Principles of Marketing. A Global Perspective

Содержание

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14- The Promotion Mix The promotion mix is the specific blend

14-

The Promotion Mix

The promotion mix is the specific blend of advertising,

sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships.
Major Promotion Tools
Advertising
Sales promotion
Public relations
Personal selling
Direct marketing
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14- The Promotion Mix Major Promotion Tools Advertising is any paid

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The Promotion Mix

Major Promotion Tools
Advertising is any paid form of non-personal

presentation and promotion of ideas, goods, or services by an identified sponsor.
Broadcast
Print
Internet
Outdoor
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14- The Promotion Mix Major Promotion Tools Sales promotion is the

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The Promotion Mix

Major Promotion Tools
Sales promotion is the short-term incentives to

encourage the purchase or sale of a product or service.
Discounts
Coupons
Displays
Demonstrations
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14- The Promotion Mix Major Promotion Tools Public relations involves building

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The Promotion Mix

Major Promotion Tools
Public relations involves building good relations with

the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
Press releases
Sponsorships
Special events
Web pages
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14- The Promotion Mix Major Promotion Tools Personal selling is the

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The Promotion Mix

Major Promotion Tools
Personal selling is the personal presentation by

the firm’s sales force for the purpose of making sales and building customer relationships.
Sales presentations
Trade shows
Incentive programs
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14- The Promotion Mix Major Promotion Tools Direct marketing involves making

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The Promotion Mix

Major Promotion Tools
Direct marketing involves making direct connections with

carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships – by using direct mail, telephone, direct-response television, e-mail, and the Internet to communicate directly with specific consumers.
Catalog
Telemarketing
Kiosks
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14- Integrated Marketing Communications The Changing Communications Environment: Major factors are

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Integrated Marketing Communications

The Changing Communications Environment:
Major factors are changing the face

of MC
Shift away from mass marketing – develop focused marketing programs to build closer relationships with customers in more narrowly defined micromarkets
Improvements in information technology – speed the movement toward segmented marketing
The Shifting Marketing Communications Model
Less broadcasting and more narrowcasting
Advertisers are shifting budgets away from network television to more targeted cost-effective, interactive, and engaging media.
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14- Integrated Marketing Communications The Need for Integrated Marketing Communications Integrated

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Integrated Marketing Communications

The Need for Integrated Marketing Communications
Integrated marketing communication is

the integration by the company of its communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.
Integrated marketing communication calls for recognizing all contact points (brand contact) where the customer may encounter the company and its brands.
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14- A View of the Communications Process IMC involves identifying the

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A View of the Communications Process

IMC involves identifying the target audience

and shaping a well-coordinated promotional program to obtain the desired audience response.
Marketers are moving toward viewing communications as managing the customer relationship over time.
How communication works: nine elements
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8- Traditional Communication Model

8-

Traditional Communication Model

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8- Updated Communications Model Consumers are now proactive in communications process

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Updated Communications Model

Consumers are now proactive in communications process
VCRs, DVRs, video-on-demand,

pay-per-view TV, Caller ID, Internet
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A View of the Communications Process

A View of the Communications Process

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14- Communications Process Sender is the party sending the message to

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Communications Process

Sender is the party sending the message to another party.
Encoding

is the process of putting thought into symbolic form.
Message is the set of symbols the sender transmits.
Media refers to the communications channels through which the message moves from sender to receiver.
Decoding is the process by which the receiver assigns meaning to the symbols.
Receiver is the party receiving the message sent by another party.
Response is the reaction of the receiver after being exposed to the message
Feedback is the part of the receiver’s response communicated back to the sender
Noise is the unplanned static or distortion during the communication process, which results in the receiver’s getting a different message than the one the sender sent
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14- A View of the Communications Process For a message to

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A View of the Communications Process

For a message to be effective,

the sender’s encoding must mesh with the receiver’s decoding process.
Best messages consist of words and other symbols that are familiar to the receiver.
Marketers may not share their consumer’s field of experience but must understand the consumer’s field of experience.
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14- Steps in Developing Effective Communication Effective Communication Identify the target

14-

Steps in Developing Effective Communication

Effective Communication
Identify the target audience
Determine the communication

objectives
Design a message
Choose media
Select the message source
Collect feedback
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14- Steps in Developing Effective Communication Identifying the Target Audience Marketing

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Steps in Developing Effective Communication

Identifying the Target Audience
Marketing communications begins with

a clear target audience to answer these questions:
What will be said (message content)
How it will be said (message structure, format)
When it will be said
Where it will be said
Who will say it (source)
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14- Steps in Developing Effective Communication Determining the Communications Objectives Marketers

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Steps in Developing Effective Communication

Determining the Communications Objectives
Marketers seek a purchase

response that result from a consumer decision-making process that includes the stages of buyer readiness.
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14- Steps in Developing Effective Communication Designing a Message AIDA Model:

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Steps in Developing Effective Communication

Designing a Message
AIDA Model: Get Attention -

Hold Interest - Arouse Desire - Obtain Action
Designing includes the message content, structure and format.
Message content—what to say
Message structure—how to say it
Message format—through what way to express
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14- Steps in Developing Effective Communication Designing a Message Message content

