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Communicating Customer Value: Integrated Marketing Communications Strategy Course: Mkt 202 Lecturer: NNA Chapter 14
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Page 1: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Communicating Customer Value: Integrated Marketing Communications Strategy Course: Mkt 202Lecturer: NNA

Chapter 14

Page 2: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

The Promotion Mix

The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships.

Marketing Communication Mix

Ch 11 - 2

Page 3: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

The Promotion Mix

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.• Broadcast• Print• Internet• Outdoor

Major Promotion Tools

Ch 11 - 3

Page 4: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

The Promotion Mix

Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service.• Discounts• Coupons

Ch 11 - 4

Major Promotion Tools

Page 5: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

The Promotion Mix

Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.• Press releases• Sponsorships • Web pages

Major Promotion Tools

Ch 11 - 5

Page 6: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

The Promotion Mix

Personal selling is the personal presentation or demonstration by the firm’s sales force for the purpose of making sales and building customer relationships.• Sales presentations• Trade shows

Major Promotion Tools

Ch 11 - 6

Page 7: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

The Promotion Mix

Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—through the use of direct mail, telephone, direct-response television, e-mail, and the Internet to communicate directly with specific consumers.• Catalog• Telemarketing• Kiosks

Major Promotion Tools

Ch 11 - 7 Copyright © 2011 Pearson Education

Page 8: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Integrated Marketing Communications

Integrated marketing communications is the integration by the company of its communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.

The Need for Integrated Marketing Communications

Ch 11 - 8

Page 9: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Integrated marketing Communications

Ch 11 - 9

Page 10: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

A View of the Communication Process

Ch 11 - 10

Page 11: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing Communications

Ch 11 - 11

Page 12: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing Communications

Step 1: Identifying the Target market

What will be said

How it will be said

When it will be said

Where it will be said

Ch 11 - 12 Copyright © 2011 Pearson Education

Page 13: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

Marketers seek a purchase response that results from a consumer decision-making process that includes the stages of buyer readiness.

Step 2: Determining the Communication Objectives

Ch 11 - 13 Copyright © 2011 Pearson Education

Page 14: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

Page 15: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

AIDA Model: Get Attention, Hold

Interest, Arouse Desire, Obtain Action

When putting the message together, the marketing communicator must decide:• What to say ( message content )• How to say it ( message structure and format )

Step 3: Designing a Message

Ch 11 - 15 Copyright © 2011 Pearson Education

Page 16: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

Message content is an appeal or theme that will produce the desired response.• Rational appeal relates to the audience’s self-interest.

• Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase.•Moral appeal•Fear appeal•Humor appeal

Ch 11 - 16

Page 17: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Rational appeal Rational

appeal relates to the audience’s self-interest.

Page 18: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Moral Appeal

Moral appeal is directed at the audience’s sense of right and proper.

Page 19: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Fear appeals A low level of fear can have facilitating effects. It

may attract attention & interest in the message & may motivate the receiver to resolve the threat

Page 20: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Humor appeals

Best known and best remembered of all advertising messages

Page 21: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

Message Structure:• Do they draw a conclusion or leave it

to the audience? • Do they present the strongest

arguments first or last? • Is the message one sided (strengths

only) or two-sided?

Ch 11 - 21 Copyright © 2011 Pearson Education

Page 22: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

Message Format:• Color, text, copy, images, headline,

illustration, color, message size and position, body language…

Ch 11 - 22 Copyright © 2011 Pearson Education

Page 23: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

Personal communication involves two or more people communicating directly with each other.• Face to face• Phone• Mail• E-mail• Internet chat

Step 4: Choosing Media

Ch 11 - 23 Copyright © 2011 Pearson Education

Page 24: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

Personal communication is effective because it allows personal addressing and feedback.• Control of personal communication• Company• Independent experts• Word of mouth

Ch 11 - 24 Copyright © 2011 Pearson Education

Page 25: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

Opinion leaders are people within a reference group who, because of their special skills, knowledge, personality, or other characteristics, exert social influence on others.

Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities.

Choosing Media: Personal Communication

Ch 11 - 25 Copyright © 2011 Pearson Education

Page 26: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

Non-personal communication is media that carry messages without personal contact or feedback, including major media, atmospheres, and events that affect the buyer directly.

