Lecture Basic Marketing: A global managerial approach - Chapter 14: Promotion - Introduction to integrated marketing communications

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,...

Promotion—

Introduction to

Integrated Marketing

Communications

Basic Promotion Methods

Target Market

Target Market

Price Promotion

Place Product

Sales Promotion

Sales Promotion

Personal Selling

Personal Selling

Publicity Advertising

Mass Selling

Mass Selling

Aimed at  Intermediaries

Price deals Promotion allowances Sales contests

Calendars Gifts

Trade shows Meetings Catalogues 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

Receiver Decoding

Message channel Encoding

Source

Noise

The Traditional Communication Model

Customer-Initiated Interactive Communication

Noise

Source’s

Select a topic Message channel

Receiver (Customer)

C Both to the right and more elastic

Promotion and the Demand Curve

0

Price

Quantity

0

Price

Price

Quantity

B To the right

A To be more elastic

Promotion and the AIDA Model

Promotion Objectives Adoption Process AIDA Model

Informing

Persuading

Reminding

Attention Interest Desire Action

Awareness Interest Evaluation Trial

Decision Confirmation

} } {

Decoder

Common

frame of

reference

The same  message may be  interpreted  differently by the  encoder and the 

decoder

Message Interpretation

Push-Pull Strategies

Final Consumers

Business Customers

Promotion to Channel Members

Producer’s Promotion Blend

Personal Selling, Sales Promotion, Advertising, Publicity

Wholesalers’

Promotion Push

Wholesalers’

Promotion Push

Retailers’

Promotion Push

The Adoption Curve

Innovators (3-5%)

Early Adopters (10-15%)

Early Majority (34%)

Late Majority (34%)

Laggards/

Nonadopters (5-16%)

20

50

90

Setting the Promotion Budget

Task Method Uncommitted Resources

Per Unit Match Competitors

Percentage of Sales

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