Post on 29-Mar-2015
Chapter 13Promotion – Introduction to Integrated Marketing Communication
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
At the end of this presentation, you should be able to:
1. Know the advantages and disadvantages of the promotion methods a marketing manager can use in strategy planning.
2. Understand the integrated marketing communications concept and why most firms use a blend of different promotion methods.
3. Understand the importance of promotion objectives.
4. Know how the communication process affects promotion planning.
5. Know how direct-response promotion is helping marketers develop more targeted promotion blends.
13–2
At the end of this presentation, you should be able to:
6. Understand how customer-initiated interactive communication is different.
7. Know how typical promotion plans are blended to get an extra push from wholesalers and retailers and help from customers in pulling products through the channel.
8. Understand how promotion blends typically vary over the adoption curve and product life cycle.
9. Understand how to determine how much to spend on promotion efforts.
10. Understand important new terms.
13–3
Marketing Strategy Planning Process
13–4
Promotion and Marketing Strategy Planning (Exhibit 13-1)
CH 14: Personal Selling and
Customer Service
CH 13: Promotion Intro. to Integrated
Marketing Communications
Promotion methods
Managing promotion
Effective communication
Blending promotion
CH 15: Advertising & Sales Promotion
13–5
Several Promotion Methods Are Available
Mass SellingMass Selling
Personal SellingPersonal Selling
Sales PromotionSales Promotion
Different methods of promotion Advertising Publicity
13–6
Sales Promotion Tries to Spark Immediate Interest (Exhibit 13-2)
• Contests• Coupons• Aisle displays• Samples• Trade shows• Point-of-purchase
materials• Banners & streamers• Frequent buyer
programs• Sponsored events
• Contests• Coupons• Aisle displays• Samples• Trade shows• Point-of-purchase
materials• Banners & streamers• Frequent buyer
programs• Sponsored events
• Price deals• Promotion allowances• Sales constests• Calendars & gifts• Trade shows• Meetings• Catalogs• Merchandising aids• Videos
• Price deals• Promotion allowances• Sales constests• Calendars & gifts• Trade shows• Meetings• Catalogs• Merchandising aids• Videos
Aimed at wholesalers or retailers
Aimed at wholesalers or retailers
• Contests & Bonuses• Meetings• Portfolios & Displays• Sales aids • Training materials
• Contests & Bonuses• Meetings• Portfolios & Displays• Sales aids • Training materials
Aimed at company’s own sales force
Aimed at company’s own sales force
Aimed at consumers or users
Aimed at consumers or users
13–7
Someone Must Plan, Integrate, and Manage the Promotion Blend
Sales Promotion Managers
Sales Promotion Managers
Advertising Managers
Advertising ManagersSales ManagersSales Managers
Marketing ManagersMarketing Managers
IntegratedMarketing
Communications
13–8
Which Method to Use Depends on Promotion Objectives
PersuadingPersuading
InformingInforming
RemindingReminding
13–9
Reminding May Be Enough
13–10
Promotion Objectives Relate to the Adoption Process and AIDA Mode (Exhibit 13-3)
Promotion Objectives
Adoption Process
AIDA Model
InformingAwareness
Interest
Attention
Interest
PersuadingEvaluation
TrialDesire
RemindingDecision
ConfirmationAction
{}}
13–11
Interactive Exercise: AIDA
13–12
The Traditional Communication Process (Exhibit 13-4)
NoiseNoise
SourceSource
ReceiverReceiver
EncodingEncoding
Message channel
Message channel
FeedbackFeedback
13–13
Encoding & Decoding Depend on a Common Frame of Reference (Exhibit 13-5)
EncoderEncoder
DecoderDecoder
Commonframe of
reference
13–14
Checking Your Knowledge
Ron Popeil has been a pioneer in the use of direct-response television “infomercials.” Over the years his infomercials have promoted many products, including the Showtime Rotisserie Barbecue, a food dehydrating machine, and the world-famous “Veg-O-Matic.” The chief advantage of the infomercial is that it provides plenty of time to describe and demonstrate a product’s benefits in detail. The choice of the infomercial is related mainly to the _________ element of the communication process.
A. message channelB. encodingC. decodingD. feedback E. noise
13–15
Encoding and Decoding
13–16
Integrated Direct-Response Promotion Is Very Targeted
Target DirectlyWith a DatabaseTarget Directly
With a Database
More Than Direct Mail
More Than Direct Mail
Ethical ConcernsEthical Concerns
13–17
A Model of Customer-Initiated Interactive Communication (Exhibit 13-6)
NoiseNoiseSource’s message
Source’s message
Message channel
Message channel
SearchSearch
Select a topic
Select a topic
Receiver (customer)
Receiver (customer)
13–18
Pushing in the Channel Focuses Promotion at Intermediaries (Exhibit 13-7)
13–19
Other Promotional Elements of Pushing
13–20
Pulling in the Channel Directs Promotion at Customers (Exhibit 13-7)
13–21
An Example of Pulling
13–22
Checking Your Knowledge
Fido, Inc. is a producer of dog food and is getting ready to introduce a new brand. The firm’s marketing research department learns that a competitor is planning to launch another brand about two weeks after Fido’s launch. Fido’s marketing department quickly mails a set of dated coupons to several thousand consumers in a purchased database of dog owners, encouraging them to ask for the new Fido brand in their favorite store and to stock up on the new brand using the coupons. This is an example of:
A. pulling.B. noise.C. pushing.D. encoding.E. decoding. 13–23
Adoption Processes Can Guide Promotion Planning (Exhibit 13-8)
13–24
Appeal for Innovators
13–25
Stimulating Adoption of an Image
13–26
Promotion Varies Over the Life Cycle
“This new idea is good”
“Our brand is best”
“Our brand is better, really”
“Let’s tell those who
still want our product” 13–27
Nature of Competition Requires Different Promotion
13–28
Setting the Promotion Budget
Percentage of SalesPercentage of Sales
Task MethodTask Method
13–29
You should now be able to:
1. Know the advantages and disadvantages of the promotion methods a marketing manager can use in strategy planning.
2. Understand the integrated marketing communications concept and why most firms use a blend of different promotion methods.
3. Understand the importance of promotion objectives.
4. Know how the communication process affects promotion planning.
5. Know how direct-response promotion is helping marketers develop more targeted promotion blends.
13–30
You should now be able to:
6. Understand how customer-initiated interactive communication is different.
7. Know how typical promotion plans are blended to get an extra push from wholesalers and retailers and help from customers in pulling products through the channel.
8. Understand how promotion blends typically vary over the adoption curve and product life cycle.
9. Understand how to determine how much to spend on promotion efforts.
10. Understand important new terms.
13–31
Key Terms
Promotion
Personal selling
Mass selling
Advertising
Publicity
Sales promotion
Sales managers
Advertising managers
Public relations
Sales promotion managers
Integrated marketing communications
AIDA model
Communication process
Source
Receiver
Noise
Encoding
Decoding
Message channel
Pushing13–32
Key Terms
Pulling
Adoption curve
Innovators
Early adopters
Early majority
Late majority
Laggards
Nonadopters
Primary demand
Selective demand
Task method 13–33