CHAPTER TWELVE

1. CHAPTER TWELVE MARKETING COMMUNICATION AND PERSONAL SELLING Prepared by Jack Gifford Miami University (Ohio) • 2001 South-Western College Publishing

2. THE ROLE OF PROMOTION IN THE MARKETING MIX • Promotion is communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinions or elicit a response 2001 South-Western College Publishing

3. PROMOTIONAL STRATEGY • Optimal use of the elements of promotion • Consistent with the overall goals of the marketing mix • A coordinated plan • An integral part of the marketing strategy for reaching the target market 2001 South-Western College Publishing

4. Promotion is communication used by marketers to inform, remind, and/or persuade potential buyers through…. Advertising Personal selling Publicity Public Relations PROMOTION: COMMUNICATION WITH A PURPOSE 2001 South-Western College Publishing

5. PERSONAL SELLING Person-to-person dialogue between buyer and seller Purpose & Advantages Disadvantages Inform, persuade remind Flexible Bi-directional Interpersonal Feedback Relationship building Expensive Time consuming THE PROMOTIONAL MIX 2001 South-Western College Publishing

6. ADVERTISING Non-personal Paid Identified sponsor Indirect Uniform message (some ability to now customize in interactive electronic media) Communicate to large numbers of people Low cost per contact Multiple media options THE PROMOTIONAL MIX 2001 South-Western College Publishing

7. SALES PROMOTIONS Time specific Provide incentives for purchase behavior Not routine events Aimed at customers, salespeople, or channel members Coupons Free goods with purchase Prizes or contests Trips Fashion shows Channel member displays or training THE PROMOTIONAL MIX 2001 South-Western College Publishing

8. PUBLICITY / PUBLIC RELATIONS Unpaid message Less control over content Always involves a third party Higher level of credibility More factual than persuasive Can be positive or negative Frequently orchestrated by the marketer Systematically planned and distributed to media THE PROMOTIONAL MIX 2001 South-Western College Publishing

9. MARKETING COMMUNICATIONS • Communication IS THE PROCESS by which we exchange or share meanings through a common set of symbols. • Interpersonal communication: Direct face-to-face communications between two or more people • Mass communications: Communicating to a large audience, usually through a mass medium 2001 South-Western College Publishing

10. THE COMMUNICATION PROCESS Encoding Message Source Feedback Noise Receiver Decoding Channel 2001 South-Western College Publishing

11. THE COMMUNICATION PROCESS • ENCODING THE MESSAGE • Words • Sounds • Colors • Space • Themes • Symbols • Pictures • Numbers • Gestures • Movement 2001 South-Western College Publishing

12. ENCODING THE MESSAGE Words Sounds Colors Space Themes Symbols Pictures Numbers Gestures Movement THE COMMUNCATION PROCESS Channel or Medium DECODING 2001 South-Western College Publishing

13. THE COMMUNICATION PROCESS • To determine the successful matching of encoding to decoding, marketers must receive feedback from the receiver in terms of action of a measurable change in mental state or attitude. 2001 South-Western College Publishing

14. THE COMMUNICATION PROCESS OBJECTIVE ENCODING= DECODNG 2001 South-Western College Publishing

15. INTEGRATED MARKETING COMMUNICATIONS (IMC) • Ideally, marketing communications from each promotional mix element (personal selling, advertising, sales promotions, public relations) should be integrated. • The message reaching the target consumer(s) should be the same regardless of whether it is from an advertisement, a salesperson in the field, a magazine article, or a coupon in a newspaper insert. 2001 South-Western College Publishing

16. INTEGRATED MARKETING COMMUNICATIONS (IMC) • Marketing managers must carefully work out the roles the various promotional elements will play in the marketing mix. • Timing of promotional activities are coordinated and the results of each campaign are carefully monitored to improve future use of the promotional mix tools. Perfect Promotional Mix 2001 South-Western College Publishing

17. THE GOALS AND TASKS OF PROMOTION: INFORM • Inform • A better mousetrap is of limited value unless consumers know that it exists, where it can be purchased, the price, and product details. • Essential for the existence of a free enterprise system • Results in an improved standard of living 2001 South-Western College Publishing

