CHAPTER 15: Effective Promotion Means Effective Communication Mrs. Piotrowski Principles of...
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Transcript of CHAPTER 15: Effective Promotion Means Effective Communication Mrs. Piotrowski Principles of...
CHAPTER 15:
Effective Promotion Means Effective Communication
Mrs. PiotrowskiPrinciples of Marketing
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PROMOTION AS A FORM OF COMMUNICATION
SECTION 1:
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Identify a marketing message you have seen or heard recently.
Describe how you received the marketing message.
What action or result will occur because of
that message?
SOLVE
.
What is promotion?
Promotion is any form of communication that a company uses to inform, persuade, or remind customers about its products or
services.
It is one of the four elements of the marketing mix.
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Promotion is a Form of Communication
Promotion is a communication process, or the transfer of a message from a sender to a
receiver.
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Promotion is a Form of Communication
• The sender is the source of the message being sent (the “who”).
• The message is what is being communicated.• When the sender converts an idea into a message
that the receiver can understand, it is called encoding.
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Promotion is a Form of Communication
• The vehicle by which the message travels is the message channel (the “how”).
• The receiver is the person(s) to whom the message is directed or any person who understands the message that is sent.
• Decoding is the process by which the receiver interprets the transmitted language and symbols to comprehend the message.
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Promotion is a Form of Communication
• Any distracting information in the environment that may inhibit or distract from the message is called noise.
• Feedback is the receiver’s response to the message. – Feedback can be direct or indirect.
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The Role of Promotion
• Promotion fulfills three main roles for marketing. It can…– INFORM– PERSUADE– REMIND…an audience.
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Types of Communication
• There are two main types of communication used by marketers:1. Interpersonal communication2. Mass communication
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Interpersonal Communication
• Interpersonal communication is any person-to-person exchange.– Examples include telemarketing calls, in-person
sales calls, a customer service desk, in-store salespeople, and online chats.
– This tends to be a costly method of communication.
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Mass Communication
• Mass communication attempts to reach a wide audience through media such as radio, television, magazines, and newspapers.– It is much more cost efficient, but is often only
a one-way flow of information.
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TYPES OF PROMOTIONSECTION 2:
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Think of a product you like.
Describe the types of promotions used for that
product.Do the promotions all
communicate the same thing about the product?
Which form of promotional activity
do you find most effective? Why?
SOLVE
.
AdvertisingAdvertising is any form of paid, nonpersonal
communication that uses mass media to deliver a marketer’s message to an audience.
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Advertising• The major types of media used for advertising are:
– Broadcast Media – television and radio commercials– Print Advertising – any paid message run in a
magazine or newspaper.– Direct Mail – messages sent to an audience through the
mail (junk mail)– Outdoor Advertising – billboards, buses, taxis,
benches, sporting events– Ambient Advertising – nontraditional media in the
environment of the audience (stickers on bananas)– Internet Advertising – can be targeted by interest and
location…the future of advertising?
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Advertising
Advantages• Efficient in terms of cost-
per-viewer• Controllable and repeatable• Not limited by geography• Has great potential to move
people emotionally
Disadvantages• Overall cost can be
prohibitive…can cost millions of dollars to be effective
• Impersonal in nature• Easy for audiences to tune it
out
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Public Relations• Publicity is any non-paid communication
about a product, service, company, or cause.• The effort to reach customers by generating
positive publicity is known as public relations (PR).
• Although the actual communication is free, companies often have PR departments on the payroll to identify media opportunities.
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Public Relations
Advantages• Third-party sources (such as
the news) are viewed as being more objective
• Relatively inexpensive
Disadvantages• Hard to control
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Personal Selling• Personal selling is person-to-person
communication with a potential customer.• Most commonly used in B2B promotion.• Includes salespeople in stores, telemarketers, real
estate agents, car dealers, etc.• This is usually used for complicated and relatively
expensive products, such as cars, insurance, and homes.
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Personal Selling
Advantages• Personal contact• Immediate feedback from
customers• Presentation is flexible
Disadvantages• Per-person cost
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Sales Promotion• Any activity or material that gives consumers a
direct incentive to buy is called sales promotion.• This is commonly used when companies are
introducing new products.• Common types of sales promotion include sales,
coupons, rebates, free features or options, and giveaways.
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Sales Promotion
Advantages• Generates short-term sales,
which boosts revenues and profits
• Usually measurable
Disadvantages• Builds customer
relationships motivated by incentives rather than a true preference for the brand
• Cost of providing the incentives
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MIXING THE PROMOTIONAL PLAN
SECTION 3:
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Select a product you own.
What types of promotion would you use for the product
if you were planning the promotional mix?
How would you decide what types of promotion would be the most effective?
SOLVE
.
The Promotional MixThe promotional mix is the combination of advertising, public relations, personal selling
and sales promotion that marketers use to reach a target market.
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The Promotional Mix
Many factors impact promotional plans, which makes developing the right promotional mix a balancing act!
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Promotional Planning
The blueprint for how the elements of the promotional mix will work together is called
the promotional plan.
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Promotional Planning StepsResearch & Analyze Market
Select the Target Market
Identify Objectives
Set Budget
Develop Promotional Mix
Implement Plans
Evaluate Results
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Why is it important to follow a promotional planning process?
Push vs. Pull Promotion• Push - a promotional strategy where businesses
attempt to take their products to the customers. The term push stems from the idea that marketers are attempting to push their products at consumers. – Sales tactics include trying to sell merchandise directly to
customers via company showrooms and negotiating with retailers to sell their products for them, or set up point-of-sale displays. Often, these retailers will receive special sales incentives in exchange for this increased visibility.– attempt to induce a customer to buy a product.
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Push vs. Pull Promotion• Pull- promotion used to get the customers to come to
you, hence the term pull, where marketers are attempting to pull customers in. – Sales tactics used for pull marketing include mass media
promotions, word-of-mouth referrals and advertised sales promotions. From a business perspective, pull marketing attempts to create brand loyalty and keep customers coming back, whereas push marketing is more concerned with short-term sales.
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