When you finish this chapter, you should: Know the advantages and disadvantages of the promotion methods a marketing manager can use in strategic planning, know how the communication process affects promotion planning, understand how direct-response promotion is helping marketers develop more targeted promotion blends,...
Trang 1
Promotion —
Introduction to
Integrated Marketing
Communications
Trang 2Chapter 14 Objectives
1 Know the advantages and
disadvantages of the promotion
methods a marketing manager can
use in strategy planning.
2 Understand the integrated marketing
communications concept and why
most firms use a blend of different
promotion methods.
3 Understand the importance of
promotion objectives.
4 Know how the communication
process affects promotion planning.
5 Understand how directresponse
promotion is helping marketers
6 Understand how new customer
initiated interactive communication
is different.
7 Know how typical promotion plans
are blended to get an extra push from middlemen and help from customers in pulling products through the channel.
8 Understand how promotion blends
typically vary over the adoption curve and product life cycle.
9 Understand how to determine how
much to spend on promotion efforts.
Trang 3Basic Promotion Methods
Target Market
Target Market
Price Promotion
Place Product
Sales Promotion
Sales Promotion
Personal Selling
Personal Selling
Publicity Advertising
Mass Selling Mass Selling
Trang 4Price deals Promotion allowances Sales contests
Calendars Gifts
Trade Shows Meetings
Catalogs Merchandising aids
Aimed at final
consumers or users
Contests
Coupons
Aisle displays
Samples
Trade shows
Pointofpurchase
materials
Banners and
streamers
Trading stamps
Sponsored events
Aimed at company’s own sales force
Contests Bonuses Meetings Portfolios Displays Sales aids Training materials
Sales Promotion Activities
Trang 5
0
Price
Quantity
D2
D1
A To be more inelastic
Promotion efforts may be targeted to make demand for the firm’s products more inelastic and so more resistant to countermoves by the
competition.
Promotion and the Demand Curve
Trang 6Price
Quantity
D
D
B to the right
Promotion efforts may be targeted to increase the demand
for the firm’s products.
Promotion and the Demand Curve
Trang 70
Price
Quantity
D D
C Both to the right and
more inelastic
Promotion efforts may
be targeted to both increase demand for the firm’s products and
to make demand more
inelastic
Promotion and the Demand Curve
Trang 8Price
Quantity
D
0
Price
Price
Quantity
D2
D D
B to the right
A To be more elastic C Both to the right
and more elastic
Promotion and the Demand Curve
Trang 9Promotion and the AIDA Model
Exhibit 144
Informing
Persuading
Reminding
Attention Interest Desire Action
Awareness Interest Evaluation Trial
Decision Confirmation
} } {
Trang 10Receiver Decoding
Message channel Encoding
Source
Noise
The Traditional Communication Model
Trang 11Encoder
Decoder
Common
frame of
reference
The same message may be interpreted differently by the encoder and the
decoder
Message Interpretation
Trang 12Source’s
Receiver (Customer)
Customer-Initiated Interactive Communication
Trang 13Push-Pull Strategies
Exhibit 148
Wholesaler Promotion Push
Wholesaler Promotion Push
Retailer Promotion Push
Final Consumer Pull
Business Customer Pull
Promotion to Channel Members
Producer’s Promotion Blend
Personal Selling, Sales Promotion, Advertising, Publicity
Trang 14The Adoption Curve
Innovators (3-5%)
Early Adopters (10-15%)
Early Majority (34%)
Late Majority (34%)
Laggards/
Nonadopters (5-16%)
20
50
90
Trang 15Setting the Promotion Budget
Task Method Uncommitted Resources
Per Unit Match Competitors
Percentage of Sales
????
????
????
????
????
Trang 16Receiver Noise Encoding Decoding Message Channel Pushing
Pulling Adoption Curve Innovators
Early Adopters Early Majority Late Majority Laggards
Nonadopters Primary Demand Selective Demand
Promotion
Personal Selling
Mass Selling
Advertising
Publicity
Sales Promotion
Sales Managers
Advertising Managers
Public Relations
Sales Promotion
Managers
Integrated Marketing
Communications
AIDA Model
Communication
Process
Key Terms