Pom Lec 10

8/13/2019 Pom Lec 10

http://slidepdf.com/reader/full/pom-lec-10 1/42

8/13/2019 Pom Lec 10


Communication by

marketers that informs,

persuades, and reminds

potential buyers of a

product in order to

influence an opinion or

elicit a response.

8/13/2019 Pom Lec 10


A plan for the optimal use

of the elements of

promotion:

Advertising

Public Relations

Personal Selling

Sales Promotion

8/13/2019 Pom Lec 10


Promotional Mix

•Advertising•Public Relations•Personal Selling•Sales Promotion

Promotion Plan

Overall MarketingObjectives

Marketing Mix• Product

• Distribution

• Promotion

• Price

Target Market

8/13/2019 Pom Lec 10


Combination of promotion tools used toreach the target market and fulfill theorganization’s overall goals.

The company’s total promotion mix (alsocalled the marketing communicationsmix) consists of a specific blend of:› Advertising› Sales promotion› Public relations› Personal selling› Direct marketing

8/13/2019 Pom Lec 10


Several factors are changing the face ofmarketing communications:› Consumers are better informed and more

communications empowered.

› Mass markets have fragmented, leadingmarketers to a shift away from mass marketing.

› Changes in communications technology havecreated new media for interacting with targetedconsumers.

These factors have shifted the marketingcommunications model so that firms aredoing less broadcasting and morenarrowcasting.

8/13/2019 Pom Lec 10


A strong need for integrated marketingcommunications exists.

Integrated marketing communications:› Carefully integrating and coordinating the

company’s many communication channelsto deliver a clear, consistent, and

compelling message about the organizationand its products.

8/13/2019 Pom Lec 10


Impersonal, one-way mass communicationabout a product or organization that ispaid for by a marketer.

Nature of advertising:› Can reach masses of geographically

dispersed buyers at a low cost per exposure

› Can repeat a message many times

› Consumers view advertised products asmore legitimate

› Is impersonal, one-way communication

› Can be very costly for some media types

8/13/2019 Pom Lec 10


Planned presentation to one or moreprospective buyers for the purpose of makinga sale.

Nature of personal selling:› Involves personal interaction between two or

more people

› Most effective tool at building preferences,convictions, and actions

› Allows relationship building and two-waycommunication

› Requires long-term commitment to sales force

› Most expensive promotion tool

8/13/2019 Pom Lec 10


Marketing activities--other than personalselling, advertising, and public relations--that stimulate consumer buying anddealer effectiveness.

Nature of sales promotion:› Wide assortment of tools

› Attracts consumer attention

› Can be used to dramatize product offers› Offers strong incentives to buy

› Invites and rewards quick consumer response

› Effects are short-lived

8/13/2019 Pom Lec 10


Free samples

Contests

Premium Offers

Trade Shows

Buy one get one free

Coupons

Popular ToolsforConsumer SalesPromotion

8/13/2019 Pom Lec 10


The marketing function that evaluates public

attitudes, identifies areas within theorganization that the public may be interestedin, and executes a program of action to earnpublic understanding and acceptance.

Nature of public relations:› Very believable› Reaches people who avoid salespeople and

ads› Can dramatize a company or product› Planned use can be effective and

economical

8/13/2019 Pom Lec 10


Evaluates publicattitudes

Identifies areasof public interest

Executesprograms to“win” public

Functions of

Public Relations

8/13/2019 Pom Lec 10


Nature of direct marketing:

› Many forms of direct marketing exist.

› Direct marketing forms share four primarycharacteristics:

Nonpublic

Immediate

Customized

Interactive

› Well suited to highly targeted marketing.

8/13/2019 Pom Lec 10


Push strategy:› Promotion strategy that calls for using the

sales force and trade promotion to push the

product through channels.

Pull strategy:› Promotion strategy that calls for spending a

lot on advertising and consumer promotionto induce final consumers to buy theproduct.

8/13/2019 Pom Lec 10


Advertising has been used for centuries.

Advertising is used by:

›

Business firms› Not-for-profit organizations

› Professionals

› Social agencies

› Government

8/13/2019 Pom Lec 10


Setting advertising objectives

Setting the advertising budget

Developing advertising strategy Evaluating advertising campaigns

8/13/2019 Pom Lec 10


Advertising objective:› Specific communication task to be

accomplished with a specific targetaudience during a specific period of time.

Advertising objectives can be classifiedby purpose:› Inform

› Persuade› Compare

› Remind

8/13/2019 Pom Lec 10


Setting the advertising budget:

› Affordable method

›

Percentage-of-sales method› Competitive-parity method

› Objective-and-task method

8/13/2019 Pom Lec 10


Developing advertising strategy:

› Creating advertising messages.

Message strategy and message execution

must break through the clutter

› Selecting advertising media.

