Chapter 15 Marketing Communications 15 1 The Role of Promotion in the Marketing Mix Promotion communication 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 the elements of promotion advertising public relations personal selling sales promotion and social media Competitive advantage one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors 15 2 Marketing Communication Communication the process by which we exchange or share meaning through a common set of symbols Domino s promoted customer complaints through advertising and social media CEO reacted and apologized repositioned the brand as real and authentic listened to customers and embraced transparency so it strengthened its relationship with customers Interpersonal communication direct face to face communication between 2 or more people Mass communication the communication of a concept or message to large audiences Marketers are both senders and receivers of messages 2 way communication process Sender the originator of the message in the communication process Encoding the conversion of a sender s ideas and thoughts into a message usually in the form of words or signs o What the receiver hears is what matters not what the source says o Coke encoded the What s Your Celebration campaign form the World Cup into the song Wavin Flag and into ads showing teams and celebrations Channel a medium of communication such as a voice radio newspaper for transmitting a message Noise anything that interferes with distorts or slows down the transmission of information situational factors physical surroundings like light sound location weather presence of other people consumer multitasking temporary moods Receiver the person who decodes a message Decoding interpretation of the language and symbols sent by the source through a channel o Common understanding between two communicators or a common frame of reference is required for effective communication Selective exposure distortion and retention can cause a message to not be decoded properly Feedback the receiver s response to a message verbal nonverbal Mass communicators like Coke are often cut off from direct feedback so they rely on market research social media or analysis of viewer responses Internet and social media have had an impact on the communication model 15 3 The Goals of Promotion to reinforce behavior Promotion seeks to modify behavior and thoughts in some way also strives Promotion can inform the target audience persuade the target audience remind the target audience or connect with the audience Informing o Convert an existing need into a want or to stimulate interest in a new product o Early stages of product life cycle o Important for promoting complex technical products o New brand being introduced to old product class Persuading o Stimulate a purchase action o Growth stage o Emphasize product s competitive advantages appeal to emotional o Important for competitive mature product categories household needs items soft drinks Reminding o Keep the product and brand name in the public s mind o Maturity stage o Crest toothpaste Connecting o Social media 15 4 The Promotional Mix Promotional mix the combination of promotional tools including advertising public relations personal selling sales promotion and social media used to reach the target market and fulfill the organization s overall goals Advertising impersonal one way mass communication about a product or organization that is paid for by a marketer o As the internet becomes a more vital component of many companies promotion and marketing mixes consumers and lawmakers are increasingly concerned about possible violations of consumers privacy o Benefits communicate to large number at one time o The cost per contact in advertising is very low the total cost to advertise is typically very high o Indirect impersonal low communicator control over situation little feedback one way fast Public relations the marketing function that evaluates public attitudes identifies areas within the organization the public may be interested in and executes a program of action to earn public understanding and acceptance o Publicity public information about a company product service or issue appearing in the mass media as a news item o Indirect and impersonal Sales promotion marketing activities other than personal selling advertising and public relations that stimulate consumer buying and dealer effectiveness o Short run tool used to stimulate immediate increases in demand o Free samples contests premiums trade shows vacation giveaways coupons o Used to improve the effectiveness of advertising and personal selling Personal selling a purchase situation involving a personal paid for communication between two people in an attempt to influence each other o Traditional methods planned presentation win loose o More current emphasize relationship that develops between a salesperson and a buyer win win Social media facilitate conversations among people online o Facilitate consumer empowerment Paid media a category of promotional tactic based on the traditional advertising model whereby a brand pays for media space banner ads sponsored posts Earned media a category of promotional tactic based on a public relations or publicity model that gets customers talking about products or services media coverage SEO publicity activities Owned media a new category of promotional tactic based on brands becoming publishers of their own content in order to maximize the brands value to customers a company s website twitter facebook controlled by the company but keep the customer in mind while updating info Social media is concentrated between owned media and earned media 15 5 Promotional Goals and the AIDA Concept AIDA concept a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message stands for attention interest desire action This model proposes that consumers respond to marketing messages in a cognitive thinking affective feeling and conative doing sequence AIDA model helps marketers suggest which promotional strategy will be most effective Advertising used for attention and interest Public relations used for attention and interest Sales promotion used for desire Personal selling used for interest desire and action
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