1. Marketing Communications
Chapter 15 Marketing Communications
Marketing Communications
Chapter 15
Lamb, Hair, McDaniel
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Chapter 15 Marketing Communications
Discuss the role of promotion in the marketing mix
Describe the communication process
Explain the goal and tasks of promotion
Discuss the elements of the promotional mix
Discuss the AIDA concept and its relationship to the promotional mix
Discuss the concept of integrated marketing communications
Describe the factors that affect the promotional mix
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Chapter 15 Marketing Communications
The Role of Promotion
Promotional Strategy
A plan for the optimal use of the elements of promotion:
Advertising
Public Relations
Personal Selling
Sales Promotion
Social Media
Notes:
Few goods or services, no matter how well developed, priced, or distributed, can survive in the marketplace without effective promotion—communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. 1
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Chapter 15 Marketing Communications
Exhibit 15.1 Role of Promotion in the Marketing Mix
Notes:
As Exhibit 15.1 shows, the marketing manager determines the goals of the promotional strategy in light of the firm’s overall goals for the marketing mix.
Using the overall goals, marketers combine the elements of the promotional strategy into a coordinated plan.
This plan becomes an integral part of the marketing strategy for reaching the target market. The main function of promotional strategy is to convince target customers that the goods and services offered provide a competitive advantage over the competition. 1
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5. Goals and Tasks of Promotion
Chapter 15 Marketing Communications
Goals and Tasks of Promotion
Informing
Reminding
Persuading
Target
Audience
Connecting
Notes:
Promotion seeks to modify behavior and thoughts in some way. It also strives to reinforce existing behavior.
Promotion has four basic tasks. It can inform, persuade, remind, or connect with the target audience. Often a marketer will try to accomplish two or more of these tasks at the same time. 3
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6. Goals of Promotion
The ultimate goal of promotion is to create competitive advantage. The tasks are as follows.
Informing: Increase awareness, Explain how product works, Suggest new uses, Build company image
Reminding: Remind customers about its need, Remind customers where to buy product, Maintain customer awareness
Persuading: Encourage brand switching, Change customers’ perceptions of product attributes, Influence immediate buying decision, Persuade customers to call
Connecting: Form relationships through social media, Encourage transparent information exchange, Customers become brand advocates

7. Competitive Advantage
Chapter 15 Marketing Communications
Competitive Advantage
Unique features
Excellent service
Low prices
Rapid delivery
High product quality
Notes:
The main function of a marketer’s promotional strategy is to convince the target market that the goods and services offered provide a competitive advantage.
A competitive advantage is the set of unique features of a company and its products that are perceived as superior over the competition. These features are listed on this slide.
Discussion/Team Activity:
Discuss companies and products that demonstrate a competitive advantage based on the features shown above. 1
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Chapter 15 Marketing Communications
Exhibit 15.2 Communication Process
Notes:
Marketing communication is a two-way process, as shown in Exhibit 15.2.
The sender originates the message.
Encoding is the conversion of the sender’s ideas and thoughts into a message, usually words or signs.
Transmission of a message requires a channel—some communication medium. Reception occurs when the message is detected by the receiver. Transmission may be hindered because of noise—anything that interferes with, distorts, or slows down the transmission of information.
Decoding is the interpretation of the language and symbols sent. Proper match between the message to be conveyed and the target market’s attitude is the job of the marketing manager. Differences in culture, age, social class, education, and ethnicity can lead to miscommunication. Marketers targeting consumers in foreign countries must also worry about translation and miscommunication issues.
The receiver’s response to a message is direct feedback to the source. Since mass communicators are cut off from direct feedback, they rely on market research or analysis of viewer perceptions for indirect feedback. 2
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9. © 2015 by Cengage Learning Inc. All Rights Reserved.
Chapter 15 Marketing Communications
Exhibit 15.1 Role of Promotion in the Marketing Mix
Notes:
As Exhibit 15.1 shows, the marketing manager determines the goals of the promotional strategy in light of the firm’s overall goals for the marketing mix.
Using the overall goals, marketers combine the elements of the promotional strategy into a coordinated plan.
This plan becomes an integral part of the marketing strategy for reaching the target market. The main function of promotional strategy is to convince target customers that the goods and services offered provide a competitive advantage over the competition. 1
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Chapter 15 Marketing Communications
Advertising
Most commonly distributed by traditional media, though increasingly through non-traditional media, such as Web sites, , blogs, and interactive video kiosks in malls and supermarkets.