Set reach, frequency, and impact goals

Choose among major media types

Select specific media vehicles

Decide on media timing

8/13/2019 Pom Lec 10


Planning the message strategy:

› Identify customer benefits

›

Develop compelling creative concept — the“Big Idea”

› Choose an ad advertising appeal that is:

Meaningful

Believable

Distinctive

8/13/2019 Pom Lec 10


Slice of Life

Lifestyle

Fantasy

Mood orimage

Musical

Personalitysymbol

Technicalexpertise

Scientificevidence

Testimonial

evidence orendorsement

Message execution styles:

8/13/2019 Pom Lec 10


Message execution process:

› Choose the execution style

›

Choose a tone Use memorable, attention-getting words.

› Choose format elements:

Illustration

Headline

Copy

8/13/2019 Pom Lec 10


Sell the Sizzle, not the Steak”

Sell product’s benefits, not itsattributes

A benefit should answer

“What’s in it for me?”

8/13/2019 Pom Lec 10


Setting media objectives:

› Reach: Percentage of people exposed toad.

› Frequency: Number of times a person isexposed to advertisement.

› Media Impact: The qualitative value of a

message exposure through a given medium.

8/13/2019 Pom Lec 10


Each media type has specificadvantages and disadvantages.

Choosing among media typesrequires consideration of the:› Medium’s impact

› Message effectiveness

› Cost

Media mix should be regularlyreexamined.

8/13/2019 Pom Lec 10


Media vehicles:› Specific media within each general

media type, such as Newsweek.

Factors to consider when choosingvehicles:› Cost

› Audience quality

› Audience engagement

› Editorial quality

8/13/2019 Pom Lec 10


Must also decide how to schedule theadvertising over the course of a year.› Follow seasonal pattern

› Oppose seasonal pattern

› Same coverage all year

Choose media scheduling:

› Continuity› Pulsing

› Flighting

8/13/2019 Pom Lec 10


ContinuousMedia Schedule

FlightedMedia Schedule

PulsingMedia Schedule

SeasonalMedia Schedule

Advertising is run steadilythroughout the period.

Advertising is run heavily everyother month or every two weeks.

Advertising combines continuousscheduling with flighting.

Advertising is run only when theproduct is likely to be used.

8/13/2019 Pom Lec 10


Advantages

Year-round readership

Geographic selectivity

Immediacy

High individual marketcoverage

Short lead time

Disadvantages

Limited demographic selectivity

Little color

May be expensive

Low pass-along rate

Clutter

Mass market medium

8/13/2019 Pom Lec 10


Good reproductionquality

Demographic selectivity

Regional/localselectivity

Long advertising life

High pass-along rate

Advantages

Higher cost percontact

Long-term advertisercommitments

Slow audience build-up

Limited demonstrationcapabilities

Lack of urgency

Long lead time

Disadvantages

8/13/2019 Pom Lec 10


Advantages

Selectivity andaudience segmentation

Immediate andportable

Geographic flexibility

Entertainment carryover

Short-term adcommitments

Disadvantages

No visual treatment

Short advertising life

High frequency to

generate retention

Commercial clutter

8/13/2019 Pom Lec 10


Advantages

Wide diverse audience

Low cost per exposure

Creative anddemonstrative

Entertainment carryover

Demographic selectivitywith cable

Disadvantages

Short life of message

Expensive with highcampaign cost

Little demographicselectivity with network

Long-term advertiser

commitments Long lead times

Clutter

8/13/2019 Pom Lec 10


8/13/2019 Pom Lec 10


Fast growing

Ability to reach narrow targetaudience

Short lead time

Moderate cost

Advantages

Difficult to measure adeffectiveness

Ad exposure relies on “clickthrough”

Not all consumers have accessto internet

Disadvantages

8/13/2019 Pom Lec 10


Return on advertising investment:

› Is equal to the net return on advertising

investment divided by the costs of theadvertising investment.

Evaluating advertising involves:

› Measuring the communication effects of

an ad —“Copy Testing.”

› Measuring the sales effects of an ad:

Is the ad increasing sales?

8/13/2019 Pom Lec 10


Organization of ad function:› Small companies — one person in firm.

› Large companies — ad department that mayalso work with an ad agency.

› Advertising agencies employ specialists whoperform ad tasks better then the company’sown staff can.

Bring outside viewpoints to problem-solving. Wide range of experience.

8/13/2019 Pom Lec 10


International advertising issues:

› To what degree should global advertising beadapted to various countries?

Greater need for standardization of globalbrand advertising strategies.

Specific advertising programs must usually beadapted to local cultures and other factors.

8/13/2019 Pom Lec 10


Public relations:

› Building good relations with the firm’s variouspublics by obtaining favorable publicity,building up a good corporate image, andhandling or heading off unfavorable rumors,stories, and events.

8/13/2019 Pom Lec 10


Public relations departments perform thefollowing functions:› Press relations or press agency

› Product publicity

› Public affairs

› Lobbying

›

Investor relations

8/13/2019 Pom Lec 10


Public relations:

› May strongly impact public awareness at alower cost than advertising.

› Can yield spectacular results.

› Is beginning to play an increasinglyimportant brand-building role.

8/13/2019 Pom Lec 10


News

Speeches

Special events

Written materials

Audiovisualmaterials

Corporateidentity materials

Public serviceactivities

Social networking

Company Website

Pom Lec 10

Documents

Transcript of Pom Lec 10