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Using IntegratedUsing IntegratedMarketing CommunicationsMarketing Communications
to Promote Productsto Promote Products
Using IntegratedUsing IntegratedMarketing CommunicationsMarketing Communications
to Promote Productsto Promote Products
Chapter 16
Chapter 16 Learning GoalsChapter 16 Learning Goals
1.1. WWhat are the goals of promotional strategy?
2.2. WWhat is the promotional mix, and what are its elements?
3.3. WWhat are the types of advertising?4.4. WWhat are the advertising media, and
how are they selected?5.5. WWhat is the selling process?
Chapter 16 Learning Goals Chapter 16 Learning Goals (cont’d.)(cont’d.)
6.6. WWhat are the goals of sales promotion, and what are several types of sales promotion?
7.7. HHow does public relations fit into the promotional mix?
8.8. WWhat factors affect the promotional mix?9.9. WWhat are three important trends in
promotion?
Learning Goal 1Learning Goal 1
• WWhat are the goals of promotional strategy?– Promotional strategy is designed to inform, persuade,
or remind target audiences about a company’s products
– Goals of promotion• Create awareness• Get people to try products• Provide information• Keep loyal customers• Increase use of a product• Identify potential customers
PromotionPromotion::
the attempt by marketers to inform, persuade, or remind consumers and industrial users to engage in the exchange process
Goals of PromotionGoals of Promotion
• Create awareness
• Get consumers to try products
• Provide information
• Keep loyal customers
• Increase amount and frequency of use
• Identify target customers
Keeping Loyal CustomersKeeping Loyal Customers
Some companies establish customer loyalty through social identity.
Social identitySocial identity: aspects of self-definition that derive from membership in social groups
ExampleExample: “It’s a Jeep thing. You wouldn’t understand.” This slogan implies Jeep owners are an elite group with common qualities.
Learning Goal 2Learning Goal 2
• WWhat is the promotional mix, and what are its elements?– Promotional mix Promotional mix is the combination of the following to promote a
product• Advertising
– Paid form of nonpersonal promotion by an identified sponsor
• Personal selling– Face-to-face presentation with a prospective buyer
• Sales promotion– Marketing activities that stimulate consumers to buy
• Public relations– Marketing function that links policies of the organization with public interest– Develops programs designed to earn public understanding and acceptance
Components of Promotional MixComponents of Promotional Mix
1.1. Advertising
2.2. Personal selling (face-to-face)
3.3. Sales promotion includes coupons, free samples,
demonstrations
4.4. Public relations
Discussion QuestionDiscussion Question
How could Compaq use each component of the promotional mix to introduce a new computer to the market?
AdvertisingAdvertising - educate consumersPersonal sellingPersonal selling - persuade retailers to
stock the new computer Sales promotionSales promotion - in-store
demonstrations, rebatesPublic relationsPublic relations - issue a press release
about the new product
Learning Goal 3Learning Goal 3
• WWhat are the types of advertising?– Institutional advertising Institutional advertising
• Creates a positive picture of a company
– Advocacy advertisingAdvocacy advertising• Takes a stand on controversial social or economic issues
– Product advertisingProduct advertising• Features a specific good or service
– Comparative advertisingComparative advertising• Company’s product is compared with competing, named
products
– Reminder advertisingReminder advertising• Used to keep a brand name in the public’s mind
AdvertisingAdvertising::
any paid form of nonpersonal promotion by an identified sponsor
1.1. Advertising
Types of Advertising:Types of Advertising:
1. Product advertisingProduct advertising– promotes a specific good or service
2. Institutional advertisingInstitutional advertising– promotes a company’s image
• Advertising businesses received approx. $34
billion in 1997, about 45% more than in 1988
($19 billion) (Source: US Census, www.census.gov)
1.1. Advertising
Learning Goal 4Learning Goal 4
• WWhat are the advertising media, and how are they selected?– Main types of advertising media
• NewspapersNewspapers• MagazinesMagazines• RadioRadio• TelevisionTelevision• OutdoorOutdoor• Direct mailDirect mail
– Two main factors in selecting media• Cost of medium• Audience reached by medium
Advertising MediaAdvertising Media
Types of media:
newspaper, magazine, radio, television, outdoor advertising, direct mail, Internet
Factors influencing choice of media:– cost– audience reached
1.1. Advertising
Advertising Regulation Advertising Regulation
Some types of complaints made against advertisers by consumers and competitors:
• unsupported claims regarding the popularity and performance of goods and services
• unfair comparisons to competitors’ goods and services
• exaggerated, unrealistic visual depiction of products
• overstatements that need qualification• broad claims based on one testimonial
1.1. Advertising
Source: The Better Business Bureau, www.bbb.org
Personal SellingPersonal Selling::
a face-to-face presentation to a prospective buyer
2.2. Personal selling
Learning Goal 5Learning Goal 5
• WWhat is the selling process?– Prospecting and qualifying– Approaching customers – Presenting and demonstrating the product– Handling objections– Closing the sale– Following up on the sale
Steps of the Selling ProcessSteps of the Selling Process
1.1. Prospecting and qualifying
2. 2. Approaching customers
3. 3. Presenting and demonstrating
4. 4. Handling objections
5. 5. Closing the sale
6. 6. Following up the sale
2.2. Personal selling
Enhancing Personal SalesEnhancing Personal SalesWhen salespersons do favors for potential
clients, the clients may feel obligated to
reciprocate by buying the product.
