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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,...
Chapter 14: Promotion— Introduction to Integrated Marketing Communications For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Basic Promotion Methods Target Market Product Place Personal Selling Promotion Mass Selling Advertising Price Sales Promotion Publicity Exhibit 141 142 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Sales Promotion Activities Aimed at Final Consumers or Users Contests Coupons Aisle displays Samples Trade shows Pointofpurchase materials Banners and streamers Trading stamps Sponsored events Aimed at Intermediaries Price deals Promotion allowances Sales contests Calendars Gifts Trade shows Meetings Catalogues Merchandising aids Aimed at Company’s Own Sales Force Contests Bonuses Meetings Portfolios Displays Sales aids Training materials Exhibit 142 143 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited The Traditional Communication Model Source Encoding Message channel Decoding Receiver Noise Feedback Exhibit 143 144 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Customer-Initiated Interactive Communication Receiver (Customer) Source’s Message Noise Select a topic Search Message channel Exhibit 145 145 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Promotion and the Demand Curve Price Price Price D1 D2 D2 D2 D1 D1 Quantity A To be more elastic Quantity B To the right Quantity C Both to the right and more elastic Exhibit 146 146 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Promotion and the AIDA Model Promotion Objectives Informing Persuading Reminding Adoption Process AIDA Model Awareness Interest Evaluation Trial Decision Confirmation Attention Interest { } Desire } Action Exhibit 147 147 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Message Interpretation Encoder The same message may be interpreted differently by the encoder and the decoder Common frame of reference Decoder 148 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Push-Pull Strategies Producer’s Promotion Blend Exhibit 148 149 Wholesalers’ Promotion Push Promotion to Channel Members Wholesalers’ Promotion Push Retailers’ Promotion Push Business Customers Pull Promotion to Final Customers Promotion to Business Customers Personal Selling, Sales Promotion, Advertising, Publicity Final Consumers Pull For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited The Adoption Curve Innovators (3-5%) Percent Adoption 90 Early Adopters (10-15%) Early Majority (34%) Late Majority (34%) Laggards/ Nonadopters (5-16%) 50 20 Exhibit 149 1410 Time For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Setting the Promotion Budget ???? ???? ???? ???? ???? 1411 Percentage Percentage of of Sales Sales Match Match Competitors Competitors Per Per Unit Unit Uncommitted Uncommitted Resources Resources Task Task Method Method For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited ... Pointofpurchase materials Banners and streamers Trading stamps Sponsored events Aimed at Intermediaries Price deals Promotion allowances Sales contests Calendars Gifts Trade shows Meetings Catalogues... Wholesalers’ Promotion Push Promotion to Channel Members Wholesalers’ Promotion Push Retailers’ Promotion Push Business Customers Pull Promotion to Final Customers Promotion to Business Customers... Merchandising aids Aimed at Company’s Own Sales Force Contests Bonuses Meetings Portfolios Displays Sales aids Training materials Exhibit 142 143 For use with Shapiro, Wong, Perreault, and McCarthy