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Essentials of Marketing chapter 13

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Essentials of Marketing
Chapter 13
Promotion –
Introduction to
Integrated
Marketing
Communication
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
At the end of this presentation, you should
be able to:
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.
Know how direct-response promotion is helping
marketers develop more targeted promotion blends.
13–2
At the end of this presentation, you should
be able to:
6.
Understand how customer-initiated interactive
communication is different.
7.
Know how typical promotion plans are blended to get
an extra push from wholesalers and retailers 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.
10. Understand important new terms.
13–3
Marketing Strategy Planning Process
13–4
Promotion and Marketing Strategy Planning
(Exhibit 13-1)
CH 13: Promotion
Intro. to Integrated
Marketing
Communications
Promotion
methods
CH 14: Personal
Selling and
Customer Service
Managing
promotion
Effective
communication
CH 15: Advertising
& Sales Promotion
Blending
promotion
13–5
Several Promotion Methods Are Available
Personal Selling
Mass Selling
Different
methods of
promotion
Advertising
Publicity
Sales Promotion
13–6
Sales Promotion Tries to Spark Immediate
Interest (Exhibit 13-2)
Aimed at consumers or
users
• Contests
Aimed at wholesalers or
• Couponsretailers
• Aisle displays
• Price
deals
Aimed
at company’s own
• Samples
• Promotion
salesallowances
• Trade showsforce
• Sales constests
Point-of-purchase
•• Contests
Calendars&&Bonuses
gifts
materials
• Meetings
Trade shows
Banners &&streamers
•• Portfolios
Meetings Displays
Frequent
•• Sales
aidsbuyer
Catalogs
programsmaterials
• Training
Merchandising aids
• Sponsored events
• Videos
13–7
Someone Must Plan, Integrate, and Manage
the Promotion Blend
Advertising
Managers
Sales Managers
Integrated
Marketing
Communications
Marketing
Managers
Sales Promotion
Managers
13–8
Which Method to Use Depends on
Promotion Objectives
Informing
Persuading
Reminding
13–9
Reminding May Be Enough
13–10
Promotion Objectives Relate to the Adoption
Process and AIDA Mode (Exhibit 13-3)
Promotion
Objectives
Informing
Persuading
Reminding
{
Adoption
Process
Awareness
AIDA Model
Interest
Evaluation
Interest
Trial
Decision
Attention
}
}
Confirmation
Desire
Action
13–11
Interactive Exercise: AIDA
13–12
The Traditional Communication Process
(Exhibit 13-4)
Feedback
Source
Encoding
Noise
Message
channel
Decoding
Receiver
13–13
Encoding & Decoding Depend on a
Common Frame of Reference (Exhibit 13-5)
Encoder
Common
frame of
reference
Decoder
13–14
Checking Your Knowledge
Ron Popeil has been a pioneer in the use of direct-response
television “infomercials.” 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
13–15
Encoding and Decoding
13–16
Integrated Direct-Response Promotion Is
Very Targeted
More Than
Direct Mail
Target Directly
With a Database
Ethical Concerns
13–17
A Model of Customer-Initiated Interactive
Communication (Exhibit 13-6)
Receiver
(customer)
Source’s
message
Search
Noise
Select a
topic
Message
channel
13–18
Pushing in the Channel Focuses Promotion
at Intermediaries (Exhibit 13-7)
13–19
Other
Promotional
Elements of
Pushing
13–20
Pulling in the Channel Directs Promotion at
Customers (Exhibit 13-7)
13–21
An Example
of Pulling
13–22
Checking Your Knowledge
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.
13–23
Adoption Processes Can Guide Promotion
Planning (Exhibit 13-8)
13–24
Appeal for
Innovators
13–25
Stimulating Adoption of an Image
13–26
Promotion Varies 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” 13–27
Nature of Competition Requires Different
Promotion
13–28
Setting the Promotion Budget
Percentage of Sales
Task Method
13–29
You should now be able to:
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.
Know how direct-response promotion is helping
marketers develop more targeted promotion blends.
13–30
You should now be able to:
6.
Understand how customer-initiated interactive
communication is different.
7.
Know how typical promotion plans are blended to get
an extra push from wholesalers and retailers 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.
10. Understand important new terms.
13–31
Key Terms

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
 Source
 Receiver
 Noise
 Encoding
 Decoding
 Message channel
 Pushing
13–32
Key Terms
 Pulling
 Adoption curve
 Innovators
 Early adopters
 Early majority
 Late majority
 Laggards
 Nonadopters
 Primary demand
 Selective demand
 Task method
13–33