For use only with Perreault/Cannon/ McCarthy texts, © 2009 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Chapter 14 Promotion— Introduction to Integrated Marketing Communications www.mhhe.com/fourps
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For use only with Perreault/Cannon/ McCarthy texts, © 2009 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin
Chapter 14
Promotion—Introduction to Integrated Marketing Communications
www.mhhe.com/fourps
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.
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.
At the end of this presentation, you should be able to:
Marketing Strategy Planning Process
CH 16: Advertising & Sales Promotion
Promotion methods
Managing promotion
Effective communication
Blending promotion
CH 15: Personal Selling and Customer Service
CH 14: Promotion Intro. to Integrated Marketing Communications
Promotion and Marketing Strategy Planning
Intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message
Marketing manager blends inputs from– Sales managers– Advertising managers– Public relations manager– Sales promotion managers
Integrated promotion effort in channel requires cooperation and coordination
Blend depends on promotion objectives and situation
Integrated Marketing Communications
Promotion Seeks to Shift the Demand Curve
Mass SellingMass Selling
Personal SellingPersonal Selling
Sales PromotionSales Promotion
Different methods of promotion Advertising Publicity
Several Promotion Methods Are Available
• Contests• Coupos• Aisle displays• Samples• Trade shows• Point-of-purchase
materials• Banners & streamers• Frequent buyer
programs• Sponsored events
• Contests• Coupos• Aisle displays• Samples• Trade shows• Point-of-purchase
materials• Banners & streamers• Frequent buyer
programs• Sponsored events
Sales Promotion Tries to Spark Immediate Interest
Aimed at consumers or users
Aimed at consumers or users
• Price deals• Promotion allowances• Sales constests• Calendars & gifts• Trade shows• Meetings• Catalogs• Merchandising aids• Videos
• Price deals• Promotion allowances• Sales constests• Calendars & gifts• Trade shows• Meetings• Catalogs• Merchandising aids• Videos
Aimed at wholesalers or retailers
Aimed at wholesalers or retailers
• Contests & Bonuses• Meetings• Portfolios & Displays• Sales aids • Training materials
• Contests & Bonuses• Meetings• Portfolios & Displays• Sales aids • Training materials
Aimed at company’s own sales force
Aimed at company’s own sales force
Sales Promotion
Sales Promotion Managers (manage
sales promotion effort)
Sales Promotion Managers (manage
sales promotion effort)
Advertising Managers (in-house
agency; public relations)
Advertising Managers (in-house
agency; public relations)
Sales Managers (managing
personal selling)
Sales Managers (managing
personal selling)
Marketing Mangers (determine and coordinate
promotional activities)
Marketing Mangers (determine and coordinate
promotional activities)
IntegratedMarketing
Communications
Someone Must Plan, Integrate, and Manage the Promotion Blend
PersuadingPersuading
InformingInforming
RemindingReminding
Which Method to Use Depends on Promotion Objectives
Reminding May Be Enough
© 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Promotion Objectives Adoption Process AIDA Model
Informing
Awareness
Interest
Attention
Interest
Persuading
Evaluation
Trial Desire
Reminding
Decision
Confirmation Action
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Promotion Objectives Relate to the Adoption Process and AIDA Mode
Interactive Exercise: AIDA
Source—the sender of a message Encoding—the source deciding what to say and
translating it into words or symbols that convey meaning
Message channel—the carrier of the message Noise—any distraction that reduces the effectiveness of
the communication process Decoding—the receiver translating the message Receiver — the potential customer
Traditional Communication Concepts in Promotion
NoiseNoise
The Traditional Communication Process
SourceSource
ReceiverReceiver
EncodingEncoding
Message channel
Message channel
DecodingDecoding
FeedbackFeedback
Encoding & Decoding Depend on a Common Frame of Reference
Ron has been a pioneer in the use of direct-responsetelevision “infomercials.” Over the years his infomercialshave promoted many products, including the ShowtimeRotisserie Barbecue, a food dehydrating machine, and theworld-famous “Veg-O-Matic.” The chief advantage of theinfomercial is that it provides plenty of time to describe anddemonstrate a product’s benefits in detail. The choice ofthe infomercial is related mainly to the _________ elementof the communication process.
A. message channelB. encodingC. decodingD. feedback E. noise
Checking Your Knowledge
Encoding and Decoding
© 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Target DirectlyWith a Database (use
information about past purchase behavior)
Target DirectlyWith a Database (use
information about past purchase behavior)
More Than Direct Mail (e.g.,
telephone, print, e-mail, internet, broadcast,)
More Than Direct Mail (e.g.,
telephone, print, e-mail, internet, broadcast,)
Ethical Concerns (e.g., junk mail; spam; unwanted
telemarketing calls; security of personal information in a
database; cookies)
Ethical Concerns (e.g., junk mail; spam; unwanted
telemarketing calls; security of personal information in a
database; cookies)
Integrated Direct-Response Promotion Is Very Targeted
New electronic media encourage consumers to search for information
Consumer decides how much information to get– Marketing information not just in 30-second sound
bytes Action (response)—including purchase—may
be immediate Communication with customers is becoming
more customized (personalized)
Customer May Initiate Communication
NoiseNoise
A Model of Customer-Initiated Interactive Communication
Source’s message
Source’s message
Message channel
Message channel
SearchSearch
Select a topic
Select a topic
Receiver (customer)
Receiver (customer)
How Typical Promotion Plans Are Blended and Integrated
Other Promotional Elements of Pushing
Pulling – Demand Pulls the Product through the Channel
An Example of Pulling
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.
Checking Your Knowledge
Adoption Processes Can Guide Promotion Planning
Because life is too short to waste time. Wouldn’t it be nice if your refrigerator could do your shopping on the Internet?
Appeal for Innovators
Stimulating Adoption of an Image
© 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
““This new This new idea is good”idea is good”
““Our brand is Our brand is best”best”
““Our brand is Our brand is better, really”better, really”
““Let’s tell Let’s tell those who those who
still want our still want our product”product”
Promotion Varies Over the Life Cycle
Nature of Competition Requires Different Promotion
Percentage of SalesPercentage of Sales
Task MethodTask Method
Setting the Promotion Budget
Budget based on percent of past or expected sales– most common approach– main advantage is ease– can lead to major problems, including cutbacks when more
money is needed
Task method—budgets for what needs to be accomplished– usually the sensible approach– requires that activities be evaluated against objectives
Same ideas apply in budgeting other types of marketing activities
Setting the Promotion Budget
Which of the following is the main type of "mass selling"?
A. Personal selling.B. Publicity.C. Sales promotion.D. Advertising.E. Both B and D.
Study Question 1
A car company sent three automobile magazines some technical information and explanations about the features of its innovative new model. One of the magazines later printed a story about the car. This is an example of:
A. personal selling.B. advertising.C. publicity.D. sales promotion.E. None of the above
Study Question 2
Blending the firm's promotion efforts to convey a complete and consistent message is the goal of:
A. Sales management communications.B. Sales promotion communications.C. Integrated promotional marketing.D. Integrated marketing communications.E. Integrated sales promotion.
Study Question 3
What basic promotion objective should be emphasized by a producer introducing a really new product which satisfies customer needs better than any existing product?
A. PersuadingB. RemindingC. MaximizingD. InformingE. Communicating
Study Question 4
What basic promotion objective should be sought by a producer whose Product is very similar to its many competitors' Products? A. PersuadingB. PromotingC. CommunicatingD. InformingE. Reminding
Study Question 5
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