2. Promotion in Marketing Use communication to influence the awareness, feelings, beliefs and behavior of prospective customers
3. Goals and Tasks of Promotion Informing Reminding Target Audience Persuading
4. Examples of Promotion Objectives Informative (Awareness) Objective To increase the top-of-mind awareness level for Vijaya peanut butter from 16 percent to 24 percent Persuasion (Attitudinal) Objective To increase the percentage of parents who feel that Vijaya peanut butter is the best peanut butter for their children from 22 percent to 35 percent Reminder Objective To remind consumers that Vijaya peanut butter is the creamiest peanut butter and is available at their nearest grocery and convenience stores
5. The Changing Communications Environment Market Fragmentation Led to Media Fragmentation Marketers Have Shifted Away From Mass Marketing Less Broadcasting Two Factors are Changing the Face of Today’s Marketing Communications: Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting CHP: 17&18-5
6. CHP: 17&18-6 The Need for Integrated Marketing Communications With Integrated Marketing Communications (IMC), the Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Product or Service.
49. Strategy Selected Depends on: Type of Product-Market & Product Life-Cycle Stage Push Strategy Pull Strategy Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand. Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels. Promotion Mix Strategies
51. To communicate an idea or thought, it needs to be converted into words and pictures. Adidas presents the evolution of its brand thought Impossible is Nothing with a campaign that encourages everyone to take their first step in reaching what seems impossible. Through stories of real people attempting and achieving what once seemed like impossible, Adidas hopes to inspire people to overcome their own hindrances. www.adidas.com
53. When Elements Are Most Useful Advertising Personal selling Effectiveness Sales promotion Public relations Awareness Knowledge Liking Preference Conviction Purchase Very effective Somewhat effective Not effective
54. Factors that Affect the Promotion Mix Nature of the Product Stage in the Product Life Cycle Target Market Characteristics Type of Buying Decision Available Funds Rs Push–and–Pull Strategies
55. Steps in Developing Effective Communications Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Manage IMC CHP: 17&18-18
56. CHP: 17&18-19 Designing the Communications Message strategy Creative strategy Message source Personal communication channels Nonpersonal communication channels Integration
57. CHP: 17&18-20 Creative Strategy Informational and transformational appeals Positive and negative appeals Fear Guilt Shame Humor Love Pride Joy
65. One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion. Affordable Based on What the Company Can Afford Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Competitive-Parity Based on the Competitor’s Promotion Budget CHP: 17&18-28 Setting the Total Promotion Budget
66. Advertising Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive Personal Selling Personal Interaction, Relationship Building, Most Expensive Promo Tool Sales Promotion Wide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived Public Relations Very Believable, Dramatize a Company or Product, Underutilized Direct Marketing Nonpublic, Immediate, Customized, Interactive CHP: 17&18-29 Setting the Promotion Mix