Chapter 16 Promotional Planning for Competitive Advantage

Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1

16Integrated Marketing

Communications

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LO 1 Discuss the role of promotion in the marketing mix

LO 2 Discuss the elements of the promotional mix

LO 3 Describe the communication process

LO 4 Explain the goal and tasks of promotion

Learning OutcomesLearning Outcomes


LO 5 Discuss the AIDA concept and its relationship to the promotional mix

LO 6 Describe the factors that affect the promotional mix

LO 7 Discuss the concept of integrated marketing communications

Learning OutcomesLearning Outcomes


Discuss the role of promotion in the

marketing mix

The Role of Promotion in The Role of Promotion in the Marketing Mixthe Marketing Mix


The Role of Promotion

A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion

PromotionalStrategy


Exhibit 16.1Exhibit 16.1Role of Promotion in Role of Promotion in the Marketing Mixthe Marketing Mix


Competitive Advantage

Unique features

Excellent service

Low prices

Rapid delivery

High product quality


Discuss the elements of the

promotional mix

The Promotional MixThe Promotional Mix


The Promotional Mix

Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Includes:

Advertising Public Relations Personal Selling Sales Promotion

Promotional

Mix


The Promotional MixMost commonly distributed Most commonly distributed by traditional media, though by traditional media, though increasingly through non-increasingly through non-traditional media, such as traditional media, such as Web sites, e-mail, blogs, Web sites, e-mail, blogs, and interactive video kiosks and interactive video kiosks in malls and supermarkets.in malls and supermarkets.

Advertising


Advertising MediaTraditional Advertising Media

NewAdvertising

Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Banner ads Viral marketing E- mail Interactive video


AdvertisingAdvantages Disadvantages

Reach large number of people

Low cost per contact

Can be micro-targeted

Total cost is high

National reach is expensive for small companies


Public Relations

Helps an organization communicate with customers, suppliers, stockholders, government officials, employees, and the community.

Public

Relations


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


Sales Promotion

Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.

Sales

Promotion


Sales Promotion

EndConsumers

Company Employees

Trade Customers

Free samples

Contests

Premiums

Trade Shows

Vacation Giveaways

Coupons


Personal Selling

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

Personal

Selling


Personal Selling

Traditional Selling

Relationship Selling

Attempts to persuade the buyer into a specific point of view. Win-lose outcome.

Long-term relationships, create a win-win outcome


Describe the communication

process

Marketing CommunicationMarketing Communication


Communication

the process by which meanings are exchanged or shared through a common set of symbols.

Communication is…


Categories of Communication

InterpersonalCommunication

MassCommunication

Marketing Communication


As Senders As Receivers

Develop messages

Adapt messages

Spot new communication opportunities

Inform

Persuade

Remind

Marketing Communication


Exhibit 16.2Exhibit 16.2Communication ProcessCommunication Process


LO3

Exhibit 16.3Exhibit 16.3Characteristics of the Elements in Characteristics of the Elements in the Promotional Mixthe Promotional Mix


Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility

AdvertisingIndirect and impersonal

LowLittle

DelayedOne-way

YesYes

Fast Same message to all audiences

Characteristics of the Elementsin the Promotional Mix

LO3



Public RelationsUsually indirect, impersonal

Moderate to lowLittle

DelayedOne-way

NoNo

Usually fast Usually no direct control




Sales PromotionUsually indirect and impersonal

Moderate to lowLittle to moderate

VariesMostly one-way

YesYes

Fast Same message to varied target




Personal SellingDirect and face-to-face

HighMuch

ImmediateTwo-way

YesYes

Slow Tailored to prospect



Web 2.0Web 2.0 tools include:• Blogs (online journals)• Podcasting (online radio)• Vodcasts (online videos)• Social Networks (Facebook, MySpace)


Blogging

Sponsored by a company or one of its brands and maintained by one or more of the company’s employees.

Consumer-Generated

Blogs

CorporateBlogs

Independent and not associated with the marketing efforts of any particular company or brand.


Explain the goals and

tasks of promotion

The Goals and Tasks The Goals and Tasks of Promotionof Promotion


Goals and Tasks of Promotion

Informing Reminding

Persuading

TargetAudience



Informing Reminding

Persuading

TargetAudience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity



Increase awareness

Explain how product works

Suggest new uses

Build company image

Informative Promotion

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Encourage brand switching

Change customers’ perceptions of product attributes

Influence immediate buying decision

Persuade customers to call

Persuasive Promotion

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Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

Reminder Promotion

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k


Discuss the AIDA concept and its

relationship to the promotional mix

Promotional Goals Promotional Goals and the AIDA Conceptand the AIDA Concept


The AIDA Concept

Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.

AttentionInterestDesireAction

AIDA Concept


Exhibit 16.4Exhibit 16.4


The AIDA Concept

Action

Desire

Interest

Attention Cognitive (thinking)

Affective (feeling)

Conative (doing)


Describe the factors that affect the

promotional mix

Factors Affecting the Factors Affecting the Promotional MixPromotional Mix


Factors Affecting the Choice of Promotional Mix

Nature of the product

Stage in PLC

Target market characteristics

Type of buying decision

Promotion funds

Push or pull strategy


Exhibit 16.5Exhibit 16.5Product Life Cycle and Product Life Cycle and

the Promotional Mixthe Promotional Mix

Advertising, PR, brandloyalty;personal selling fordistribution

Ads decrease;sales promotion;personal selling;reminder & persuasive

AD/PR decrease; limited sales promotion; personal selling for distribution

Heavy use of Advertising;PR forawareness;sales promotionfor trial

Light Advertising; pre-introductionpublicity


Target Market Characteristics

For… Widely scattered

market

Informed buyers

Brand-loyal repeat purchasers

Advertising

Sales Promotion

Less Personal Selling


Type of Buying DecisionAdvertising

Sales PromotionRoutine

Personal Selling

Neither Routinenor Complex

Advertising

Public Relations

Print AdvertisingComplex


Available Funds

Trade-offs with funds availableNumber of people in target marketQuality of communication neededRelative costs of promotional

elements


Exhibit 16.6Exhibit 16.6Push Strategy versus Pull Push Strategy versus Pull StrategyStrategy


Discuss the concept of integrated marketing

communications

Integrated Marketing Integrated Marketing CommunicationsCommunications


Integrated Marketing Communications

IntegratedMarketing

Communications

The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.


IMC Popularity GrowthProliferation of thousands of media

choices

Fragmentation of the mass market

Slash of advertising spending in favor of promotional techniques that generate immediate response


Bey

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kChapter 16 Videos

Vans – Integrated Marketing Communication

This video examines the carefully planned strategy that Vans developed to create loyalty in a fickle niche market. Describe Vans’ pyramid strategy. How does it protect the brand?

http://www.cengage.com/marketing/book_content/1439039429_lamb/company_clips/ch16.html




Chapter 16 Promotional Planning for Competitive Advantage

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