Lecture 9 -- Promotion and Integrated Marketing Communication

8/11/2019 Lecture 9 -- Promotion and Integrated Marketing Communication

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Promotion and Integrated Marketing

Communication

Advertising

Public Relations/ Publicity

Personal Selling

Sales Promotion

Direct Marketing

Chapters 12, 13 & 14


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MARKETING COMMUNICATIONS

MARKETER INITIATED TECHNIQUES USED TO

SET UP CHANNELS OF INFORMATION AND

PERSUASION WITH TARGETED AUDIENCES

TO INFLUENCE ATTITUDES AND BEHAVIOR

Promotion

Message and Media

MARKETING COMMUNICATIONS MIX

Tool Box of Media and Techniques

Integration and Coordination

Based on Communications Model


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MAJOR OBJECTIVES OFMARKETING COMMUNICATIONS

Informing Persuading

Reminding


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MARKETING COMMUNICATIONS OBJECTIVES

Increase Market Penetration

Develop Repeat Purchase Behavior

Establish Customer Relationships

Increase Rate of Consumption

Encourage Product Trial

Stimulate Impulse Buying Stimulate Demand

Differentiate the Product

Establish a Product Image

Influence Sales Volume

Establish, Modify, or Reinforce Attitudes Develop Sales Leads

Stimulate Interest

Establish Understanding

Build Support & Acceptance


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ELEMENTS OF THEMARKETING COMMUNICATIONS MIX

1. Advertising

2. Public Relations

5. Direct Marketing

3. SalesPromotion4. Personal Selling

Integrated Marketing Communications (IMC)is the strategic integration of multiple means of

communicating with target markets


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MARKETING COMMUNICATIONS PLANNING

Marketing Plan Review

Situation Analysis

Communications Process

Analysis

Budget Development

Program Development

Integration & Implementation

Monitoring, Evaluating,Controlling

METHODS

PUSH vs .

PULL


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Push and Pull Strategies

Push strategy is directed toward the

channel members

Provide incentives for those in thedistribution channels to buy the product

Pull strategy is directed toward the

ultimate purchaser The focus is on creating demand at the

household or ultimate consumer level


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Approaches to Determining thePromotional Budget

Percentage of sales A fixed amount of money per past or projected

sales Probably the most widely used as it is simple

But, what about cause and effect?

All available funds/All you can afford

Budget what is left over for promotionalexpenditures

New companies often put all available funds intopromotion to penetrate the market

But, you can miss opportunities or overspend


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Approaches to Determining the

Promotional Budget

Competitive parity/Follow the competition Adopt the average ratio for promotional expenses

to sales for the industry or main competitor; or thesame absolute amount as a competitor But, what if they do not know what they are doing and/or

strategies and tactics are different?

Objective and task

1) Determine objectives; 2) Determine relationshipbetween expenditures and ability to achieveobjective; 3) Set a budget that allows theachievement of these goals


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Psychological Processes

The high involvement decision processNeed -> search -> evaluation -> purchase -> outcomes

The adoption processAwareness -> interest -> evaluation -> trial -> adoption -> post-adoptionconfirmation

Buyer readiness states/Hierarchy of effectsAwareness -> knowledge -> liking -> preference -> conviction ->purchase

AIDAAwareness -> Interest -> Desire -> Action


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Selection of the Promotional Mix

PRODUCT CHARACTERISTICS Industrial good/technical good

Need personal selling; customers want to receive

information, inspect and compare the products Consumer package goods/frequently purchase

items Advertising and sales promotion to reach market

Unit value

Low cost must use mass media approaches, with highunit cost personal selling is effective

Customization Customized often requires personal selling


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Selection of the Promotional Mix

CUSTOMER CHARACTERISTCS Industrial versus consumer market

Consumers are easier to reach (decision maker) through

media sources; industrial buyers typically have a moreformal buying process, requiring personal selling

Number of customers For a small number of customers, personal selling can

play a much more important role

Geographical dispersion Not only affects the type of promotional effort, but the

media choices


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Advertising Defined

ADVERTISING

Any paid form of non-personal presentationand promotion of ideas, goods, or servicesby an identified sponsor

Magazines, newspaper, outdoor posters, directmail, radio televisions, etc.