ReciprocityReciprocity is the social norm that positive
behavior should be re-payed in kind.
ExampleExample: salespersons may pay for lunch, give
free samples, go out of their way to do small
favors
2.2. Personal selling
Learning Goal 6Learning Goal 6
• WWhat are the goals of sales promotion, and what are several types of sales promotion?– Goal of sales promotion: Immediate purchaseImmediate purchase– Most popular types of sales promotions
• Coupons• Samples and premiums• Contests and sweepstakes• Trade shows• Conventions• Point-of-purchase displays
Sales PromotionSales Promotion::
marketing activities that stimulate consumer buying, including coupons and samples, displays, shows and exhibitions, demonstrations, and other types of selling efforts
3.3. Sales promotion
Promotional Goals DependPromotional Goals Dependon Type of Customeron Type of Customer
3.3. Sales promotion
Type of customer Promotional goal1. loyal to your
brand
reinforce behavior,increase consumption
2. competitor’scustomer
break loyalty, switch toyour brand
3. brand switchers buy your brand moreoften
4. price buyers appeal with low prices oradd value for same price
Promotional Products Can Be Used To:Promotional Products Can Be Used To:
3.3. Sales promotion
• Motivate sales teams
• Draw customers to a store or event
• Publicize an event
• Increase brand awareness
• Raise funds• Use as souvenirs and thank-yous
• Gain attention for new productsSource: Alpha Promotional Products, www.logomall.com/about/APP3.htm
Learning Goal 7Learning Goal 7
• HHow does public relations fit into the promotional mix?– Public relations
• Mostly concerned with getting good publicity for companies
– Public relations departments• Furnish company speakers for business and
civic clubs• Write speeches for corporate officers• Encourage employees to take active roles in
civic groups
Public RelationsPublic Relations::
the linking of organizational goals with key aspects of the public interest and the development of programs designed to earn public understanding and acceptance
4.4. Public relations
Public Relations Activities:Public Relations Activities:
4.4. Public relations
• Press relations• Product publicity• Corporate communication• Public affairs• Lobbying• Employee & investor relations• Crisis management
Discussion QuestionDiscussion Question4.4. Public relations
If you were public relations director for Nike, how could you have responded to the negative publicity of exploiting overseas labor?
Press relationsPress relations - release information about how Nike addressed the problem; release positive information about Nike
Corporate communicationCorporate communication & Employee/investor relationsEmployee/investor relations - restore confidence among Nike employees and shareholders
Crisis managementCrisis management - minimize damage; take positive steps to control the problem
Learning Goal 8Learning Goal 8
• WWhat factors affect the promotional mix?– Nature of the product– Market characteristics– Available funds– Whether a push or a pull strategy is
emphasized
Factors That Affect the Promotional Mix:Factors That Affect the Promotional Mix:
• Nature of the product
• Market characteristics
• Available funds
• Push and pull strategies
Using a Pull StrategyUsing a Pull Strategy
Sometimes a pull strategy can be used by increasing demand for a product through scarcity.
Scarcity principleScarcity principle: products seem more valuable when their availability is limited
ExampleExample: The scarcity of Ty’s Beanie Babies© increased their appeal among consumers.
Learning Goal 9Learning Goal 9
• WWhat are three important trends in promotion?– Integrated marketing communications (IMC)
• Produces a consistent, unified message that is customer focused
– Growth of Web advertising• Traditional advertising techniques don’t work well on the
Internet• Advertisers must use rational branding
– Digital VCRs may make the measurement of television audiences more difficult
Trends in Promotion:Trends in Promotion:
1.1. Integrated marketing communications
2. 2. Growth of advertising on the Internet
3. 3. Impact of Digital VCRs on television
Leaders in AdvertisingLeaders in Advertisingon the Interneton the Internet
0
50
100
150
200
250
Number of Ad Banners
Shown(millions)
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Source: The Nielsen//NetRatings Reporter, www.nielsen-netratings.com