Lamb Hair Mc Daniel 2012 2013 CHAPTER 16
Lamb, Hair, Mc. Daniel 2012 -2013 CHAPTER 16 Chapter 12 Copyright © 2013 by Cengage Learning Inc. All rights reserved 1 © Asger Carlsen/Stone+/Getty Images Integrated Marketing Communications
Learning Outcomes 1 Discuss the role of promotion in the marketing mix 2 Describe the communication process 3 Explain the goal and tasks of promotion 4 Discuss the elements of the promotional mix 2 © 2013 by Cengage Learning Inc. All Rights Reserved.
Learning Outcomes 5 Discuss the AIDA concept and its relationship to the promotional mix 6 Discuss the concept of integrated marketing communications 7 Describe the factors that affect the promotional mix 3 © 2013 by Cengage Learning Inc. All Rights Reserved.
The Role of Promotion in the Marketing Mix Discuss the role of promotion in the marketing mix 1 © 2013 by Cengage Learning Inc. All Rights Reserved. 4
The Role of Promotional Strategy A plan for the optimal use of the elements of promotion: u Advertising u Public Relations u Personal Selling u Sales Promotion 5 © 2013 by Cengage Learning Inc. All Rights Reserved. 1
Exhibit 16. 1 Role of Promotion in the Marketing Mix 6 © 2013 by Cengage Learning Inc. All Rights Reserved.
Competitive Advantage High product quality Rapid delivery Low prices Excellent service Unique features 7 © 2013 by Cengage Learning Inc. All Rights Reserved. 1
Marketing Communication Describe the communication process 2 © 2013 by Cengage Learning Inc. All Rights Reserved. 8
Communication the process by which meanings are exchanged or shared through a common set of symbols. 9 © 2013 by Cengage Learning Inc. All Rights Reserved. 2
Marketing Communication Categories of Communication Interpersonal Communication 10 Mass Communication © 2013 by Cengage Learning Inc. All Rights Reserved. 2
Marketing Communication As Senders 11 As Receivers § Inform § Develop messages § Persuade § Adapt messages § Remind § Spot new communication opportunities © 2013 by Cengage Learning Inc. All Rights Reserved. 2
Exhibit 16. 2 Communication Process 12 © 2013 by Cengage Learning Inc. All Rights Reserved.
Communication and the Internet Traditional advertising model: • Impersonal • Numbers driven • Unquantifiable consumer behavior 13 Internet and social media advertising: • Personal • Direct communication • Feedback driven • Highly visible communication © 2013 by Cengage Learning Inc. All Rights Reserved. 2
The Goals and Tasks of Promotion Explain the goals and tasks of promotion 3 © 2013 by Cengage Learning Inc. All Rights Reserved. 14
Goals and Tasks of Promotion Informing Reminding Target Audience Persuading 15 © 2013 by Cengage Learning Inc. All Rights Reserved. 3
Goals and Tasks of Promotion Informing Reminding PLC Stages: Stages Introduction Early Growth PLC Stages: Target Audience Maturity PLC Stages: Growth Maturity Persuading 16 © 2013 by Cengage Learning Inc. All Rights Reserved. 3
Goals and Tasks of Promotion Informative Promotion § Increase awareness § Explain how product works § Suggest new uses § Build company image © 2013 by Cengage Learning Inc. All Rights Reserved. 17
Goals and Tasks of Promotion Persuasive Promotion § Encourage brand switching § Change customers’ perceptions of product attributes § Influence immediate buying decision § Persuade customers to call © 2013 by Cengage Learning Inc. All Rights Reserved. 18
Goals and Tasks of Promotion Reminder Promotion § Remind customers that product may be needed § Remind customers where to buy product § Maintain customer awareness © 2013 by Cengage Learning Inc. All Rights Reserved. 19
The Promotional Mix Discuss the elements of the promotional mix 4 © 2013 by Cengage Learning Inc. All Rights Reserved. 20
The Promotional Mix l a n o ti o m o Pr Mix 21 © 2013 by Cengage Learning Inc. All Rights Reserved. 4
The Promotional Mix g n i s i rt e v d A Most commonly distributed by traditional media, though increasingly through nontraditional media, such as Web sites, e-mail, blogs, and interactive video kiosks in malls and supermarkets. 22 © 2013 by Cengage Learning Inc. All Rights Reserved. 4
Advertising Media New Advertising Media Traditional Advertising Media u u u u 23 Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards u u u Internet Banner ads Viral marketing E- mail Interactive video © 2013 by Cengage Learning Inc. All Rights Reserved. 4
Advertising Advantages u Reach large number of people u Low cost per contact Disadvantages u Total cost is high u National reach is expensive for small companies u Can be micro-targeted 24 © 2013 by Cengage Learning Inc. All Rights Reserved. 4
Public Relations c i l b u P s n o i t Rela 25 Evaluates public attitudes, identifies areas within the organization that public may be interested in, and executes a program to earn public understanding. © 2013 by Cengage Learning Inc. All Rights Reserved. 4