Key issues The time or media space is paid for

The sponsor is identified and has control over thepromotional activity


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DEVELOPING ANADVERTISING CAMPAIGN

EvaluateAdvertisingEffective-

ness

Select &Schedule

Media

DetermineAdvertising

Budget

DetermineAdvertisingObjectives

SelectTargetMarket

DesignCreativeStrategy


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ADVERTISING STRATEGY

MESSAGE STRATEGIES

Objective vs. Subjective Messages

Comparative Message TechniquesEmotional Techniques: Mood, Fear, Humor

Celebrity Endorsements vs. Non-Celebrity Images

MEDIA STRATEGIES

Broadcast: Television, Radio

Print: Newspapers, Magazines, Journals

Specialized: Outdoor, Transit, Direct Mail, Internet


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ADVERTISING STRATEGY

RELATIVE STRENGTHS AND WEAKNESSES OF

STRATEGIES

Effectiveness and Efficiency: Reach and

Frequency

Target Capabilities

Cost

Believability

Appropriateness for Message (Image, Details)


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Reach & Frequency

Reach: number of different target consumerswho are exposed to a message at least onceduring a specific period of time

Frequency: number of times an individual isexposed to a given message during a specificperiod of time

Cost per contact: cost of reaching onemember of the target market Allows comparison across advertising strategy

vehicles


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EVALUATING ADVERTISINGEFFECTIVENESS

Pretesting

Posttesting

Sales Effectiveness

Evaluations

Tools:

Focus GroupsScreeningPersuasion Scores

Tools:

Unaided Recall TestsAided Recall TestsInquiry Evaluations

Tools:

Monitor Sales


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PUBLIC RELATIONS

EFFORTS TO IMPROVE AND MANAGE

RELATIONSHIPS WITH PUBLICSCustomers

Stock HoldersCommunityGovernmentNews Media

PROACTIVE vs. REACTIVE

DuPont vs. Exxon

PUBLICITY

Not Overtly SponsoredHigh Credibility


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PUBLIC RELATIONS

PressRelations

ProductPromotions

AdvisingManagement

CorporateCommunicationsLobbying

Public Relations Functions


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Personal Selling

PERSONAL SELLING Oral presentation in a conversation with one or more

prospective purchasers for the purpose of making asale

Personal selling represents the most popularpromotional effort in terms of financial expendituresand number of people employed

Personal Selling is: (1) Dyadic, (2) Flexible, (3) Focused (personalized), and (4)

Often results directly in a sale Other promotional elements move the customer toward thesale, personal selling closes the sale


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THE MARKETING-COMMUNICATIONS MIX:Relative Emphasis in Consumer and Business Markets

BUSINESS MARKETS CONSUMER MARKETS

SALES

FORCE

ADVERTISING

PROMOTIONS

DIRECT MKT.

EMPHASISEMPHASIS

COMPLEMENT


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PERSONAL SELLING AND

SALES MANAGEMENT ROLES OF SALESPERSONPsychologistConsultant

Educator / TeacherProblem SolverTeam Leader

TYPES OF SELLING POSITIONS

New Business (Prospector)Existing Business (Order Taker)DetailingSupport (Marketing, Technical)


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SALES MANAGEMENT ISSUES

RECRUITING AND HIRINGDifficult to Predict Success

DEPLOYMENTTerritory Design

AUTOMATION

Use of Technology to Link Buyer, Salesperson, and

Organizations (Customer RelationshipManagement and Supply Chain Management)

EVALUATION AND COMPENSATION

Outcome-Based vs. Behavior-Based


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Sales Promotion

SALES PROMOTION Those marketing activities - other than

advertising, public relations/publicity, andpersonal selling - that stimulate consumerpurchasing and dealer effectiveness Displays, shows and exhibitions, coupons,

contests, samples


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THE GROWTH IN SALES PROMOTION

Consumer Factors

Accountability

Increased Retail Power

Impact of Technology

Short-Term Focus

Reasons for the Growth in Sales Promotion:


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Stimulate

Trial

Support

Flexible Pricing

Increase

Consumption

Neutralize

Competitors

Complementary

Products

Encourage

Repurchase

Impulse

Purchasing

OBJECTIVES OF CONSUMER PROMOTIONS


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CONSUMER SALES PROMOTIONTECHNIQUES

Price Deals

Advertising

Specialties Coupons

Sampling Rebates

Contests, Games,

Sweepstakes

Premiums Cross-Promotions


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OBJECTIVES OF TRADE PROMOTIONS

Increase ResellerInventory

InfluencePrice Discount

Defend Against

Competitors

Avoid Price

Reductions

Influence

Reseller Promotion

Gain/Maintain

Distribution

Increase ResellerInventory

Influence

Price Discount

Defend Against

Competitors

Avoid Price

Reductions

Influence

Reseller Promotion

Gain/Maintain

Distribution


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LIMITATIONS OF SALES PROMOTION

Cannot Reverse Declining SalesTrend

Cannot Overcome InferiorProduct

May Encourage CompetitiveRetaliation

May Hurt Profit


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Direct Marketing

Techniques used to get consumers to

make a purchase from their home,

office or other nonretail setting Direct mail, catalogs, mail order,

telemarketing, electronic retailing


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TECHNIQUES OF DIRECT MARKETING

Electronic

Media

Direct Selling

Print

MediaBroadcast

Media

Direct Mail

Telemarketing

Lecture 9 -- Promotion and Integrated Marketing Communication

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Transcript of Lecture 9 -- Promotion and Integrated Marketing Communication