Marketing Communications Chapter 15 Lamb, Hair, McDaniel 2014-2015 © 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 © 2015 by Cengage Learning Inc All Rights Reserved 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 The Role of Promotion in the Marketing Mix Discuss the role of promotion in the marketing mix © 2015 by Cengage Learning Inc All Rights Reserved The Role of Promotion Promotional Strategy © 2015 by Cengage Learning Inc All Rights Reserved Exhibit 15.1 Role of Promotion in the Marketing Mix © 2015 by Cengage Learning Inc All Rights Reserved Competitive Advantage High High product product quality quality Rapid Rapid delivery delivery Low Low prices prices Excellent Excellent service service Unique Unique features features © 2015 by Cengage Learning Inc All Rights Reserved Marketing Communication Describe the communication process © 2015 by Cengage Learning Inc All Rights Reserved Communication The process by which meanings are exchanged or shared through a common set of symbols © 2015 by Cengage Learning Inc All Rights Reserved Marketing Communication Categories Categories of of Communication Communication Interpersonal Interpersonal Communication Communication Mass Mass Communication Communication © 2015 by Cengage Learning Inc All Rights Reserved 10 Promotional Goals and the AIDA Concept Discuss the AIDA concept and its relationship to the promotional mix 36 © 2015 by Cengage Learning Inc All Rights Reserved The AIDA Concept Attention Interest Desire Action 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 37 The AIDA Concept Action Desire Interest Attention Conative (doing) Affective (feeling) Cognitive (thinking) © 2015 by Cengage Learning Inc All Rights Reserved 38 Exhibit 15.5 The Promotional Mix and AIDA Attention Interest Desire Action Advertising Public Relations Sales Promotion Personal Selling Social Media Very Effective Somewhat Effective © 2015 by Cengage Learning Inc All Rights Reserved Not Effective 39 Integrated Marketing Communications Discuss the concept of integrated marketing communications 40 © 2015 by Cengage Learning Inc All Rights Reserved 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 © 2015 by Cengage Learning Inc All Rights Reserved 41 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 © 2015 by Cengage Learning Inc All Rights Reserved 42 Factors Affecting the Promotional Mix Describe the factors that affect the promotional mix 43 © 2015 by Cengage Learning Inc All Rights Reserved Factors Affecting the Choice of Promotional Mix Nature Nature of of the the product product Stage Stage in in PLC PLC Target Target market market characteristics characteristics Type Type of of buying buying decision decision Promotion Promotion funds funds Push Push or or pull pull strategy strategy © 2015 by Cengage Learning Inc All Rights Reserved 44 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 45 Target Market Characteristics For… Advertising Advertising Sales SalesPromotion Promotion Less LessPersonal PersonalSelling Selling Widely scattered market Highly informed buyers Brand-loyal repeat purchasers © 2015 by Cengage Learning Inc All Rights Reserved 46 Type of Buying Decision Routine Routine Neither NeitherRoutine Routine nor norComplex Complex Complex Complex Advertising Sales Promotion Advertising Public Relations Personal Selling Print Advertising © 2015 by Cengage Learning Inc All Rights Reserved 47 Available Funds Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements © 2015 by Cengage Learning Inc All Rights Reserved 48 Exhibit 15.7 Push Strategy versus Pull Strategy © 2015 by Cengage Learning Inc All Rights Reserved 49 Chapter 15 Video Pepe’s Pizzeria Pepe’s Pizzeria is a popular restaurant located in Connecticut The CEO discusses the thought process behind their marketing strategy, how promotions work for Pepe’s and the general location strategy that comes into play when opening new locations CLICK TO PLAY 50 © 2015 by Cengage Learning Inc All Rights Reserved [...]