Marketing Strategy Planning Process

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Liliana Howard
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1 When we finish this lecture you should CHAPTER FOURTEEN Promotion Introduction to Integrated Marketing Communications For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Know the advantages and disadvantages of the promotion methods a marketing manager can use in strategy planning. Understand the integrated marketing communications concept and why most firms use a blend of different promotion methods. Understand the importance of promotion objectives. Know how the communication process affects promotion planning. Know how direct-response promotion is helping marketers develop more targeted promotion blends. When we finish this lecture you should Marketing Strategy Planning Process Understand how customer-initiated interactive communication is different. Know how typical promotion plans are blended to get an extra push from middlemen and help from customers in pulling products through the channel. Understand how promotion blends typically vary over the adoption curve and product life cycle. Understand how to determine how much to spend on promotion efforts. Several Promotion Methods Are Available Promotion and Marketing Strategy Planning (Exhibit 14-1) Personal Personal Selling Selling CH 14: Promotion Intro. To Integrated Marketing Communications CH 15: Personal Selling and Customer Service Mass Selling CH 16: Advertising & PROMOTION METHODS Promotion methods Managing promotion Effective communication Advertising Publicity Blending promotion Handout 14-1

McGraw-Hill/Irwin Know the advantages and disadvantages of the promotion methods a marketing manager can use in strategy planning.

2 Tries to Spark Immediate Interest (Exhibit 14-2) Someone Must Plan, Integrate, and Manage the Promotion Blend Which Method to Use Depends on Promotion Objectives Sales Managers Advertising Managers Informing Integrated Marketing Communications Persuading Marketing Mangers Managers Reminding Reminding May Be Enough Promotion Objectives Relate to the Adoption Process and AIDA Mode (Exhibit 14-3) Promotion Objectives Informing Persuading Reminding { Adoption Process Awareness Interest Evaluation Trial Decision Confirmation } } AIDA Model Attention Interest Desire Action Handout 14-2

Reminding Reminding May Be Enough Promotion Objectives Relate to the Adoption Process and AIDA Mode (Exhibit 14-3) Promotion Objectives Informing

3 Interactive Exercise: AIDA Promotion Requires Effective Communication (Exhibit 14-4) Encoding & Decoding Depend on a Common Frame of Reference (Exhibit 14-5) Encoding and Decoding The Message Channel and Noise Are Important Too (Exhibit 14-4) Integrated Direct-Response Promotion Is Very Targeted More Than Direct Mail Target Directly With a Database Ethical Concerns Handout 14-3

Message Channel and Noise Are Important Too (Exhibit 14-4) Integrated Direct-Response

4 The Customer May Initiate the Communication Process (Exhibit 14-6) Checking your knowledge Ron Popeil has been a pioneer in the use of directresponse television informercials. Over the years his infomercials have promoted many products, including the Showtime Rotisserie Barbecue, a food dehydrating machine, and the world-famous Veg-O-Matic. The chief advantage of the infomercial is that it provides plenty of time to describe and demonstrate a product s benefits in detail. The choice of the infomercial is related mainly to the element of the communication process. A. message channel B. encoding C. decoding D. feedback E. noise How Typical Promotion Plans Are Blended and Integrated (Exhibit 14-7) Other Promotional Elements of Pushing Pulling Demand Pulls the Product through the Channel (Exhibit 14-7) An Example of Pulling Handout 14-4

The chief advantage of the infomercial is that it provides plenty of time to describe and demonstrate a product s benefits in detail.

5 Checking your knowledge Fido, Inc. is a producer of dog food and is getting ready to introduce a new brand. The firm s marketing research department learns that a competitor is planning to launch another brand about two weeks after Fido s launch. Fido s marketing department quickly mails a set of dated coupons to several thousand consumers in a purchased database of dog owners, encouraging them to ask for the new Fido brand in their favorite store and to stock up on the new brand using the coupons. This is an example of: Adoption Processes Can Guide Promotion Planning (Exhibit 14-8) A. pulling. B. noise. C. pushing. D. encoding. E. decoding. Appeal for Innovators Stimulating Adoption of an Image Because life is too short to waste time. Wouldn t it be nice if your refrigerator could do your shopping on the Internet? Promotion Blends Vary Over the Life Cycle Nature of Competition Requires Different Promotion This new idea is good Our brand is best Our brand is better, really Let s tell those who still want our product Handout 14-5

6 Setting the Promotion Budget You now Percentage of Sales Matching the Competition Budgeting by Sales Unit Budgeting from Uncommitted Resources Task Method 1. Know the advantages and disadvantages of the promotion methods a marketing manager can use in strategy planning. 2. Understand the integrated marketing communications concept and why most firms use a blend of different promotion methods. 3. Understand the importance of promotion objectives. 4. Know how the communication process affects promotion planning. 5. Know how direct-response promotion is helping marketers develop more targeted promotion blends. You now Key Terms 6. Understand how customer-initiated interactive communication is different. 7. Know how typical promotion plans are blended to get an extra push from middlemen and help from customers in pulling products through the channel. 8. Understand how promotion blends typically vary over the adoption curve and product life cycle. 9. Understand how to determine how much to spend on promotion efforts. Promotion Personal selling Mass selling Advertising Publicity Sales promotion Sales managers Advertising managers Public relations Sales promotion managers Integrated marketing communications AIDA model Communication process Source Receiver Noise Encoding Decoding Message channel Pushing Key Terms Pulling Adoption curve Innovators Early adopters Early majority Late majority Laggards Nonadopters Primary demand Selective demand Task method Handout 14-6

Understand the integrated marketing communications concept and why most firms use a blend of different promotion methods. 3. Understand the importance of promotion objectives. 4.

Principles of Marketing Lecture 13a: Promotional Mix Decisions: Advertising and Sales Promotion. The Traditional Communication Model. Noise.

Principles of Marketing Lecture 13a: al Mix Decisions: Advertising and Sales Target Market Product Place Price Personal Selling Mass Selling Sales Advertising Publicity The Traditional Communication Model