Overall Marketing ObjectivesOverall Marketing ObjectivesMarketing MixProductPlacePromotionPriceMarketing MixProductPlacePromotionPriceTarget MarketTarget MarketPromotional MixAdvertisingPublic RelationsSales PromotionPersonal SellingPromotion PlanPromotional MixAdvertisingPublic RelationsSales PromotionPersonal SellingPromotion PlanChapter 16 – Integrated MarketingCommunicationRole of Promotion-promotional strategy: a plan for theoptimal use of elements of promotion:-advertising, public relations, salespromotion, personal selling-competitive advantage: [what iscommunicated to consumer] [why youshould buy from this company/productover another]-high product quality-rapid delivery-low prices-excellent services-unique features-competitive differential-unique selling proposition-positioning statement-“remarkable” attribute-brand personalityThe Promotional Mix-combination of promotion tools used to reach the target market and fulfill theorganizations overall goals-advertising[reach the masses]-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-ingNoiseNoiseSenderSenderEncodingMessageEncodingMessageFeedbackChannelFeedbackChannelMessageChannelMessageChannelDecodingMessageDecodingMessageReceiverReceiver-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 outcomeMarketing Communication-communication: the process by which meanings are exchanged orshared through a common set of symbols-categories: Interpersonal communication orMass Communication-as senders: inform, persuade, remind-as receivers: develop messages, adapt messages, spotnew communication opportunities-The Communication Process  (image to right)-Characteristics of the elements in the promotional mix (BELOW)-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 brandGoals & Tasks of PromotionInformingInformingRemindingRemindingPersuadingPersuadingTargetAudienceTargetAudiencePLC Stages:Introduction Early GrowthPLC Stages:Growth MaturityPLC Stages:MaturityLight Advertising; pre-introductionpublicityHeavy use of Advertising;PR forawareness;sales promotionfor trialAD/PRdecrease;limited sales promotion; personal selling fordistributionAds decrease;sales promotion;personal selling;reminder & persuasiveAdvertising, PR, brandloyalty;personal selling fordistributionIntroductionGrowthMaturityDeclineSales ($)Time-informative promotion: -increase awareness-explain how products work-suggest new uses-build a company image-persuasive promotion:-encourage brand switching-change customers’ perceptions of productsattributes-influence immediate buying decision-persuade customers to call-reminder promotion:-remind customers that product may be needed-remind customerswhere to buy products-maintaincustomer awarenessAIDA Concept-model that outlines theprocess for achievingpromotional goals interms of stages ofconsumer involvementwith the message-Attention Interest DesireAction (AIDA) Factors Affect the Promotional Mix-nature of the product-stage in PLC-target market factors-advertising, salespromotion, & less personalselling for: -widely scattered market-informed buyers-brand-loyal repeatpurchasers-type of buying decision-Routine:Advertising & salespromotion-neither routine norcomplex: advertising & PR-complex: personal selling & printadvertising-promotion funds/available funds-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 productfrom 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