2. The Role of Promotion
Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response.
PromotionPromotion
3. Promotion Strategy
A plan for the optimal
use of the elements of
promotion:
Advertising
Public Relations
Sales Promotion
Personal Selling
Promotional
Strategy
Promotional
Strategy
Competitive
Advantage
4. The Role of Promotion
in the Marketing Mix
Overall
Marketing
Objectives
Overall
Marketing
Objectives
Marketing Mix
• Product
• Place
• Promotion
• Price
Marketing Mix
• Product
• Place
• Promotion
• Price
Target MarketTarget Market
Promotional Mix
• Advertising
• Public Relations
• Sales Promotion
• Personal Selling
Promotion Plan
Promotional Mix
• Advertising
• Public Relations
• Sales Promotion
• Personal Selling
Promotion Plan
5. Competitive Advantage
Unique featuresUnique features
Excellent serviceExcellent service
Low pricesLow prices
Rapid deliveryRapid delivery
High product qualityHigh product quality
6. Goals and Tasks of Promotion
InformingInforming RemindingReminding
PersuadingPersuading
Target
Audience
Target
Audience
7. Goals and Tasks of Promotion
InformingInforming RemindingReminding
PersuadingPersuading
Target
Audience
Target
Audience
PLC StagesPLC Stages:
Introduction
Early Growth
PLC Stages:PLC Stages:
Growth
Maturity
PLC Stages:PLC Stages:
Maturity
8. Goals and Tasks of Promotion
Remind customers that product
may be needed
Remind customers where
to buy product
Maintain customer awareness
Reminder Promotion
9. The AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message.
Attention
Interest
Desire
Action
Attention
Interest
Desire
Action
AIDA
Concept
AIDA
Concept
12. Push and Pull Strategies
Manufacturer
promotes to
wholesaler
Manufacturer
promotes to
wholesaler
Wholesaler
promotes to
retailer
Wholesaler
promotes to
retailer
Retailer
promotes to
consumer
Retailer
promotes to
consumer
Consumer
buys from
retailer
Consumer
buys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturer
promotes to
consumer
Manufacturer
promotes to
consumer
Consumer
demands
product
from retailer
Consumer
demands
product
from retailer
Retailer
demands
product
from wholesaler
Retailer
demands
product
from wholesaler
Wholesaler
demands
product from
manufacturer
Wholesaler
demands
product from
manufacturer
Orders to manufacturer
PULL STRATEGY
14. The Promotional Mix
Combination of
promotion
tools used to reach the
target market and fulfill
the organization’s
overall goals.
Advertising
Public Relations
Sales Promotion
Personal Selling
Promotional
Mix
Promotional
Mix
15. The Promotional Mix
Impersonal, one-wayImpersonal, one-way
mass communication aboutmass communication about
a product or organizationa product or organization
that is paid for by athat is paid for by a
marketer.marketer.
Advertising
Advertising
17. IMC Popularity Growth
Proliferation of
thousands of media
choices
Fragmentation of the
mass market
Slash of advertising
spending in favor of
promotional techniques
that generate immediate
response
19. Advertising
Advantages Disadvantages
Reach large number
of people
Low cost per
contact
Can be micro-
targeted
Total cost is high
National reach is
expensive for
small companies
20. Public Relations
The marketing function that
evaluates public attitudes,
identifies areas within the
organization that the public
may be interested in, and
executes a program of
action to earn public
understanding and
acceptance.
Public
Relations
Public
Relations
21. The Function of
Public Relations
Maintain a positive image
Educate the public about the
company’s objectives Introduce new products
Support the sales effort
Generate favorable publicity
22. Sales Promotion
Marketing activities—
other than personal
selling, advertising, and
public relations—that
stimulate consumer
buying and dealer
effectiveness.
