Marketing Chapter 15 Marketing communications PDF

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Chapter 15 Marketing Communications 1. The role of promotion in the marketing mix a. Promotion: Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response i. Must have for a product to survive ii. How we POSITION products b. Promotional Strategy: A plan for the use of the elements of promotion: Advertising, Public Relations, personal selling, sales promotion, and social media 1. Overall marketing objectives, marketing mix, target market go into the promotion mix (advertising, PR, Sales promotion, personal selling, social media)-> combine to make a promotion plan c. Competitive Advantage: One or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors i. Promotion must show a product’s competitive advantage ii. High quality, Low prices, Excellent service, featured not offered by comp. d. Target markets are getting more difficult to reach 2.

Marketing Communication a. communication: the process by which meaning is exchanged or shared through a common set of symbols. i. Syntax Symbols: arranging the order of the symbols. His example was the letters “IELV” can rearrange them to mean Evil, Live, Vile, etc. One you rearrange the elements or set of symbols a different meaning is taken away. ii. Interpersonal Communication: Direct, face-to-face communication between 2 or more people 1. See reactions and responses immediately iii. Mass Communication: The communication of a message to large audiences 1. Television or newspapers 2. Company cannot respond immediately to consumer reactions

b. sender the originator of the message in the communication process

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i. marketers attempt to inform, persuade, and remind the target market to take actions compatible with the need to promote the purchase of goods and services encoding the conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs channel a medium of communication—such as a voice, radio, or newspaper—for transmitting a message noise anything that interferes with, distorts, or slows down the transmission of information receiver the person who decodes a message i. marketers listen to the target market in order to develop the appropriate messages, adapt existing messages, and spot new communication opportunities. decoding interpretation of the language and symbols sent by the source through a channel feedback the receiver’s response to a message i. Verbal or nonverbal ii. Can occur over the internet iii. Indirect Feedback: Analysis of viewer responses provides feedback 1. Percentage of TV views, etc. iv. Web analytics can tell what sites people view and for how long Internet has impacted Communication in 2 ways: i. Consumers can now be senders 1. Senders can make recommendations about products ii. Customers can comment publicly on marketing efforts through social media 1. Businesses can have direct communication with customers

3. Goals of promotion a. Promotion can perform one or more tasks i. Inform the target audience 1. seeks to convert an existing need into a want or to stimulate interest in a new product 2. products in introductory phase ii. Persuade the target audience 1. Designed to stimulate a purchase or action 2. Important for very competitive mature product categories iii. Remind the target audience 1. Used to keep the product and brand name in the public’s mind 2. Prevails during the maturity stage iv. Connect with the audience 1. Form relationships with customers and potential customers 2. Social media 4. The promotional mix

a. promotional mix the combination of promotional tools—including advertising, public relations, personal selling, sales promotion, and social media—used to reach the target market and fulfill the organization’s overall goals i. advertising impersonal, one-way mass communication about a product or organization that is paid for by a marketer 1. Cost per contact is low, but total cost is very high 2. Can reach the masses and still microtarget small groups 3. Tends to restrict advertising on a national business ii. public relations the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance 1. use to maintain a positive image, educate the public about the company’s goals and objectives, introduce new products, and help support the sales effort 2. publicity public information about a company, product, service, or issue appearing in the mass media as a news item iii. sales promotion marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness 1. short run too used to generate immediate increases in demand 2. ex free samples, contests, trade shows, vacation giveaways, & coupons 3. Marketers often use sales promotion to improve the effectiveness of other ingredients in the promotional mix, especially advertising and personal selling a. Sales promotion complements advertising by yielding faster sales responses iv. personal selling a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other 1. Relationship selling emphasizes a win-win outcome and the accomplishment of mutual objectives that benefit both buyer and salesperson in the long term b. Promotional tactics can be categorized based on media type i. paid media a category of promotional tactic based on the traditional advertising model, whereby a brand pays for media space ii. earned media a category of promotional tactic based on a public relations or publicity model that gets customers talking about products or services iii. owned media a new category of promotional tactic based on brands becoming publishers of their own content in order to maximize the brands’ value to customers 5. Promotional Goals and the AIDA Concept a. AIDA concept: a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message

i. Attention: get by training a salesperson to use a friendly greeting and approach or by using loud volume, bold headlines, movement, bright colors, and the like in an advertisement. 1. Advertising 2. Public relations, greatest impact here 3. Social media ii. Interest: a good sales presentation, demonstration, or advertisement creates interest in the product 1. Personal selling 2. Social media iii. Desire: by illustrating how the product’s features will satisfy the consumer’s needs, arouses desire 1. Sales promotion iv. Action: a special offer or a strong closing sales pitch may be used to obtain purchase action. 1. Sales promotion

b. 6. Integrated Marketing Communications a. integrated marketing communications (IMC) the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer i. Timing of promotions are coordinated b. The mass market has fragmented. More selectively segmented markets and an increase in niche marketing has replaced the traditional broad market i. Companies have cut their advertising spending to increase direct marketing 7. Factors Affecting the Promotional Mix a. There are 6 Factors: i. Nature of the Product ii. Stages in the Product Life Cycle iii. Target Market Characteristics iv. Type of Buying Decision v. Available Funds vi. Push and Pull Strategies b. Nature of the Product

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Characteristics of the product can influence the promotional mix i. Business Product or Consumer Product ii. Business Products are custom-tailored for exact specifications i. Use personal selling iii. Consumer products aren’t custom-made, made for an entire market i. Use advertising ii. Sales promotion, brand name are twice as important than for business products iv. Costs and risks associated with a product influence the promotional mix i. When there is more risk, more salespeople are used Stages in the Product Life Cycle i. The product’s stage in the product life cycle is a big factor in making the promotional mix ii. Introductory Stage: Goal is to inform the target audience that the product is available i. Advertising and PR iii. Growth Stage: Emphasize the product’s differential advantage over the competition i. Build and maintain brand loyalty ii. Sales promotion, social media, comparative advertisements iv. Maturity Stage: Competition becomes fiercer, so persuasive and reminder advertising are emphasized v. Decline Stage: Everything stops besides personal selling and sales promotion at retail Target market characteristic i. A target market characterized by widely scattered potential customers, highly informed buyers, and brand-loyal repeat purchasers generally requires a mix with more advertising and sales promotional and less personal selling Type of Buying Decision i. Routine Decision: Advertising and sales promotion i. Remind the customer about the brand ii. Complex Decision: Personal selling, print advertising, online resources i. Requires a large amount of information to reach a purchase decision Available funds i. Money is the most important part of the promotional mix i. Can try to get free publicity, PR and online strategies ii. Try to minimize cost per contact i. Higher: Personal selling, PR, sales promotion ii. Low: national advertising and social media Push/pull strategies a. Companies usually use a mix and emphasize one of these strategies

b. push strategy a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise c. pull strategy a marketing strategy that stimulates consumer demand to obtain product distribution i. social media and content marketing ii. heavy sampling, introductory consumer advertising, campaigning...