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8/3/2019 Advt Mgmt-4
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PromotionP
romotionCommunication by
marketers that informs,
persuades, and remindspotential buyers of a
product in order to
influence an opinion or
elicit a response.
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Promotional StrategyP
romotional StrategyA plan for the optimal use
of the elements of
promotion:AdvertisingAdvertising
Public RelationsPublic Relations
Personal SellingPersonal Selling
Sales PromotionSales Promotion
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The Role of
Promotion
The Role of
Promotion
Promotional MixPromotional Mix
AdvertisingPublic RelationsPersonal SellingSales Promotion
Promotion PlanPromotion Plan
OverallOverallMarketingMarketingObjectivesObjectives
Marketing MixMarketing Mix ProductProduct
DistributionDistribution
PromotionPromotion
PriceP
rice
Target MarketTarget Market
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Differential AdvantageDifferential Advantage
Unique Features
Excellent Service
Low Prices
Rapid Delivery
High Product Quality
FeaturesFeatures
that providethat provideDifferentialDifferentialAdvantageAdvantage
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Promotional MixP
romotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizations
overall goals.
AdvertisingAdvertising
Public RelationsPublic RelationsPersonal SellingPersonal Selling
Sales PromotionSales Promotion
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Promotional MixP
romotional MixAdvertising
Elements
of thePromotional
Mix
Public Relations
Personal Selling
Sales Promotion
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AdvertisingAdvertising
Impersonal, one-way
mass communication
about a product or
organization that is
paid for by a marketer.
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Advertising MediaAdvertising MediaTraditional
Advertising MediaTraditional
Advertising MediaElectronic
Advertising MediaElectronic
Advertising Media
Television Radio Newspapers Magazines
Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
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AdvertisingAdvertising
AdvantagesAdvantages
Ability to reach large
number of people
Cost per contact is low
Can be micro-targeted
DisadvantagesDisadvantages
Total cost is high
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Public RelationsP
ublic RelationsThe marketing function that
evaluates public attitudes,
identifies areas within theorganization that the public
may be interested in, and
executes a program of action
to earn public understanding
and acceptance.
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P
ublic RelationsP
ublic Relations
Evaluates publicattitudes
Identifies areasof public interest
Executesprograms towin public
Functions ofFunctions of
Public RelationsPublic Relations
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P
ublicityP
ublicity
Public information about a
company, good, or serviceappearing in the mass media
as a news item.
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SalesP
romotionSalesP
romotion
Marketing activities--other
than personal selling,advertising, and public
relations--that stimulate
consumer buying and
dealer effectiveness.
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SalesP
romotionSalesP
romotion
EndConsumers
Trade Customers
Company
Employees
Sales PromotionSales Promotion
TargetsTargets
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SalesP
romotionSalesP
romotionFree samples
Contests
Premiums
Trade Shows
Vacation Giveaways
Coupons
PopularToolsPopularToolsforforConsumer SalesConsumer SalesPromotionPromotion
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P
ersonal SellingP
ersonal Selling
Planned presentation to
one or more prospective
buyers for the purpose
of making a sale.
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P
ersonal SellingP
ersonal SellingTraditional
SellingTraditional
SellingRelationship
SellingRelationship
Selling
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CommunicationCommunication
The process by which we
exchange or share
meanings through a
common set of symbols.
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Marketing CommunicationMarketing Communication
Categories ofCommunication
InterpersonalInterpersonalCommunicationCommunication
MassMassCommunicationCommunication
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The Communication ProcessThe Communication Process
As SendersAs Senders As ReceiversAs Receivers
Inform
Persuade
Remind
Develop messages
Adapt messages
Spot new
communicationopportunities
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The Sender and EncodingThe Sender and Encoding
SenderThe originator of the message in the
communication process.
Encoding
The conversion of a senders ideas
and thoughts into a message, usually
in the form of words or signs.
