lecture 9 -- promotion and integrated marketing communication com

8/9/2019 Lecture 9 -- Promotion and Integrated Marketing Communication com

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Promotion and Integrated MarketingCommunication

Advertising

Public Relations/ PublicityPersonal SellingSales PromotionDirect Marketing

Chapters 12, 13 & 14


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MARKETING COMMUNICATIONS

MARKETER INITIATED TECHNIQUES USED TOSET UP CHANNELS OF INFORMATION AND

PERSUASION WITH TARGETED AUDIENCESTO INFLUENCE ATTITUDES AND BEHAVIOR

PromotionMessage and Media

MARKETING COMMUNICATIONS MIXTool Box of Media and TechniquesIntegration and CoordinationBased on Communications Model


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MAJOR OBJECTIVES OFMARKETING COMMUNICATIONS

Informing

Informing Persuading

Persuading

Reminding

Reminding


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MARKETING COMMUNICATIONS OBJECTIVES

Increase Market PenetrationDevelop Repeat Purchase Behavior Establish Customer RelationshipsIncrease Rate of Consumption

Encourage Product TrialStimulate Impulse BuyingStimulate DemandDifferentiate the ProductEstablish a Product ImageInfluence Sales Volume

Establish, Modify, or Reinforce AttitudesDevelop Sales LeadsStimulate InterestEstablish UnderstandingBuild Support & Acceptance


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ELEMENTS OF THEMARKETING COMMUNICATIONS MIX

1. Advertising

1. Advertising

2 . Public Relations

2 . Public Relations5 . Direct Marketing

5 . Direct Marketing

3 . SalesPromotion

3 . SalesPromotion4 . Personal Selling

4 . Personal Selling

Integrated Marketing Communications (IMC)is the strategic integration of multiple means of

communicating with target markets


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MARKETING COMMUNICATIONS PLANNING

Marketing Plan Review

Situation Analysis

Communications ProcessAnalysis

Budget Development

Program Development

Integration & Implementation

Monitoring, Evaluating,Controlling

METHODS

PUSH vs.

PULL


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Push and Pull Strategies

Push strategy is directed toward thechannel members Provide incentives for those in the

distribution channels to buy the product

Pull strategy is directed toward the

ultimate purchaser The focus is on creating demand at the

household or ultimate consumer level


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Approaches to Determining thePromotional Budget

Percentage of sales A fixed amount of money per past or projected

salesProbably the most widely used as it is simpleBut, what about cause and effect?

All available funds/All you can afford

Budget what is left over for promotionalexpendituresNew companies often put all available funds intopromotion to penetrate the marketBut, you can miss opportunities or overspend


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Approaches to Determining thePromotional Budget

Competitive parity/Follow the competition Adopt the average ratio for promotional expenses

to sales for the industry or main competitor; or thesame absolute amount as a competitor But, what if they do not know what they are doing and/or strategies and tactics are different?

Objective and task

1) Determine objectives; 2) Determine relationshipbetween expenditures and ability to achieveobjective; 3) Set a budget that allows theachievement of these goals


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Psychological ProcessesThe high involvement decision process

Need -> search -> evaluation -> purchase -> outcomes

The adoption process Awareness -> interest -> evaluation -> trial -> adoption -> post-adoptionconfirmation

Buyer readiness states/Hierarchy of effects Awareness -> knowledge -> liking -> preference -> conviction ->purchase

AIDA Awareness -> Interest -> Desire -> Action


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S election of the Promotional Mix

PRODUCT CHARACTERISTICS Industrial good/technical good

Need personal selling; customers want to receiveinformation, inspect and compare the products

Consumer package goods/frequently purchaseitems

Advertising and sales promotion to reach market Unit value

Low cost must use mass media approaches, with highunit cost personal selling is effective Customization

Customized often requires personal selling


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S election of the Promotional Mix

CUSTOMER CHARACTERISTCS Industrial versus consumer market

Consumers are easier to reach (decision maker) throughmedia sources; industrial buyers typically have a moreformal buying process, requiring personal selling

Number of customersFor a small number of customers, personal selling canplay a much more important role

Geographical dispersionNot only affects the type of promotional effort, but themedia choices


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Advertising Defined

ADVERTISING Any paid form of non-personal presentationand promotion of ideas, goods, or services

by an identified sponsor Magazines, newspaper, outdoor posters, directmail, radio televisions, etc.

Key issues The time or media space is paid for The sponsor is identified and has control over the

promotional activity


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DEVELOPING AN ADVERTISING CAMPAIGN

EvaluateAdvertising

Effective-ness

Select &Schedule

Media

DetermineAdvertising

Budget

DetermineAdvertisingObjectives

SelectTargetMarket

DesignCreativeStrategy


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ADVERTISING STRATEGY

MESSAGE STRATEGIESObjective vs. Subjective MessagesComparative Message TechniquesEmotional Techniques: Mood, Fear, Humor Celebrity Endorsements vs. Non-Celebrity Images

MEDIA STRATEGIESBroadcast: Television, RadioPrint: Newspapers, Magazines, JournalsSpecialized: Outdoor, Transit, Direct Mail, Internet


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ADVERTISING STRATEGY

RELATIVE STRENGTHS AND WEAKNESSES OFSTRATEGIES

Effectiveness and Efficiency: Reach andFrequencyTarget CapabilitiesCostBelievability

Appropriateness for Message (Image, Details)


