Promotion Promotion al Mix al Mix Advertising Advertising Public Public Relations Relations Sales Sales Promotion Promotion Personal Personal Selling Selling Chapter 16 Integrated Marketing Communication Role of Promotion promotional strategy a plan for the optimal use of elements of promotion advertising public relations sales promotion personal selling competitive advantage what is communicated to consumer why you should buy from this company product over another Overall Overall Marketing Marketing Objective Marketing Objective Marketing s Mix s Mix Product Product Place Place Promotion Promotion Target PriceTarget Price Market Market high product quality rapid delivery low prices excellent services unique features competitive differential unique selling proposition positioning statement remarkable attribute brand personality The Promotional Mix combination of promotion tools used to reach the target market and fulfill the organizations overall goals advertising reach the masses Promotion Promotion Plan Plan most commonly distributed by traditional media though increasingly through nontraditional media such as websites email and blogs traditional TV radio newspapers magazines books direct mail billboards etc nontraditional internet banner ads viral marketing email interactive video advantages reach larger of people low cost per contact can be micro targeted disadvantages total cost is high national reach is expensive for small companies public relations maintain image educate cust helps an organization communicate with customers suppliers stockholders gov officials employees and the community functions maintain a positive image educate the public about the company s objectives introduce new products support the sales effort generate favorable publicity sales promotion stimulate purchases marketing activities other than personal selling advertising and PR that stimulate consumer buying and dealer effectiveness trial demo ing ex s free samples contests premiums trade shows vaca giveaways coupons end consumers company employees trade customers personal selling building relationships planned presentation to one or more prospective buyers for the purpose of making a sale Traditional selling attempts to persuade the buyer into a specific point of view Win lose outcome Relationship selling long term relationships create a win win outcome Marketing Communication communication the process by which meanings are exchanged or shared through a common set of symbols categories Interpersonal communication or Mass Communication as senders inform persuade remind as receivers develop messages adapt messages spot new communication opportunities The Communication Process image to right Characteristics of the elements in the promotional mix BELOW Noise Noise Message Message Channel Channel Feedback Feedback Channel Channel Encoding SenderEncoding Sender Message Message Decoding Decoding Receiver MessageReceiver Message The Web blogs online journals podcasting online radio vcasts online video social networks MySpace Facebook etc women influence 80 of all buying decisions Blogging Corporate blogs sponsored by a company of one of its brands and maintained by one or more of the company s employees Noncorporate blogs independent and not associate with the marketing efforts of any particular company or brand Goals Tasks of Promotion Reminding InformingReminding Informing PLC Stages Introduction Early Growth Target Target Audience Audience PLC Stages Maturity PLC Stages Growth Maturity Persuading Persuading informative promotion increase awareness explain how products work suggest new uses build a company image persuasive promotion encourage brand switching change customers perceptions of products attributes influence immediate buying decision persuade customers to call reminder promotion remind customers that product may be needed remind customers where to buy products maintain customer awareness AIDA Concept model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message Attention Interest Desire Action AIDA Factors Affect the Promotional Mix nature of the product stage in PLC target market factors advertising sales promotion less personal selling for widely scattered market informed buyers brand loyal repeat purchasers type of buying decision Routine Advertising sales promotion neither routine nor complex advertising PR complex personal selling print advertising promotion funds available funds s e a S Time l Introduction Growth Maturity Decline Light Advertising pre introduction publicity Heavy use of Advertising PR for awareness sales promotion for trial Advertising PR brand loyalty personal selling for distribution AD PR decrease limited sales promotion personal selling for distribution Ads decrea se sales promoti on person al selling remind er persua sive trade offs with funds available of people in target market quality of communication needed relative costs of promotional elements push or pull strategy Push Strategy Manufacturer promotes to wholesaler wholesaler promotes to retailer sends orders to manufacturer retailer promotes to consumer consumer buys from retailer Pull Strategy Manufacturer promotes to consumer Consumer demands product from retailer retailer demands product from wholesaler wholesaler demands product from manufacturer orders to manufacturer Integrated Marketing Communications the careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the customer proliferation of thousands of media choices fragmentation of the mass market slash of advertising spending in favor of promotional techniques that generate immediate response