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Chapter16 Promotion. Marketing vs. Promotion zMarketing concept vs. promotion concept zThe marketing mix yproduct yplace yprice ypromotion.

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Presentation on theme: "Chapter16 Promotion. Marketing vs. Promotion zMarketing concept vs. promotion concept zThe marketing mix yproduct yplace yprice ypromotion."— Presentation transcript:

1 Chapter16 Promotion

2 Marketing vs. Promotion zMarketing concept vs. promotion concept zThe marketing mix yproduct yplace yprice ypromotion

3 Marketing vs. Promotion (contd) zThe promotion mix zAdvertising zPersonal selling zSales promotion zDirect marketing zInternet marketing zPublicity

4 Marketing vs. Promotion (contd) zTypes of sales promotion zConsumer products yconsumer-oriented ytrade-oriented zIndustrial products

5 Exhibit Price Quantity D 0 Price Quantity 0 Price Quantity D2D2 D1D1 D D D B. to the rightA. To be more inelasticC. Both to the right and more inelastic 14-8 Promotion and the Demand Curve

6 Integrating the Elements of the Promotion Mix zStages of the buying decision yprepurchase ypurchase ypostpurchase zSize of decision-making unit

7 Integrating the Elements of the Promotion Mix (contd) zThe product life cycle zProduct characteristics ycomplexity yrisk zThe target audience yconsumer vs. business ypull vs. push

8 Push vs. Pull Strategies zPush ManufacturerWholesalerRetailerConsumer

9 Push vs. Pull Strategies zPull ManufacturerWholesalerRetailerConsumer

10 Promotional Objectives zSales targets zMarket share targets zCommunication targets yawareness yinformation ybrand preference yshare of voice yshare of mind yshare of heart

11 Promotional Objectives (contd) zDirect objectives zIndirect objectives zIndirect objectives are used more often

12 Promotional Objectives (contd) zSituations where direct objectives may be appropriate: zAdvertising by retailers zDirect-response advertising zSales-promotion advertising zBusiness-to-business advertising

13 Promotional Objectives (contd) zShould state: zTarget audience zObjective zDegree of change zTime frame

14 Promotional Objectives (contd) zExample: zTarget million U.S. households zCommunication objective -- The detergent buyer should identify Brand X as a low- sudzing detergent zDesired change -- from 10 to 40 percent zTime frame -- 1 year

15 Advertising Media zTelevision zRadio zOutdoor ybillboards ytransit advertising z Magazines z Newspapers z Direct mail z Internet ybanners ylinks to related web- sites

16 Advertising Media (contd) zCriteria for selecting media zCost zCompatibility with media habits of target audience zCompatibility with product zCompatibility with message

17 Types of Advertisements zProduct advertisements zInstitutional advertisements zPioneering zCompetitive zReminder zAdvocacy

18 Advertising Appeals zRational appeals zMoral appeals zEmotional appeals

19 Emotional Appeals zJoy zLove zHumor zSex z Pride z Guilt z Fear

20 Execution Styles zSlice-of-life zLifestyle zMusical zPersonality symbol zHumor zEndorsements (expertise, trustworthiness, likeability)

21 Media Terminology zReach zRating zFrequency zGross Rating Points (GRPs) zImpact zCost per thousand zWasted coverage

22 Budgeting Methods zPercentage of sales method zMatch-competitors method zAffordability method zShare of market method zObjective and task method

23 Budgeting Methods (contd) zObjective and task method zIdentify the objectives zDetermine the tasks that will have to be performed zDetermine the cost of performing those tasks

24 Budgeting Methods (contd) zExample of objective and task method zIdentify the objectives yTarget million U.S. households yCommunication objective -- The detergent buyer should identify Brand X as a low- sudzing detergent yDesired change -- from 10 to 40 percent yTime frame -- 1 year

25 Budgeting Methods (contd) zExample of objective and task method (contd) zDetermine the tasks that will have to be performed yreach 80% of the market with the advertising message ydetermine the frequency or average # of impressions needed (frequency = 30) ydetermine the number of Gross Rating Points (GRPs) (80 X 30 = 2,400 GRPs)

26 Budgeting Methods (contd) zExample of objective and task method (contd) zDetermine the cost of performing those tasks ydetermine the average cost of a GRP ($3,000 per GRP) ymultiply by the number of GRPs ($3,000 X 2,400 = $7,200,000)

27 Media Scheduling zSteady (drip) scheduling GRPs Time

28 Media Scheduling zFlighting or intermittent schedule GRPs Time

29 Media Scheduling zPulse or burst schedule GRPs Time

30 Sales Promotion zConsumer products zIndustrial products

31 Sales Promotion (contd) zConsumer products zConsumer-oriented ycoupons ypremiums ysamples ycontests/sweepstakes yrebates yetc

32 Sales Promotion (contd) zConsumer products (contd) zTrade-oriented ypoint-of-purchase (POP) yadvertising allowances ydisplay allowances ymerchandise assistance yquantity discounts

33 Sales Promotion (contd) zIndustrial products zTrade shows zDisplays/exhibits zBrochures and technical promotional material

34 Other Promotional Tools zDirect marketing zPublicity zE-Commerce -- or is e-commerce much broader than promotion? zPersonal selling

35 Consumer Behavior Issues (p. 349) zLearning Hierarchy yRelevant to high-involvement products in industries where product differentiation exists Learn FeelDo

36 Consumer Behavior Issues (p. 349) zDissonance-Attribution Hierarchy yRelevant to high-involvement products in industries where little product differentiation exists (e.g., refrigerators) Do FeelLearn

37 Consumer Behavior Issues (p. 349) zLow-Involvement Hierarchy yAttitude change occurs only after product experience yRelevant to low-involvement products in industries where little product differentiation exists (e.g., soft drinks). Do Feel


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