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The Communication ProcessThe Communication Process
Noise
SenderEncodingMessage
MessageChannel
MessageChannel
DecodingMessage
Receiver
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Characteristics ofPublic RelationsCharacteristics ofPublic Relations
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message ContentControlSponsor Identification
Reaching Large Audience
Message Flexibility
Public RelationsPublic Relations
Usually indirect, non-personal
Moderate to low
Little
Delayed
One-way
NoNo
Usually fast
Usually no direct controlAdvt & sales Mgmt (MB-904)
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Characteristics ofCharacteristics of
Sales PromotionSales Promotion
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message ContentControl
Sponsor Identification
Reaching Large Audience
Message Flexibility
Sales PromotionSales Promotion
Usually Indirect and non-personal
Moderate to low
Little to moderate
Varies
Mostly one-way
Yes
Yes
Fast
Same message to varied target
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Characteristics ofPersonal SellingCharacteristics ofPersonal Selling
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message ContentControl
Sponsor Identification
Reaching Large Audience
Message Flexibility
Personal SellingPersonal Selling
Direct and face-to-face
High
Much
Immediate
Two-way
Yes
Yes
Slow
Tailored to prospect
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Goals and Tasks ofPromotionGoals and Tasks ofPromotion
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
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Goals and Tasks ofPromotionGoals and Tasks ofPromotion
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
PLCStagesPLCStages:Introduction
Early Growth
PLCStages:PLCStages:
Growth
Maturity
PLC
Stages:PLC
Stages:Maturity
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Goals and Tasks ofPromotionGoals and Tasks ofPromotion
Informative Objective
Increase awareness
Explain how product works
Suggest new uses
Build company image
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Goals and Tasks ofPromotionGoals and Tasks ofPromotion
Persuasion Objective
Encourage brand switching
Change customers perception ofproduct attributes
Influence buying decision
Persuade customers to call
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Goals and Tasks ofPromotionGoals and Tasks ofPromotion
Reminder Objective
Remind customers that productmay be needed
Remind customers where to buy product
Maintain customer awareness
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The AIDA ConceptThe AIDA Concept
Model that outlines the
process for achieving
promotional goals in terms
of stages of consumer
involvement with the
message.
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The AIDA ConceptThe AIDA Concept
AAttentionttention
IInterestnterest
DDesireesire
AActionction
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AIDA and the Promotional MixAIDA and the Promotional Mix
AwarenessAwarenessAwarenessAwareness InterestInterestInterestInterest DesireDesireDesireDesire ActionActionActionAction
AdvertisingAdvertisingVery
effectiveVery
effectiveSomewhateffective
Noteffective
PublicPublicRelationsRelations
Veryeffective
Veryeffective
Veryeffective
Noteffective
SalesSales
PromotionPromotion
Somewhat
effective
Somewhat
effective
Very
effective
Very
effective
PersonalPersonalSellingSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
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Lavidge and Steiner modelLavidge and Steiner model
Awareness
Knowledge
Liking
Preference
Conviction
Action36Advt & sales Mgmt (MB-904)
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Factors Affecting theFactors Affecting the
Promotional MixPromotional Mix
Nature ofProduct
Stage in PLC
Target Market Factors
Type of Buying Decision
Promotion Funds
Push orPull Strategy
FactorsFactorsAffectingAffectingChoice ofChoice of
Promotional MixPromotional Mix
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Nature of the ProductNature of the Product
Product characteristics Business product vs. consumer product
Costs and risks
Social risk
Factors that influence promotional mixFactors that influence promotional mix
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Stage in the Product Life CycleStage in the Product Life Cycle
TimeTime
IntroductionIntroduction GrowthGrowth
MaturityMaturity
DeclineDecline
Sales($)
Sales($)
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Product Life Cycle and theProduct Life Cycle and the
Promotional MixPromotional Mix
LightAdvertising,
pre-introductionPublicity
Heavy use ofadvertising,PR for
awareness;sales
promotionfor trial
AD/PRdecreaseLimitedSales
Promotion,PersonalSelling for
distribution
Adsdecrease.
SalesPromotion,PersonalSelling
Reminder &Persuasive
Advertising,PR, Brand
loyaltyPersonalSelling for
distribution
IntroductionIntroduction GrowthGrowth
MaturityMaturity
DeclineDecline
Sales($)
Sales($)
TimeTime
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Target Market CharacteristicsTarget Market Characteristics
FOR:
Widely scattered
market
Informed buyers
Repeat buyersAdvertising
Sales Promotion
Less Personal Selling
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Type of Buying DecisionType of Buying Decision
Advertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
PromotionalPromotionalMix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not RoutineNot Routineor Complexor Complex
Advertising
Public Relations
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Available FundsAvailable Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
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Push and Pull StrategiesPush and Pull Strategies
ManufacturerManufacturerpromotes topromotes towholesalerwholesaler
WholesalerWholesalerpromotes topromotes to
retailerretailer
RetailerRetailerpromotes topromotes toconsumerconsumer
ConsumerConsumerbuys frombuys from
retailerretailer
PUSH STRATEGYPUSH STRATEGY
Orders to manufacturer
ManufacturerManufacturer
promotes topromotes toconsumerconsumer
ConsumerConsumer
demandsdemandsproductproductfrom retailerfrom retailer
RetailerRetailer
demandsdemandsproductproductfrom wholesalerfrom wholesaler
WholesalerWholesaler
demandsdemandsproduct fromproduct frommanufacturermanufacturer
Orders to manufacturer
PULL STRATEGYPULL STRATEGY
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Integrated MarketingIntegrated Marketing
CommunicationsCommunications
A method of carefully
coordinating all
promotional activities to
produce a consistent,
unified message that is
customer focused.
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