Marketing Communications Chapter 15 Lamb, Hair, McDaniel 2014-2015 1 © Cengage Learning 2015. All Rights Reserved. • Discuss the role of promotion in the marketing mix • Describe the communication process • Explain the goal and tasks of promotion • Discuss the elements of the promotional mix • Discuss the AIDA concept and its relationship to the promotional mix • Discuss the concept of integrated marketing communications • Describe the factors that affect the promotional mix © 2015 by Cengage Learning Inc. All Rights Reserved. 2 The Role of Promotion Promotional Strategy A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion Social Media 1 © 2015 by Cengage Learning Inc. All Rights Reserved. 3 Exhibit 15.1 Role of Promotion in the Marketing Mix 1 4 © 2015 by Cengage Learning Inc. All Rights Reserved. Goals and Tasks of Promotion Informing Reminding Target Audience Connecting Persuading 3 © 2015 by Cengage Learning Inc. All Rights Reserved. 5 Goals of Promotion The ultimate goal of promotion is to create competitive advantage. The tasks are as follows. • Informing: Increase awareness, Explain how product works, Suggest new uses, Build company image • Reminding: Remind customers about its need, Remind customers where to buy product, Maintain customer awareness • Persuading: Encourage brand switching, Change customers’ perceptions of product attributes, Influence immediate buying decision, Persuade customers to call • Connecting: Form relationships through social media, Encourage transparent information exchange, Customers become brand advocates Competitive Advantage High product quality Rapid delivery Low prices Excellent service Unique features 1 © 2015 by Cengage Learning Inc. All Rights Reserved. 7 Exhibit 15.2 Communication Process 2 8 © 2015 by Cengage Learning Inc. All Rights Reserved. Exhibit 15.1 Role of Promotion in the Marketing Mix 1 9 © 2015 by Cengage Learning Inc. All Rights Reserved. Advertising Most commonly distributed by traditional media, though increasingly through nontraditional media, such as Web sites, e-mail, blogs, and interactive video kiosks in malls and supermarkets. 4 © 2015 by Cengage Learning Inc. All Rights Reserved. 10 Public Relations Evaluates public attitudes, identifies areas within the organization that public may be interested in, and executes a program to earn public understanding. 4 © 2015 by Cengage Learning Inc. All Rights Reserved. 11 Sales Promotion Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness. 4 © 2015 by Cengage Learning Inc. All Rights Reserved. 12 Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. 4 © 2015 by Cengage Learning Inc. All Rights Reserved. 13 Social Media Promotion tools used to facilitate conversations among people online. 4 © 2015 by Cengage Learning Inc. All Rights Reserved. 14 Exhibit 15.3 Digital Media Types Owned Media • Websites • Blogs • Social Media Presence Paid Media • Banner ads • Sponsored posts Social Media is concentrated here, between owned and earned media, with some (but not much) paid media depending on the strategy. Earned Media • Media Coverage • SEO • Publicity activities 4 © 2015 by Cengage Learning Inc. All Rights Reserved. 15 Exhibit 15.4 Characteristics of the Elements in the Promotional Mix © 2015 by Cengage Learning Inc. All Rights Reserved. 16 The AIDA Concept Attention Interest Desire Action 5 Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. © 2015 by Cengage Learning Inc. All Rights Reserved. 17 The AIDA Concept Action Desire Interest Attention Conative (doing) Affective (feeling) Cognitive (thinking) 5 © 2015 by Cengage Learning Inc. All Rights Reserved. 18 Exhibit 15.5 The Promotional Mix and AIDA Attention Interest Desire Action Advertising Public Relations Sales Promotion Personal Selling Social Media 5 Very Effective Somewhat Effective © 2015 by Cengage Learning Inc. All Rights Reserved. Not Effective 19 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 consumer. 6 © 2015 by Cengage Learning Inc. All Rights Reserved. 20 IMC Popularity Growth • Proliferation of thousands of media choices. • Fragmentation of the mass market. • Slash of advertising spending in favor of promotional techniques that generate immediate response. 6 © 2015 by Cengage Learning Inc. All Rights Reserved. 21 Factors Affecting the Choice of Promotional Mix Nature of the product Stage in PLC Target market characteristics Type of buying decision Promotion funds Push or pull strategy 7 © 2015 by Cengage Learning Inc. All Rights Reserved. 22 Exhibit 15.6 Product Life Cycle and the Promotional Mix Light Advertising; Preintroduction publicity Heavy Advertising; PR for awareness; sales promotion for trial Advertising, PR, brand loyalty; personal selling for distribution Ads decrease; sales promotion; personal selling; reminder & persuasive © 2015 by Cengage Learning Inc. All Rights Reserved. AD/PR decrease; limited sales promotion; personal selling for distribution 23 Goals and Tasks of Promotion Informing Reminding PLC Stages: PLC Stages: Introduction Early Growth Maturity Target Audience PLC Stages: PLC Stages: Growth Maturity All Connecting Persuading 3 © 2015 by Cengage Learning Inc. All Rights Reserved. 24 Exhibit 15.7 Push Strategy versus Pull Strategy 7 © 2015 by Cengage Learning Inc. All Rights Reserved. 25 Ch 15 Discussion Questions 1. 2. 3. 4. 5. 6. What is Promotional Mix? Discuss the Elements of the Promotional Mix. What is Promotional Mix? Explain goals and tasks of promotional mix in marketing. Describe the Communication Process. Why a marketer should study the communication process? Explain the AIDA concept/model and its relationship to the promotional mix. Discuss the Factors Affecting the Choice of Promotional Mix. Explain how the promotion changes at various stages of the Product Life Cycle.