Presentation on theme: "Marketing Management (MKT 261)"— Presentation transcript:
1 Marketing Management (MKT 261) Dr. Mohammed AlmossawiChapter TwelveCommunicating Customer Value: Advertising, Sales Promotion, and Public RelationsCopyright 2007 Prentice Hall Inc.
2 The Marketing Communications (Promotion) Mix AdvertisingSales PromotionPublic RelationsPersonal SellingDirect MarketingCopyright 2007, Prentice Hall, Inc.
3 New Communications Realities Mass markets have fragmented, leading to a shift away from mass marketing.Improvements in information technology are speeding movement toward segmented marketing.These factors have shifted the marketing communications model.Less broadcastingMore narrow castingCopyright 2007, Prentice Hall, Inc.
4 Integrated Marketing Communications Using IMC, the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.Several factors influence the choice of promotional tools.Copyright 2007, Prentice Hall, Inc.
5 Advertising Can reach masses of geographically dispersed buyers. Can repeat a message many times.Is impersonal, one-way communication.Can be very costly for some media types.Copyright 2007, Prentice Hall, Inc.
6 Personal SellingInvolves personal interaction between two or more people.Most effective tool at building preferences, convictions and actions.Allows relationship building.Most expensive promotion tool; requires long-term commitment.Copyright 2007, Prentice Hall, Inc.
7 Sales Promotion Wide assortment of tools. Attracts consumer attention. Offers strong incentives to buy.Invites and rewards quick consumer response.Effects are short-lived.Copyright 2007, Prentice Hall, Inc.
8 Public Relations Very believable. Reaches people who avoid salespeople and ads.Can dramatize a company or product.Tends to be used as an afterthought.Planned use can be effective and economical.Copyright 2007, Prentice Hall, Inc.
9 Direct Marketing Many forms that share four primary characteristics: NonpublicImmediateCustomizedInteractiveWell suited to highly targeted marketing.Copyright 2007, Prentice Hall, Inc.
10 Promotion Mix Strategies Push StrategyProducer directs its marketing activities toward channel members to induce them to carry the product and promote it to the final consumers.Pull StrategyProducer directs its marketing activities toward final consumers to induce them to buy the product.Copyright 2007, Prentice Hall, Inc.
11 Advertising Advertising has been used for centuries. U.S. advertisers spend more than $264 billion each year; worldwide spending approaches $550 billion.Advertising is used by:Business firmsNonprofit organizationsProfessionalsSocial agenciesGovernmentCopyright 2007, Prentice Hall, Inc.
12 Major Advertising Decisions Setting advertising objectivesSetting the advertising budgetDeveloping advertising strategyEvaluating advertising campaignsCopyright 2007, Prentice Hall, Inc.
13 1. Setting Advertising Objectives specific communication task to be accomplished with a specific target audience during a specific period of time.Classified by Purpose:InformPersuadeCompareRemindCopyright 2007, Prentice Hall, Inc.
14 2. Setting the Advertising Budget Affordable methodPercentage-of-sales methodCompetitive-parity methodObjective-and-task methodCopyright 2007, Prentice Hall, Inc.
15 Sales PromotionSales promotion consists of short-term incentives to encourage the purchase or sales of a product or service.The idea behind sales promotion is to generate immediate sales.Copyright 2007, Prentice Hall, Inc.
16 Rapid Growth of Sales Promotion Sales promotion can take the form of consumer, business, trade, or sales force promotions.Rapid growth in the industry has been achieved because:Product managers are facing more pressure to increase their current salesCompanies face more competitionAdvertising efficiency has declinedConsumers have become more deal orientedCopyright 2007, Prentice Hall, Inc.
17 Consumer Promotion Objectives: Increase short-term salesHelp build long-term market shareMany tools exist which can help to achieve these objectives.Copyright 2007, Prentice Hall, Inc.
19 Public Relations Public Relations building good relations with the firm’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.Copyright 2007, Prentice Hall, Inc.
20 Public Relations Functions Press relations or press agencyProduct publicityPublic affairsLobbyingInvestor relationsDevelopmentCopyright 2007, Prentice Hall, Inc.
21 Public Relations Role & Impact May strongly impact public awareness at a lower cost than advertising.Results can be spectacular.Beginning to play an increasingly important brand-building role.Copyright 2007, Prentice Hall, Inc.
22 Public Relations Tools NewsSpeechesSpecial eventsBuzz marketingMobile marketingWritten materialsAudiovisual materialsCorporate identity materialsPublic service activitiesCompany Web siteCopyright 2007, Prentice Hall, Inc.