Download Exhibit 13-1: Promotion and Marketing Strategy Planning

Exhibit 13-1: Promotion and Marketing Strategy
Planning
13-1
Exhibit 13-2: Examples of Sales Promotion
Activities
13-2
Exhibit 13-3: Relation of Promotion Objectives,
Adoption Process, and AIDA Model
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Exhibit 13-4: The Traditional Communication
Process
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Exhibit 13-5: Common Frame of Reference in
Communication Process
13-5
Google website
13-6
Exhibit 13-6: A Model of Customer-Initiated
Interactive Communication
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Exhibit 13-7: Promotion May Encourage Pushing in
the Channel, Pulling by Customers, or Both
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Exhibit 13-8: The Adoption Curve
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Promotion
ƒ Communicating information between seller
and potential buyer or others in the channel—
to influence attitudes and behavior
ƒ Three major categories:
– Personal Selling
– Mass
M
S lli (Ad
Selling
(Advertising
ti i and
dP
Publicity)
bli it )
– Sales Promotion
ƒ Different methods have different limitations
and advantages
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Basic Promotion Methods and Strategy
Planning
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Integrated Marketing Communications
ƒ Intentional coordination of every communication from a
fi tto a target
firm
t
t customer
t
to
t convey a consistent
i t t and
d
complete message
ƒ Marketing
g manager
g blends inputs from
–
–
–
–
Sales managers
Advertising managers
Public relations manager
g
Sales promotion managers
ƒ Integrated promotion effort in channel requires
cooperation and coordination
ƒ Blend depends on promotion objectives and situation
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Stanley integrated marketing communication
campaign
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Promotion Seeks to Shift the Demand Curve
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Basic Promotion Objectives
I f
Informing
i
Persuading
Reminding
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Traditional Communication Concepts in
Promotion
ƒ Source—the sender of a message
ƒ Encoding—the source deciding what to say and
translating it into words or symbols that convey
meaning
ƒ Message channel—the carrier of the message
Noise—any
any distraction that reduces the
ƒ Noise
effectiveness of the communication process
g
receiver translating
g the
ƒ Decoding—the
message
ƒ Receiver — the potential customer
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Integrated Direct-Response Promotion
ƒ Direct communication between a seller and individual customer
using a promotion method other than face
face-to-face
to face personal selling
ƒ Started with mail advertising, but has evolved to include other
media, including
–
–
–
–
Internet websites,
websites e-mail
e-mail, broadcast
Cable TV, satellite TV
Interactive video
Fax on demand,, telephone
p
ƒ Distinctive feature is that it attempts to evoke a direct response
from the customer
ƒ Closely tied to use of a CRM database to target customers
ƒ Privacy and other ethical issues may arise
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Customer May Initiate Communication
ƒ New electronic media encourage consumers to
search
h ffor information
i f
ti
ƒ Consumer decides how much information to
get
– Marketing information not just in 30-second sound
bytes
ƒ Action (response)—including purchase—may
be immediate
ƒ Communication
C
i ti with
ith customers
t
iis b
becoming
i
more customized (personalized)
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Promotion Blend May Involve Pushing and
Pulling
ƒ PUSHING
– using normal promotion efforts to sell the marketing
mix to channel members
ƒ PULLING
– getting customers to ask middlemen for the product,
usuallyy because of promotion
p
directed to final
consumers or users
ƒ Some combination of the two methods is
usually required
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(Proctor and Gamble) ‘Notice to Our
Customers’
Customers
PROCTER & GAMBLE NOTICE TO OUR CUSTOMERS
ATTENTION STORE MANAGER;
We offer Cooperative Merchandising Agreements to all retailers in the U.S.A. Some
Agreements are annual--some are short-term.
Payments are made for print or electronic media featuring, display, and consumerdirected promotion. Product coupons and samples are distributed in stores in various
markets at various times. Details are set forth in specific agreements. Proof of delivery
(wholesalers’ invoices) are required for some offers. Also, we offer display materials,
newspaper proofs, etc., to assist you in merchandising our brands.
The above promotional offers are practical and usable by all retailers regardless of size.
You may now be performing under an agreement and payments are being made to you or
to your headquarters.
If you are not performing or receiving such promotional offers and would like to, send
your name, address and telephone number to Procter & Gamble, Box 162, Cincinnati,
Ohio 45201 and our sales representative will contact you. Please specify, if possible, the
Company Division in whose brands you are interested.
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Multistep Flow Model of Communication
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Primary and Selective Demand
ƒ PRIMARY DEMAND:
– demand for the general product idea
ƒ SELECTIVE DEMAND:
– demand for a specific brand
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Setting the Promotion Budget
ƒ Budget
g based on p
percent of p
past or expected
p
sales
– most common approach
– main advantage is ease
– can lead to major problems,
problems including cutbacks when more
money is needed
ƒ Task method—budgets for what needs to be
accomplished
– usually the sensible approach
– requires that activities be evaluated against objectives
ƒ Same ideas apply in budgeting other types of
marketing activities
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