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Marketing Communications & Advertising 13 chapter Prepared by Deborah Baker Texas Christian University Revised Dr. R. Baur Agricultural Technical Institute Chapter 12 Review 1. Importance of retailing in the U.S. economy. 2. Classification of retailers can be classified. 3. Major types of retail operations. 12 4. Non-store retailing techniques. 5. Franchising and its basic forms. chapter 6. Major tasks in a retail marketing strategy. 7. Challenges of expanding retailing operations into global markets. 8. Future trends in retailing. BUSINESS MARKETING CONCEPTS CH 1: OVERVIEW OF MARKETING CH 2: THE MARKETING ENVIROMENT CH 3: DEVELOPING A GLOBAL VISION CH 4: CONSUMER DECISION MAKING CH 5: BUSINESS MARKETING CH 6: TARGET MARKETS & SEGMENTS CH 7: MARKET RESEARCH CH 8: PRODUCTS & SERVICE CONCEPTS CH 9: DEVELOP & MANAGE PRODUCTS CH 11: MARKETING CHANNELS CH 12: RETAILING CH 13: MARKETING COM & ADVERTISING CH 14: PUBLIC REL, PROMOTION & SELLING CH 15:PRICING CONCEPTS Chapter 13 Learning Objectives What Promotion Tools Are Available & What Factors Influence The Choice Of Tools 1. Discuss the role of promotion in the marketing mix. 2. Discuss elements of the promotional mix. 13 3. Describe the communication process. 4. Explain the goal and tasks of promotion. chapter 5. Discuss the AIDA concept and its relationship to the promotional mix. 6. Describe the factors that affect the promotional mix. 7. Discuss the concept of integrated marketing communications. 396 Learning Promotion Elements Objective 13-1 & The Marketing Mix. Promotional Strategy A plan for the optimal use of the elements of promotion: 1. Advertising 2. Public Relations 3. Personal Selling 4. Sales Promotion 396 Learning Promotion Elements Objective The Role of Promotion 13-1 & The Marketing Mix. Overall Promotional Mix Marketing Objectives •Advertising •Public Relations Marketing Mix •Personal Selling • Product •Sales Promotion • Place • Promotion Plan To convince target • Price customers that the goods/services offer a Target Market COMPETITIVE ADVANTAGE over competitors 396 Learning Promotion Elements Objective 13-1 & The Marketing Mix. High Product Quality Cadillac Rapid Delivery John Deere Overnight Parts Features Low Prices That Provide Walmart Everyday Low Prices Differential Advantage Excellent Service “We will pick you up” Unique Features Hybrid Cars 396 Learning Promotion Elements Objective 13-1 & The Marketing Mix. 1. Advertising Impersonal, one-way mass communication ... ...about a product, service or organization that is paid for by a marketer. 396 Learning Promotion Elements Objective 13-1 & The Marketing Mix. Advertising Media Traditional Electronic Advertising Media Advertising Media Television Internet Radio Computer modems Newspapers Fax machines Magazines Books Direct mail Billboards Transit Cards 396 Learning Promotion Elements Objective 13-1 & The Marketing Mix. Advertising Advantages Disadvantages Ability to reach large Total cost is high number of people at 1 time Cost per contact is low Can be micro-targeted 30 Sec 3.0 Million 397 Learning Promotion Elements Objective 13-1 & The Marketing Mix. 2. Public The marketing function Relations 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. 397 Learning Promotion Elements Objective 13-1 & The Marketing Mix. Functions of Public Relations Evaluates public Executes attitudes programs to “win” public Ecology Curbside Identifies areas Programs of public interest Recycling/Alt Energy Publicity: Public information (good or bad ) about a company, good, or service appearing in the mass media as a unpaid news item. 398 Learning Promotion Elements Objective 13-1 & The Marketing Mix. 3. Sales Promotion Marketing activities-- OTHER THAN personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness. Sales Promotion Targets End Company Consumers Trade Customers Employees IN-STORE COATS, HATS SAMPLES TRIPS TRIPS 399 Learning Promotion Elements Objective 13-1 & The Marketing Mix. A. Free samples SOAP IN MAIL CHIPS IN STORE B. Contests “WHY YOU LIKE...” C. Premiums BEANIE BABIES D. Trade Shows HORT: CENT Popular Tools for E. Vacation Giveaways Consumer Sales Promotion F. Coupons OUT OF STORE IN STORE 399 Learning Promotion Elements Objective 13-1 & The Marketing Mix. 4. Personal Two people communicate in Selling order to influence each other Traditional Relationship Selling Selling Planned presentation Accomplishment to one or more of mutual prospective buyers to objectives. make a sale. CONSUMER PRD BUSINESS PRD CARS: QUICK SALE COMPUTERS: LONG REL WIN - LOSE WIN - WIN 400 Learning Objective 13-2 Marketing Communication Communication The process by which we exchange or share meanings through a common set of symbols. Interpersonal Categories of Communication