Promotion Means Effective Promotion Means Effective CommunicationsCommunications

MarketingMarketing

Chapter 15Chapter 15

Role of PromotionRole of Promotion

PromotionPromotion– Any form of communication used to Any form of communication used to

inform, persuade, or remindinform, persuade, or remind

Role of PromotionRole of Promotion

To InformTo Inform– First task of promotionFirst task of promotion– Often done when product is in Often done when product is in

introduction stage of life cycleintroduction stage of life cycle

To PersuadeTo Persuade– Attempts to encourage customer to take Attempts to encourage customer to take

specific actionspecific action– Important during growth stage of life Important during growth stage of life

cyclecycle

Role of PromotionRole of Promotion

To RemindTo Remind– Final role of promotion activitiesFinal role of promotion activities– Frequently used in maturity stage of life Frequently used in maturity stage of life

cyclecycle

Communication ProcessCommunication Process

The transfer of a message from The transfer of a message from sender to a receiversender to a receiver– SenderSender

Originator of the messageOriginator of the message

– EncodingEncodingPutting message into language or symbols Putting message into language or symbols that are familiar to the intended receiverthat are familiar to the intended receiver

Communication ProcessCommunication Process– Message ChannelMessage Channel

The medium the sender chooses to transmit The medium the sender chooses to transmit the messagethe message

– TV, radio, billboard, Internet, newspaper, TV, radio, billboard, Internet, newspaper, magazine, direct mail, sales presentationmagazine, direct mail, sales presentation

– DecodingDecodingInterpreting the message or converting it Interpreting the message or converting it into meaning or ideasinto meaning or ideas

Communication ProcessCommunication Process– ReceiverReceiver

Person/persons to whom the encoded Person/persons to whom the encoded message is directedmessage is directed

– NoiseNoiseInterference that can cause the message to Interference that can cause the message to be interpreted by receiver incorrectlybe interpreted by receiver incorrectly

– FeedbackFeedbackReceiver’s reactions or response to the Receiver’s reactions or response to the source’s messagesource’s message

Types of CommunicationTypes of Communication

Interpersonal CommunicationInterpersonal Communication– Involves two or more people in some Involves two or more people in some

kind of person-to-person exchangekind of person-to-person exchange

Mass CommunicationMass Communication– Communication to a huge audience, Communication to a huge audience,

usually through mass media such as usually through mass media such as magazines, radio, television, or magazines, radio, television, or newspaper.newspaper.

Types of PromotionTypes of Promotion

AdvertisingAdvertising– Any paid form of non-personal Any paid form of non-personal

communication sent through a mass communication sent through a mass medium by an organization about its medium by an organization about its productproduct

Types of PromotionTypes of Promotion

AdvertisingAdvertising– AdvantagesAdvantages

Reaches millions of peopleReaches millions of people

Can reach geographically diverse people at Can reach geographically diverse people at the same timethe same time

Repeats messages many timesRepeats messages many times

Types of PromotionTypes of Promotion– DisadvantagesDisadvantages

High costHigh cost

Target audience may not be at the right Target audience may not be at the right place to receive messageplace to receive message

Impersonal in natureImpersonal in nature

PublicityPublicity

Non-paid form of communication Non-paid form of communication about a business or organization or about a business or organization or its productsits products– Usually a news storyUsually a news story

AdvantagesAdvantages– Creates goodwill (positive feelings)Creates goodwill (positive feelings)

DisadvantagesDisadvantages– Organization had little control over story Organization had little control over story

– generated by media– generated by media

Personal SellingPersonal SellingPerson-to-person communication with a Person-to-person communication with a potential customer in an effort to inform, potential customer in an effort to inform, persuade, or remind them to purchase an persuade, or remind them to purchase an organization’s product.organization’s product.AdvantagesAdvantages– Personal contactPersonal contact– Customer feedback is immediateCustomer feedback is immediate

DisadvantagesDisadvantages– Per person cost is highPer person cost is high– Every sales encounter does not result in a saleEvery sales encounter does not result in a sale

Sales PromotionSales PromotionActivities or materials that offer consumers Activities or materials that offer consumers a direct incentive to buy a good or servicea direct incentive to buy a good or service

AdvantagesAdvantages– Generates immediate short-term salesGenerates immediate short-term sales– Used to support other parts of the promotional Used to support other parts of the promotional

campaigncampaign

DisadvantagesDisadvantages– CostCost

If the promotion does not result in a significant sales If the promotion does not result in a significant sales increase, the business will lose money.increase, the business will lose money.

Advertising is a Marketing ToolAdvertising is a Marketing ToolMarketing ResponsibilitiesMarketing Responsibilities– Marketing StrategyMarketing Strategy

Show the products valueShow the products value

– Stand Out in the CrowdStand Out in the CrowdFocus on features/attributes that makes product Focus on features/attributes that makes product uniqueunique

– Target the CustomerTarget the CustomerFocus on the type of customer most likely to Focus on the type of customer most likely to purchase the productpurchase the product

– Contribute to Revenue Contribute to Revenue Creating salesCreating sales

Advertising as a Marketing ToolAdvertising as a Marketing Tool– Brand LoyaltyBrand Loyalty

Image and repeat customersImage and repeat customers

– Enhance Customer SatisfactionEnhance Customer SatisfactionReinforcing consumer decision to buy your Reinforcing consumer decision to buy your productproduct

– Life of ProductLife of ProductGood advertising generates revenue and Good advertising generates revenue and profitprofit