Sales
Promotion
Sales
Promotion
27. As Senders As Receivers
Develop messages
Adapt messages
Spot new
communication
opportunities
Inform
Persuade
Remind
Marketing Communication
28. As Senders As Receivers
Develop messages
Adapt messages
Spot new
communication
opportunities
Inform
Persuade
Remind
Marketing Communication
30. Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Advertising
Indirect and impersonal
Low
Little
Delayed
One-way
Yes
Yes
Fast
Same message to all audiences
Characteristics of the Elements
in the Promotional Mix
31. Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Public Relations
Usually indirect, impersonal
Moderate to low
Little
Delayed
One-way
No
No
Usually fast
Usually no direct control
Characteristics of the Elements
in the Promotional Mix
32. Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Sales Promotion
Usually indirect and impersonal
Moderate to low
Little to moderate
Varies
Mostly one-way
Yes
Yes
Fast
Same message to varied target
Characteristics of the Elements
in the Promotional Mix
33. Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Personal Selling
Direct and face-to-face
High
Much
Immediate
Two-way
Yes
Yes
Slow
Tailored to prospect
Characteristics of the Elements
in the Promotional Mix
35. The Impact of Blogging
LO3
Sponsored by a company or
one of its brands and
maintained by one or more of
the company’s employees.
Sponsored by a company or
one of its brands and
maintained by one or more of
the company’s employees.
Noncorporate
Blogs
Noncorporate
Blogs
Corporate
Blogs
Corporate
Blogs
Independent and not
associated with the
marketing efforts of any
particular company or brand.
Independent and not
associated with the
marketing efforts of any
particular company or brand.
36. Factors Affecting the
Choice of Promotional Mix
Nature of the productNature of the product
Stage in PLCStage in PLC
Target market factorsTarget market factors
Type of buying decisionType of buying decision
Promotion fundsPromotion funds
Push or pull strategyPush or pull strategy
37. Stage in the Product Life Cycle
Light
Advertising;
pre-
introduction
publicity
Heavy use of
Advertising;
PR for
awareness;
sales
promotion
for trial
AD/PR
decrease;
limited
sales
promotion;
personal
selling for
distribution
Ads decrease;
sales
promotion;
personal
selling;
reminder &
persuasive
Advertising,
PR, brand
loyalty;
personal
selling for
distribution
IntroductionIntroduction GrowthGrowth
MaturityMaturity
DeclineDecline
Sales($)Sales($)
TimeTime
38. Target Market Characteristics
For…
Widely scattered
market
Informed buyers
Brand-loyal repeat
purchasers
AdvertisingAdvertising
Sales PromotionSales Promotion
Less Personal SellingLess Personal Selling
39. Type of Buying Decision
Advertising
Sales Promotion
RoutineRoutine
Personal Selling
Neither Routine
nor Complex
Neither Routine
nor Complex
Advertising
Public Relations
Print Advertising
ComplexComplex
Notes de l'éditeur
Notes:
For goods and services to survive in the marketplace, effective promotion is needed to inform, persuade, and remind potential buyers of a product.
Notes:
1. Promotional strategy is a plan for using promotion effectively.
Notes:
As Exhibit 14.1 shows, the marketing manager determines the goals of the promotional strategy in light of the firm’s overall goals for the marketing mix.
Using the overall goals, marketers combine the elements of the promotional strategy into a coordinated plan.
This plan becomes an integral part of the marketing strategy for reaching the target market. The main function of promotional strategy is to convince target customers that the goods and services offered provide a competitive advantage over the competition.
Notes:
The main function of a marketer’s promotional strategy is to convince the target market that the goods and services offered provide a competitive advantage.
A competitive advantage is the set of unique features of a company and its products that are perceived as superior over the competition. These features are listed on this slide.
Discussion/Team Activity:
Discuss companies and products that demonstrate a competitive advantage based on the features shown above.
Notes:
Promotion seeks to modify behavior and thoughts in some way. It also strives to reinforce existing behavior.
Promotion has three basic tasks: it can inform the target audience, persuade the target audience, or remind the target audience. Often a marketer will try to accomplish two or more of these tasks at the same time.
Notes:
The informing phase of promotion seeks to convert an existing need into a want or to stimulate interest in a new product. It is more prevalent during the early stages of the product life cycle.
Persuasive promotion is designed to stimulate a purchase or an action. It becomes the main promotion goal when the product enters the growth stage of its life cycle.
Reminder promotion is used to keep the product/brand name in the public’s mind. It is effective during the maturity cycle.
A discussion of each category follows.
Discussion/Team Activity:
Name products/brands and discuss the stage of their product life cycle. Categorize the type of promotion—informative, reminder, or persuasive-- that is used in the product/brand promotional mix.