The Function of Public Relations § Main tain a p ositive § Edu image cate th e publi compa c abou ny’s ob t the j e c tives § Intro duce n ew pro ducts § Sup port the sales e § Gen ffort erate fa vorable publicit y 26 © 2013 by Cengage Learning Inc. All Rights Reserved. 4
Sales Promotion s e l a S n o i t o Prom 27 Marketing activities— other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness. © 2013 by Cengage Learning Inc. All Rights Reserved. 4
Sales Promotion Free samples Contests Premiums Trade Shows Vacation Giveaways End Consumers Trade Customers Company Employees Coupons 28 © 2013 by Cengage Learning Inc. All Rights Reserved. 4
Personal Selling l a n o s Per g n i l l e S 29 Planned presentation to one or more prospective buyers for the purpose of making a sale. © 2013 by Cengage Learning Inc. All Rights Reserved. 4
Personal Selling 30 Traditional Selling Attempts to persuade the buyer into a specific point of view. Win-lose outcome. Relationship Selling Long-term relationships, create a win-win outcome © 2013 by Cengage Learning Inc. All Rights Reserved. 4
Social Media ia d e M l a i Promotion tools used to c o S facilitate conversations among people online. 31 © 2013 by Cengage Learning Inc. All Rights Reserved. 4
Social Media u Blogs u Microblogs u Podcasts u Vodcasts u Social Networks 32 Allow marketers to: • Manage brand images • Engage with consumers • Generate interest © 2013 by Cengage Learning Inc. All Rights Reserved. 4
Exhibit 16. 3 Characteristics of the Elements in the Promotional Mix 4
Promotional Goals and the AIDA Concept Discuss the AIDA concept and its relationship to the promotional mix 5 © 2013 by Cengage Learning Inc. All Rights Reserved. 34
The AIDA Concept Attention Interest Desire Action 35 Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. © 2013 by Cengage Learning Inc. All Rights Reserved. 5
The AIDA Concept Action Desire Interest Attention 36 Conative (doing) Affective (feeling) Cognitive (thinking) © 2013 by Cengage Learning Inc. All Rights Reserved. 5
Exhibit 16. 4 The Promotional Mix and AIDA Attention Interest Desire Action Advertising Public Relations Sales Promotion Personal Selling Social Media Very Effective 37 Somewhat Effective Not Effective © 2013 by Cengage Learning Inc. All Rights Reserved.
Integrated Marketing Communications Discuss the concept of integrated marketing communications 6 © 2013 by Cengage Learning Inc. All Rights Reserved. 38
Integrated Marketing Communications ted a r g e t In g n i t e k r Ma s n o i t a c uni m m o C The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer. 39 © 2013 by Cengage Learning Inc. All Rights Reserved. 6
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 40 © 2013 by Cengage Learning Inc. All Rights Reserved. 6
Factors Affecting the Promotional Mix Describe the factors that affect the promotional mix 7 © 2013 by Cengage Learning Inc. All Rights Reserved. 41
Factors Affecting the Choice of Promotional Mix Nature of the product Stage in PLC Target market characteristics Type of buying decision Promotion funds Push or pull strategy 42 © 2013 by Cengage Learning Inc. All Rights Reserved. 7
Exhibit 16. 5 Product Life Cycle and the Promotional Mix Light Advertising; Preintroduction publicity Heavy Advertising; PR for awareness; sales promotion for trial Advertising, PR, brand loyalty; personal selling for distribution Ads decrease; sales promotion; personal selling; reminder & persuasive AD/PR decrease; limited sales promotion; personal selling for distribution
Target Market Characteristics For… Advertising Sales Promotion Less Personal Selling 44 u Widely scattered market u Informed buyers u Brand-loyal repeat purchasers © 2013 by Cengage Learning Inc. All Rights Reserved. 7
Type of Buying Decision Routine Advertising Sales Promotion Neither Routine nor Complex Advertising Public Relations Personal Selling Print Advertising 45 © 2013 by Cengage Learning Inc. All Rights Reserved. 7
Available Funds u Trade-offs with funds available u Number of people in target market u Quality of communication needed u Relative costs of promotional elements 46 © 2013 by Cengage Learning Inc. All Rights Reserved. 7
Exhibit 16. 6 Push Strategy versus Pull Strategy 47 © 2013 by Cengage Learning Inc. All Rights Reserved.
Chapter 16 Video Ogden Publications Brandy Ernzen discusses how Ogden Publications creates a cohesive integrated marketing campaign. The main obstacle is to find a way to represent the very different subjects featured by Ogden’s various publications in a unified way. http: //www. cengage. com/marketing/book_cont ent/9781133190110_lamb/videos/ch 16. html © 2013 by Cengage Learning Inc. All Rights Reserved. 48
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