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CHAPTER FOURTEEN
For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin
Promotion –
Introduction to
Integrated Marketing
Communications
When we finish this lecture you should
1.
Know the advantages and disadvantages of thepromotion methods a marketing manager can use in strategy planning.
2.
Understand the integrated marketingcommunications concept and why most firms use a blend of different promotion methods.
3.
Understand the importance of promotionobjectives.
4.
Know how the communication process affectspromotion planning.
5.
Know how direct-response promotion is helpingmarketers develop more targeted promotion blends.
When we finish this lecture you should
6.
Understand how customer-initiated interactivecommunication is different.
7.
Know how typical promotion plans are blendedto get an extra push from middlemen and help from customers in pulling products through the channel.
8.
Understand how promotion blends typically varyover the adoption curve and product life cycle.
9.
Understand how to determine how much tospend on promotion efforts.
Marketing Strategy Planning Process
Promotion and Marketing Strategy Planning
(Exhibit 14-1) CH 16: Advertising & Sales Promotion Promotion methods Managing promotion Effective communication Blending promotion CH 15: Personal Selling and Customer Service CH 14: Promotion Intro. To Integrated Marketing Communications Mass Selling Mass Selling Personal Selling Personal SellingSeveral Promotion Methods Are Available
Sales Promotion
PROMOTION
Sales Promotion Tries to Spark Immediate Interest
(Exhibit 14-2)Sales Promotion
Sales Promotion Managers Sales Promotion Managers Advertising Managers Advertising Managers Sales Managers Sales ManagersSomeone Must Plan, Integrate, and Manage the
Promotion Blend
Marketing Mangers Integrated Marketing Communications Persuading Informing Informing PersuadingWhich Method to Use Depends on Promotion
Objectives
Reminding
Reminding May Be Enough
Promotion Objectives Relate to the Adoption
Process and AIDA Mode
(Exhibit 14-3)Action Decision Confirmation Reminding Desire Evaluation Trial Persuading Attention Interest Awareness Interest Informing AIDA Model Adoption Process Promotion Objectives
{
}
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© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Interactive Exercise: AIDA
Promotion Requires Effective Communication
(Exhibit 14-4)
Encoding & Decoding Depend on a Common Frame
of Reference
(Exhibit 14-5)© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Encoding and Decoding
The Message Channel and Noise Are Important Too
(Exhibit 14-4)Integrated Direct-Response Promotion Is Very
Targeted
Target Directly
With a Database
Target Directly
With a Database
More Than
Direct Mail
More Than
Direct Mail
Ethical Concerns
The Customer May Initiate the Communication
Process
(Exhibit 14-6)Ron Popeil has been a pioneer in the use of direct-response television “informercials.” 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 channel
B. encoding C. decoding D. feedback E. noise
Checking your knowledge
How Typical Promotion Plans Are Blended and
Integrated
(Exhibit 14-7)Other Promotional Elements of Pushing
Pulling – Demand Pulls the Product through the
Channel
(Exhibit 14-7)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.
Checking your knowledge
Adoption Processes Can Guide Promotion
Planning
(Exhibit 14-8)Appeal for Innovators
Because life is too short to waste time. Wouldn’t it be nice if your refrigerator
could do your shopping on the
Internet?
© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Stimulating Adoption of an Image
Promotion Blends Vary 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”
Nature of Competition Requires Different
Promotion
Budgeting from Uncommitted Resources
Budgeting from Uncommitted Resources
Budgeting by Sales Unit Budgeting by Sales Unit Matching the Competition Matching the Competition Percentage of Sales Percentage of Sales
Setting the Promotion Budget
Task Method
You now
1.
Know the advantages and disadvantages of thepromotion methods a marketing manager can use in strategy planning.
2.
Understand the integrated marketingcommunications concept and why most firms use a blend of different promotion methods.
3.
Understand the importance of promotionobjectives.
4.
Know how the communication process affectspromotion planning.
5.
Know how direct-response promotion is helpingmarketers develop more targeted promotion blends.
You now
6.
Understand how customer-initiated interactivecommunication is different.
7.
Know how typical promotion plans are blendedto get an extra push from middlemen and help from customers in pulling products through the channel.
8.
Understand how promotion blends typically varyover the adoption curve and product life cycle.
9.
Understand how to determine how much tospend on promotion efforts.