... communication 2 © 2015 by Cengage Learning Inc All Rights Reserved 13 The Goals of Promotion Explain the goals and tasks of promotion 3 14 © 2015 by Cengage Learning Inc All Rights Reserved Goals and Tasks of Promotion Informing Informing Reminding Reminding Target Target Audience Audience Connecting Connecting Persuading Persuading 3 © 2015 by Cengage Learning Inc All Rights Reserved 15 Goals and Tasks of Promotion... Persuading Persuading © 2015 by Cengage Learning Inc All Rights Reserved 16 Goals and Tasks of Promotion Informative Promotion Increase awareness Explain how product works Suggest new uses Build company image 3 © 2015 by Cengage Learning Inc All Rights Reserved 17 Goals and Tasks of Promotion Persuasive Promotion Encourage brand switching Change customers’ perceptions of product attributes... immediate buying decision Persuade customers to call 3 © 2015 by Cengage Learning Inc All Rights Reserved 18 Goals and Tasks of Promotion Reminder Promotion Remind customers that product may be needed Remind customers where to buy product Maintain customer awareness 3 © 2015 by Cengage Learning Inc All Rights Reserved 19 Goals and Tasks of Promotion Connect Promotion Form relationships through... through social media Encourage transparent information exchange Customers become brand advocates 3 © 2015 by Cengage Learning Inc All Rights Reserved 20 The Promotional Mix Discuss the elements of the promotional mix 4 21 © 2015 by Cengage Learning Inc All Rights Reserved The Promotional Mix 4 © 2015 by Cengage Learning Inc All Rights Reserved 22 Advertising Most commonly distributed by traditional... or more prospective buyers for the purpose of making a sale 4 © 2015 by Cengage Learning Inc All Rights Reserved 30 Personal Selling Traditional Traditional Selling Selling Attempts to persuade the buyer into a specific point of view; creates a winlose outcome Relationship Relationship Long-term relationships; creates a win-win Selling Selling outcome 4 © 2015 by Cengage Learning Inc All Rights Reserved... (but not much) paid media depending on the strategy 4 © 2015 by Cengage Learning Inc All Rights Reserved 34 Exhibit 15.4 Characteristics of the Elements in the Promotional Mix © 2015 by Cengage Learning Inc All Rights Reserved 35 Promotional Goals and the AIDA Concept Discuss the AIDA concept and its relationship to the promotional mix 5 36 © 2015 by Cengage Learning Inc All Rights Reserved ... by Cengage Learning Inc All Rights Reserved 26 The Function of Public Relations Ma intain a posi t iv e i m Ed age ucate t h e publ compa ic abo ny’s ob ut the j e c Int tives roduce new p Su roduct pport t s he sal es effo Ge rt nerate favora b le p u blicity 4 © 2015 by Cengage Learning Inc All Rights Reserved 27 Sales Promotion Marketing activities—other than personal selling, advertising,.. .Marketing Communication As Senders As Receivers Inform Develop messages Persuade Adapt messages Remind Spot new communication opportunities 2 © 2015 by Cengage Learning Inc All Rights Reserved 11 Exhibit 15.2 Communication Process 2 12 © 2015 by Cengage Learning Inc All Rights Reserved Communication and the Internet... Reach large number of people Total cost is high Low cost per contact National reach is expensive for small companies Can be microtargeted 4 © 2015 by Cengage Learning Inc All Rights Reserved 25 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... kiosks in malls and supermarkets 4 © 2015 by Cengage Learning Inc All Rights Reserved 23 Advertising Media Traditional Advertising Media 4 Television Radio Newspapers Magazines Pay-per-click advertising Banner advertising Direct mail Billboards Transit advertising New Advertising Media Web sites E-mail Blogs Interactive video kiosks © 2015 by Cengage Learning Inc All Rights ... 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 © 2015 by Cengage Learning... the concept of integrated marketing communications Describe the factors that affect the promotional mix © 2015 by Cengage Learning Inc All Rights Reserved The Role of Promotion in the Marketing. .. Marketing Mix Discuss the role of promotion in the marketing mix © 2015 by Cengage Learning Inc All Rights Reserved The Role of Promotion Promotional Strategy © 2015 by Cengage Learning Inc All