chapter 14copyright ©2010 cengage learning inc. all rights reserved 1 mktg designed by amy mcguire,...
Post on 04-Jan-2016
213 Views
Preview:
TRANSCRIPT
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 1
MKTG
Designed byAmy McGuire, B-books, Ltd.
Prepared byDana Freeman, B-books, Ltd.
Lamb, Hair, McDaniel 2009-2010
14
CHAPTERIntegrated Marketing
Communications
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 2
Learning Outcomes
Discuss the role of promotion in the marketing mix
Discuss the elements of the promotional mix
Describe the communication process
Explain the goal and tasks of promotion
LO1
LO2
LO3
LO4
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 3
Learning Outcomes
Discuss the AIDA concept and its relationship to the promotional mix
Describe the factors that affect the promotional mix
Discuss the concept of integrated marketing communications
LO5
LO6
LO7
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 4
Discuss the role of promotion in the
marketing mix
The Role of Promotion in The Role of Promotion in the Marketing Mixthe Marketing MixLO1
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 5
LO1
The Role of Promotion
Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response.
PromotionPromotion
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 6
LO1
The Role of Promotion
A plan for the optimal
use of the elements of
promotion: Advertising Public Relations Sales Promotion Personal Selling
PromotionalStrategy
PromotionalStrategy
CompetitiveAdvantage
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 7
LO1
The Role of Promotion in the Marketing Mix
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mix• Product• Place• Promotion• Price
Marketing Mix• Product• Place• Promotion• Price
Target MarketTarget Market
Promotional Mix
• Advertising• Public Relations• Sales Promotion• Personal Selling
Promotion Plan
Promotional Mix
• Advertising• Public Relations• Sales Promotion• Personal Selling
Promotion Plan
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 8
LO1
Competitive Advantage
Unique features (Subway)Unique features (Subway)
Excellent serviceExcellent service
Low pricesLow prices
Rapid delivery (Jimmy John’s)Rapid delivery (Jimmy John’s)
High product quality (Pananra)High product quality (Pananra)
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 9
REVIEW LEARNING OUTCOMELO1
The Role of Promotion in the Marketing Mix
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 10
Discuss the elements of the
promotional mix
The Promotional MixThe Promotional MixLO2
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 11
The Promotional Mix
LO2
Combination of promotiontools used to reach the target market and fulfill theorganization’s overall goals. Advertising Public Relations Sales Promotion Personal Selling
Promotional
MixPromotional
Mix
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 12
The Promotional Mix
LO2
Impersonal, one-way Impersonal, one-way mass communication about mass communication about a product or organization a product or organization that is paid for by a that is paid for by a marketer.marketer.
AdvertisingAdvertising
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 13
Advertising Media
LO2
Traditional Advertising Media
NewAdvertising
Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Banner ads Viral marketing E- mail Interactive video
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 14
Advertising
LO2
Advantages Disadvantages
Reach large number of people
Low cost per contact
Can be micro-targeted
Total cost is high
National reach is expensive for small companies
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 15
Public Relations
LO2
The marketing function thatevaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.
Public
RelationsPublic
Relations
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 16
The Function of Public Relations i.e. Coke’s “Live It”
LO2
Maintain a positive image Educate the public about the
company’s objectives Introduce new products Support the sales effort Generate favorable publicity
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 17
Sales Promotion
LO2
Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.
Sales
PromotionSales
Promotion
Online
http://www.nabiscoworld.com
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 18
Sales Promotion
LO2
EndConsumers
EndConsumers
Trade Customers
Trade Customers
CompanyEmployees Company
Employees
Free samplesFree samples
ContestsContests
PremiumsPremiums
Trade ShowsTrade Shows
Vacation GiveawaysVacation Giveaways
CouponsCoupons
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 19
Personal Selling
LO2
Planned presentation to one or more prospective buyers for the purpose of making a sale.
Personal
SellingPersonal
Selling
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 20
Personal Selling
LO2
Traditional Selling
(Car dealer)
Traditional Selling
(Car dealer)
Relationship Selling
(Mary Kay)
Relationship Selling
(Mary Kay)
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 21
REVIEW LEARNING OUTCOMELO2
Elements of the Promotional Mix
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 22
Describe the communication
process
Marketing CommunicationMarketing CommunicationLO3
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 23
LO3
The process by which we exchange or
share meanings through a common set
of symbols.
Online
http://www.mcdonalds.com
CommunicationCommunication
Communication
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 24
LO3
Categories of CommunicationCategories of
Communication
InterpersonalCommunication
(face to face; watchReactions)
InterpersonalCommunication
(face to face; watchReactions)
MassCommunication
MassCommunication
Marketing Communication
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 25
LO3
As Senders As Receivers
Develop messages
Adapt messages
Spot new communication opportunities
Inform
Persuade
Remind
Marketing Communication
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 26
LO3
NoiseNoise
Sender(Absolut)Sender
(Absolut)
EncodingMessage
(“in an Absoluteworld)
EncodingMessage
(“in an Absoluteworld)
FeedbackChannel
FeedbackChannel
MessageChannel
(ads)
MessageChannel
(ads)
DecodingMessage
(understand?)
