EFFECTIVE PROMOTION MEANS EFFECTIVE COMMUNICATION. Chapter 15

Transcription

1 EFFECTIVE PROMOTION MEANS EFFECTIVE COMMUNICATION Chapter 15

2 PROMOTION AS PART OF THE MARKETING MIX Promotion any form of communication that a company uses to inform, persuade, or remind consumers about its products or services. One of the most important tools for a company trying to attract customers. How the company communicates with customers and complements the other three marketing mix elements.

3 PROMOTION IS A FORM OF COMMUNICATION Communication process the transfer of a message from a sender to a receiver (figure 15-2, page 428) Sender source of the message being sent, the who in the communication process Message what is being communicated Encoding when the sender converts an idea into a message that the receiver can understand Message channel the vehicle by which the message travels, how the message will be distributed

4 PROMOTION IS A FORM OF COMMUNICATION Receiver the person(s) to whom the message is directed or any person who understands the message that is sent. Decoding the process by which the receiver interprets the transmitted language and symbols to comprehend the message Noise any distracting information in the transmission, the message channel, or the receiver s environment that may inhibit or distract from the message Feedback the receiver s response to the message

5 THE ROLE OF COMMUNICATION IN MARKETING Before marketers begin a promotion program, they should outline the goals of the program. Promotion fulfills three main roles for marketers: Inform-by providing people with information they need to make informed decisions, marketers hope that consumers will decide to buy the product (this role can sometimes overlap with or be combined the role of persuading) Persuade-sometimes a company will need to make a case for why a customer should buy its product. Remind-marketers want to remind customers that a successful product exists and why people like it.

6 TYPES OF COMMUNICATION Marketers study the communication process to determine the types of communication necessary for their products or services. Interpersonal Communication-any person-toperson exchange. Greatest benefit is that it is a two-way conversation. Very specifically targeted, so it can be advantageous when a salesperson is able to explain the differences between products to help the customer make a knowledgeable decision. Frequently used in business-to-business because a professional sales staff will have client to manage and be more responsive to their needs. Main weakness is cost-efficiency.

7 TYPES OF COMMUNICATION Mass Communication-attempts to reach a wide audience through mass media such as radio, television, magazines and newspapers. One-way flow of information and does not provide for instant feedback. Limits how the message can be tailored for the recipient. Marketers cannot be sure that it will reach all of the intended audience and it may reach some people it is not intended for. Strength is that it can be more cost-efficient because the same type of promotion (ad) can be used over and over.

8 TYPES OF PROMOTION Advertising-any form of paid, nonpersonal communication that uses mass media to deliver a marketer s message to an audience Most popular and familiar form of promotion. Broadcast media-a signal is sent from a central transmitter to receivers in a geographic area (television or radio) Print advertising-any paid message run in a magazine or newspaper Direct mail-any marketing message sent to an audience through mail Outdoor advertising-includes billboards, signs on buses, posters, signage at sporting events, or any other space designed for ads outside the home Ambient advertising-any nontraditional medium in the environment of the audience Internet advertising-can be targeted by interest and location and can provide marketers with instant feedback

9 TYPES OF PROMOTION Advertising continued Advantages Has the ability to reach a large audience, so it is an efficient medium in terms of cost-per-viewer. Very controllable and repeatable, delivering the exact same message again and again if necessary. Many forms are not limited to geography Has a great potential to move people emotionally Disadvantages The overall cost can be prohibitively expensive, especially for small companies. The impersonal nature of advertising It is very easy for customers to tune out or skip past ads

10 TYPES OF PROMOTION Public Relations Publicity-any nonpaid communication about a product, service, company, or cause. Public Relations (PR)-the effort to reach consumers by generating positive publicity. Although media coverage is free, companies have PR departments or firms that identify media opportunities. Sometimes PR is a response to negative publicity. May use public relations to control the amount of damage done to its image.

11 TYPES OF PROMOTION Public Relations continued Advantages Very valuable because a third-party source such as a news program is perceived as being more objective than a commercial. It can relatively inexpensive. Disadvantages Hard to control.

12 TYPES OF PROMOTION Personal Selling-person-to-person communication with a potential customer in an effort to inform, persuade, or remind the customer to purchase an organization s product or service. Most commonly used for business-to-business. Other forms include retail store sales people, car dealers, insurance agents, etc. Types of products for which personal selling is appropriate are usually complicated, expensive, and full of features. Advantages include personal contact and immediate feedback. Disadvantage is the per-person cost.

13 TYPES OF PROMOTION Sales Promotion-any activity or material that gives consumers a direct incentive to buy. Common tactic when a company introduces a new product and wants to entice consumers to try it or increase short-term sales. Examples include price promotions through sales, coupons, rebates, giveaways, free samples, free toy with purchase. Advantages include generating short-term sales and results are usually measurable. Disadvantages: Builds customer relationships motivated by incentives instead of brand preference. Cost of incentive and loss in profit because of the incentive promotion.

14 THE PROMOTIONAL MIX Promotional Mix-the combination of advertising, public relations, personal selling, and sales promotion that marketers use to reach a target market. Critical that the elements of the promotional mix complement each other. A carefully planned promotional mix can capitalize on the strength of each type of promotion and reach customers from several different angles to deliver on the promotional objective.

15 THE PROMOTIONAL MIX Promotional Objective Serves 3 purposes for marketer: inform, persuade, and remind. Different types of promotions are better suited for certain objectives. Target Market It is critical to consider the target market in formulating a promotional mix.

16 THE PROMOTIONAL MIX Marketing Mix Certain products are better served by certain types of promotions. Company Philosophy Some companies believe in certain values that impact the promotional mix. Resources Promotion can be expensive, and the marketer must determine which elements will have the greatest chance at achieving the company s objectives for the least amount of money.

17 PROMOTIONAL PLANNING Promotional Plan-the blueprint for how the elements of the promotional mix will work together. Planning takes time, and most companies plan well in advance to make sure their budgets are used as efficiently as possible. Seven steps in promotional planning process: Research and Analyze the Market Used to gain understanding of market, identify strengths and weaknesses, opportunities, and competitive threats. Select the Target Market Identify key characteristics of the target market and fully understand their motivations. Allows the marketer to create a focused promotional strategy.

18 PROMOTIONAL PLANNING Seven Steps continued Identify Promotional Objectives Define a realistic and measurable objective of what the company wants to achieve with its promotional plan. Set the Promotional Budget The ideal promotional budget is set to fit the plan, not the other way around. Develop the Promotional Mix Balancing all the factors that affect the mix. Implement the Promotional Plan An activity schedule is developed, and decisions are made determining when the various promotional efforts take place. Evaluate the results Marketers evaluate their promotional plan during and after promotions.