Choosing Media: Non-Personal Communication Channels

Ch 11 - 26 Copyright © 2011 Pearson Education

Page 27: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

Major media include print, broadcast, display, and online media.

Atmospheres are designed environments that create or reinforce the buyer’s leanings toward buying a product.

Events are staged occurrences that communicate messages to target audiences: press conferences, grand openings, exhibits, public tours.

Non-Personal Communication Channels

Ch 11 - 27 Copyright © 2011 Pearson Education

Page 28: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

The message’s impact on the target audience is affected by how the audience views the communicator.Celebrities• Athletes• EntertainersProfessionals• Health care providers

Step 5: Selecting the Message Source

Ch 11 - 28 Copyright © 2011 Pearson Education

Page 29: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Steps in Developing Effective Marketing

Communications

The communicator must research the effect of the message on the target audience by measuring the behavior resulting from the message.

Step 6: Collecting Feedback

Ch 11 - 29 Copyright © 2011 Pearson Education

Page 30: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Setting the Total Promotion Budget and Mix

1. Affordable budget method

2. Percentage-of-sales method

3. Competitive-parity method

4. Objective-and-task method

Setting the Total Promotion Budget

Ch 11 - 30 Copyright © 2011 Pearson Education

Page 31: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Setting the Total Promotion Budget and Mix

Affordable budget method sets the budget at an affordable level.• Ignores the effects of promotion on sales.

Setting the Total Promotion Budget

Ch 11 - 31 Copyright © 2011 Pearson Education

Page 32: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Setting the Total Promotion Budget and Mix

Percentage of sales method sets the budget at a certain percentage of current or forecasted sales or unit sales price.• Easy to use and helps management think about the relationship between promotion, selling price, and profit per unit.• Wrongly views sales as the cause rather than the result of promotion.

Setting the Total Promotion Budget

Ch 11 - 32 Copyright © 2011 Pearson Education

Page 33: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Setting the Total Promotion Budget and Mix

Competitive-parity method sets the budget to match competitor outlays.• Represents industry standards• Avoids promotion wars

Setting the Total Promotion Budget

Ch 11 - 33 Copyright © 2011 Pearson Education

Page 34: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Setting the Total Promotion Budget and Mix

Objective-and-task method sets the budget based on what the firm wants to accomplish with promotion and includes:• Defining promotion objectives• Determining tasks to achieve the objectives• Estimating costs

Setting the Total Promotion Budget

Ch 11 - 34 Copyright © 2011 Pearson Education

Page 35: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Shaping the Overall Promotion Mix

Advertising reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times.

The Nature of Each Promotion Tool

Ch 11 - 35 Copyright © 2011 Pearson Education

Page 36: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Shaping the Overall Promotion Mix

Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, actions, and developing customer relationships.

The Nature of Each Promotion Tool

Ch 11 - 36 Copyright © 2011 Pearson Education

Page 37: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Shaping the Overall Promotion Mix

Sales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase, and can be used to dramatize product offers and to boost sagging sales.

The Nature of Each Promotion Tool

Ch 11 - 37 Copyright © 2011 Pearson Education

Page 38: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Shaping the Overall Promotion Mix

Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events.

Direct marketing is a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarketing, and online marketing.

The Nature of Each Promotion Tool

Ch 11 - 38 Copyright © 2011 Pearson Education

Page 39: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Shaping the Overall Promotion Mix

Ch 11 - 39 Copyright © 2011 Pearson Education

Page 40: Chapter 14.  The promotion mix or marketing communication mix is the specific blend of advertising, public relations, personal selling, and direct- marketing.

Shaping the Overall Promotion Mix

1. Identify customer touch points

2. Analyze trends—internal and external

3. Audit the areas of communication spending throughout the organization

4. Team up in communications planning

5. Create compatible themes, tones, and quality across all communications media

6. Create performance measures that are shared by all communications elements

7. Appoint a director responsible for the company’s persuasive communications efforts

Integrating the Promotion Mix Checklist

Ch 11 - 40 Copyright © 2011 Pearson Education


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