14-

Steps in Developing Effective Communication

Designing a Message
Message content is an appeal

or theme that will produce the desired response.
Rational appeal relates to the audience’s self-interest.
Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase.
Moral appeal is directed at the audience’s sense of right and proper.
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14- Steps in Developing Effective Communication Choosing Media Personal communication Non-personal communication

14-

Steps in Developing Effective Communication

Choosing Media
Personal communication
Non-personal communication

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14- Steps in Developing Effective Communication Personal Communication Personal communication involves

14-

Steps in Developing Effective Communication

Personal Communication
Personal communication involves two or more

people communicating directly with each other.
Face-to-face, Phone, Mail, E-mail, Internet chat
Personal communication is effective because it allows personal addressing and feedback.
Control of personal communication
Company - salespeople
Independent experts - Consumer advocates, Buying guides
Word of mouth – Friends, Neighbors, Family
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14- Steps in Developing Effective Communication Personal Communication Opinion leaders are

14-

Steps in Developing Effective Communication

Personal Communication
Opinion leaders are people within

a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others.
Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities.
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14- Steps in Developing Effective Communication Non-Personal Communication Channels Non-personal communication

14-

Steps in Developing Effective Communication

Non-Personal Communication Channels
Non-personal communication is media that

carry messages without personal contact or feedback— including major media, atmospheres, and events—that affect the buyer directly.
Major media include print, broadcast, display, and online media.
Atmospheres are designed environments that create or reinforce the buyer’s leanings toward buying a product.
Events are staged occurrences that communicate messages to target audiences - Press conferences, Grand openings, Exhibits, Public tours
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14- Steps in Developing Effective Communication Selecting the Message The message’s

14-

Steps in Developing Effective Communication

Selecting the Message
The message’s impact on the

target audience is affected by how the audience views the communicator.
Celebrities, e.g. athletes, entertainers
Professionals, e.g. health care providers
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14- Steps in Developing Effective Communication Collecting Feedback Involves the communicator

14-

Steps in Developing Effective Communication

Collecting Feedback
Involves the communicator understanding the effect

on the target audience by measuring behavior resulting from the behavior.
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14- Setting the Total Promotion Budget and Mix Setting the Total

14-

Setting the Total Promotion Budget and Mix

Setting the Total Promotion Budget
Affordable

budget method
Percentage-of-sales method
Competitive-parity method
Objective-and-task method
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14- Setting the Total Promotion Budget and Mix Affordable budget method

14-

Setting the Total Promotion Budget and Mix

Affordable budget method sets the

budget at an affordable level.
Ignores the effects of promotion on sales
Percentage-of-sales method sets the budget at a certain percentage of current or forecasted sales or unit sales price.
Easy to use and helps management think about the relationship between promotion, selling price, and profit per unit
Wrongly views sales as the cause than the result of promotion
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14- Setting the Total Promotion Budget and Mix Competitive-parity method sets

14-

Setting the Total Promotion Budget and Mix

Competitive-parity method sets the budget

to match competitor outlays.
Represents industry standards
Avoids promotion wars
Objective-and-task method sets the budget based on what the firm wants to accomplish with promotion and includes
Defining promotion objectives
Determining tasks to achieve the objectives
Estimating costs
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14- Setting the Total Promotion Budget and Mix Shaping the Overall

14-

Setting the Total Promotion Budget and Mix

Shaping the Overall Promotion Mix
The

Nature of Each Promotion Tool
Advertising
Personal selling
Sales promotion
Public relations
Direct marketing
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14- Setting the Total Promotion Budget and Mix Advertising reaches masses

14-

Setting the Total Promotion Budget and Mix

Advertising reaches masses of geographically

dispersed buyers at a low cost per exposure and enables the seller to repeat a message many times; is impersonal, cannot be directly persuasive as personal selling, and can be expensive.
Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, and actions and developing customer relationships.
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14- Setting the Total Promotion Budget and Mix Sales promotion includes

14-

Setting the Total Promotion Budget and Mix

Sales promotion includes coupons, contests,

cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase. It can be used to dramatize product offers and to boost sagging sales.
Public relations is a very believable form of promotion that includes new stories, features, sponsorships, and events.
Direct marketing is a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarketing, and online marketing.
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14- Setting the Total Promotion Budget and Mix Promotion Mix Strategies

14-

Setting the Total Promotion Budget and Mix

Promotion Mix Strategies
Push strategy involves

pushing the product to the consumers by inducing channel members to carry the product and promote it to final consumers.
Used by B2B companies
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14- Setting the Total Promotion Budget and Mix Promotion Mix Strategies

14-

Setting the Total Promotion Budget and Mix

Promotion Mix Strategies
Pull strategy is

when the producer directs its marketing activities toward the final consumers to induce them to buy the product and create demand from channel members.
Used by B2C companies
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14- Setting the Total Promotion Budget and Mix Integrating the Promotion

14-

Setting the Total Promotion Budget and Mix

Integrating the Promotion Mix: Checklist
Analyze

trends—internal and external.
Audit the pockets of communication spending throughout the organization.
Identify all customer touch points for the company and its brands.
Team up in communications planning.
Create compatible themes, tones, and quality across all communications media.
Create performance measures that are shared by all communications elements.
Appoint a director responsible for the company’s persuasive communications efforts.
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