DecodingMessage
(understand?)Receiver
(target market)Receiver
(target market)
The Communication Process
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 27
LO3
Characteristics of the Elementsin the Promotional Mix
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 28
LO3
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
AdvertisingIndirect and impersonal
Low
Little
Delayed
One-way
Yes
Yes
Fast
Same message to all audiences
Characteristics of the Elementsin the Promotional Mix
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 29
LO3
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Public RelationsUsually indirect, impersonal
Moderate to low
Little
Delayed
One-way
No
No
Usually fast
Usually no direct control
Characteristics of the Elementsin the Promotional Mix
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 30
LO3
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Sales PromotionUsually indirect and impersonal
Moderate to low
Little to moderate
Varies
Mostly one-way
Yes
Yes
Fast
Same message to varied target
Characteristics of the Elementsin the Promotional Mix
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 31
LO3
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Personal SellingDirect and face-to-face
High
Much
Immediate
Two-way
Yes
Yes
Slow
Tailored to prospect
Characteristics of the Elementsin the Promotional Mix
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 32
The Impact of Blogging
LO3LO3
Sponsored by a company or
one of its brands and
maintained by one or more of
the company’s employees.
Sponsored by a company or
one of its brands and
maintained by one or more of
the company’s employees.
NoncorporateBlogs
NoncorporateBlogs
CorporateBlogs
CorporateBlogs
Independent and not
associated with the
marketing efforts of any
particular company or brand.
Independent and not
associated with the
marketing efforts of any
particular company or brand.
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 33
REVIEW LEARNING OUTCOMELO3
The Communication Process
Message tobe conveyed
Encodemessage
Receivemessage
Transmitmessage
Decodemessage
Message thatwas understood
Sender Feedback channel Receiver
Message channel
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 34
Explain the goals and
tasks of promotion
The Goals and Tasks The Goals and Tasks of Promotionof PromotionLO4
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 35
Goals and Tasks of Promotion
LO4
Online
http://www.tide.com
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 36
Goals and Tasks of Promotion
LO4
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
PLC StagesPLC Stages:Introduction Early Growth
PLC Stages:PLC Stages:Growth Maturity
PLC Stages:PLC Stages:Maturity
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 37
Goals and Tasks of Promotion
LO4
Increase awareness
Explain how product works
Suggest new uses
Build company image
Informative Promotion
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 38
Goals and Tasks of Promotion
LO4
Encourage brand switching
Change customers’ perceptions of product attributes
Influence immediate buying decision
Persuade customers to call
Persuasive Promotion
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 39
Goals and Tasks of Promotion
LO4
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
Reminder Promotion
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 40
Discuss the AIDA concept and its
relationship to the promotional mix
Promotional Goals Promotional Goals and the AIDA Conceptand the AIDA Concept
LO5
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 41
The AIDA ConceptLO5
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message.
AttentionInterestDesireAction
AttentionInterestDesireAction
AIDA ConceptAIDA
Concept
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 42
The AIDA ConceptLO5
http://www.nascar.comhttp://www.sears.com
Online
Action
Desire
Interest
Attention Cognitive (thinking)
Affective (feeling)
Conative (doing)
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 43
REVIEW LEARNING OUTCOMELO5
The AIDA Concept
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 44
Describe the factors that affect the
promotional mix
Factors Affecting the Factors Affecting the Promotional MixPromotional MixLO6
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 45
LO6 Factors Affecting the Choice of Promotional Mix
Nature of the productNature of the product
Stage in PLCStage in PLC
Target market factorsTarget market factors
Type of buying decisionType of buying decision
Promotion fundsPromotion funds
Push or pull strategyPush or pull strategy
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 46
LO6 Stage in the Product Life Cycle
Light Advertising; pre-introductionpublicity
Heavy use of Advertising;PR forawareness;sales promotionfor trial
AD/PRdecrease;limited sales promotion; personal selling fordistribution
Ads decrease;sales promotion;personal selling;reminder & persuasive
Advertising, PR, brandloyalty;personal selling fordistribution
IntroductionIntroduction GrowthGrowth
MaturityMaturityDeclineDecline
Sal
es (
$)S
ales
($)
TimeTime
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 47
LO6 Target Market Characteristics
For…
Widely scattered market
Informed buyers
Brand-loyal repeat purchasers
AdvertisingAdvertising
Sales PromotionSales Promotion
Less Personal SellingLess Personal Selling
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 48
LO6 Type of Buying Decision
Advertising
Sales PromotionRoutineRoutine
Personal Selling
Neither Routinenor Complex
Neither Routinenor Complex
Advertising
Public Relations
Print AdvertisingComplexComplex
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 49
LO6 Available Funds
Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional
elements
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 50
LO6 Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 51
REVIEW LEARNING OUTCOMELO6
Factors Affecting Promotional Mix
PromotionalMix
% Advertising% Public Relations% Sales Promotion% Personal Selling
Nature ofthe product
Productlife
cycle
Targetmarket
character-istics
Type ofbuying decision
Fundsavailable
Push or pull
strategy
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 52
Discuss the concept of integrated marketing
communications
Integrated Marketing Integrated Marketing CommunicationsCommunications
LO7
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 53
Integrated Marketing Communications
LO7
IntegratedMarketing
Communications
IntegratedMarketing
Communications
The careful coordination of all
promotional messages to assure
the consistency of messages at
every contact point where a
company meets the consumer.
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 54
IMC Popularity Growth
LO7
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques that generate immediate response
Online
http://www.hbo.com/trueblood/
Chapter 14 Copyright ©2010 Cengage Learning Inc. All rights reserved 55
REVIEW LEARNING OUTCOMELO7
Integrated Marketing Communications
top related