This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Coordination of all promotional activities – media advertising, direct mail, personal selling, sales promotion, and public relations – to produce a unified customer-focused promotional messageSuccess of any IMC program depends
critically on identifying the members of an audience and understanding what they want
Importance of TeamworkImportance of TeamworkIMC requires a total strategy
including all marketing activities, not just promotion
Successful implementation of IMC requires that everyone involved in every aspect of promotion – public relations, advertising, personal selling, and sales promotion – function as a team
AIDA conceptAIDA concept (Attention-Interest-Desire-Action) – an explanation of the steps through which an individual reaches a purchase decisionSenderEncodingChannelDecodingResponseFeedbackNoise
Differentiate the ProductDifferentiate the ProductHomogenous demand for many products
results when consumers regard the firm’s output as virtually identical to its competitors’– then, the firm has virtually no control over marketing variables
Accentuate the Product’s ValueAccentuate the Product’s ValuePromotion can explain the greater ownership
utility of a product to buyers, thereby accentuating its value and justifying a higher price
Elements of the Promotional MixElements of the Promotional Mix
Promotional mixPromotional mix: blend of personal selling and nonpersonal selling designed to achieve promotional objectivesPersonal sellingPersonal selling: interpersonal
promotional process involving a seller’s person-to-person presentation to a prospective buyer
Nonpersonal sellingNonpersonal selling includes: Advertising, Product placement, Sales promotion, Direct marketing, Public relations
AdvertisingAdvertisingPaid, nonpersonal communication through
various media by a business firm, not-for-profit organization, or individual identified in the message with the hope of informing or persuading members of a particular audience
Product PlacementProduct PlacementMarketer pays a motion picture or television
program owner a fee to display his or her product prominently in the film or show
Public relationsPublic relations: firm’s communications and relationships with its various publics
PublicityPublicity: stimulation of demand for good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations
Guerilla MarketingGuerilla Marketing: Unconventional, innovative, and low-cost marketing techniques designed to get consumers’ attention in unusual ways.
Growth of SponsorshipsGrowth of SponsorshipsSponsorship has grown rapidly during the
past 30 yearsCorporate sponsorship spending has
increased faster than promotional outlays for advertising and sales promotion
How Sponsorship Differs from AdvertisingHow Sponsorship Differs from AdvertisingSponsor’s degree of controlNature of the messageAudience reactionAmbush marketing
Assessing Sponsorship ResultsAssessing Sponsorship ResultsMarketers utilize some of the same
techniques to measure both advertising and sponsorship
The differences between the two promotional alternatives often necessitate some unique research techniques
Despite the impressive visibility of special events like soccer’s World Cup and football’s Super Bowl, the demands do not necessarily lead directly to increased sales or improved brand awareness
Direct Mail Direct Mail Marketers combine information from internal
and external databases, surveys, coupons, and rebates that require responses to provide information about consumer lifestyles, buying habits, and wants
CatalogsCatalogsOver 10,000 different consumer mail-order
catalogs and thousands more for business-to- business sales are mailed each year generating over $57 million in consumer sales and $36 million in B2B sales
TelemarketingTelemarketing: promotional presentation involving the use of the telephone for outbound contacts by salespeople or inbound contacts initiated by customers who want to obtain information and place orders
Direct Marketing via Broadcast ChannelsDirect Marketing via Broadcast ChannelsBroadcast direct marketing includes:Brief (30 to 90 and second) direct response
ads on television or radioHome shopping channels like:
Quality Value Channel (QVC)Home Shopping Network (HSN)
Infomercial: promotional presentation for a single product running 30 minutes or longer in a format that resembles a regular television program
Developing an Optimal Promotional MixDeveloping an Optimal Promotional Mix
Factors that influence the effectiveness of a promotional to mix:Nature of the marketNature of the productStage in the product life-cyclePriceFunds available for promotion
PricePriceAdvertising dominates the promotional mix for low-
unit-value products due to the high personal contact costs of personal selling
Consumers a high-priced items like luxury cars expect lots of well-presented information via videocassettes, CDs, fancy brochures, and personal selling
Funds available for promotionFunds available for promotionA critical element in the promotional strategy is the
size of the promotional budgetWhile the cost-per-contact of a $2 million, 30-second
TV commercial during the Super Bowl is relatively low, such an expenditure exceeds the entire promotional budgets of many, if not most firms
Nature of the market Number of buyers Geographic concentration Type of customer
Limited number
Concentrated
Business purchaser
Large number
Dispersed
Ultimate consumer
Nature of the product Complexity Service requirements Type of good or service Use of trade-ins
Custom-made, complex
Considerable
Business
Trade-ins common
Standardized
Minimal
Consumer
Trade-ins uncommon
Stage in the product life cycle
Often emphasized at every stage; heavy emphasis in the introductory and early growth stages in acquainting marketing intermediaries and potential consumers with the new good or service
Often emphasized at every stage; heavy emphasis in the latter part of the growth stage, as well as the maturity and early decline stages, to persuade consumers to select specific brands
Pulling and PushingPulling and PushingPromotional StrategiesPromotional Strategies
Pulling strategyPulling strategy: promotional effort by a seller to stimulate demand among final users, who will then exert pressure on the distribution channel to carry the good or service, pulling it though the marketing channel
Pushing strategyPushing strategy: promotional effort by a seller to members of the marketing channel intended to stimulate personal selling of the good or service, thereby pushing it through the marketing channel
Promotional budget is set as a specified percentage of either past or forecasted sales.
“Last year we spent $10,500 on promotion and had sales of $420,000. Next year we expect sales to grow to $480,000, and we are allocating $12,000 for promotion.”
Fixed-sum-per-unit method
Promotional budget is set as a predetermined dollar amount for each unit sold or produced.
“Our forecast calls for sales of 14,000 units, and we allocate promotion at the rate of $65 per unit.”
Meeting competition method
Promotional budget is set to match competitor’s promotional outlays on either an absolute or relative basis.
“Promotional outlays average 4 percent of sales in our industry.”
Task-objective method
Once marketers determine their specific, promotional objectives, the amount (and type) of promotional spending needed to achieve them is determined.
“By the end of next year, we want 75 percent of the area high-school students to be aware of our new, highly automated fast-food prototype outlet. How many promotional dollars will it take, and how should they be spent?”