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Copyright Cengage Learning 2013All Rights Reserved

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Chapter 16: Promotional Planning for

Competitive Advantage

Prepared & Designed by Laura Rush, B-books, Ltd.

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Learning Outcomes

Discuss the role of promotion in themarketing mix

Describe the communication process

Explain the goals of promotion

Discuss the elements of the promotionalmix

LO1

LO2

LO3

LO4

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Learning Outcomes

Discuss the AIDA concept and itsrelationship to the promotional mix

Discuss the concept of integrated marketingcommunications

Describe the factors that affect the

promotional mix

LO5

LO6

LO7

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Copyright 2013 by CengageLearning Inc. All Rights Reserved 4

The Role of Promotion in theMarketing Mix

Discuss the role of

promotion in the marketing mix.

LO1

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Copyright 2013 by CengageLearning Inc. All Rights Reserved

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The Role of Promotion

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Promotions

Communications by

marketers that informs,persuades, and reminds

potential buyers of a

product in order to influence an

opinion or elicit a response.

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Promotional Strategy - A plan for the

optimal use of the

elements of promotion: advertising,

public relations, personal selling, andsales production.

Competitive Advantage - One or more

unique aspects of an organization

that cause consumers to patronizethat firm rather than competitors.

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in the Marketing Mix

Overall MarketingObjectives

Marketing Mix Product

Place

Promotion

Price

Target Market

Promotional Mix

Advertising Public Relations Sales Promotion Personal Selling

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Competitive Advantage

Unique features

Excellent service

Low prices

Rapid delivery

High product quality

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Copyright 2013 by Cengage

Learning Inc. All Rights Reserved 9

Review Learning OutcomeThe Role of Promotion in the Marketing Mix

LO1

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Marketing Communication

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Describe the

communication process.

LO2

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Communication

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Online

http://www.mcdonalds.com

The process by

which we exchange or share

meanings through a common

set of symbols.
http://www.mcdonalds.com/http://www.mcdonalds.com/

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Categories ofCommunication

InterpersonalCommunication

MassCommunication

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As Senders As Receivers

Develop messages

Adapt messages

Spot newcommunication

opportunities

Inform

Persuade

Remind

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Noise

Sender EncodingMessage

FeedbackChannel

MessageChannel

DecodingMessage

Receiver

The Communication Process

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The Impact of the Internet

Web sites facilitate feedback through

analytics.

Social media allow marketers to

personalize feedback channels.

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Review Learning OutcomeThe Communication Process

LO2

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The Goals of Promotion

Explain the goal of promotion.

LO

3

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Goals of Promotion

Informing Reminding

Persuading

TargetAudience

PLC Stages:

IntroductionEarly Growth

PLC Stages:

Growth

Maturity

PLC Stages:

Maturity

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Informing

Increase awareness

Explain how product works

Suggest new uses

Build company image

Informative Promotion

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Persuading

Persuasive Promotion

Encourage brand switching

Change customers perceptions ofproduct attributes

Influence immediate buying decision

Persuade customers to call

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Reminding

Reminder Promotion

Remind customers that productmay be needed

Remind customers whereto buy product

Maintain customer awareness

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The Promotional Mix

Discuss the elements of the

promotional mix.

LO4

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The Promotional Mix

Combination of promotion tools

used to reach the target

market and fulfill the organizations

overall goals.

Advertising

Public Relations

Sales Promotion

Personal Selling

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Advertising

Any form of impersonal

(one-way) paid

communication in

which the sponsor or

company is identified.

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Advertising Media

TraditionalAdvertising Media

NewAdvertising Media

Television

Radio Newspapers

Magazines

Books

Direct mail Billboards

Transit cards

Internet

Banner ads

Viral marketing

E- mail

Interactive

video

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Public Relations

The marketing function that evaluates

public attitudes, identifies

areas within the organization

that the public may be

interested in, and executes a program

of action to earn public understanding

and acceptance.

