MKT Chp 14 PowerPoint

Communication
The process by which we exchange or share meanings though a common set of symbols
Promotion
Communications by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.
Promotional Strategy
A plan for the optimal use of elements of promotion: advertising, public relations, personal selling, and sales promotion.
Competitive Advantage
One or more unique aspects of an organization that cause consumers to patronize that firm rather than competitors.
The main function of promotional strategy is
to convince target customers that the goods and services offered provide a competitive advantage over the competition.
Promotional Mix is made up of
Advertising
PR
Sales Promotion
Personal Selling
The sender
possesses message to be conveyed
encodes message
transmits message
The Receiver
Received message
decodes message
message that was understood
______ 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.
Promotion
The _____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.
Informing
______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.
Persuasive
Informing promotion
It is more prevalent during the early stages of the product life cycle.
Persuasive
It becomes the main promotion goal when the product enters the growth stage of its life cycle.
____promotion is used to keep the product/brand name in the public’s mind. It is effective during the maturity cycle.
Reminder
It is effective during the maturity cycle.
Reminder
Informative Promotion
Increases awareness
Explains how products work
suggests new uses
builds company image
Persuasive Promotion
Encourages brand switching
Changes customers’ perceptions of product attributes
Influences immediate buying decision
Persuades customers to act in ways that benefit the brand
Reminder Promotion
Reminds Customers that product may be needed
Reminds customers where to buy product
maintains customer awareness

Assumes the target has already been persuaded regarding the product/service’s merits

The Promotional Mix
Combination of promotional tools used to reach the target market and fulfill the organization’s overall goals

(Advertising, PR, Sales Promotion, Personal Selling)

Advertising
Any form of impersonal (one-way) paid communication in which the sponsor or company is identified
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.
Generally considered unpaid.
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
Personal Selling
A purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other
personal selling.
Traditional methods of____include a planned presentation to one or more prospective buyers for the purpose of making a sale.
Sales Promotion
Marketing activities–other than personal selling , advertising, and public relations-that stimulate consumer buying and dealer effectiveness
is generally a short-run tool used to stimulate immediate increases in demand.
Sales Promotion
Types of Sales Promotion
Free Samples and Contests and Sweepstakes (aimed at end customers)

Premiums and Coupons (aimed at company employees)

Trade Shows and Vacation Giveaways(aimed at trade customers)

Advertising, PR, and Sales Promotion
Impersonal, One way means of communication where there is little opportunity for direct feedback
Personal Selling
Personal, two way communication where direct feedback is commonplace; slow in dispersing message to a large audience
The AIDA Concept
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message
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 _____—attention, interest, desire, and action—the stages of consumer involvement.
the AIDA concept
This model proposes that consumers respond to marketing messages in a cognitive–thinking, affective–feeling, and conative–doing sequence.
The AIDA Concept
Setting Communication Goals
Focus
-Create/maintain awareness (i.e. attention)
-Build/enhance preferences (i.e. interest, desire
-Remind consumers of those preferences
-Incite action

Benchmarks
-Quantitative
-Temporal

Examples
-Create unaided awareness of the new Hunger Games movie among 60% of 12-18 year-olds before opening

Integrated Marketing Communications
The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets consumer
IMC Popularity Growth
Proliferation of thousands of media choices

Fragmentation of traditional advertising media

Slash of advertising spending in favor of promotional techniques that generate immediate response

Factors Affecting the Promotional Mix: Nature of the product
Business products
-not well-suited to mass promotion
-rely more on personal selling, ads in trade media, booths at trade shows, etc.

Consumer products
-promoted mainly through advertising and sales promotion
-personal selling is more important at the retail level for shopping and specialty products

Factors Affecting the Promotional Mix: Stage in Product Life Cycle
Introduction: Inform
Growth: Persuade
Maturity: Persuade and Remind
Decline: Particularly at retail
The introduction stage
In the_____, 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.
the growth stage
During _______, 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.
the maturity stage
In_____, 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.
Factors Affecting the Promotional Mix: Target Market Factors
Slide 30 ask Kaitlyn
Factors Affecting the Promotional Mix: Type of buying decision
Routine: Advertising and Sales Promotion

Complex: Personal Selling and Print Advertising

For a routine buying decision such as the purchase of toothpaste, the most effective promotional tools are what?
advertising and especially sales promotion.
For buying decisions that are not routine or complex,_______ help establish awareness.
advertising and public relationships
consumers making complex decisions need large amounts of information, and ______ is the most effective tool. Print ads are also effective for conveying large
personal selling
Factors Affecting the Promotional Mix: Available Funds
Low Funds
-PR (free publicity)
-Online strategies
-Manufacturer agents instead of own sales (push)

More Funds
-Consider cost per contact (CPC), or the cost or reaching one member of the target market

