promotion chapter 15. the role of promotion in marketing inform persuade remind

PromotionChapter 15

The Role of Promotion in Marketing

• Inform

• Persuade

• Remind

Promotion Is a Communication Process

• Sender

• Encoding by the sender

• Message channel

• Decoding by the receiver

• Receiver

• Noise

• Feedback

Types of CommunicationInterpersonal communicationInterpersonal communication• Two-way communication• Involves two or more people in some kind of

person-to-person exchange

Mass communicationMass communication• One-way communication• Involves communicating to huge audiences,

usually through mass media, such as magazines, radio, television, or newspapers

*Advantages of advertising

*Disadvantages of advertising

Examples of Mass Media Advertising

• Direct mail

• Internet

• Magazines

• Newspaper

• Outdoor

• Radio

• Television

• SOCIAL

*Advantages of publicity

*Disadvantages of publicity

*Advantages of personal selling

*Disadvantages of personal selling

*Advantages of sales promotion

*Disadvantages of sales promotion

Elements of a Promotional Mix

• Advertising

• Personal selling

• Publicity

• Sales promotion

© South-Western Publishing

Factors that Affect the Factors that Affect the Promotional MixPromotional Mix

Financial Resources

Policy and Objectives

Marketing Mix

Target Market

PromotionalPromotionalMixMix

Promotional Planning

• The promotional planpromotional plan is a carefully arranged sequence of promotions designed around a common theme responsive to specific objectives.

The Steps in Promotional Planning

• Analyze the market

• Identify the target market

• Develop promotional objectives

• Develop a promotional budget

• Select the promotional mix

• Implement the promotional plan

• Evaluate the results

Promotion Chapter 16

Steps in Developing an Advertising Plan

1. Set objectives

2. Determine the budget

3. Develop the theme

4. Select media

5. Create the advertisements

6. Develop an advertising schedule

7. Evaluate the plan’s effectiveness

Laying Out the Parameters

• Set objectives

• Determine the budget– What you can afford– Percentage of sales– Competition matching– Objectives and task

• Developing the theme

Setting Objectives

Families who spend one week or more at the beach every year

Target market

Make reservations early to assure availability and save $100 off the weekly rate

Message

Increase reserved summer rentals by 10 percent by February 15

Desired results

Plan for Seaside ResortsElements

Selecting Media

• Cost

• Reach

• Frequency

• Lead time

Questions to Consider When Selecting Media

CostCost• What is the total cost of the medium?

• What is the cost per viewer?

• Does the cost fit into the advertising budget?

• Is it the most effective use of advertising dollars?

Questions to Consider When Selecting Media

ReachReach• What is the circulation?

• What is the viewership?

• Will it reach the target audience?

• Is there a strong pass-along rate?

Questions to Consider When Selecting Media

FrequencyFrequency• How often will the target audience receive

the advertising message?

• How many times will the ad run?

Questions to Consider When Selecting Media

Lead TimeLead Time• How quickly can the audience be reached?

• How flexible is this medium?

• How close to print or air time can the ad be changed?

Gauging Advertising Effectiveness

• Choosing evaluation techniques– Focus groups– Recall testing– Recognition testing

• Using advertising agencies

Using Personal Selling

AdvantagesAdvantages

• Information

• Flexibility

• Feedback

• Persuasion

• Follow-up

DisadvantagesDisadvantages

• Cost per customer

• Time

• Control

• Skill

Choosing Personal Selling

• Complex or expensive products• Markets made up of a few large customers• New or very unique products with which

customers are unfamiliar• Customers located in a limited area• Complicated or long decision-making process• Customers who expect personal attention and help

with decision-making

Mental Stages of Consumer Decision-Making

• Attention

• Interest

• Desire

• Conviction

• Action

Understanding the Product

• Product knowledge

• Communicating product information– Features – Benefits

Understanding the Competition

• Salespeople need to understand the differences between their product and the competition’s product.

• Salespeople need to explain the differences to help customers make the comparison.

Steps of the Selling Process

• Approach

• Determining needs

• Demonstration

• Answering questions

• Closing

• Suggestion selling

• Follow-up

Providing Sales Support

• Marketing information management

• Financing

• Pricing

• Promotion

• Product/Service Management

• Distribution