Download Promotion Strategy

CHAPTER 15 Integrated Marketing Communications
Promotion Strategy
• Chapter 11, 12, 13 (Flatworld textbook)
• WGU E-reserve
– Table 15.2 Comparison of the Six Promotional Mix Elements
(Contemporary Marketing, pg. 504)
– Table 15.2 Comparison of the Six Promotional Mix Elements
(Contemporary Marketing, pg. 504)
– Table 15.2 Comparison of the Six Promotional Mix Elements
(Contemporary Marketing, pg. 504)
– Flash Cards
• The Marketing Mix
(http://www.proprofs.com/flashcards/tableview.php?title=
mkc1-exam-contemporary-marketing-chapter-11-13-1519)
•
CHAPTER 15 Integrated Marketing Communications
• Promotion Communication link between buyers and
sellers; the function of informing, persuading, and
influencing a consumer’s purchase decision.
• Marketing communications Messages that deal
with buyer-seller relationships.
• Integrated marketing communications (IMC)
Coordination of all promotional activities to produce
a unified, customer- focused promotional message.
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INTEGRATED MARKETING COMMUNICATIONS
• Consumers receive many marketing messages all day.
• Customer is at the heart of marketing programs.
• Strategy begins with their wants or needs and then works
backward to product.
• IMC looks at elements of the promotional mix through
the customers’ eyes.
• Must segment market according to customer demographics and
preferences.
• Increased media options provide more ways to communicate with
customers but create danger of overload and stretch resources.
• In 1960, marketer could reach 90 percent of consumers through
television ads on the three major networks.
• Today, they account for 20 percent of viewing hours.
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IMPORTANCE OF TEAMWORK
• Requires consistent, coordinated promotional effort at every stage of
customer contact.
• Involves both in-house resources and outside vendors.
• Marketing personnel.
• Sales force.
• Organizational buyers.
• Customer services representative.
• Example: Benefits of a great advertisement can be undone by unhelpful
salespeople who frustrate customers.
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THE COMMUNICATION PROCESS
• Sender seeks to convey a message.
• Effective message does three things:
• Gains the receiver’s attention.
• Achieves understanding by both sender and receiver.
• Stimulates receiver’s needs and suggests appropriate means of
satisfying them.
• Message is encoded by the sender and decoded by the receiver.
• Receiver decodes, or interprets, the message and send feedback.
• Throughout, noise can interfere with the transmission of the message over
the channel.
• AIDA concept Steps through which an individual reaches a purchase
decision: attention, interest, desire, and action.
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CHAPTER 15 Integrated Marketing Communications
• AIDA concept is vital for understanding an reaching customers.
• Example: The 2008 Summer Olympics held in Beijing gave NBC
“an extraordinary research opportunity” to find out how consumers
watched the games.
• Noise can be a particular issue in international
communications, including in the world’s 74
English-speaking countries.
• Example: Term for police varies from country to
country.
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OBJECTIVES OF PROMOTION
PROVIDE INFORMATION
• Goal is informing the market about the availability of a product.
• Example: Advertisement about a musical performance includes
information about time, date, and place.
INCREASE DEMAND
• May increase primary demand, or desire for a particular product category.
• Example: “Cotton. The fabric of our lives.”
• May increase selective demand, or desire for a specific brand.
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DIFFERENTIATE THE PRODUCT
• Differentiation allows firms more control over marketing variables such as
price.
ACCENTUATE THE PRODUCT’S VALUE
• Greater value helps justify a higher price in the marketplace.
• Marketers advise staying away from these words—quality, value, service,
caring, and integrity—because they are overused and vague.
STABILIZE SALES
• Can help make demand more consistent throughout the year.
• Example: Dunkin’ Donuts attempt to boost summertime coffee
sales by focusing on its iced coffee drinks.
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ELEMENTS OF THE PROMOTIONAL MIX
• Promotional mix Subset of the marketing mix in which marketers attempt
to achieve the optimal blending of the elements of personal and nonpersonal
selling to achieve promotional objectives.
• Personal selling, advertising, and sales promotion usually account
for the bulk of a firm’s promotional expenditures.
PERSONAL SELLING
• Oldest form of promotion.
• A seller’s promotional presentation conducted on a person-to-person basis
with the buyer.
• More than 16 million people in U.S. have careers in personal sales and
related occupations.
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NONPERSONAL SELLING
• Includes advertising, product placement, sales promotion,
direct marketing, public relations, and guerrilla marketing.
Advertising
• Any paid, nonpersonal communication through various
media about a business firm, not-for-profit organization,
product, or idea by a sponsor identified in a message that
is intended to inform, persuade, or remind members of a
particular audience.
• Total ad spending in U.S. topped $149 billion in a recent year.
• Primarily involves mass media but also includes electronic and
computerized forms of promotion.
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Product Placement
• Form of nonpersonal selling in which the marketer pays a motion picture
or television program owner a fee to display his or her product prominently
in the film or show.
• Also includes placement in video games.
Sales Promotion
• Sales promotion Marketing activities other than personal selling,
advertising, guerrilla marketing, and public relations that stimulate consumer
purchasing and dealer effectiveness.
• Includes displays, trade shows, coupons, contests, samples, premiums,
product demonstrations, and various nonrecurring, irregular selling efforts.
• Trade promotion—offering free merchandise and other incentives to
encourage marketing intermediaries to sell more of certain items or product
lines.
