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Essentials of Marketing Chapter 13 Promotion – Introduction to Integrated Marketing Communication McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill.

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Presentation on theme: "Essentials of Marketing Chapter 13 Promotion – Introduction to Integrated Marketing Communication McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill."— Presentation transcript:

1 Essentials of Marketing Chapter 13 Promotion – Introduction to Integrated Marketing Communication McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

2 At the end of this presentation, you should be able to: 1.Know the advantages and disadvantages of the promotion methods a marketing manager can use in strategy planning. 2.Understand the integrated marketing communications concept and why most firms use a blend of different promotion methods. 3.Understand the importance of promotion objectives. 4.Know how the communication process affects promotion planning. 5.Know how direct-response promotion is helping marketers develop more targeted promotion blends. 13–2

3 At the end of this presentation, you should be able to: 6.Understand how customer-initiated interactive communication is different. 7.Know how typical promotion plans are blended to get an extra push from wholesalers and retailers and help from customers in pulling products through the channel. 8.Understand how promotion blends typically vary over the adoption curve and product life cycle. 9.Understand how to determine how much to spend on promotion efforts. 10.Understand important new terms. 13–3

4 Marketing Strategy Planning Process 13–4

5 Promotion and Marketing Strategy Planning (Exhibit 13-1) CH 14: Personal Selling and Customer Service CH 13: Promotion Intro. to Integrated Marketing Communications Promotion methods Managing promotion Effective communication Blending promotion CH 15: Advertising & Sales Promotion 13–5

6 Several Promotion Methods Are Available Mass Selling Personal Selling Sales Promotion Different methods of promotion AdvertisingPublicity 13–6

7 Sales Promotion Tries to Spark Immediate Interest (Exhibit 13-2) Contests Coupons Aisle displays Samples Trade shows Point-of-purchase materials Banners & streamers Frequent buyer programs Sponsored events Contests Coupons Aisle displays Samples Trade shows Point-of-purchase materials Banners & streamers Frequent buyer programs Sponsored events Price deals Promotion allowances Sales constests Calendars & gifts Trade shows Meetings Catalogs Merchandising aids Videos Price deals Promotion allowances Sales constests Calendars & gifts Trade shows Meetings Catalogs Merchandising aids Videos Aimed at wholesalers or retailers Contests & Bonuses Meetings Portfolios & Displays Sales aids Training materials Contests & Bonuses Meetings Portfolios & Displays Sales aids Training materials Aimed at companys own sales force Aimed at consumers or users 13–7

8 Someone Must Plan, Integrate, and Manage the Promotion Blend Sales Promotion Managers Advertising Managers Sales Managers Marketing Managers Integrated Marketing Communications 13–8

9 Which Method to Use Depends on Promotion Objectives Persuading Informing Reminding 13–9

10 Reminding May Be Enough 13–10

11 Promotion Objectives Relate to the Adoption Process and AIDA Mode (Exhibit 13-3) Promotion Objectives Adoption Process AIDA Model Informing Awareness Interest Attention Interest Persuading Evaluation Trial Desire Reminding Decision Confirmation Action { } } 13–11

12 Interactive Exercise: AIDA 13–12

13 The Traditional Communication Process (Exhibit 13-4) Noise Source Receiver Encoding Message channel Decoding Feedback 13–13

14 Encoding & Decoding Depend on a Common Frame of Reference (Exhibit 13-5) Encoder Decoder Common frame of reference 13–14

15 Checking Your Knowledge Ron Popeil has been a pioneer in the use of direct-response television infomercials. Over the years his infomercials have promoted many products, including the Showtime Rotisserie Barbecue, a food dehydrating machine, and the world-famous Veg-O-Matic. The chief advantage of the infomercial is that it provides plenty of time to describe and demonstrate a products benefits in detail. The choice of the infomercial is related mainly to the _________ element of the communication process. A. message channel B. encoding C. decoding D. feedback E. noise 13–15

16 Encoding and Decoding 13–16

17 Integrated Direct-Response Promotion Is Very Targeted Target Directly With a Database More Than Direct Mail Ethical Concerns 13–17

18 A Model of Customer-Initiated Interactive Communication (Exhibit 13-6) Noise Sources message Message channel Search Select a topic Receiver (customer) 13–18

19 Pushing in the Channel Focuses Promotion at Intermediaries (Exhibit 13-7) 13–19

20 Other Promotional Elements of Pushing 13–20

21 Pulling in the Channel Directs Promotion at Customers (Exhibit 13-7) 13–21

22 An Example of Pulling 13–22

23 Checking Your Knowledge Fido, Inc. is a producer of dog food and is getting ready to introduce a new brand. The firms marketing research department learns that a competitor is planning to launch another brand about two weeks after Fidos launch. Fidos marketing department quickly mails a set of dated coupons to several thousand consumers in a purchased database of dog owners, encouraging them to ask for the new Fido brand in their favorite store and to stock up on the new brand using the coupons. This is an example of: A. pulling. B. noise. C. pushing. D. encoding. E. decoding. 13–23

24 Adoption Processes Can Guide Promotion Planning (Exhibit 13-8) 13–24

25 Appeal for Innovators 13–25

26 Stimulating Adoption of an Image 13–26

27 Promotion Varies Over the Life Cycle This new idea is good Our brand is best Our brand is better, really Lets tell those who still want our product 13–27

28 Nature of Competition Requires Different Promotion 13–28

29 Setting the Promotion Budget Percentage of Sales Task Method 13–29

30 You should now be able to: 1.Know the advantages and disadvantages of the promotion methods a marketing manager can use in strategy planning. 2.Understand the integrated marketing communications concept and why most firms use a blend of different promotion methods. 3.Understand the importance of promotion objectives. 4.Know how the communication process affects promotion planning. 5.Know how direct-response promotion is helping marketers develop more targeted promotion blends. 13–30

31 You should now be able to: 6.Understand how customer-initiated interactive communication is different. 7.Know how typical promotion plans are blended to get an extra push from wholesalers and retailers and help from customers in pulling products through the channel. 8.Understand how promotion blends typically vary over the adoption curve and product life cycle. 9.Understand how to determine how much to spend on promotion efforts. 10.Understand important new terms. 13–31

32 Key Terms Promotion Personal selling Mass selling Advertising Publicity Sales promotion Sales managers Advertising managers Public relations Sales promotion managers Integrated marketing communications AIDA model Communication process Source Receiver Noise Encoding Decoding Message channel Pushing 13–32

33 Key Terms Pulling Adoption curve Innovators Early adopters Early majority Late majority Laggards Nonadopters Primary demand Selective demand Task method 13–33


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