Post on 26-Dec-2015
© South-Western Publishing
PROMOTION MEANS PROMOTION MEANS EFFECTIVE EFFECTIVE COMMUNICATIONCOMMUNICATION
15.1 Promotion as a Form of Communication15.2 Types of Promotion15.3 Mixing the Promotional Plan
© South-Western Publishing
PROMOTION AS A FORM PROMOTION AS A FORM OF COMMUNICATIONOF COMMUNICATIONGOALSGOALS for Lesson 15.1Explain the three roles of promotion in
marketing.Describe how the communication
process works in marketing.Define the two types of communication
that are important to marketers.
© South-Western Publishing
The Role of Promotion The Role of Promotion in Marketingin MarketingPromotion – any form of communication
used to:
InformPersuadeRemind
© South-Western Publishing
The Role of Promotion in The Role of Promotion in MarketingMarketingInform potential or current customers
of a new product or service or of an improvement to an existing productIntroduction Stage of the Product Life
CycleBenefits and characteristicsChanges and Improvements
© South-Western Publishing
The Role of Promotion in The Role of Promotion in MarketingMarketingPersuade - attempts to encourage a
customer to take a specific action, such as purchasing a productNegative meaning to some customersGrowth Stage of the product life cycleAdvantages over the competitors
productCoupons, rebates, samples
© South-Western Publishing
The Role of Promotion in The Role of Promotion in MarketingMarketingRemind customers about existing
products on the market
Maturity Stage of the product life cycleHow good, how attractive, how it
satisfies customer’s wants and needs
© South-Western Publishing
Noise
The Communication ProcessThe Communication Process
ReceiverDecoding
by ReceiverMessage Channel
Encoding by Sender
Sender
Feedback
© South-Western Publishing
Promotion Is a Promotion Is a Communication ProcessCommunication ProcessSender – source or originator of the
messagemay be an organization or personMessage to be shared with a group“Pepsi Generation”
© South-Western Publishing
Promotion Is a Promotion Is a Communication ProcessCommunication ProcessEncoding – putting the message into
language or symbols that are familiar to the intended receiverPepsi – popular music, loud colors, young
people
Message Channel – the medium the sender chooses to transmit the messageTV, radio, newspapers, magazines, direct mail,
sales presentations, bill boards
© South-Western Publishing
Promotion Is a Promotion Is a Communication ProcessCommunication ProcessDecoding – interpreting the message or
symbols and converting them into concepts and ideasManipulate, alter the message to their needs
Receiver – the person or persons to whom the encoded message is directedThe target audience of a product or service
© South-Western Publishing
Promotion Is a Promotion Is a Communication ProcessCommunication ProcessNoise – interference that can cause the
message to be interpreted by the receiver incorrectlyRadio static, poor printing quality, unfamiliar
words, misinterpretation
Feedback – the receiver’s reaction or response to the source’s messageHelps measure the effectiveness of a
promotional activity
© South-Western Publishing
Noise
The Communication ProcessThe Communication Process
ReceiverDecoding
by ReceiverMessage Channel
Encoding by Sender
Sender
Feedback
© South-Western Publishing
Types of CommunicationTypes of CommunicationInterpersonal communicationInterpersonal communicationTwo-way communicationInvolves two or more people in some kind of
person-to-person exchange
Mass communicationMass communicationOne-way communicationInvolves communicating to huge audiences,
usually through mass media, such as magazines, radio, television, or newspapers
© South-Western Publishing
TYPES OF PROMOTIONTYPES OF PROMOTION
GOALSGOALS for Lesson 15.2Describe the advantages and disadvantages
of advertising and publicity as types of promotion.
Explain the advantages and disadvantages of personal selling as a type of promotion.
Define sales promotion and describe its advantages and disadvantages as a type of promotion.
© South-Western Publishing
AdvertisingAdvertising
Any paid form of nonpersonal communciation sent through a mass medium by an organization about its products
Advantages reaches a lot for a low cost per person,
geographical advantages, repeat the message
Disadvantagescosts, target audience might not be in the right
place, impersonal
© South-Western Publishing
Examples of Mass Examples of Mass Media AdvertisingMedia AdvertisingDirect mailInternetMagazinesNewspaper
OutdoorRadioTelevision
© South-Western Publishing
PublicityPublicity
A non-paid form of communication about a business or organization that is transmitted through a mass medium
Advantages the Goodwill that is created (Disney and Safety
Reports)
Disadvantagesorganizations have little control over it
© South-Western Publishing
Personal SellingPersonal Selling
Person to person communication with potential customers in an effort to inform, persuade, or remind
Advantages much more informative and persuasive, feedback
is immediate and can be acted upon right away
Disadvantages cost per person is high
© South-Western Publishing
Sales PromotionSales Promotion Activities or materials that offer consumers a
direct incentive to buy a good or service (coupons, contests, samples, rebates)
Advantages generated immediate short-term sales, supports
other promotions (commercial – coupon)
Disadvantagescost, on average $110 billion a year is spent on
sales promotions
© South-Western Publishing
MIXING THE MIXING THE PROMOTIONAL PLANPROMOTIONAL PLANGOALSGOALS for Lesson 15.3Explain the four major factors that affect
the promotional mix.Describe the seven steps in the
promotional planning process.
© South-Western Publishing
Elements of a Promotional Elements of a Promotional MixMixAdvertisingPersonal sellingPublicitySales promotion
© South-Western Publishing
Factors that Affect the Factors that Affect the Promotional MixPromotional Mix
Financial Resources
Policy and Objectives
Marketing Mix
Target Market
PromotionalPromotionalMixMix
© South-Western Publishing
Promotional PlanningPromotional Planning
The promotional planpromotional plan is a carefully arranged sequence of promotions designed around a common theme responsive to specific objectives.
© South-Western Publishing
The Steps in Promotional The Steps in Promotional PlanningPlanningAnalyze the marketIdentify the target marketDevelop promotional objectives
Achievable, measurable, fit into marketing plan
Develop a promotional budgetSelect the promotional mixImplement the promotional planEvaluate the results