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Copyright Cengage Learning 2013All Rights Reserved
1
Chapter 16: Promotional Planning for
Competitive Advantage
Prepared & Designed by Laura Rush, B-books, Ltd.
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Copyright Cengage Learning 2013All Rights Reserved
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Learning Outcomes
Discuss the role of promotion in themarketing mix
Describe the communication process
Explain the goals of promotion
Discuss the elements of the promotionalmix
LO1
LO2
LO3
LO4
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Learning Outcomes
Discuss the AIDA concept and itsrelationship to the promotional mix
Discuss the concept of integrated marketingcommunications
Describe the factors that affect the
promotional mix
LO5
LO6
LO7
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The Role of Promotion in theMarketing Mix
Discuss the role of
promotion in the marketing mix.
LO1
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The Role of Promotion
5
Promotions
Communications by
marketers that informs,persuades, and reminds
potential buyers of a
product in order to influence an
opinion or elicit a response.
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The Role of Promotion
6
Promotional Strategy - A plan for the
optimal use of the
elements of promotion: advertising,
public relations, personal selling, andsales production.
Competitive Advantage - One or more
unique aspects of an organization
that cause consumers to patronizethat firm rather than competitors.
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The Role of Promotion
in the Marketing Mix
Overall MarketingObjectives
Marketing Mix Product
Place
Promotion
Price
Target Market
Promotional Mix
Advertising Public Relations Sales Promotion Personal Selling
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Competitive Advantage
Unique features
Excellent service
Low prices
Rapid delivery
High product quality
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Review Learning OutcomeThe Role of Promotion in the Marketing Mix
LO1
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Marketing Communication
10
Describe the
communication process.
LO2
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Communication
11
Online
http://www.mcdonalds.com
The process by
which we exchange or share
meanings through a common
set of symbols.
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Marketing Communication
Categories ofCommunication
InterpersonalCommunication
MassCommunication
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Marketing Communication
As Senders As Receivers
Develop messages
Adapt messages
Spot newcommunication
opportunities
Inform
Persuade
Remind
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Noise
Sender EncodingMessage
FeedbackChannel
MessageChannel
DecodingMessage
Receiver
The Communication Process
14
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The Impact of the Internet
Web sites facilitate feedback through
analytics.
Social media allow marketers to
personalize feedback channels.
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Learning Inc. All Rights Reserved 16
Review Learning OutcomeThe Communication Process
LO2
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Learning Inc. All Rights Reserved 17
The Goals of Promotion
Explain the goal of promotion.
LO
3
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Goals of Promotion
Informing Reminding
Persuading
TargetAudience
PLC Stages:
IntroductionEarly Growth
PLC Stages:
Growth
Maturity
PLC Stages:
Maturity
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Informing
Increase awareness
Explain how product works
Suggest new uses
Build company image
Informative Promotion
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Persuading
Persuasive Promotion
Encourage brand switching
Change customers perceptions ofproduct attributes
Influence immediate buying decision
Persuade customers to call
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Reminding
Reminder Promotion
Remind customers that productmay be needed
Remind customers whereto buy product
Maintain customer awareness
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The Promotional Mix
Discuss the elements of the
promotional mix.
LO4
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The Promotional Mix
Combination of promotion tools
used to reach the target
market and fulfill the organizations
overall goals.
Advertising
Public Relations
Sales Promotion
Personal Selling
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Advertising
Any form of impersonal
(one-way) paid
communication in
which the sponsor or
company is identified.
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Advertising Media
TraditionalAdvertising Media
NewAdvertising Media
Television
Radio Newspapers
Magazines
Books
Direct mail Billboards
Transit cards
Internet
Banner ads
Viral marketing
E- mail
Interactive
video
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Public Relations
The marketing function that evaluates
public attitudes, identifies
areas within the organization
that the public may be
interested in, and executes a program
of action to earn public understanding
and acceptance.
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The Function of Public
Relations
Maintain a positive image
Educate the public about the
companys objectives
Introduce new products
Support the sales effort
Generate favorable publicity
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Personal Selling
A purchase situation involving
a personal, paid-for
communication between two
people in an attempt to
influence each other.
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Personal Selling
TraditionalSelling
Relationship
Selling
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Sales Promotion
Online
http://www.nabiscoworld.com
Marketing activitiesother than
personal selling, advertising,
and public relationsthatstimulate consumer buying
and dealer effectiveness.
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Sales Promotion
EndConsumers
Trade Customers
CompanyEmployees
Free samples
Contests
Premiums
Trade Shows
Vacation Giveaways
Coupons
Ch t i ti f th El t
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Characteristics of the Elements
in the Promotional Mix
Exhibit 16.3Characteristics of the Elements in the Promotional Mix
R i L i O t
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Review Learning OutcomeElements of the Promotional Mix
LO
4
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Promotional Goals
and the AIDA Concept
Discuss the AIDA conceptand its relationship tothe promotional mix.
LO5
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The AIDA Concept
AIDA Concept (Attention, Interest,Desire, Action)- Model that outlines
the process for achieving promotionalgoals in terms of stages of consumer
Involvement with the message.
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The AIDA Concept
Action
Desire
Interest
Attention Cogn it ive (think ing)
A ffective (feeling)
Conative (doing )
Review Learning Outcome
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Review Learning OutcomeThe AIDA Concept
LO5
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Integrated Marketing
Communications
Discuss the concept of
integrated marketing
communications.
LO6
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Integrated Marketing
Communications
The careful coordination of
all promotional
messages to assure the
consistency of messages at
every contact point where a
company meets the consumer.
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IMC Popularity Growth
Proliferation of thousands of
media choices
Fragmentation of the mass market
Slash of advertising spending in
favor of promotional techniques that generate
immediate response
Review Learning Outcome
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Review Learning OutcomeIntegrated Marketing Communications
LO6
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Factors Affecting the Promotional Mix
Describe the factors that
affect the promotional mix.
LO7
F t Aff ti th
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Factors Affecting the
Choice of Promotional Mix
Nature of the product
Stage in PLC
Target market factors
Type of buying decision
Promotion funds
Push or pull strategy
St i th P d t Lif C l
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Stage in the Product Life Cycle
Pre-introduction
Publicity, lightadvertising
Heavy use ofadvertising &PR to build
awareness;salespromotionfor trial
AD/PRdecrease;limited
salespromotion;personalselling fordistribution
Ads decrease;sales promotion;personal selling;
reminder &persuasive
Advertising,PR, brandloyalty;
personalselling fordistribution
IntroductionGrowth
MaturityDecline
Sa
le
s(
$)
Time
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Target Market Characteristics
For
Widely scattered
market
Informed buyers
Brand-loyal repeat
purchasers
Advertising
Sales Promotion
Less Personal Selling
T f B i D i i
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Type of Buying Decision
Advertising
Sales Promotion
Routine
Personal Selling
Neither Routinenor Complex
Advertising
Public Relations
Print Advertising
Complex
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Available 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 Strategies
Manufacturerpromotes towholesaler
Wholesalerpromotes to
retailer
Retailerpromotes toconsumer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes toconsumer
Consumer
demandsproduct
from retailer
Retailer
demandsproduct
from wholesaler
Wholesaler
demandsproduct frommanufacturer
Orders to manufacturer
PULL STRATEGY
Review Learning Outcome
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Review Learning OutcomeFactors Affecting Promotional Mix
LO7
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Chapter 16 Company Clip
Vans has a carefully planned marketing
strategy that resonates with the youth
culturethe companys target market for
shoes and athletic apparel
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http://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch16.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch16.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch16.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch16.html