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Chapter 16
Promotional Planning
Promotion
 COMMUNICATION
that informs,
persuades and
reminds potential
customers of a
product in order to
influence their opinion
or elicit a response
The Role of Promotion
in the Marketing Mix
Overall Marketing
Objectives
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Marketing Mix
Product
Place
Promotion
Price
Target Market
Promotional Mix
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Advertising
Public Relations
Sales Promotion
Personal Selling
Promotion Plan
The Elements of
Promotion
Advertising
 Informative or
persuasive message
carried by a nonpersonal medium.
The Elements of
Promotion
Personal selling:
 Person-to-person
interaction with
buyer or seller.
 Purpose: to persuade
buyer to accept a
point of view
The Elements of
Promotion
Publicity:
 Message about a product
not paid for by a sponsor.
Public Relations:
 Activities involved in
actively seeking publicity.
The Elements of
Promotion
Sales Promotion:
 Promotional activities
intended to stimulate
buyer purchases or
dealer effectiveness.
Communication
The process by which
we exchange or share
meanings through a
common set of
symbols.
Marketing Communication
Categories of
Communication
Interpersonal
Communication
Mass
Communication
The Communication Process
Noise
Sender
Encoding
Message
Message
Channel
Feedback
Channel
Decoding
Message
Receiver
The Impact of Blogging
Corporate
Blogs
Noncorporate
Blogs
Sponsored by a company or
one of its brands and maintained
by one or more of the company’s
employees.
Independent and not associated
with the marketing efforts of any
particular company or brand.
Goals and Tasks of Promotion
Informing
Reminding
Target
Audience
Persuading
Goals and Tasks of
Promotion
Informing
PLC Stages:
Introduction
Early Growth
PLC Stages:
Growth
Maturity
Reminding
Target
Audience
Persuading
PLC Stages:
Maturity
The AIDA Concept
AIDA Concept
Model that outlines the
process for achieving
promotional goals in terms
of stages of consumer
involvement with the
message.
The AIDA Concept
Action
Desire
Interest
Attention
Conative (doing)
Affective (feeling)
Cognitive (thinking)
Online
Factors Affecting the
Choice of Promotional Mix
Nature of the product
Stage in PLC
Target market factors
Type of buying decision
Promotion funds
Push or pull strategy
Stage in the Product Life
Cycle
Sales ($)
Maturity
Introduction
Growth
Decline
Time
Light
Advertising;
preintroduction
publicity
Heavy use of
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
Type of Buying Decision
Routine
Neither Routine
nor Complex
Complex
Advertising
Sales Promotion
Advertising
Public Relations
Personal Selling
Print Advertising
Available Funds
 Trade-offs with funds available
 Number of people in target market
 Quality of communication needed
 Relative costs of promotional elements
Push and Pull Strategies
PUSH STRATEGY
Manufacturer
promotes to
wholesaler
Wholesaler
promotes to
retailer
Retailer
promotes to
consumer
Consumer
buys from
retailer
Orders to manufacturer
PULL STRATEGY
Manufacturer
promotes to
consumer
Consumer
demands
product
from retailer
Retailer
demands
product
from wholesaler
Orders to manufacturer
Wholesaler
demands
product from
manufacturer
Integrated Marketing
Communications
Integrated
Marketing
Communications
The careful coordination of all
promotional messages to
assure the consistency of
messages at every contact
point where a company meets
the consumer.