Download STUDY UNIT 11

Student Notes Pages
Marketing
Chapter 16: Promotion Strategy and
Marketing Communication
Introduction
Marketing
Second SA edition
• Promotion is communication with actual
and potential buyers
• Objective: to convince target market of the
product’s differential advantage
• Ought be guided by a promotional
strategy: a plan for the optimal use of the
promotional mix
Charles W. Lamb, Jr.
Joseph F. Hair, Jr.
Carl McDaniel
Christo Boshoff
Nic S. Terblanche
Chapter 11:
The Promotional Strategy and
Marketing Communication
11-1
Elements of the Promotional Mix
11-2
The Effects (outcomes) of
Advertising
Advertising
• Advertising influences:
– market share
– the consumers’ behaviour
– brand loyalty
– perceptions of attributes
Public Relations
Ingredients
of the
Promotion
Mix
Personal Selling
Sales Promotion
11-3
Major Types of Advertising
11-4
Major Types of Advertising (cont)
Corporate Image
Institutional
Advertising
• Institutional advertising
– to establish, change or maintain the firm’s
identity - not an attempt to sell anything
Advocacy Advertising
Types
of
Advertising
• Product advertising
– pioneering advertising
Pioneering
Product
Advertising
» stimulate demand for a new product: primary
demand
Competitive
– competitive advertising
Comparative
– comparative advertising
» attempts to increase sales: brand insistence
11-5
» directly or indirectly compares two brands
© 1997 South-Western College Publishing
11-6
Student Notes Pages
Marketing
Chapter 16: Promotion Strategy and
Marketing Communication
Public Relations and Publicity
Personal Selling
• Public relations: shape the public’s
perceptions of and attitudes towards the
firm
• Communicates with stakeholders in
manners other than advertising
• Publicity: non-paid for media exposure for
the firm: both positive and negative
• Two people in a purchasing situation
trying to influence each other
• Each part has its own objectives
– buyer wants to minimise costs or buy the best
quality
– seller wants to maximise price, sales and
profits
• Often a well-prepared presentation
• Modern approach is relationship selling
11-7
Sales Promotion
11-8
The Communication Process
Noise
• All marketing activities other than
advertising, personal selling and public
relations, that stimulates sales and dealer
effectiveness
• Short-term, immediate stimulation of
demand
• Can be aimed at consumers,
intermediaries or employees
• Examples: free samples, coupons etc.
Sender
Encoding
Channel
Decoding
Receiver
Channel
11-9
Integrated Marketing
Communications
11-10
Goals and Tasks of Promotion
Informing
• Ideally communication from each
promotional element ought to be
integrated
• The message reaching the consumer must
be consistent irrespective of the medium
used
• Organisational arrangements must ensure
IMC
• The responsibility of the marketing
communications manager
11-11
© 1997 South-Western College Publishing
Reminding
Target
Audience
Persuading
11-12
Student Notes Pages
Marketing
Chapter 16: Promotion Strategy and
Marketing Communication
When Elements of Promotion Are Most
Useful
AIDA and the Hierarchy of Effects
Purchase
Advertising
Effectiveness
Conviction
Preference
Liking
Personal
selling
Sales
promotion
Public
relations
Knowledge
Awareness Knowledge Liking Preference
Awareness
Conviction
Purchase
Very effective
Attention
Interest
Desire
Somewhat effective
Action
Not effective
Cognitive
Affective
Conative
11-13
Factors that Affect the Promotion
Mix
Nature of the Product
11-14
Creating a Promotion Plan
Analyse the Marketplace
Stage in the Product
Life Cycle
Identify Target Market
Target Market Characteristics
Set Promotion Objectives
Type of Buying Decision
Develop Promotion Budget
Available Funds
$$$
Choose Promotion Mix
Push–and–Pull Strategies
11-15
11-16
Examples of Promotion Objectives
Criteria for Setting Promotion
Objectives
Informative (Awareness) Objective
Promotion objectives should:
To increase the top-of-mind awareness level for Black Cat
peanut butter from 16 percent to 24 percent
be measurable, concrete
Persuasion (Attitudinal) Objective
To increase the percentage of parents who feel that Black Cat
peanut butter is the best peanut butter for their children from
22 percent to 35 percent
be based on sound research, with a
well-defined target audience
be realistic
Reminder Objective
reinforce the overall marketing plan and
relate to specific marketing objectives
To remind consumers that Black Cat peanut butter is the
creamiest peanut butter and is available at their nearest grocery
and convenience stores
11-17
© 1997 South-Western College Publishing
11-18
Student Notes Pages
Marketing
Chapter 16: Promotion Strategy and
Marketing Communication
Techniques for Setting Promotion
Budgets
• Arbitrary Allocation
• All - You - Can - Afford
• Competitive Parity
• Percent of Sales
• Market Share
• Objective and Task
11-19
© 1997 South-Western College Publishing