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Reach & Frequency

Reach: number of different target consumerswho are exposed to a message at least once

during a specific period of timeFrequency: number of times an individual isexposed to a given message during a specificperiod of time

Cost per contact: cost of reaching onemember of the target market Allows comparison across advertising strategy

vehicles


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EVALUATING ADVERTISINGEFFECTIVENESS

Pretesting

Posttesting

Sales EffectivenessEvaluations

Tools:

F ocus GroupsScreeningPersuasion Scores

Tools:

Unaided Recall TestsAided Recall TestsInquiry Evaluations

Tools:

Monitor Sales


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PUBLIC RELATIONS

EFFORTS TO IMPROVE AND MANAGERELATIONSHIPS WITH PUBLICS

Customers

Stock HoldersCommunityGovernmentNews Media

PROACTIVE vs. REACTIVE

DuPont vs. ExxonPUBLICITY

Not Overtly SponsoredHigh Credibility


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PUBLIC RELATIONS

PressRelations

ProductPromotions

AdvisingManagement

CorporateCommunications Lobbying

Public Relations F unctions


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Personal S elling

PERSONAL SELLING Oral presentation in a conversation with one or more

prospective purchasers for the purpose of making asale

Personal selling represents the most popular promotional effort in terms of financial expendituresand number of people employed

Personal Selling is:(1) Dyadic, (2) Flexible, (3) Focused (personalized), and (4)Often results directly in a saleOther promotional elements move the customer toward thesale, personal selling closes the sale


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PERSONAL SELLING ANDSALES MANAGEMENT

FUNCTIONS AND CONTRIBUTIONS OF

PERSONAL SELLINGBoundary Spanner Role, RelationshipManagement ( Trust )Two-Way Information Channel (Diffusion

of Product and Market Information)Facilitate Exchange


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THE MARKETING-COMMUNICATIONS MIX:Relative Emphasis in Consumer and Business Markets

B USINESS MARKETS CONSUMER MARKETS

SALESFORCE

ADVERTISINGPROMOTIONSDIRECT MKT.

EMPHASIS EMPHASIS

COMPLEMENT


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PERSONAL SELLING ANDSALES MANAGEMENT

ROLES OF SALESPERSONPsychologistConsultantEducator / Teacher Problem Solver Team Leader

TYPES OF SELLING POSITIONS

New Business (Prospector)Existing Business (Order Taker)DetailingSupport (Marketing, Technical)


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STEPS IN THE SELLING PROCESS: A RELATIONSHIP APPROACH

INITIATING RELATIONSHIPSProspectingPre-Call Planning

Approach

DEVELOPING CUSTOMER RELATIONSHIPSSales Communications and PresentationsGaining and Managing Commitment

ENHANCING CUSTOMER RELATIONSHIPSFollow-Up

SupportTRADITIONAL vs. RELATIONSHIP APPROACHES

Consultative (needs-satisfaction) vs. Manipulative (product-focused)


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SALES MANAGEMENT ISSUES

RECRUITING AND HIRINGDifficult to Predict Success

DEPLOYMENTTerritory Design

AUTOMATIONUse of Technology to Link Buyer, Salesperson, andOrganizations (Customer RelationshipManagement and Supply Chain Management)

EVALUATION AND COMPENSATIONOutcome-Based vs. Behavior-Based


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Sales Promotion

SALES PROMOTION Those marketing activities - other than

advertising, public relations/publicity, andpersonal selling - that stimulate consumer purchasing and dealer effectiveness

Displays, shows and exhibitions, coupons,contests, samples


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THE GROWTH IN SALES PROMOTION

Consumer F actors

Accountability

Increased Retail Power

Impact of Technology

Short-Term F ocus

Reasons for the Growth in Sales Promotion:


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StimulateTrial

StimulateTrial

SupportF lexible PricingSupportF lexible Pricing

Increase

Consumption

Increase

ConsumptionNeutralize

CompetitorsNeutralize

Competitors

ComplementaryProducts

ComplementaryProducts

EncourageRepurchaseEncourage

Repurchase

ImpulsePurchasing

ImpulsePurchasing

OBJECTIVES OF CONSUMER PROMOTIONS


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CONSUMER SALES PROMOTION

TECHNIQUESPrice Deals

AdvertisingSpecialties Coupons

Sampling Rebates

Contests, Games,Sweepstakes

Premiums Cross-Promotions


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OBJECTIVES OF TRADE PROMOTIONS

Increase Reseller Inventory

InfluencePrice Discount

Defend AgainstCompetitors

Avoid PriceReductions

InfluenceReseller Promotion

Gain/MaintainDistribution

Increase Reseller Inventory

InfluencePrice Discount

Defend AgainstCompetitors

Avoid PriceReductions

InfluenceReseller Promotion

Gain/MaintainDistribution


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LIMITATIONS OF SALES PROMOTION

Cannot Reverse Declining SalesTrend

Cannot Reverse Declining SalesTrend

Cannot Overcome Inferior ProductCannot Overcome Inferior Product

May Encourage CompetitiveRetaliation

May Encourage CompetitiveRetaliation

May Hurt ProfitMay Hurt Profit


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Direct Marketing

Techniques used to get consumers tomake a purchase from their home,office or other nonretail setting Direct mail, catalogs, mail order,

telemarketing, electronic retailing


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TECHNIQUES OF DIRECT MARKETING

ElectronicMedia

Direct Selling

PrintMedia

BroadcastMedia

Direct Mail

Telemarketing

lecture 9 -- promotion and integrated marketing communication com

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