Communication Mass Communication ONE TO FEW ONE TO MANY PERSON TO PERSON IMPERSONAL 400 Learning Objective 13-2 Marketing Communication The Communication Process Noise Sender Encoding Decoding Receiver Idea Message Message Message Channel 403 Learning Objective 13-2 Marketing Communication Characteristics of Advertising A. Advertising Communication Mode Indirect and non-personal Communication Control Low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Message Flexibility Same message to all audiences 403 Learning Objective 13-2 Marketing Communication Characteristics of Public Relations B. Public Relations Communication Mode Usually indirect, non-personal Communication Control Moderate to low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control No Sponsor Identification No Reaching Large Audience Usually fast Message Flexibility Usually no direct control 403 Learning Objective 13-2 Marketing Communication Characteristics of Sales Promotion C. Sales Promotion Communication Mode Usually Indirect and non-personal Communication Control Moderate to low Feedback Amount Little to moderate Feedback Speed Varies Message Flow Direction Mostly one-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Message Flexibility None: Same message 403 Learning Objective 13-2 Marketing Communication Characteristics of Personal Selling D. Personal Selling Communication Mode Direct and face-to-face Communication Control High Feedback Amount Much Feedback Speed Immediate Message Flow Direction Two-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Slow Message Flexibility Tailored to prospect 405 Learning Promotion Elements Objective 13-3 & The Marketing Mix. Promotion Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response and then reassures. 405 Learning Promotion Goals, Tasks Objective 13-3 & AIDA Concept INFORMATIVE OBJECTIVE Increase Awareness CELL PHONES Explain How Product Works • BACK OF PACKAGE Suggest New Uses • • RICE KRISPIE BARS • Build Company Image WORLD’S LEADER IN ... 406 Learning Promotion Goals, Tasks Objective 13-3 & AIDA Concept PERSUASION OBJECTIVE Encourage brand switching SWITCH PHONE CO Change customers’ perception of product attributes HUYNDI CARS Influence buying decision Persuade customers to call “ON SALE UNTIL..” “IF YOU CALL RIGHT NOW, YOU WILL..” 406 Learning Promotion Goals, Tasks Objective 13-3 & AIDA Concept REMINDER OBJECTIVE • Remind customers that product/service may be needed • Remind customers where “NORTHERN OHIO to buy product BUICK DEALERS • Maintain customer awareness XXX Learning Promotion Goals, Tasks Objective 13-3 & AIDA Concept REASSURE OBJECTIVE Reduce Cognitive Dissonance 407 Learning Promotion Goals, Tasks Objective 13-3 & AIDA Concept The AIDA Concept Model that outlines the process for achieving Action promotional goals in terms of stages of consumer Desire involvement with the message. Interest Attention 408 Learning Promotion Goals, Tasks Objective 13-3 & AIDA Concept AIDA and the Promotional Mix Awareness Interest Desire Action Very Very Somewhat Not Advertising effective effective effective effective Public Very Very Very Not Relations effective effective effective effective Sales Somewhat Somewhat Very Very Promotion effective effective effective effective Personal Somewhat Very Very Somewhat Selling effective effective effective effective 410 Learning 13-4 Describe The Factors That Objective Affect The Promotional Mix. A. Nature of the Product Product characteristics – Business product vs. consumer product Costs and risks HIGH COST OF PERSONAL SELLING Social risk CLOTHING, JEWELRY 411 Learning Describe The Factors That Objective 13-4 Affect The Promotional Mix. PLC Stages: 1. Informing 3. Reminding Introduction PLC Stages: Early Growth Maturity Target Audience PLC Stages: Growth PLC Stages: Maturity ALL 4. Reassuring 2. Persuading 411 Learning Describe The Factors That Objective 13-4 Affect The Promotional Mix. B. Product Life Cycle & Promotional Mix Maturity Sales ($) Decline Introduction Growth Time Light Heavy use of Advertising, Ads AD/PR Advertising, advertising, PR, Brand decrease. decrease pre- PR for loyalty Sales Limited introduction awareness; Personal Promotion, Sales Publicity sales Selling for Personal Promotion, promotion distribution Selling Personal for trial Reminder & Selling for Persuasive distribution 411 Learning Describe The Factors That Objective 13-4 Affect The Promotional Mix. C. Target Market Characteristics FOR: Widely scattered Advertising market Sales Promotion Informed buyers Less Personal Selling Repeat buyers 412 Learning Describe The Factors That Objective 13-4 Affect The Promotional Mix. D. Type of Buying Decision Advertising Routine Sales Promotion Toothpaste, Soft drinks, Soap Type of Advertising Buying Decision Not Routine or Complex Public Relations affects Promotional Buying Wine Mix Choice Complex Personal Selling Buying a Boat 412 Learning Describe The Factors That Objective 13-4 Affect The Promotional Mix. E. Available Funds Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements 413 Learning Describe The Factors That Objective 13-4 Affect The Promotional Mix. F. Push and Pull Strategies PUSH STRATEGY Manufacturer Wholesaler Retailer Consumer promotes to promotes to promotes to buys from wholesaler retailer consumer retailer Orders to manufacturer PULL STRATEGY Consumer Retailer Wholesaler Manufacturer demands demands demands promotes to product product product from consumer from retailer from wholesaler manufacturer Orders to manufacturer 413 Learning Describe The Factors That Objective 13-4 Affect The Promotional Mix. Integrated Marketing Communications A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused. NEW MOVIE – NEW TOY AT McDonalds 414 Learning Describe The Factors That Objective 13-4 Affect The Promotional Mix. IMC Popularity Growth Proliferation of thousands of media choices Fragmentation of the mass market Slash of advertising spending in favor of promotional techniques 415 Learning Discuss The Effect Of Objective 13-5 Advertising U.S. Advertising Spending Exceeds $300 Billion Per Year Ad Industry Employs Only 155,000 Ad Budgets Of Some Firms Exceed Over $4 Billion Per Year (10 Mill/Day) One company spending more on 1 item in one year that 45% of the countries in the world spend on everything. 415 Learning Discuss The Effect Of Objective 13-5 Advertising Advertising and Market Share New brands spend proportionately more for advertising than old ones. Frito Lay Baked vs Frito Lay Regular A certain level of exposure is needed to affect purchase habits. Repeated Exposure in Multiple Media Beyond a certain level, diminishing returns set in. 416 Learning Discuss The Effect Of Objective 13-5 Advertising Advertising and the Consumer Average U.S. citizen is exposed to hundreds of ads each day. 1/3 of Every TV Hour is Ads Advertising may change a consumer’s attitude toward a product. Repositioning Advertising can affect consumer ranking of brand attributes. Car Power & Speed vs Safety 416 Learning 13-6 Identify Major Types Of Objective Advertising. Enhance Institutional corporation’s identify Advertising Advocacy Advertising Designed to enhance a company’s image rather than Mobil Oil Bud Responsible promote a particular product. Drinking Pioneering Product Advertising Competitive Designed to tout the benefits Comparative of a specific good or service. 416 Learning 13-6 Identify Major Types Of Objective Advertising. Product Advertising • Stimulates primary demand for Pioneering new product or category Saturn Microsoft’s Vista • Influence demand for a brand in Competitive the growth phase of the PLC. Olay • Often uses emotional appeal. • Compares two or more competing Comparative brands’ product attributes. • Used if growth is sluggish, or if Between Brands competition is strong. Ford vs Chevy Old vs New: “New & Improved” 419 Learning 13-7 Discuss Creative Decisions In Objective Developing An Ad Campaign Advertising Campaign A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. Internal External Small Company Advertising Agency 1 or 2 People 1. Dev Adv Strategy Larger Companies 2. Design & Produce Ads Staff in Mkt Dept 3. Schedule & Buy Media 419 Learning Discuss Creative Decisions In 13-7 Objective Developing An Ad Campaign Steps in Creating an Advertising Campaign Step 1. Setting Advertising Objectives Define Define the Time Target Audience Define Desired Frame for Change Percentage WHO Change BY WHEN Inc Sports Drinks HOW MUCH Within 8 Months 15% Defining Advertising Goals for Measured Ad Results 420 Learning Discuss Creative Decisions In 13-7 Objective Developing An Ad Campaign Step 2A. Identify Product Benefits “Sell the Sizzle, not the Steak” WOMEN IN SHAVING PRODUCT ADS Sell product’s benefits, not its attributes Convenience, Pleasure, Health, Savings SELL STRONG BONES, NOT MILK WONDER BREAD A benefit should answer “What’s in it for me?” Ask “So?” to determine if it is a benefit 421 Learning Discuss Creative Decisions In 13-7 Objective Developing An Ad Campaign 2B. Common Advertising Appeals Profit Product saves, makes, or protects money Health Appeals to body-conscious or health seekers Love or romance Used in selling cosmetics and perfumes Fear Social embarrassment, old age, losing health Admiration Reason for use of celebrity spokespeople Convenience Used for fast foods and microwave foods Fun and pleasure Key to advertising vacations, beer, parks Vanity and egotism Used for expensive or conspicuous items Environmental Centers around environmental protection Consciousness 421 Learning Discuss Creative Decisions In 13-6 Objective Developing An Ad Campaign Unique Selling Proposition Desirable, exclusive, and believable advertising appeal selected as the theme for a campaign. 421 Learning 13-7 Discuss Creative Decisions In Objective Developing An Ad Campaign 2C. Executing the Message 1. Slice-of- 10. Scientific Life 9 Musical 2. Lifestyle Common 3. Spokes- 8. Demon- Executional person/ stration Testimonial Styles 7. Mood or 4. Fantasy Image 6. Product 5. Humorous Symbols Different Countries Have Different Acceptable Styles 2D. Post Campaign Evaluation 421 Learning Media Decisions in Objective 13- 8 Advertising A. Newspapers 1. Advantages 2. Disadvantages a. Year-round readership a. Limited demographic selectivity b. Geographic selectivity b. Little color c. Immediacy c. May be expensive d. High individual market coverage d. Low pass-along rate e. Short lead time e. Clutter f. Mass market medium 426 Learning Media Decisions in Objective 13- 8 Advertising Cooperative Advertising An arrangement in which the manufacturer and the retailer(s) split the costs of advertising the manufacturer’s brand. TV AD:....AT YOUR NORTHERN OHIO BUICK DEALERS” MAG AD: OH FARMER: LISTS ALL OH JD DEALERS NEWPAPER FLYER LISTING ALL TRUE VAL STORES 426 Learning Media Decisions in Objective 13- 8 Advertising B. Magazines 2. Disadvantages 1. Advantages Higher cost per contact a. Good reproduction Long-term advertiser commitments b. Demographic selectivity Slow audience build-up c. Regional/local selectivity Limited demonstration capabilities Ohio Farmer d. Long advertising life Lack of urgency Long lead time Consumer Magazine (monthly) Five to six months e. High pass-along rate 427 Learning Media Decisions in Objective 13- 8 Advertising C. Radio 1. Advantages 2. Disadvantages a. No visual treatment a. Selectivity and audience segmentation b. Short advertising life b. Immediate and portable c. High frequency to c. Geographic flexibility generate retention d. Entertainment carryover d. Commercial clutter e. Short-term ad e. Background commitments distractions 427 Learning Media Decisions in Objective 13- 8 Advertising D. Television 2. Disadvantages 1. Advantages Short life of message a. Wide diverse audience Expensive with high campaign cost b. Low cost per thousand Little demographic c. Creative & demonstrative selectivity with network d. Immediacy of messages Long-term advertiser e. Entertainment carryover commitments f. Demographic selectivity Long lead times with cable Clutter 428 Learning Media Decisions in Objective 13- 8 Advertising E. Outdoor Media 1. Advantages High exposure frequency Moderate cost 2. Disadvantages Flexibility Short message Geographic selectivity Lack of demographic Broad, diverse market selectivity High “noise” level 429 Learning Media Decisions in Objective 13- 8 Advertising F. Internet and World Wide Web 1. Advantages 2. Disadvantages a. Fast growing a. Difficult to measure ad effectiveness and ROI b. Ability to reach narrow target audience b. Ad exposure relies on “click through” c. Short lead time c. Not all consumers d. Moderate cost have access to internet 430 Learning Media Decisions in Objective 13- 8 Advertising 1. Fax Machines Unwanted Ads 2. Gas Pumps Banner Ads Examples of 3. Computer Alternative Screen Savers Media 4. Interactive Kiosks Wayne Co Visitors Bureau 5. Ads in Movies & Videos 6. DVD’s AOL 431 Learning Media Decisions in Objective 13- 8 Advertising Factors Influencing Media Mix Decisions Cost per The cost of reaching one Contact member of the target market. The number of target consumers Reach exposed to a commercial at least once during a time period. The number of times an individual Frequency is exposed to a message during a time period. Audience The ability of an advertising medium to reach a precisely Selectivity defined market. 432 Learning Media Decisions in Objective 13- 8 Advertising Media Scheduling Continuous Advertising is run steadily Media Schedule throughout the period. Detergent Ad Every Day During “As the World Turns” Flighted Advertising is run heavily every Media Schedule other month or every two weeks. Movie Advertising Before the Weekend Pulsing Advertising combines continuous Media Schedule scheduling with flighting. Year around + Additional Holiday Seasonal Advertising is run only when the Media Schedule product is likely to be used. Cough Syrup, Suntan Lotion, Perfume Chapter 13 Summary 1. The role of promotion in the marketing mix. 2. Elements of the promotional mix. 3. The communication process. 13 4. Explain the goal and tasks of promotion. 5. AIDA concept and its relationship to the chapter promotional mix. 6. Factors that affect the promotional mix. 7. Concept of integrated marketing communications. Next Topic Chapter 14 Advertising & Public Relations
"Integrated Marketing Communications"