CPC is ___ for personal selling
high
CPC is ____ for national advertising
low
Factors Affecting the Promotional Mix: Push or pull strategy
Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler/retailer to carry and sell their merchandise. This is known as___.
Push Strategy
______stimulates consumer demand to obtain product distribution.
pull strategy
____ with a small market share must pend proportionally more for advertising and sales promotion than those with large market share
New brands
Beyond a certain level of spending, diminishing returns set in. This is referred to as_______.
Advertising response function
Advertising can___.
Change negative attitude to positive
Reinforce Positive attitude
Affect how consumers rank brand attributes
Major types of Advertising
Institutional Advertising and Product Advertising
Enhances a company’s image rather than promotes a particular product
Institutional Advertising
Touts the benefits of a specific good or services
Product Advertising
Sects of Product Advertising
Pioneering, Competitive, and Comparative
Pioneering Advertising
-Stimulates primary demands of new product or category (awareness, interest)
-Used in the introductory stage of PLC
Competitive Advertising
-Influences demand for brand in the growth phase of the PLC (desire)
-Often uses emotional appeal
Comparative Advertising
-Compares two or more competing brands’ product attributes (desire)
-Used if growth is sluggish, or if competition is strong.
Care should be used with _________approach in global markets due to government regulations and cultural/social value sensitivity.
comparative advertising
A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. A specific advertising effort for a particular product that extends for a defined period of time.
Advertising Campaign
Creative Decision in Advertising
First, determine the advertising objectives. Then make creative decisions and make media decisions. Last, Evaluate the campaign.
Identify Product Benefits
Sell product’s benefits, not its attribute
Attribute
Features of the product
Benefits
What consumers will receive/achieve as a result of those features.
Market research often conducted to determine which _____are most important and distinguising
benefits
The ______must make a positive impression on the target market, while being unique, distinguishable from the competitors’ messages, and believable.
appeal
_______ evaluation can be the most demanding task facing advertisers.
Post-campaign
The ______ says that the execution should offer a balance or marketing and entertainment
Marketing entertainment principle
Evaluate the campaign’s effectiveness
Awareness:
-Exposure
-Comprehension
-Recall

Preferences:
-Persuasion
-Attitudes
-Preference
-Stimulated behavior

Action:
-Behavior
-Website visits
-Inquiries
-Sales

____________ is a term used in advertising to measure the size of an audience reached by a specific media vehicle or schedule
Gross rating point (GRP)
Monitored Media
TV
Radio
Newspapers
Magazines
Yellow Pages
Internet
Outdoor Media
Monitored Media
Direct Mail
Trade Exhibits
Cooperative Advertising
Brochures
Coupons
Catalogs
Special Events
Unmonitored Media
Direct Mail
Trade Exhibits
Cooperative Advertising
Brochures
Coupons
Catalogs
Special Events
Newspaper
Advantages:
Geographic selectivity
Short-term advertiser commitments
News value and immediacy
Year-round readership
High individual market coverage
Co-op and local tie-in availability
Short lead time
Newspaper
Disadvantages:
Limited demographic selectivity
Limited color
Low pass-along rate
May be expensive
Magazine
Advantages:
Good reproduction
Demographic selectivity
Regional/local selectivity
Long advertising life
High pass-along rate
Magazine
Disadvantage:
Long-term advertiser commitments
Slow audience build-up
Limited demonstration capabilities
Lack of urgency
Long lead time
Radio
Advantages:
Low cost
Immediacy of message
Short notice scheduling
No seasonal audience change
Highly portable
Short-term advertiser commitments
Entertainment carryover
Radio
Disadvantages:
No visual treatment
Short advertising life
High frequency to generate comprehension and retention
Background distractions
Commercial clutter
Television
Advantages:
Wide, diverse audience
Low cost per thousand
Creative opportunities for demonstration
Immediacy of messages
Entertainment carryover
Demographic selectivity with cable
Television
Disadvantages
Short life of messages
Consumer skepticism
High campaign cost
Little demographic selectivity with stations
Long-term advertiser commitment
Long lead times for production
Commercial clutter
Outdoor Media
Advantages:
Repetition
Moderate cost
Flexibility
Geographic selectivity
Outdoor Media
Disadvantages:
Short message
Lack of demographic selectivity
High “noise” level
Internet
Advantages:
Fast growing
Ability to reach narrow target audience
Short lead time
Moderate cost
Internet
Disadvantages:
Difficult to measure ad effectiveness and ROI
Not all consumers have access to Internet
Search engine ads
paying for certain keywords
Advergaming
ads are inserted into the videogame environment
Social media marketing
social network sites, blogs, podcasts, etc.
Advertainment
mini movies that promote a product and are viewable via the internet
Product placement
Stealth marketing (buzz marketing)
(buzz marketing)
Corporate Blogs
Sponsored by a company or one of its brands and maintained by one or more of the company’s employees
Noncorporate Blogs
Independent and not associated with the marketing efforts of any particular company or brand; perceived to be more authentic (although more than 1/3 of bloggers have been approached by corporations to be “brand advocates”)
Media Mix
Combination of media to be used for a promotional campaign
Cost per contact
The cost of reaching one member of the target market
Reach
Number of target consumers exposed to a commercial at least once during a specific period, usually four weeks
Frequency
Number of times an individual is exposed to a given message during a specific period
Continuous Media Schedule
Advertising is run steadily throughout the period

Laundry detergent, toilet paper

Flighted Media Schedule
Advertising is run heavily every other month or every two weeks

Media Studios

Pulsing Media Schedule
Advertising combines continuous scheduling with flighting

Department stores

Seasonal Media Schedule
Advertising is run only when the product is likely to be used

Sunscreen, health clubs