Download Promotion

Chapter16 Promotion
Marketing vs. Promotion
Marketing concept vs. promotion concept
The marketing mix
product
place
price
promotion
Marketing vs. Promotion
(cont’d)
The promotion mix
Advertising
Personal selling
Sales promotion
Direct marketing
Internet marketing
Publicity
Marketing vs. Promotion
(cont’d)
Types of sales promotion
Consumer products
consumer-oriented
trade-oriented
Industrial products
Promotion and the Demand
Curve
Price
Price
Price
D
D1
D
D2
0
Quantity
A. To be more inelastic
Exhibit 14-3
14-8
D
D
0
Quantity
B. to the right
0
Quantity
C. Both to the right
and more inelastic
Integrating the Elements
of the Promotion Mix
Stages of the buying decision
prepurchase
purchase
postpurchase
Size of decision-making unit
Integrating the Elements
of the Promotion Mix
(cont’d)
The product life cycle
Product characteristics
complexity
risk
The target audience
consumer vs. business
pull vs. push
Push vs. Pull Strategies
Push
Manufacturer
Wholesaler
Retailer
Consumer
Push vs. Pull Strategies
Pull
Manufacturer
Wholesaler
Retailer
Consumer
Promotional Objectives
Sales targets
Market share targets
Communication targets
awareness
information
brand preference
share of voice
share of mind
share of heart
Promotional Objectives
(cont’d)
Direct objectives
Indirect objectives
Indirect objectives are used more often
Promotional Objectives
(cont’d)
Situations where direct
objectives may be appropriate:
Advertising by retailers
Direct-response advertising
Sales-promotion advertising
Business-to-business advertising
Promotional Objectives
(cont’d)
Should state:
Target audience
Objective
Degree of change
Time frame
Promotional Objectives
(cont’d)
Example:
Target -- 30 million U.S. households
Communication objective -- The detergent
buyer should identify Brand X as a lowsudzing detergent
Desired change -- from 10 to 40 percent
Time frame -- 1 year
Advertising Media
Television
Radio
Outdoor
billboards
transit advertising
Magazines
Newspapers
Direct mail
Internet
banners
links to related websites
Advertising Media (cont’d)
Criteria for selecting media
Cost
Compatibility with media habits of target
audience
Compatibility with product
Compatibility with message
Types of Advertisements
Product advertisements
Institutional advertisements
Pioneering
Competitive
Reminder
Advocacy
Advertising Appeals
Rational appeals
Moral appeals
Emotional appeals
Emotional Appeals
Joy
Love
Humor
Sex
Pride
Guilt
Fear
Execution Styles
Slice-of-life
Lifestyle
Musical
Personality symbol
Humor
Endorsements (expertise, trustworthiness,
likeability)
Media Terminology
Reach
Rating
Frequency
Gross Rating Points (GRPs)
Impact
Cost per thousand
Wasted coverage
Budgeting Methods
Percentage of sales method
Match-competitors method
Affordability method
Share of market method
Objective and task method
Budgeting Methods
(cont’d)
Objective and task method
Identify the objectives
Determine the tasks that will have to be
performed
Determine the cost of performing those
tasks
Budgeting Methods
(cont’d)
Example of objective and task
method
Identify the objectives
Target -- 30 million U.S. households
Communication objective -- The detergent
buyer should identify Brand X as a lowsudzing detergent
Desired change -- from 10 to 40 percent
Time frame -- 1 year
Budgeting Methods
(cont’d)
Example of objective and task
method (cont’d)
Determine the tasks that will have to be
performed
reach 80% of the market with the advertising
message
determine the frequency or average # of
impressions needed (frequency = 30)
determine the number of Gross Rating Points
(GRPs) (80 X 30 = 2,400 GRPs)
Budgeting Methods
(cont’d)
Example of objective and task
method (cont’d)
Determine the cost of performing those
tasks
determine the average cost of a GRP ($3,000
per GRP)
multiply by the number of GRPs ($3,000 X
2,400 = $7,200,000)
Media Scheduling
Steady (drip) scheduling
GRPs
Time
Media Scheduling
Flighting or “intermittent” schedule
GRPs
Time
Media Scheduling
Pulse or “burst” schedule
GRPs
Time
Sales Promotion
Consumer products
Industrial products
Sales Promotion (cont’d)
Consumer products
Consumer-oriented
coupons
premiums
samples
contests/sweepstakes
rebates
etc
Sales Promotion (cont’d)
Consumer products (cont’d)
Trade-oriented
point-of-purchase (POP)
advertising allowances
display allowances
merchandise assistance
quantity discounts
Sales Promotion (cont’d)
Industrial products
Trade shows
Displays/exhibits
Brochures and technical promotional
material
Other Promotional Tools
Direct marketing
Publicity
E-Commerce -- or is e-commerce much
broader than promotion?
Personal selling
Consumer Behavior Issues
(p. 349)
Learning Hierarchy
Learn
Feel
Do
Relevant to high-involvement products in
industries where product differentiation exists
Consumer Behavior Issues
(p. 349)
Dissonance-Attribution Hierarchy
Do
Feel
Learn
Relevant to high-involvement products in
industries where little product differentiation
exists (e.g., refrigerators)
Consumer Behavior Issues
(p. 349)
Low-Involvement Hierarchy
Do
Feel
Attitude change occurs only after product
experience
Relevant to low-involvement products in
industries where little product differentiation
exists (e.g., soft drinks).