Notes:
Almost all companies use some form of advertising, ranging from a newspaper classified ad to a multimillion-dollar campaign. 4
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Chapter 15 Marketing Communications
Public Relations
Evaluates public attitudes, identifies areas within the organization that public may be interested in, and executes a program to earn public understanding.
Notes:
Many organizations spend large amounts of money to build a positive public image.
Public relations help an organization communicate with stockholders, customers, suppliers, government, employees, and the community.
Social media sites like Twitter can provide large amounts of publicity quickly. 4
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Chapter 15 Marketing Communications
Sales Promotion
Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.
Notes:
Sales promotion is generally a short-run tool used to stimulate immediate increases in demand.
Sales promotion is used to improve the effectiveness of other ingredients in the promotion mix, especially advertising and personal selling. 4
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Chapter 15 Marketing Communications
Personal Selling
Planned presentation to one or more prospective buyers for the purpose of making a sale.
Notes:
Personal selling is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other.
Both buyer and seller have specific objectives. The buyer may need to minimize cost or assure a quality product, while the salesperson may need to maximize revenue and profits. 4
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14. Chapter 15 Marketing Communications
Social Media
Promotion tools used to facilitate conversations among people online.
Notes:
Social media include blogs (online journals), microblogs (Twitter), podcasting (online audio shows), vodcasts (online videos and newscasts, especially on YouTube), and social networks such as Facebook and LinkedIn.
Social media are ubiquitous—it just depends on how deep that layer goes for each brand.
Discussion/Team Activity:
Have students discuss marketing activities they experience on their favorite social media. Ask for positive and negative examples, and have them discuss what made the experience good or bad. How could it have been improved if it was negative? 4
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15. Exhibit 15.3 Digital Media Types
Chapter 15 Marketing Communications
Exhibit 15.3 Digital Media Types
Owned Media
Websites
Blogs
Social Media Presence
Earned Media
Media Coverage
SEO
Publicity activities
Paid Media
Banner ads
Sponsored posts
Social Media is concentrated here, between owned and earned media, with some (but not much) paid media depending on the strategy.
Notes:
As a result of the impact of social media as well as the proliferation of new platforms, tools, and ideas, promotional tactics can also be categorized according to media type—paid, earned, or owned, as shown in Exhibit 15.3. 4
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Chapter 15 Marketing Communications
Exhibit 15.4 Characteristics of the Elements in the Promotional Mix
Notes:
The four elements of the promotional mix differ in their ability to affect the target audience. Exhibit 15.4 summarizes these differences.
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Chapter 15 Marketing Communications
The AIDA Concept
Attention
Interest
Desire
Action
Notes:
The goal of any promotion is to get someone to buy a good or service, or take some action. A classic model for reaching promotional goals is called the AIDA concept—attention, interest, desire, and action—the stages of consumer involvement.
This model proposes that consumers respond to marketing messages in a cognitive (thinking), affective (feeling), and conative (doing) sequences.
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. 5
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The AIDA Concept
Chapter 15 Marketing Communications
Action
Desire
Interest
Attention
Conative (doing)
Affective (feeling)
Cognitive (thinking) 5
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Chapter 15 Marketing Communications
Exhibit 15.5 The Promotional Mix and AIDA
Attention
Interest
Desire
Action
Advertising
Public Relations
Sales Promotion
Personal Selling
Social Media
Notes:
Exhibit 15.5 depicts the relationship between the promotional mix and the AIDA model. It shows that although advertising does have an impact in the later stages, it is most useful in gaining attention for goods or services. 5
Very Effective
Somewhat Effective
Not Effective
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20. Integrated Marketing Communications
Chapter 15 Marketing Communications
Integrated Marketing Communications
The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.
Notes:
Marketers determine what roles each aspect of the promotional mix will play in the marketing mix. This includes the timing of promotions and examining campaign results. These activities are generally coordinated by the marketing communications director. 6
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Chapter 15 Marketing Communications
IMC Popularity Growth
Proliferation of thousands of media choices.
Fragmentation of the mass market.
Slash of advertising spending in favor of promotional techniques that generate immediate response.
Notes:
Integrated marketing communications (IMC) is the careful coordination of all promotional messages—traditional advertising, direct marketing, social media, interactive, public relations, sales promotion, personal selling, event marketing, and other communications—for a product or service to assure the consistency of messages at every contact point where a company meets the consumer.
