Chapter16 Promotion

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Chapter16 Promotion
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Marketing vs. Promotion

• Marketing concept vs. promotion concept
• The marketing mix
• product
• place
• price
• promotion

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Marketing vs. Promotion (contd)

• The promotion mix
• Advertising
• Personal selling
• Sales promotion
• Direct marketing
• Internet marketing
• Publicity

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Marketing vs. Promotion (contd)

• Types of sales promotion
• Consumer products
• consumer-oriented
• trade-oriented
• Industrial products

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Promotion and the Demand Curve
Exhibit 14-3
14-8
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Integrating the Elements of the
Promotion Mix

• Stages of the buying decision
• prepurchase
• purchase
• postpurchase
• Size of decision-making unit

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Integrating the Elements of the Promotion Mix
(contd)

• The product life cycle
• Product characteristics
• complexity
• risk
• The target audience
• consumer vs. business
• pull vs. push

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Push vs. Pull Strategies

• Push

Manufacturer
Wholesaler
Retailer
Consumer
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Push vs. Pull Strategies

• Pull

Manufacturer
Wholesaler
Retailer
Consumer
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Promotional Objectives

• Sales targets
• Market share targets
• Communication targets
• awareness
• information
• brand preference
• share of voice
• share of mind
• share of heart

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Promotional Objectives (contd)

• Direct objectives
• Indirect objectives
• Indirect objectives are used more often

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Promotional Objectives (contd)

• Situations where direct
  objectives may be appropriate
• Advertising by retailers
• Direct-response advertising
• Sales-promotion advertising
• Business-to-business advertising

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Promotional Objectives (contd)

• Should state
• Target audience
• Objective
• Degree of change
• Time frame

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Promotional Objectives (contd)

• 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

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Advertising Media

• Television
• Radio
• Outdoor
• billboards
• transit advertising

• Magazines
• Newspapers
• Direct mail
• Internet
• banners
• links to related web-sites

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Advertising Media (contd)

• Criteria for selecting media
• Cost
• Compatibility with media habits of target
  audience
• Compatibility with product
• Compatibility with message

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Types of Advertisements

• Product advertisements
• Institutional advertisements
• Pioneering
• Competitive
• Reminder
• Advocacy

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Advertising Appeals

• Rational appeals
• Moral appeals
• Emotional appeals

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Emotional Appeals

• Joy
• Love
• Humor
• Sex

• Pride
• Guilt
• Fear

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Execution Styles

• Slice-of-life
• Lifestyle
• Musical
• Personality symbol
• Humor
• Endorsements (expertise, trustworthiness,
  likeability)

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Media Terminology

• Reach
• Rating
• Frequency
• Gross Rating Points (GRPs)
• Impact
• Cost per thousand
• Wasted coverage

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Budgeting Methods

• Percentage of sales method
• Match-competitors method
• Affordability method
• Share of market method
• Objective and task method

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Budgeting Methods (contd)

• Objective and task method
• Identify the objectives
• Determine the tasks that will have to be
  performed
• Determine the cost of performing those tasks

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Budgeting Methods (contd)

• 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

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Budgeting Methods (contd)

• Example of objective and task method (contd)
• 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)

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Budgeting Methods (contd)

• Example of objective and task method (contd)
• 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)

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Media Scheduling

• Steady (drip) scheduling

GRPs
Time
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Media Scheduling

• Flighting or intermittent schedule

GRPs
Time
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Media Scheduling

• Pulse or burst schedule

GRPs
Time
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Sales Promotion

• Consumer products
• Industrial products

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Sales Promotion (contd)

• Consumer products
• Consumer-oriented
• coupons
• premiums
• samples
• contests/sweepstakes
• rebates
• etc

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Sales Promotion (contd)

• Consumer products (contd)
• Trade-oriented
• point-of-purchase (POP)
• advertising allowances
• display allowances
• merchandise assistance
• quantity discounts

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Sales Promotion (contd)

• Industrial products
• Trade shows
• Displays/exhibits
• Brochures and technical promotional material

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Other Promotional Tools

• Direct marketing
• Publicity
• E-Commerce -- or is e-commerce much broader than
  promotion?
• Personal selling

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Consumer Behavior Issues (p. 349)

• Learning Hierarchy
• Relevant to high-involvement products in
  industries where product differentiation exists

Learn
Feel
Do
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Consumer Behavior Issues (p. 349)

• Dissonance-Attribution Hierarchy
• Relevant to high-involvement products in
  industries where little product differentiation
  exists (e.g., refrigerators)

Do
Feel
Learn
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Consumer Behavior Issues (p. 349)

• Low-Involvement Hierarchy
• Attitude change occurs only after product
  experience
• Relevant to low-involvement products in
  industries where little product differentiation
  exists (e.g., soft drinks).

Do
Feel