Transcript Promotion
Chapter16 Promotion
Marketing vs. Promotion
Marketing concept vs. promotion concept The marketing mix product place price promotion
Marketing vs. Promotion (cont’d)
The promotion mix
Advertising Personal selling Sales promotion Direct marketing Internet marketing Publicity
Marketing vs. Promotion (cont’d)
Types of sales promotion
Consumer products consumer-oriented trade-oriented Industrial products
Promotion and the Demand Curve Price Price Price 0 D 1 D 2 Quantity 0 A. To be more inelastic Exhibit 14-3 14-8 D D Quantity 0 D D Quantity B. to the right C. Both to the right and more inelastic
Integrating the Elements of the Promotion Mix
Stages of the buying decision prepurchase purchase postpurchase Size of decision-making unit
Integrating the Elements of the Promotion Mix (cont’d)
The product life cycle Product characteristics complexity risk The target audience consumer vs. business pull vs. push
Push vs. Pull Strategies
Push Manufacturer Wholesaler Retailer Consumer
Push vs. Pull Strategies
Pull Manufacturer Wholesaler Retailer Consumer
Promotional Objectives
Sales targets Market share targets Communication targets awareness information brand preference share of voice share of mind share of heart
Promotional Objectives (cont’d)
Direct objectives Indirect objectives Indirect objectives are used more often
Promotional Objectives (cont’d)
Situations where direct objectives may be appropriate:
Advertising by retailers Direct-response advertising Sales-promotion advertising Business-to-business advertising
Promotional Objectives (cont’d)
Should state:
Target audience Objective Degree of change Time frame
Promotional Objectives (cont’d)
Example:
Target -- 30 million U.S. households Communication objective -- The detergent buyer should identify Brand X as a low sudzing detergent Desired change -- from 10 to 40 percent Time frame -- 1 year
Advertising Media
Television Radio Outdoor billboards transit advertising Magazines Newspapers Direct mail Internet banners links to related web sites
Advertising Media (cont’d)
Criteria for selecting media
Cost Compatibility with media habits of target audience Compatibility with product Compatibility with message
Types of Advertisements
Product advertisements Institutional advertisements Pioneering Competitive Reminder Advocacy
Advertising Appeals
Rational appeals Moral appeals Emotional appeals
Emotional Appeals
Joy Love Humor Sex Pride Guilt Fear
Execution Styles
Slice-of-life Lifestyle Musical Personality symbol Humor Endorsements (expertise, trustworthiness, likeability)
Media Terminology
Reach Rating Frequency Gross Rating Points (GRPs) Impact Cost per thousand Wasted coverage
Budgeting Methods
Percentage of sales method Match-competitors method Affordability method Share of market method Objective and task method
Budgeting Methods (cont’d)
Objective and task method
Identify the objectives Determine the tasks that will have to be performed Determine the cost of performing those tasks
Budgeting Methods (cont’d)
Example of objective and task method
Identify the objectives Target -- 30 million U.S. households Communication objective -- The detergent buyer should identify Brand X as a low sudzing detergent Desired change -- from 10 to 40 percent Time frame -- 1 year
Budgeting Methods (cont’d)
Example of objective and task method (cont’d)
Determine the tasks that will have to be performed reach 80% of the market with the advertising message determine the frequency or average # of impressions needed (frequency = 30) determine the number of Gross Rating Points (GRPs) (80 X 30 = 2,400 GRPs)
Budgeting Methods (cont’d)
Example of objective and task method (cont’d)
Determine the cost of performing those tasks determine the average cost of a GRP ($3,000 per GRP) multiply by the number of GRPs ($3,000 X 2,400 = $7,200,000)
Media Scheduling
Steady (drip) scheduling GRPs Time
Media Scheduling
Flighting or “intermittent” schedule GRPs Time
Media Scheduling
Pulse or “burst” schedule GRPs Time
Sales Promotion
Consumer products Industrial products
Sales Promotion (cont’d)
Consumer products
Consumer-oriented coupons premiums samples contests/sweepstakes rebates etc
Sales Promotion (cont’d)
Consumer products (cont’d)
Trade-oriented point-of-purchase (POP) advertising allowances display allowances merchandise assistance quantity discounts
Sales Promotion (cont’d)
Industrial products
Trade shows Displays/exhibits Brochures and technical promotional material
Other Promotional Tools
Direct marketing Publicity E-Commerce -- or is e-commerce much broader than promotion?
Personal selling
Consumer Behavior Issues (p. 349)
Learning Hierarchy Learn Feel Do Relevant to high-involvement products in industries where product differentiation exists
Consumer Behavior Issues (p. 349)
Dissonance-Attribution Hierarchy Do Feel Learn Relevant to high-involvement products in industries where little product differentiation exists (e.g., refrigerators)
Consumer Behavior Issues (p. 349)
Low-Involvement Hierarchy Do Feel Attitude change occurs only after product experience Relevant to low-involvement products in industries where little product differentiation exists (e.g., soft drinks).