1 CHAPTER FIFTEEN MARKETING COMMUNICATION AND PERSONAL SELLING Prepared by Jack Gifford Miami...
-
Upload
osborn-sims -
Category
Documents
-
view
213 -
download
0
Transcript of 1 CHAPTER FIFTEEN MARKETING COMMUNICATION AND PERSONAL SELLING Prepared by Jack Gifford Miami...
1
CHAPTER FIFTEEN
MARKETING COMMUNICATION AND PERSONAL SELLING
Prepared by Jack Gifford
Miami University (Ohio)
© 2000 South-Western College Publishing
© 2000 South-Western College Publishing
2
THE ROLE OF PROMOTION IN THE MARKETING MIX
Promotion is communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinions or elicit a response
© 2000 South-Western College Publishing
3
PROMOTIONAL STRATEGY
Optimal use of the elements of promotion
Consistent with the overall goals of the marketing mix
A coordinated plan An integral part of the marketing
strategy for reaching the target market
© 2000 South-Western College Publishing
4
PROMOTION: COMMUNICATION WITH A PURPOSE
Promotion is communication used by marketers to inform, remind, and/or persuade potential buyers through….
Advertising
Personal selling
Publicity
Public Relations
© 2000 South-Western College Publishing
5
THE PROMOTIONAL MIX
PERSONAL SELLING Person-to-
person dialogue between buyer and seller
Purpose & Advantages
Disadvantages
Inform, persuade remind
Flexible Bi-directional Interpersonal Feedback Relationship
building
Expensive Time consuming
© 2000 South-Western College Publishing
6
THE PROMOTIONAL MIX
ADVERTISING Non personal Paid Identified sponsor Indirect Uniform message (some
ability to now customize in interactive electronic media)
Communicate to large numbers of people
Low cost per contact Multiple media
options
© 2000 South-Western College Publishing
7
THE PROMOTIONAL MIX
SALES PROMOTIONS Time specific Provide incentives
for purchase behavior
Not routine events Aimed at
customers, salespeople or channel members
Coupons Free goods with
purchase Prizes or contests Trips Fashion shows Channel member
displays or training
© 2000 South-Western College Publishing
8
THE PROMOTIONAL MIX
PUBLICITY / PUBLIC RELATIONS Unpaid
message Less control
over content Always involves
a third party Higher level of
credibility
More factual than persuasive
Can be positive or negative
Frequently orchestrated by the marketer
Systematically planned and distributed to media
© 2000 South-Western College Publishing
9
MARKETING COMMUNICATIONS
Communication IS THE PROCESS by which we exchange or share meanings through a common set of symbols. Interpersonal communication: Direct
face-to-face communications between two or more people
Mass communications: Communicating to a large audience, usually through a mass medium
© 2000 South-Western College Publishing
10
THE COMMUNICATION PROCESS
Source
Encoding Message
ChannelDecodingReceiver
Feedback Noise
© 2000 South-Western College Publishing
11
ENCODING THE MESSAGE Words Sounds Colors Space Themes Symbols Pictures Numbers Gestures Movement
THE COMMUNICATION PROCESS
© 2000 South-Western College Publishing
12
THE COMMUNCATION PROCESS
ENCODING THE MESSAGE Words Sounds Colors Space Themes Symbols Pictures Numbers Gestures Movement
Channel or Medium
DECODING
© 2000 South-Western College Publishing
13
THE COMMUNICATION PROCESS
To determine the successful matching of encoding to decoding, marketers must receive feedback from the receiver in terms of action of a measurable change in mental state or attitude.
© 2000 South-Western College Publishing
14
THE COMMUNICATION PROCESS
OBJECTIVE
ENCODING = DECODNG
© 2000 South-Western College Publishing
15
INTEGRATED MARKETING COMMUNICATIONS (IMC)
Ideally, marketing communications from each promotional mix element (personal selling, advertising, sales promotions, public relations) should be integrated.
The message reaching the target consumer(s) should be the same regardless of whether it is from an advertisement, a salesperson in the field, a magazine article, or a coupon in a newspaper insert.
© 2000 South-Western College Publishing
16
INTEGRATED MARKETING COMMUNICATIONS (IMC)
Marketing managers must carefully work out the roles the various promotional elements will play in the marketing mix.
Timing of promotional activities are coordinated and the results of each campaign are carefully monitored to improve future use of the promotional mix tools.
PerfectPromotional
Mix
© 2000 South-Western College Publishing
17
THE GOALS AND TASKS OF PROMOTION: INFORM
Inform A better mousetrap is of limited
value unless consumers know that it exists, where it can be purchased, the price, and product details.
