Ch15 promotion mix

1

CHAPTER FIFTEEN

MARKETING COMMUNICATION AND PERSONAL SELLING

Prepared by Jack GiffordMiami University (Ohio)

© 2000 South-Western College Publishing

© 2000 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


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


PROMOTION: COMMUNICATION WITH A PURPOSE

Promotion is communication used by marketers to inform, remind, and/or persuade potential buyers through….

Advertising Personal selling Publicity Public Relations


THE PROMOTIONAL MIX

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

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

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

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


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


THE COMMUNICATION PROCESS

Source

Encoding Message

ChannelDecodingReceiver

Feedback Noise


ENCODING THE MESSAGE Words Sounds Colors Space Themes Symbols Pictures Numbers Gestures Movement



THE COMMUNCATION PROCESS

ENCODING THE MESSAGE Words Sounds Colors Space Themes Symbols Pictures Numbers Gestures Movement

Channel or Medium

DECODING



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.



OBJECTIVE

ENCODING = DECODNG


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.


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.

PerfectPromotional

Mix


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


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


THE GOALS AND TASKS OF PROMOTION: PERSUADE

Promotion persuades Persuasion that

encourages purchases or attitude change is a primary goal of promotion

Influence customers to buy now

Persuading customers to call


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.”


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.

ATTENTION

DESIRE

ACTION

INTEREST


FACTORS AFFECTING THE PROMOTIONAL MIX

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?



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



Nature of the product Stage in the Product

Life Cycle Target market



Level of product knowledge

Degree of brand loyalty

Geographical dispersion

Commonality of behavioral characteristics







Routine or complex buying decision

Automatic re-buy or new purchase task

Level of personal or professional involvement







Promotional budget may dictate possible parameters

Optimize return on promotional dollars

Minimize costs per contact dollar generated



Nature of the product Stage in the Product Life

Cycle Target market

Characteristics Type of buying decision Available funds Push vs Pull

strategies


PUSH AND PULL STRATEGIES

Promotion may be aimed at the final consumer or a channel member

•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


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


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...


THE SALES CYCLE

Generating leads Qualifying leads Approaching the

customer and probing needs

Developing and proposing solutions

Handling objections Closing the sale Following up


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

Ch15 promotion mix

Business

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