Notes:
The goal of any promotion is to get someone to buy a good or service, or take some action. A classic model for reaching promotional goals is called the AIDA concept—attention, interest, desire, and action—the stages of consumer involvement.
This model proposes that consumers respond to marketing messages in a cognitive--thinking, affective--feeling, and conative--doing sequence.
Online:
NASCAR
Kellogg’s
What kind of promotions are coming out of the relationship between Kellogg’s cereals and NASCAR racing? How successful do you think NASCAR promotions will be in selling cereal? How effective will Kellogg’s promotions be in increasing the number of NASCAR fans?
Notes:
Exhibit 14.4 shows the relationship between the AIDA model and the promotional mix. Above is a variation on that exhibit.
For example, advertising is most useful in gaining attention for goods. In contrast, personal selling reaches fewer people at first. Salespeople are more effective at creating customer interest, in creating desire, and taking action.
Public relations is best at gaining attention for a company, a good or service. Sales promotion’s greatest strength is in creating strong desire and purchase intent (action).
Notes:
Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler/retailer to carry and sell their merchandise. This is known as a push strategy. The wholesaler, in turn, pushes the merchandise forward by persuading the retailer to handle the goods. The retailer uses advertising and other forms of promotion to convince customers to buy the “pushed” products.
At the other end is a pull strategy, which stimulates consumer demand to obtain product distribution. The manufacturer uses a pull strategy by focusing promotional efforts on end consumers and opinion leaders. The wholesaler then places an order for the “pulled” merchandise from the manufacturer. Consumer demand pulls the product through the channel of distribution.
A company typically uses a mix of push and pull strategies.
The Push and Pull strategies are diagrammed in Exhibit 14.6.
Discussion/Team Activity:
Discuss products and/or industries that utilize push and/or pull strategies in their promotion mix.
Notes:
Most promotional strategies use several components of promotion, which may include advertising, public relations, sales promotion, and personal selling to reach the target market.
The more emphasis is placed on a particular promotional element, the more important that element is considered to be in the overall promotional mix.
A discussion of each of the promotional mix elements follows.
Notes:
Almost all companies use some form of advertising, ranging from a newspaper classified ad to a multimillion-dollar campaign.
Notes:
Media choices are plentiful and fragmented. In addition to the traditional advertising media, new methods are being used to reach consumers.
Internet advertising is being increasingly used as a vital component. Banner ads, viral marketing, and interactive promotions are all ways to reach the target audience.
Discussion/Team Activity:
Some consumers and lawmakers feel that consumer privacy is being violated with Internet advertising methods. Discuss this as a class. Refer to the “Ethics in Marketing” box.
Notes:
Advertising has the advantage of being able to reach larger numbers of people, but it can also be microtargeted to small groups.
Although the cost per contact in advertising is low, the total cost to advertise is typically very high. Only financially able companies can afford to advertise on a national basis.
Notes:
Many organizations spend large amounts of money to build a positive public image.
Public relations help an organization communicate with stockholders, customers, suppliers, government, employees, and the community.
Notes:
Public relations is used to maintain a positive image, as well as the functions shown on this slide.
Nothing sells a product better than free publicity, but publicity should not be viewed as free. Preparing news releases, staging events, persuading media personnel to print or broadcast them costs money.
Discussion/Team Activity:
Discuss current examples of publicity regarding organizations.
Notes:
Sales promotion is generally a short-run tool used to stimulate immediate increases in demand.
Sales promotion is used to improve the effectiveness of other ingredients in the promotion mix, especially advertising and personal selling.
Online
Nabisco
Nabisco lists its promotions on its Web site. What do you think the advantages and disadvantages of this technique are? What changes, if any, would you suggest?
Notes:
Sales promotion can be aimed at end consumers, trade customers, or a company’s employees.
A major promotional campaign might use several of the tools shown on this slide, along with the other elements of the promotion mix.
Discussion/Team Activity:
Discuss a few recent product releases. What sales promotion techniques were used to complement the other components of the marketing mix? What techniques make sales promotion efforts effective on college campuses?
Notes:
Personal selling is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other.
Both buyer and seller have specific objectives: the buyer may need to minimize cost or assure a quality product, while the salesperson may need to maximize revenue and profits.
