Promotion - Copy

8/3/2019 Promotion - Copy

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2002 South-Western 1

chapter

Promotion Mix

14


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2002 South-WesternChapter 14 Version 6e 2

Promotion1

Communication 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 Strategy1

A plan for the optimal use

of the elements of

promotion:

Advertising

Public Relations & Publicity

Personal Selling

Sales Promotion


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The Role of Promotion1

Promotional Mix

AdvertisingPublic Relations &

PublicityPersonal SellingSales Promotion

Promotion Plan

OverallMarketingObjectives

Marketing Mix Product

Distribution

Promotion

Price

Target Market


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Differential Advantage

Unique Features

Excellent Service

Low Prices

Rapid Delivery

High Product Quality

Featuresthat provideDifferentialAdvantage

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Promotional Mix/ IMC

Combination of promotion

tools used to reach the

target market and fulfill

the organizations

overall goals.

Advertising

Public Relations/

\publicityPersonal Selling

Sales Promotion

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Promotional Mix

Advertising

Elementsof the

PromotionalMix

Public Relations & Publicity

Personal Selling

Sales Promotion

2


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Advertising

Impersonal, one-way

mass communication

about a product or

organization that is

paid for by a marketer.

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Advertising Media

TraditionalAdvertising Media

ElectronicAdvertising Media

Television Radio Newspapers Magazines

Books Direct mail Billboards outdoor

Internet Fax machines

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Advertising

Advantages

Ability to reach largenumber of people

Cost per contact is low

Can be micro-targeted

Disadvantages

Total cost is high

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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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Public Relations

Evaluates publicattitudes

Identifies areasof public interest

Executesprograms towin public

Functions of

Public Relations

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Publicity2

Public information about a

company, good, or service

appearing in the mass media

as a news item.


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Sales Promotion2

Marketing activities--other

than personal selling,

advertising, and public

relations--that stimulate

consumer buying and

dealer effectiveness.


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Sales Promotion

EndConsumers

Trade Customers

CompanyEmployees

Sales Promotion

Targets

2


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Personal Selling2

Planned presentation to

one or more prospective

buyers for the purpose

of making a sale.


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2002 South-Western19 - 17

PROSPECTING PREAPPROACH PRESENTATION POSTSALESERVICES

Identifying:ProfilesLeads

Records

Qualifying:CapabilityWillingness

Information

Habits

Preferences

AIDA:AttentionInterestDesireAction

Meet Objections

Close the Sale

Reducedissonance

Build

goodwill

The Personal Selling Process


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Personal Selling

TraditionalSelling

RelationshipSelling

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Marketing Communication

Categories ofCommunication

InterpersonalCommunication

MassCommunication

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The Communication Process

As Senders As Receivers

Inform

Persuade

Remind

Develop messages

Adapt messages

Spot newcommunicationopportunities

3


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The Sender and Encoding3

SenderThe originator of the message in the

communication process.

EncodingThe conversion of a senders ideas

and thoughts into a message, usuallyin the form of words or signs.


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The Communication Process

Noise

SenderEncodingMessage

MessageChannel

MessageChannel

DecodingMessage

Receiver

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Characteristics of Public Relations3

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content ControlSponsor Identification

Reaching Large Audience

Message Flexibility

Public Relations

Usually indirect, non-personal

Moderate to low

Little

Delayed

One-way

NoNo

Usually fast

Usually no direct control


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Characteristics ofSales Promotion

3

Communication Mode


Feedback Amount

Feedback Speed


Message Content Control

Sponsor Identification


Message Flexibility

Sales Promotion

Usually Indirect and non-personal

Moderate to low

Little to moderate

Varies

Mostly one-way

Yes

Yes

Fast

Same message to varied target


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Characteristics of Personal Selling3

Communication Mode


Feedback Amount

Feedback Speed


Message Content Control

Sponsor Identification


Message Flexibility

Personal Selling

Direct and face-to-face

High

Much

Immediate

Two-way

Yes

Yes

Slow

Tailored to prospect


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Goals and Tasks of Promotion

Informing Reminding

Persuading

TargetAudience

PLC Stages:IntroductionEarly Growth

PLC Stages:GrowthMaturity

PLC Stages:

Maturity

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AIDA and the Promotional Mix

Awareness Interest Desire Action

AdvertisingVery

effectiveVery

effectiveSomewhateffective

Noteffective

PublicRelations

Veryeffective

Veryeffective

Veryeffective

Noteffective

Sales

Promotion

Somewhat

effective

Somewhat

effective

Very

effective

Very

effective

PersonalSelling

Somewhateffective

Veryeffective

Veryeffective

Somewhateffective

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Factors thataffect the promotional mix.


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Factors Affecting thePromotional Mix

Nature of Product

Stage in PLC

Target Market Factors

Type of Buying Decision

Promotion Funds

Push or Pull Strategy

FactorsAffectingChoice of

Promotional Mix

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Nature of the Product6

Product characteristics Business product vs. consumer product

Costs and risks

Social risk

Factors that influence promotional mix


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Stage in the Product Life Cycle6

Time

IntroductionGrowth

Maturity

Decline

Sales

($)


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Product Life Cycle and thePromotional Mix

LightAdvertising,

pre-

introductionPublicity

Heavy use ofadvertising,

PR for

awareness;sales

promotionfor trial

AD/PRdecreaseLimited

SalesPromotion,PersonalSelling for

distribution

Adsdecrease.

Sales

Promotion,PersonalSelling

Reminder &Persuasive

Advertising,PR, Brand

loyalty

PersonalSelling for

distribution

Introduction Growth

Maturity

Decline

S

ales($)

Time

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Target Market Characteristics6

FOR:

Widely scattered

market

Informed buyers

Repeat buyersAdvertising

Sales Promotion

Less Personal Selling


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Type of Buying Decision

Advertising

Sales PromotionType of

Buying DecisionaffectsPromotionalMix Choice

Complex

Routine

Personal Selling

Not Routineor Complex

Advertising

Public Relations

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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

Manufacturer

promotes toconsumer

Consumer

demandsproductfrom retailer

Retailer

demandsproductfrom wholesaler

Wholesaler

demandsproduct frommanufacturer

Orders to manufacturer

PULL STRATEGY

6

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