Chapter16 Promotion. Marketing vs. Promotion zMarketing concept vs. promotion concept zThe marketing...
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Transcript of Chapter16 Promotion. Marketing vs. Promotion zMarketing concept vs. promotion concept zThe marketing...
Chapter16 Promotion
Marketing vs. Promotion
Marketing concept vs. promotion concept
The marketing mix product place price promotion
Marketing vs. Promotion (cont’d)
The promotion mixAdvertisingPersonal sellingSales promotionDirect marketingInternet marketing Publicity
Marketing vs. Promotion (cont’d)
Types of sales promotion Consumer products
consumer-oriented trade-oriented
Industrial products
Exhibit 14-3
0
Price
Quantity
D
0
Price
Quantity 0
Price
Quantity
D2
D1 DD
D
B. to the rightA. To be more inelastic
C. Both to the right and more inelastic
14-8
Promotion and the Demand Curve
Integrating the Elements of the Promotion Mix
Stages of the buying decision prepurchase purchase postpurchase
Size of decision-making unit
Integrating the Elements of the Promotion Mix (cont’d)
The product life cycleProduct characteristics
complexity risk
The target audience consumer vs. business pull vs. push
Push vs. Pull Strategies
Push
Manufacturer Wholesaler Retailer Consumer
Push vs. Pull Strategies
Pull
Manufacturer Wholesaler Retailer Consumer
Promotional Objectives
Sales targetsMarket share targetsCommunication targets
awareness information brand preference share of voice share of mind share of heart
Promotional Objectives (cont’d)
Direct objectives Indirect objectivesIndirect objectives are used more
often
Promotional Objectives (cont’d)
Situations where direct objectives may be appropriate:
Advertising by retailersDirect-response advertisingSales-promotion advertisingBusiness-to-business advertising
Promotional Objectives (cont’d)
Should state:Target audienceObjectiveDegree of changeTime frame
Promotional Objectives (cont’d)
Example:Target -- 30 million U.S. householdsCommunication objective -- The
detergent buyer should identify Brand X as a low-sudzing detergent
Desired change -- from 10 to 40 percent
Time frame -- 1 year
Advertising Media
TelevisionRadioOutdoor
billboards transit advertising
MagazinesNewspapersDirect mailInternet
banners links to related
web-sites
Advertising Media (cont’d)
Criteria for selecting mediaCostCompatibility with media habits of
target audienceCompatibility with productCompatibility with message
Types of Advertisements
Product advertisementsInstitutional advertisementsPioneeringCompetitiveReminderAdvocacy
Advertising Appeals
Rational appeals
Moral appeals
Emotional appeals
Emotional Appeals
JoyLoveHumorSex
PrideGuiltFear
Execution Styles
Slice-of-lifeLifestyleMusicalPersonality symbolHumorEndorsements (expertise,
trustworthiness, likeability)
Media Terminology
ReachRatingFrequencyGross Rating Points (GRPs)ImpactCost per thousandWasted coverage
Budgeting Methods
Percentage of sales methodMatch-competitors methodAffordability methodShare of market methodObjective and task method
Budgeting Methods (cont’d)
Objective and task methodIdentify the objectivesDetermine the tasks that will have to
be performed Determine the cost of performing
those tasks
Budgeting Methods (cont’d)
Example of objective and task method
Identify the objectives Target -- 30 million U.S. households Communication objective -- The detergent
buyer should identify Brand X as a low-sudzing detergent
Desired change -- from 10 to 40 percent Time frame -- 1 year
Budgeting Methods (cont’d)
Example of objective and task method (cont’d)
Determine the tasks that will have to be performed reach 80% of the market with the advertising
message determine the frequency or average # of
impressions needed (frequency = 30) determine the number of Gross Rating Points
(GRPs) (80 X 30 = 2,400 GRPs)
Budgeting Methods (cont’d)
Example of objective and task method (cont’d)
Determine the cost of performing those tasks determine the average cost of a GRP
($3,000 per GRP) multiply by the number of GRPs ($3,000
X 2,400 = $7,200,000)
Media Scheduling
Steady (drip) scheduling
GRPs
Time
Media Scheduling
Flighting or “intermittent” schedule
GRPs
Time
Media Scheduling
Pulse or “burst” schedule
GRPs
Time
Sales Promotion
Consumer products
Industrial products
Sales Promotion (cont’d)
Consumer productsConsumer-oriented
coupons premiums samples contests/sweepstakes rebates etc
Sales Promotion (cont’d)
Consumer products (cont’d)Trade-oriented
point-of-purchase (POP) advertising allowances display allowances merchandise assistance quantity discounts
Sales Promotion (cont’d)
Industrial products
Trade showsDisplays/exhibitsBrochures and technical promotional
material
Other Promotional Tools
Direct marketingPublicityE-Commerce -- or is e-commerce
much broader than promotion?Personal selling
Consumer Behavior Issues (p. 349)
Learning Hierarchy
Relevant to high-involvement products in industries where product differentiation exists
Learn Feel Do
Consumer Behavior Issues (p. 349)
Dissonance-Attribution Hierarchy
Relevant to high-involvement products in industries where little product differentiation exists (e.g., refrigerators)
Do Feel Learn
Consumer Behavior Issues (p. 349)
Low-Involvement Hierarchy
Attitude change occurs only after product experience
Relevant to low-involvement products in industries where little product differentiation exists (e.g., soft drinks).
Do Feel