Following the concept of IMC, marketing managers carefully work out the roles that various promotional elements will play in the marketing mix. 6
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22. Target market characteristics Type of buying decision
Chapter 15 Marketing Communications
Factors Affecting the Choice of Promotional Mix
Nature of the product
Stage in PLC
Target market characteristics
Type of buying decision
Promotion funds
Push or pull strategy
Notes:
Promotional mixes vary a great deal from one product and one industry to the next.
Advertising and personal selling are used to promote goods and services, supplemented by sales promotion. Public relations helps develop a positive image for the product and the organization. A firm may choose not to use all four promotional elements, or it may choose to use them in varying degrees.
This slide shows the factors affecting the promotion mix chosen by a firm. Subsequent slides describe the key points of each factor. 7
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Chapter 15 Marketing Communications
Exhibit 15.6 Product Life Cycle and the Promotional Mix
Notes:
The Product Life Cycle is a factor in designing a promotion mix, as shown in Exhibit 15.6.
In the introduction stage, the basic goal of promotion is to inform the target audience of product availability. Advertising and public relations inform the target audience, while sales promotion encourages early trial. Personal selling gets retailers to carry the product.
During the growth stage, advertising and public relations continue to be important, although sales promotion can be reduced because customers need fewer incentives to purchase. The promotional strategy is to emphasize the product’s differential competitive advantage. Persuasive promotion is used to build and maintain brand loyalty. Personal selling has succeeded in obtaining adequate distribution for the product.
In the maturity stage, competition becomes fiercer, and persuasive and reminder advertising are more strongly emphasized. Sales promotion comes back into focus to try to increase market share.
As the product enters the decline stage, all promotion, especially advertising, is reduced. Nevertheless, personal selling and sales promotion efforts may be maintained, particularly at the retail level.
Light
Advertising;
Pre-introduction
publicity
Heavy
Advertising;
PR for
awareness;
sales
promotion
for trial
Advertising,
PR, brand
loyalty;
personal
selling for
distribution
Ads
decrease;
sales promotion;
personal selling; reminder &
persuasive
AD/PR decrease; limited sales promotion; personal selling for distribution
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24. Goals and Tasks of Promotion
Chapter 15 Marketing Communications
Goals and Tasks of Promotion
Connecting
Informing
Reminding
Persuading
Target
Audience
PLC Stages:
Introduction
Early Growth
Growth
Maturity
All
Notes:
Informative promotion seeks to convert an existing need into a want or to stimulate interest in a new product. It is more prevalent during the early stages of the product life cycle.
Persuasive promotion is designed to stimulate a purchase or an action. It becomes the main promotion goal when the product enters the growth stage of its life cycle.
Reminder promotion is used to keep the product/brand name in the public’s mind. It is effective during the maturity cycle.
Connecting is designed to form relationships with customers and potential customers to encourage them to be brand advocates. This helps introduce new products, stimulate purchase, and keep the brand in customer’s minds, which makes connecting important for all stages in the PLC.
A discussion of each category follows.
Discussion/Team Activity:
Name products/brands and discuss the stage of their product life cycle. Categorize the type of promotion—informative, reminder, or persuasive—that is used in the product/brand promotional mix. 3
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Chapter 15 Marketing Communications
Exhibit 15.7 Push Strategy versus Pull Strategy
Notes:
Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler/retailer to carry and sell their merchandise. This is known as a push strategy. The wholesaler, in turn, pushes the merchandise forward by persuading the retailer to handle the goods. The retailer uses advertising and other forms of promotion to convince customers to buy the “pushed” products.
At the other end is a pull strategy, which stimulates consumer demand to obtain product distribution. The manufacturer uses a pull strategy by focusing promotional efforts on end consumers and opinion leaders. The wholesaler then places an order for the “pulled” merchandise from the manufacturer. Consumer demand pulls the product through the channel of distribution.
A company typically uses a mix of push and pull strategies.
The push and pull strategies are diagrammed in Exhibit 15.7
Discussion/Team Activity:
Discuss products and/or industries that utilize push and/or pull strategies in their promotion mix. 7
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26. Ch 15 Discussion Questions
What is Promotional Mix? Discuss the Elements of the Promotional Mix.
What is Promotional Mix? Explain goals and tasks of promotional mix in marketing.
Describe the Communication Process. Why a marketer should study the communication process?
Explain the AIDA concept/model and its relationship to the promotional mix.
Discuss the Factors Affecting the Choice of Promotional Mix.
Explain how the promotion changes at various stages of the Product Life Cycle.