Essential for the existence of a free enterprise system
Results in an improved standard of living
© 2000 South-Western College Publishing
18
THE GOALS AND TASKS OF PROMOTION: INFORM
Inform (CONTINUED)
Increase brand awareness Explaining how a product
works Suggesting new uses for a
product Building a company image
© 2000 South-Western College Publishing
19
THE GOALS AND TASKS OF PROMOTION: PERSUADE
Promotion persuades Persuasion that
encourages purchases or attitude change is a primary goal of promotion
Influence customers to buy now
Persuading customers to call
© 2000 South-Western College Publishing
20
THE GOALS AND TASKS OF PROMOTION: REMIND
Promotion Reminds Maintain store or brand
loyalty Combat competitor’s
persuasive messages Increase product
awareness and usage Reminding customers
where to buy the product
“You’re in good hands with……”
“We’re ready when you are.”
© 2000 South-Western College Publishing
21
PROMOTIONAL GOALS AND THE AIDA CONCEPT
Attention Interest Desire Action Steps
The AIDA concept assumes that promotion propels consumers along these steps in the decision process.
ATTENTION
DESIRE
ACTION
INTEREST
© 2000 South-Western College Publishing
22
FACTORS AFFECTING THE PROMOTIONAL MIX
Nature of the product
Stage in the Product Life Cycle
Target market Characteristics
Type of buying decision
Available funds Push vs Pull strategies
Business or consumer product?
Costs and risks associated with purchase?
Convenience, shopping or specialty good?
© 2000 South-Western College Publishing
23
FACTORS AFFECTING THE PROMOTIONAL MIX
Nature of the product Stage in the
Product Life Cycle Target market
Characteristics Type of buying
decision Available funds Push vs Pull strategies
Introduction = informational
Growth & maturity = persuasive and brand
Maturity = reminder and persuasive
Decline = limited promotion of any kind
© 2000 South-Western College Publishing
24
FACTORS AFFECTING THE PROMOTIONAL MIX
Nature of the product Stage in the Product
Life Cycle Target market
Characteristics Type of buying
decision Available funds Push vs Pull strategies
Level of product knowledge
Degree of brand loyalty
Geographical dispersion
Commonality of behavioral characteristics
© 2000 South-Western College Publishing
25
FACTORS AFFECTING THE PROMOTIONAL MIX
Nature of the product Stage in the Product
Life Cycle Target market
Characteristics Type of buying
decision Available funds Push vs Pull strategies
Routine or complex buying decision
Automatic re-buy or new purchase task
Level of personal or professional involvement
© 2000 South-Western College Publishing
26
FACTORS AFFECTING THE PROMOTIONAL MIX
Nature of the product Stage in the Product
Life Cycle Target market
Characteristics Type of buying
decision Available funds Push vs Pull strategies
Promotional budget may dictate possible parameters
Optimize return on promotional dollars
Minimize costs per contact dollar generated
© 2000 South-Western College Publishing
27
FACTORS AFFECTING THE PROMOTIONAL MIX
Nature of the product Stage in the Product Life
Cycle Target market
Characteristics Type of buying decision Available funds Push vs Pull
strategies
© 2000 South-Western College Publishing
28
PUSH AND PULL STRATEGIES
Promotion may be aimed at the final consumer or a channel member
•PULL Promote to final consumer; encourage them to ask their local retailers to carry the good
•PUSH Promote to channel members to gain distribution; promise promotional support and strong final consumer demand
© 2000 South-Western College Publishing
29
PERSONAL SELLING Is direct communication between a sales
representative and one or more prospective buyers in an attempt to influence each other in a purchase situation
Generally becomes more important As the number of customers decreases As the complexity of the product increases As the value of the product grows
Relationship selling (consultative selling) involves multi-stage selling and personalization over the long-term
© 2000 South-Western College Publishing
30
STEPS IN THE SELLING PROCESS
Also referred to as the sales process or sales cycle
Is simply a set of steps a salesperson goes through to sell a particular product or service
Some of these steps are very quick, while others take months. This is also true of the entire sales cycle.
These steps are...
© 2000 South-Western College Publishing
31
THE SALES CYCLE
Generating leads Qualifying leads Approaching the
customer and probing needs
Developing and proposing solutions
Handling objections Closing the sale Following up
© 2000 South-Western College Publishing
32
SALES MANAGEMENT
Defining sales goals and the sales process
Determining the sales force structure
Recruiting and training the sales force
Motivating and compensating the sales force
Evaluation of the sales force