Notes:
Traditional methods of personal selling include a planned presentation to one or more prospective buyers. The seller tries to persuade the buyer to accept a point of view or take action. Frequently, the traditional view of personal selling creates a win-lose outcome at the expense of the buyer.
Relationship selling emphasizes a win-win outcome and the accomplishment of mutual objectives that benefit both buyer and salesperson in the long-term. The goal is a long-term, committed relationship based on trust and customer loyalty.
Personal selling is increasingly dependent on the Internet to attract potential buyers seeking information.
Notes:
Communication can be divided into two major categories:
Interpersonal communication is direct, face-to-face communication between two or more people.
Mass communication refers to communicating a concept or message to larger audiences, usually through a mass medium such as television or newspapers.
When a company advertises, it does not know the consumers personally, nor is it able to respond immediately to reactions to the advertising message. Instead the marketing manager must wait and see how people are reacting to the mass-communicated promotion. Any clutter from competitors’ messages or other distractions can reduce the effectiveness of the mass communication effort.
Notes:
Marketers are both senders and receivers of messages. As senders, marketers inform, persuade, and remind the target market to adopt courses of action.
As receivers, marketers attune themselves to the target market in order to develop and adapt messages, and spot new communication opportunities.
Marketing communication is a two-way process.
Notes:
Marketers are both senders and receivers of messages. As senders, marketers inform, persuade, and remind the target market to adopt courses of action.
As receivers, marketers attune themselves to the target market in order to develop and adapt messages, and spot new communication opportunities.
Marketing communication is a two-way process.
Notes:
Marketing communication is a two-way process, as shown in Exhibit 14.2.
The sender originates the message.
Encoding is the conversion of the sender’s ideas and thoughts into a message, usually words or signs.
Transmission of a message requires a channel—some communication medium. Reception occurs when the message is detected by the receiver. Transmission may be hindered because of noise—anything that interferes with, distorts, or slows down the transmission of information.
Decoding is the interpretation of the language and symbols sent. Proper match between the message to be conveyed and the target market’s attitude is the job of the marketing manager. Differences in culture, age, social class, education, and ethnicity can lead to miscommunication. Marketers targeting consumers in foreign countries must also worry about translation and miscommunication issues.
The receiver’s response to a message is direct feedback to the source. Since mass communicators are cut off from direct feedback, they rely on market research or analysis of viewer perceptions for indirect feedback.
Notes:
The Internet and related technologies are having an impact on marketing communication including the promotion mix. The rise of blogging has created a new way for marketers to manage their image, connect with consumers, and generate product interest and desire.
Notes:
Promotional mixes vary a great deal from one product and one industry to the next.
Advertising and personal selling are used to promote goods and services, supplemented by sales promotion. Public relations helps develop a positive image for the product and the organization. A firm may choose not to use all four promotional elements, or it may choose to use them in varying degrees.
This slide shows the factors affecting the promotion mix chosen by a firm. Subsequent slides describe the key points of each factor.
Notes:
The Product Life Cycle is a factor in designing a promotion mix, as shown in Exhibit 14.5.
In the introduction stage, the basic goal of promotion is to inform the target audience of product availability. Advertising and public relations inform the target audience, while sales promotion encourages early trial. Personal selling gets retailers to carry the product.
During the growth stage, advertising and public relations continue to be important, although sales promotion can be reduced because customers need fewer incentives to purchase. The promotional strategy is to emphasize the product’s differential competitive advantage. Persuasive promotion is used to build and maintain brand loyalty. Personal selling has succeeded in obtaining adequate distribution for the product.
In the maturity stage, competition becomes fiercer, and persuasive and reminder advertising are more strongly emphasized. Sales promotion comes back into focus to try to increase market share.
As the product enters the decline stage, all promotion, especially advertising, is reduced. Nevertheless, personal selling and sales promotion efforts may be maintained, particularly at the retail level.
Notes:
For a routine buying decision such as the purchase of toothpaste, the most effective promotional tools are advertising and especially sales promotion.
For buying decisions that are not routine or complex, advertising and public relationships help establish awareness.
In contrast, consumers making complex decisions need large amounts of information, and personal selling is the most effective tool. Print ads are also effective for conveying large amounts of information.
Discussion/Team Activity:
Consider recent purchases of routine and complex products. What promotion tool(s) were effective to reach the buyer and influence the purchase decision?