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Direct Marketing
• Direct marketing Direct communications, other than personal sales
contacts, between buyer and seller, designed to generate sales, information
requests, or store or Web site visits.
• Includes direct mail, telemarketing, direct-response advertising,
infomercials, and other strategies.
Public Relations and Publicity
• Public relations Firm’s communications and
relationships with its various publics.
• Publics include publics include customers,
suppliers, stockholders, employees, the
government, and the general public.
• Publicity—nonpersonal stimulation of demand unpaid
placement of news about it or through a favorable
presentation of it on the radio or television.
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• Bad publicity can damage a company’s reputation and diminish brand
equity.
• Organizations try to capitalize on good publicity and counteract negative
publicity.
Guerrilla Marketing
• Guerrilla marketing Unconventional, innovative, and low-cost marketing
techniques designed to get consumers’ attention in unusual ways.
• Buzz marketing through campus ambassadors who create a buzz
about products with their classmates.
• Viral marketing.
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CHAPTER 15 Integrated Marketing Communications
DIRECT MARKETING
• Expenditures topped $183 billion in a recent year.
• Despite the economic slowdown, direct marketers saw sales increase over
5 percent.
• Helps increase store traffic.
• Opens large new international markets and promotes goals beyond creating
product awareness.
• Persuade people to place an order, request more information, visit
a store, call a toll-free number, or respond to an e-mail message.
• When successful, prompts consumers to take action.
• Databases are an important tool.
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DIRECT MARKETING COMMUNICATION CHANNELS
• Direct mailings such as brochures and catalogs.
• Telecommunications initiated by companies or customers.
• Television and radio through special offers, infomercials, or shopping
channels.
• Internet via e-mail and electronic messaging.
• Print media such as newspapers and magazines.
• Specialized channels such as electronic kiosks.
DIRECT MAIL
• Many forms, including sales letters, postcards, brochures, booklets,
catalogs, house organs, DVDs, videotapes, and audiocassettes.
• Allows narrow targeting, intensive coverage, and other benefits.
• Per reader cost is high and many consumer view it as junk.
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CATALOGS
• Popular form of direct mail since late 1800s in U.S.
• More than 10,000 different catalogs fill mailboxes every year.
• Companies adding online catalogs to complement print catalogs.
TELEMARKETING
• Most frequently used form of direct marketing.
• Provides a high return on expenditures, an immediate response, and the
opportunity for personalized two-way conversations.
• Outbound—sales force uses only the telephone to contact customers.
• Inbound—initiated by customer, often one calling a toll-free number for
more information or to make a purchase.
• 1996 Telemarketing Sales Rule created Do Not Call Registry and curtailed
abusive telemarketing practices.
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DIRECT MARKETING VIA BROADCAST CHANNELS
• Brief direct-response advertisements on television or radio.
• Encourage viewers to respond immediately by offering a special
price or other incentive.
• Home shopping channels.
• Function as on-air catalogs that prompt customers to place orders
by telephone.
• Infomercials.
• 30-minute or longer product commercials that resemble regular
television programs.
• Generally air on less expensive cable channels and in late-night
time slots on broadcast stations.
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ELECTRONIC DIRECT MARKETING CHANNELS
• Equals more than 8 percent of total advertising spending.
• Includes Web advertising and e-mail notices.
• Online customer acquisition programs often cost less than traditional ones.
OTHER DIRECT MARKETING CHANNELS
• Print media and other traditional channels are critically important.
• Example: Magazine ads with toll free numbers that enhance
inbound telemarketing campaigns.
• Kiosks also provide an outlet for electronic sales.
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DEVELOPING AN OPTIMAL PROMOTIONAL MIX
NATURE OF THE MARKET
• Market’s target audience.
• Personal selling can be highly effective if market has limited
number of buyers.
• Market’s type of customer.
NATURE OF THE PRODUCT
• Highly standardized products usually depend less on personal selling.
• Consumer product sellers rely more on advertising than business product
sellers.
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STAGE IN THE PRODUCT LIFE CYCLE
• Heavier emphasis on personal selling in introductory stages to acquaint
marketing intermediaries and final consumers with product.
• Advertising becomes more important as product moves into growth and
maturity.
• Differentiation becomes more important as competitors enter the
market.
PRICE
• Advertising dominates for low-unit-value products.
FUNDS AVAILABLE FOR PROMOTION
• Size of the budget influences promotional mix.
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CHAPTER 15 Integrated Marketing Communications
PULLING AND PUSHING PROMOTIONAL
STRATEGIES
• Pulling strategy Promotional effort by the seller to stimulate final-user
demand, which then exerts pressure on the distribution channel.
• Often a reliance on advertising and sales promotion.
• Pushing strategy Promotional effort by the seller directed to members of
the marketing channel rather than final users.
• Relies more heavily on personal selling.
• Advertising creates an environment for successful personal selling and
remains important as an affirmation of customer’s decision.
• Example: Vehicle sales, in which advertising creates awareness,
personal selling skills close the sale, and advertising maintains
postpurchase satisfaction.
CHAPTER 15 Integrated Marketing Communications
VIDEO
Watch Pepsi Video 1
Watch Pepsi Video 2
Watch Pepsi Video 3
• What message is this series of ads for Pepsi meant to convey?
• Look for message consistencies. To what target markets do
these Pepsi ads appeal?
CHAPTER 15 Integrated Marketing Communications
VIDEO
Watch Levitra Video
Watch Lays Video
• Identify which parts of the AIDA concept are presented in the
Levitra and Lays ads.