18. THE GOALS AND TASKS OF PROMOTION: INFORM • Inform (CONTINUED) • Increase brand awareness • Explaining how a product works • Suggesting new uses for a product • Building a company image 2001 South-Western College Publishing

19. THE GOALS AND TASKS OF PROMOTION: PERSUADE • Promotion persuades • Persuasion that encourages purchases or changes attitudes is a primary goal of promotion • Influence customers to buy now • Persuading customers to call 2001 South-Western College Publishing

20. THE GOALS AND TASKS OF PROMOTION: REMIND • Promotion Reminds • Maintain store or brand loyalty • Combat competitor’s persuasive messages • Increase product awareness and usage • Reminding customers where to buy the product “You’re in good hands with……” “We’re ready when you are.” 2001 South-Western College Publishing

21. PROMOTIONAL GOALS AND THE AIDA CONCEPT • Attention Interest Desire Action Steps • The AIDA concept assumes that promotion propels consumers along these steps in the decision process. ACTION DESIRE INTEREST ATTENTION 2001 South-Western College Publishing

22. Nature of the product Stage in the Product Life Cycle Target market Characteristics Type of buying decision Available funds Push vs Pull strategies Business or consumer product? Costs and risks associated with purchase? Convenience, shopping or specialty good? FACTORS AFFECTING THE PROMOTIONAL MIX 2001 South-Western College Publishing

23. Nature of the product Stage in the Product Life Cycle Target market Characteristics Type of buying decision Available funds Push vs Pull strategies Introduction = informational Growth & maturity = persuasive and brand Maturity = reminder and persuasive Decline = limited promotion of any kind FACTORS AFFECTING THE PROMOTIONAL MIX 2001 South-Western College Publishing

24. Nature of the product Stage in the Product Life Cycle Target market Characteristics Type of buying decision Available funds Push vs Pull strategies Level of product knowledge Degree of brand loyalty Geographical dispersion Commonality of behavioral characteristics FACTORS AFFECTING THE PROMOTIONAL MIX 2001 South-Western College Publishing

25. Nature of the product Stage in the Product Life Cycle Target market Characteristics Type of buying decision Available funds Push vs Pull strategies Routine or complex buying decision Automatic re-buy or new purchase task Level of personal or professional involvement FACTORS AFFECTING THE PROMOTIONAL MIX 2001 South-Western College Publishing

26. Nature of the product Stage in the Product Life Cycle Target market Characteristics Type of buying decision Available funds Push vs Pull strategies Promotional budget may dictate possible parameters Optimize return on promotional dollars Minimize costs per contact dollar generated FACTORS AFFECTING THE PROMOTIONAL MIX 2001 South-Western College Publishing

27. Nature of the product Stage in the Product Life Cycle Target market Characteristics Type of buying decision Available funds Push vs Pull strategies FACTORS AFFECTING THE PROMOTIONAL MIX 2001 South-Western College Publishing

28. PUSH AND PULL STRATEGIES • PULL Promote to final consumer; encourage them to ask their local retailers to carry the good • PUSH Promote to channel members to gain distribution; promise promotional support and strong final consumer demand • Promotion may be aimed at the final consumer or a channel member 2001 South-Western College Publishing

29. PERSONAL SELLING • Is direct communication between a sales representative and one or more prospective buyers in an attempt to influence each other in a purchase situation • Generally becomes more important • As the number of customers decreases • As the complexity of the product increases • As the value of the product grows • Relationship selling (consultative selling) involves multi-stage selling and personalization over the long-term 2001 South-Western College Publishing

30. STEPS IN THE SELLING PROCESS • Also referred to as the sales process or sales cycle • Is simply a set of steps a salesperson goes through to sell a particular product or service • Some of these steps are very quick, while others take months. This is also true of the entire sales cycle. • These steps are... 2001 South-Western College Publishing

31. Generating leads Qualifying leads Approaching the customer and probing needs Developing and proposing solutions Handling objections Closing the sale Following up THE SALES CYCLE 2001 South-Western College Publishing

32. SALES MANAGEMENT • Defining sales goals and the sales process • Determining the sales force structure • Recruiting and training the sales force • Motivating and compensating the sales force • Evaluation of the sales force 2001 South-Western College Publishing