO1

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

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

  10. The Promotional Mix LO2 Discuss the elements of the promotional mix

  11. 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

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

  13. 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

  14. 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

  15. 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

  16. Jaguar is giving an $80,000 Jaguar XK to a select group of “beautiful people”—just to be seen in it It is reality-based product placement—where real life blurs seamlessly into advertising The success of the campaign is “how many people touch and see the car” Reality-Based Product Advertising LO2 Beyond the Book SOURCE: Gina Chon, “Jaguar Tries a Living Product Placement,” Wall Street Journal, June 29, 2006, B1.

  17. 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

  18. 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

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

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

  21. Personal Selling Traditional Selling Relationship Selling LO2

  22. REVIEW LEARNING OUTCOME LO2 Elements of the Promotional Mix

  23. Marketing Communication LO3 Describe the communication process

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

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

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

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

  28. Characteristics of the Elementsin the Promotional Mix LO3

  29. 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

  30. 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

  31. 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

  32. 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

  33. 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

  34. REVIEW LEARNING OUTCOME LO3 The Communication Process

  35. The Goals and Tasks of Promotion LO4 Explain the goals and tasks of promotion

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

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

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

  39. 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

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

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

  42. 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

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

  44. REVIEW LEARNING OUTCOME LO5 The AIDA Concept

  45. Factors Affecting the Promotional Mix LO6 Describe the factors that affect the promotional mix

  46. 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

  47. 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

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

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

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

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