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Marketing Communications and Personal Selling

Chapter 12

Prepared by Deborah Baker Texas Christian UniversityChapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning 1

Learning Objectives1. Discuss the role of promotion in the marketing mix. 2. Discuss the elements of the promotional mix.

3. Discuss the concept of integrated marketing communications.4. Describe the communication process.Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning 2

Learning Objectives (continued)4. Explain the goal and tasks of promotion. 5. Discuss the AIDA concept and its relationship to the promotional mix. 6. Describe the factors that affect the promotional mix.

Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning

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Learning Objectives (continued)8. 9. Describe personal selling. Discuss the key differences between relationship selling and traditional selling. List the steps in the selling process.

10.

11. Describe the functions of sales management.Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning 4

1On Line On Line http://www.maxim-magazine.co.uk http://www.maxim-magazine.co.uk

Learning Objective

Discuss the role of promotion in the marketing mix.

Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning

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Promotion Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning

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Promotional Strategy A plan for the optimal use of the elements of promotion: Personal Selling Advertising Public Relations Sales Promotion

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1Overall Overall Marketing Marketing Objectives Objectives Marketing Mix Marketing Mix Product Product Distribution Distribution Promotion Promotion Price Price Target Market Target MarketChapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning

The Role of PromotionPromotional Mix Promotional Mix Advertising Advertising Public Relations Public Relations Personal Selling Personal Selling Sales Promotion Sales Promotion

Promotion Plan Promotion Plan8

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Competitive AdvantageHigh Product Quality High Product Quality Rapid Delivery Rapid Delivery Low Prices Low Prices Excellent Service Excellent Service Unique Features Unique FeaturesChapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning 9

Features Features that Provide that Provide Competitive Competitive Advantage Advantage

2

Learning Objective

Discuss the elements of the promotional mix.

Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning

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On Line On Line http://www.nabiscoworld.com http://www.nabiscoworld.com

Promotional MixPersonal Selling Personal Selling

Elements Elements of the of the Promotional Promotional Mix Mix

Advertising Advertising

Public Relations Public Relations

Sales Promotion Sales PromotionChapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning 11

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Personal Selling

Planned presentation to one or more prospective buyers for the purpose of making a sale.

Traditional Traditional Selling Selling

Relationship Relationship Selling Selling

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Advertising

Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning

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2On Line On Line http://www.olympics.org http://www.olympics.org http://www.olympics.com http://www.olympics.com

Advertising Media

Traditional Traditional Advertising Media Advertising Media

Electronic Electronic Advertising Media Advertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Electronic mail Interactive video

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2 Advantages Reach large number of people Low cost per contact Can be microtargeted

Advertising Disadvantages Total cost is high

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Public RelationsThe marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning 16

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Public Relations Functions of Functions of Public Relations Public RelationsEvaluates public Evaluates public attitudes attitudes Identifies areas Identifies areas of public interest of public interest Executes Executes programs to programs to win public win public

Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning

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Publicity

Public information about a company, good, or service appearing in the mass media as a news item.

Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning

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Sales Promotion Sales Promotion Sales Promotion Targets TargetsEnd End Consumers Consumers Trade Trade Customers Customers Company Company Employees Employees

GOAL is to stimulate consumer buying and dealer effectiveness.Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning 19

2Free samples Free samples Contests Contests Premiums Premiums

Sales Promotion

Trade Shows Trade Shows

Popular Tools Popular Tools for for Consumer Sales Consumer Sales Promotion Promotion

Vacation Giveaways Vacation Giveaways Coupons Coupons20

Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning

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Learning Objective

Discuss the concept of integrated marketing communications.

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Integrated Marketing Communications A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused.

Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning

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IMC Popularity Growth

Proliferation of thousands of media choices Fragmentation of the mass market Slash of advertising spending in favor of promotional techniques

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Learning Objective

Describe the communication process.

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Communication

The process by which we exchange or share meanings through a common set of symbols.

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Marketing Communication

Categories of Categories of Communication Communication

Interpersonal Interpersonal Communication Communication

Mass Mass Communication Communication

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The Communication ProcessNoise Noise

Sender Sender

Encoding Encoding Message Message

Message Message Channel Channel

Decoding Decoding Message Message

Receiver Receiver

Feedback Feedback Channel ChannelChapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning 27

4 As Senders Inform Persuade Remind

The Communication Process As Receivers Develop messages Adapt messages Spot new communication opportunities

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Characteristics of AdvertisingAdvertising AdvertisingCommunication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message FlexibilityChapter 12 Essentials of Marketing 4e Lamb Hair McDaniel 2005 South-Western/Thomson Learning

Indirect and non-personal Indirect and non-personal Low Low Little Little Delayed Delayed One-way One-way Yes Yes Yes Yes Fast Fast Same message to all audiences Same message to all audiences29

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Characteristics of Public RelationsPublic Relations Public RelationsCommunication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponso