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Factors That Affect The Promotion Mix

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Factors That Affect The Promotion Mix Powered By Docstoc
					            Chapter
            Sixteen
Promoting Products Using
Interactive and Integrated
Marketing Communications
                       16-1
  Change &
Promotion Mix
   Definition- Promotion
   Promotion Mix
   Integrated Marketing
    Communication (IMC)
   Change
     Technology
     Build Relationships
     Interactivity
                            16-2
   Promotion Definitions
 Promotion is an attempt by marketers
  to inform people about products and to
  persuade them to participate in an
  exchange
 Integrated marketing communications
  combines all the promotional tools into
  one comprehensive promotional
  strategy
   All the promotional tools and company
    resources are used to create a positive
    brand image.
                                              16-3
    Change and Promotion
 Constant change is affecting promotional
  strategies
   Technology has dramatically changed the role
    and activities of salespeople.
     Advertisers must be more creative in trying to reach
      large audiences - the number of television channels
      available to consumers have increased
     Build relationships
   Interactive promotion changes the promotion
    process from a monologue of persuasive sellers,
    to a dialogue of buyer and seller working
    together to create beneficial exchange
    relationships.
                                                       16-4
                Advertising
 Advertising is paid, nonpersonal
  communication through various media by
  organizations and individuals who are in
  some way identified in the advertising
  message.
   Total ad volume exceeds $215 billion yearly
       TV is largest with 23%
       Newspaper second with 21%
       Direct Mail – 19%
       Internet now less than 2%

                                                  16-5
    Advertising Benefits
 It is informative
 Provides public with free TV and Radio
  programs
 Newspapers, radio and Yellow pages
  provides a wealth of information paid by
  local advertising
 Infomercials is a growing trend that
  provides product information in detail,
  they provide testimonials from users.
                                        16-6
   Factors That Affect
   The Promotion Mix
Type of Product
Stage in the
 Product Life Cycle
Target Market
 Characteristics
Actions of
 Competitors
Available Funds
                         16-7
      Components of
   Integrated Marketing
 Advertising        Issues
 Corporate           Management
  Communication      Marketing
 Crisis             Multimedia
  Communication      Public Relations
 E-Commerce         Sales Promotion
 Event Marketing    Strategic
 Internal            Planning
  Communication      Web Design
                                         16-8
        Internet Advertising and
               Promotion
 Is a relatively new phenomenon
 Most people find pop-up Internet adds annoying, but
  companies continue to use tem hoping to tap into
  the huge online marketing potential.
 CRM software makes it possible to track customers’
  purchases and answers their questions online.
 High speed connections will improve the experience
  and capabilities of Internet Advertising
 New computing technologies will allow users to
  Cybershop while visiting the mall (Palm
  Computers/Wireless).

                                                16-9
       Global Advertising
 Refers to developing a product and
  promotional strategy that can be used
  worldwide
 Country specific promotion is more
  successful since each country’s culture is
  different
 Getting the word right is critical
 Even in the US selective groups are large
  enough to warrant specially designed
  promotions for them

                                          16-10
        Objectives of
    Integrated Marketing
Build Brand Equity
Provide Information
Manage Demand &
 Build Sales
Differentiate Products
Influence Perceptions,
 Attitudes, & Buyer
 Behavior

                           16-11
       Total Direct
 Advertising Expenditures
  $250.0
                                                       $213.3
                      In billions
  $200.0
                                              $164.1
                       $142.1      $153.0
  $150.0
           $104.3
  $100.0

   $50.0

    $0.0
              1992        1996         1997     1998     2002*

Source: The Direct Marketing Association                 *Projected
                                                                 16-12
Figure 16.3 Advertising Expenditure by Media




                                       16-13
                    Century’s
                  Top Ad Jingles
 “You deserve a           “I wish I were an
  break today”              Oscar Mayer wiener”
 “Be all you can be”      “Double your
                            pleasure, double your
 “Pepsi-Cola hits          fun”
  the spot”                “Winston tastes good
 “Mm Mm good!”             like a cigarette
 “See the USA in           should”
  your Chevrolet”          “It’s the real thing”
                           “A little dab’ll do ya”
Source: Advertising Age                       16-14
                Favorite Budweiser
                Advertising Slogans

                                         When you know
                               Food’s    your beer… it’s                Proud to
                              Favorite   bound to be Bud                be your
                             Companion                                    Bud
                 America’s                                 When you say
   King of                         It lives with            Budweiser,
                   Social
                                    good taste             you’ve said it
Bottled Beers    Companion         everywhere                   all



    1899           1937        1943   1947     1953           1971          1993


                                                                        16-15
                 Do Blatantly Sexy
                 Ads Turn You Off?
                                      Men    Women

           80                                 72
           70
                                        51
           60
                    45
 Percent




           50
           40
                          24
           30
           20
                                                         4     4
           10
            0
                Strongly/Somewhat   Strongly/Somewhat   Don't Know
                      Agree              Disagree

Source: USA Today

                                                                     16-16
         Amount Spent On...



     Internet Advertising =          Outdoor Advertising =
            $1.92 Billion                $1.58 Billion




Source: CIO Web Business, 1/1/1999
                                                         16-17
       Internet
   Advertising- 2004
Will reach $22 billion in the U.S.
 The rest of world will spend $10.8
 billion.
$27 billion (10% of all U.S. ad
 spending) will be siphoned from
 traditional media
Hardest hit: newspapers and direct
 mail
Source: CIO Web Business, 10/1/1999

                                      16-18
Steps in Personal Selling
Prospect/Qualify   Presentation


                    Objections
  Preapproach

                      Close

   Approach
                    Follow-up



                                 16-19
    Public Relations
         Steps             Publicity
   Listen            Free
                      More Effective
   Change/Develop     Than Ad
                      Believable
   Inform            No Control
                      No Repetition


                                        16-20
     Sales Promotion
   Internal & External
   Sampling
   Word-Of-Mouth
   Viral Marketing/Swag
   Technology
   Testimonials

                           16-21
          Tips on
     Issuing Coupons

Coupons can be used      Get professional
 as a “Thank you for       help to get
 buying” or a “Stop and
 try us.”                  maximum
The value must be         exposure.
 enough to attract        Color-code your
 customers.                coupons for
Use coupon                different groups
 promotions sparingly.     that use them.


                                              16-22
       Top Celebrity
        Endorsers
   Celebrity            Product(s)
Candice Bergen      Sprint
Bill Cosby          Jell-O
Kathi Lee Gifford   Carnival Cruise Lines
Cindy Crawford      Revlon, Pepsi
Jerry Seinfield     American Express
Cybil Shepherd      L’Oreal
                                   16-23
Top Sports Endorsers
      Athlete              Endorsements
Micheal Jordan $ 47.0 Million
Tiger Woods $ 24.0 Million
Arnold Palmer $ 16.0 Million
Andre Agassi $ 14.0 Million
Source: Fortune Magazine

                                    16-24
Promotional Strategies
Push Strategy

  Promotion



Distribution         Customer




 Retail Store   Promotion
                     Pull Strategy
                                     16-25
    Building IMC
Gather Data &
Maintain Database

Respond Quickly To   IMC
Adjust Policies &
Procedures
Provide Accessible
Information
                        16-26

				
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