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Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–1 Part 3: The marketing mix Chapter.

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Presentation on theme: "Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–1 Part 3: The marketing mix Chapter."— Presentation transcript:

1 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–1 Part 3: The marketing mix Chapter 15: The marketing communications mix Step 5: Design the marketing strategy

2 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–2 When we finish this lecture you should Understand why a marketing manager should specify objectives to guide the advertising effort Know when the various types of advertising are appropriate and how to select the best advertising medium Know how to plan the best message or copy strategy Understand some of the issues relevant to international advertising Recognise the role and importance of direct marketing Understand the nature and variety of sales promotions Understand the reason for the growth of sponsorship in Australasia Know the principles of public relations and publicity

3 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–3 The marketing communications mix Various categories of promotional tools available to marketersall contributing to the role of the whole marketing communications mixa combination of – Advertising – Direct-response promotion – Sales promotion – Publicity – Public relations – Personal selling

4 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–4 Advertising Marketing managers must decide – Who is their target audience – What kind of advertising to use – How to reach customers (via which types of media) – What to say to them (the copy strategy) – Who will do the work (the companys own advertising department or an outside agency)

5 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–5 Figure 15.1 Strategy planning for advertising

6 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–6 The importance of advertising Involves a huge amount of money Work is done by relatively few people Major expense is for media time/space Companies spend only a small percentage of sales on advertising

7 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–7 Setting advertising objectives Help introduce new products to specific target markets Help position the firm's brand or marketing mix by informing and persuading target customers or intermediaries about its benefits Help obtain desirable outlets (distribution) Provide ongoing contact with target customers Prepare the way for the personal selling effort Get immediate buying action Help buyers confirm purchasing decisions

8 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–8 Figure 15.2 Examples of different types of advertising over adoption process stages

9 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–9 Types of advertising Product advertisingTries to sell a specific product to final users or channel members – Pioneering advertising builds primary demand – Competitive advertising builds selective demand Corporate/institutional advertisingTries to promote an organisation's image, reputation or ideasrather than a specific product

10 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–10 Coordinating advertising efforts Vertical cooperation – Involves the cooperation of members from different levels of a distribution channel – Is common in relation to advertising decisions Advertising allowances – Price reductions given to organisations in the channel to encourage them to advertise or otherwise promote the suppliers products locally Horizontal cooperation – Involves cooperation between several members at the same level of a distribution channel – Often occurs in relation to advertising

11 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–11 Major advertising media Magazine Television Newspaper Yellow Pages Radio Outdoors Cinema Internet

12 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–12 Choosing the best advertising medium Promotional objectives Target market you need to reach Funds available Nature of the media – Who it reaches – With what frequency – At what impact – At what cost Overall fit with the rest of the marketing mix

13 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–13 Figure 15.3 Advantages and disadvantages of several types of media

14 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–14 Figure 15.3 Advantages and disadvantages of several types of media (continued)

15 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–15 Figure 15.3 Advantages and disadvantages of several types of media (continued)

16 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–16 Measuring advertising effectiveness Sales Direct-response advertising Pre-testing advertising Attitude research Laboratory-type devices Split runs of advertisements Customer recall

17 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–17 International aspects of advertising Legal aspects of advertising – In most countries, the government takes an active role in deciding what kinds of advertising are permitted, what is considered fair and what is inappropriate Global agencies for global advertising – Many agencies are small, with 10 or fewer employees – Some large agencies have merged, creating mega- agencies

18 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–18 Figure 15.4 Top eight advertising agency supergroups and examples of products they advertise

19 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–19 Direct-response promotion Special considerations with direct marketing Direct communication between a seller and the individual customer using a promotion method other than face-to-face personal selling Started with mail advertising, but has evolved to include other media Distinctive featureIt attempts to evoke a direct response from the customer Closely tied to the use of a database to target customers

20 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–20 Direct-response online Many promotional mixes now include an advertisers Web site and a viewer can respond by clicking to obtain more detailed information Information might include pictures, videos, sound, text, order entry and so on A small subset of the total number of Web sites account for a large percentage of the potential audience Portals are Web sites that act as a gateway to the Internet

21 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–21 Sales promotion Promotion activities (other than advertising, publicity and personal selling) that stimulate interest, trial or purchase May be focused at channel members, final customers or users, or employees Skill may be difficult to develop inside the company, since a promotion activity is often designed and used only once Sales promotion spending is increasing and exceeds advertising spending

22 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–22 Figure 15.5 Examples of sales promotion activities

23 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–23 Figure 15.6 Some possible effects of a sales promotion on sales

24 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–24 Sponsorship An investment in cash or kind, in an event, sport, art, person or idea, in exchange for access to the commercial potential of that event, sport, art, person or idea Not a new concept (traced back to Ancient Rome and Gladiatorial Games) Sport sponsorship is by far the most intensive form of sponsorship A wide range of possible objectives A general lack of rigorous evaluation by sponsors

25 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–25 Public relations and publicity Public relations (PR) involves communicating with several interest groupsEmployees, shareholders, governments and political parties as well as customers and the general public It is aimed at fostering positive publicity and may be used to counter negative publicity Publicity comprises all word-of-mouth (negative or positive) and media coverage There is such a thing as negative publicity (including rumours and myths)

26 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–26 Creating synergies There is a wide array of tools in the promotional mix There is an unlimited number of possible combinations The aim of marketers is to create synergy and to ensure that every promotional activity reinforces the desired imageFor example, a sponsorship program that is not advertised is unlikely to have the same impact as one which is advertised and used for PR and sales promotions purposes

27 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 15–27 What we will be doing in the next chapter In the following chapter we will be discussing sales marketing, including – The importance and nature of personal selling – The elements of the personal selling process – The when and where of using the three types of sales presentation – The importance of providing good customer service – The importance of long-term customer relationships


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