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The Function of Public

Relations

Maintain a positive image

Educate the public about the

companys objectives

Introduce new products

Support the sales effort

Generate favorable publicity

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Personal Selling

A purchase situation involving

a personal, paid-for

communication between two

people in an attempt to

influence each other.

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Personal Selling

TraditionalSelling

Relationship

Selling

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Sales Promotion

Online

http://www.nabiscoworld.com

Marketing activitiesother than

personal selling, advertising,

and public relationsthatstimulate consumer buying

and dealer effectiveness.
http://www.nabiscoworld.com/http://www.nabiscoworld.com/

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Sales Promotion

EndConsumers

Trade Customers

CompanyEmployees

Free samples

Contests

Premiums

Trade Shows

Vacation Giveaways

Coupons

Ch t i ti f th El t

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Characteristics of the Elements

in the Promotional Mix

Exhibit 16.3Characteristics of the Elements in the Promotional Mix

R i L i O t

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Review Learning OutcomeElements of the Promotional Mix

LO

4

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Promotional Goals

and the AIDA Concept

Discuss the AIDA conceptand its relationship tothe promotional mix.

LO5

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The AIDA Concept

AIDA Concept (Attention, Interest,Desire, Action)- Model that outlines

the process for achieving promotionalgoals in terms of stages of consumer

Involvement with the message.

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The AIDA Concept

Action

Desire

Interest

Attention Cogn it ive (think ing)

A ffective (feeling)

Conative (doing )

Review Learning Outcome

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Review Learning OutcomeThe AIDA Concept

LO5

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Integrated Marketing

Communications

Discuss the concept of

integrated marketing

communications.

LO6

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Integrated Marketing

Communications

The careful coordination of

all promotional

messages to assure the

consistency of messages at

every contact point where a

company meets the consumer.

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IMC Popularity Growth

Proliferation of thousands of

media choices

Fragmentation of the mass market

Slash of advertising spending in

favor of promotional techniques that generate

immediate response


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Review Learning OutcomeIntegrated Marketing Communications

LO6

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Learning Inc. All Rights Reserved

43

Factors Affecting the

Choice of Promotional Mix

Nature of the product

Stage in PLC

Target market factors

Type of buying decision

Promotion funds

Push or pull strategy

St i th P d t Lif C l

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Stage in the Product Life Cycle

Pre-introduction

Publicity, lightadvertising

Heavy use ofadvertising &PR to build

awareness;salespromotionfor trial

AD/PRdecrease;limited

salespromotion;personalselling fordistribution

Ads decrease;sales promotion;personal selling;

reminder &persuasive

Advertising,PR, brandloyalty;

personalselling fordistribution

IntroductionGrowth

MaturityDecline

Sa

le

s(

$)

Time

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Target Market Characteristics

For

Widely scattered

market

Informed buyers

Brand-loyal repeat

purchasers

Advertising

Sales Promotion

Less Personal Selling

T f B i D i i

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Type of Buying Decision

Advertising

Sales Promotion

Routine

Personal Selling

Neither Routinenor Complex

Advertising

Public Relations

Print Advertising

Complex

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Available Funds

Trade-offs with funds available

Number of people in target market

Quality of communication needed

Relative costs of promotional

elements

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Push and Pull Strategies

Manufacturerpromotes towholesaler

Wholesalerpromotes to

retailer

Retailerpromotes toconsumer

Consumerbuys from

retailer

PUSH STRATEGY

Orders to manufacturer

Manufacturerpromotes toconsumer

Consumer

demandsproduct

from retailer

Retailer

demandsproduct

from wholesaler

Wholesaler

demandsproduct frommanufacturer

Orders to manufacturer

PULL STRATEGY


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Review Learning OutcomeFactors Affecting Promotional Mix

LO7

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Chapter 16 Company Clip

Vans has a carefully planned marketing

strategy that resonates with the youth

culturethe companys target market for

shoes and athletic apparel

http://www.cengage.com/marketing/book_content/

9781111821647_lamb/videos/ch16.html

Copyright 2013 by Cengage 50
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LHM 12e ch16_PPT_IE

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