Documente Academic
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Documente Cultură
NINETEEN
19-1
Explain the communication process and its elements. Understand the promotional mix and the uniqueness of each component. Select the promotional approach appropriate to a products life-cycle stage and characteristics.
19-2
2000 McGraw-Hill Ryerson Limited
Differentiate between the advantages of push and pull strategies. Appreciate the value of an integrated marketing communications approach. Understand the value of direct marketing for consumers and sellers.
19-3
2000 McGraw-Hill Ryerson Limited
19-4
Noise
Channel of Message Communication
Source
Encode
Decode
Receiver
Noise
Errors in Communication
Errors in communication can happen in several ways: 1. the source may not adequately transform the abstract idea into an effective set of symbols, 2. a properly encoded message may be sent through the wrong channel and never make it to the receiver, 3. the receiver may not properly transform the set of symbols into the correct abstract idea, and 4. feedback may be so delayed or distorted that it is of no use to the sender.
19-6
2000 McGraw-Hill Ryerson Limited
Concept Check
1. 2. What are the six elements required for communication to occur. A difficulty for Canadian companies advertising in international markets is that the audience does not share the same ___________. A misprint in a newspaper ad is an example of ____________.
2000 McGraw-Hill Ryerson Limited
3.
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Personal Selling
Customized
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19-9
19-10
Concept Check
1. Explain the difference between advertising and publicity when both appear on television. Which promotional element should be offered only on a short-term basis? Cost per contact is high with the ________ element of the promotional mix.
2000 McGraw-Hill Ryerson Limited
2. 3.
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Advertising Advertising
Target Target audience audience Product Product life lifecycle cycle Product Product characteristics characteristics Stages Stagesof of the the buying buying decision decision Channel Channelstrategies strategies
Integrated Integrated Marketing Marketing Communications Communications Program Program
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The Target Audience Promotional programs may be directed at the ultimate consumer or an intermediary, or both.
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PP19-3 Promotional Tools used over the Product Life Cycle of Purina Puppy Chow
Growth Stage of product life cycle Maturity Decline
Introduction
Promotional objective
To inform
To persuade
To remind Reminder Little advertising money Sales promotion in spent on form of discounts promotion and coupons Limited personal selling Direct mail reminders
2000 McGraw-Hill Ryerson Limited
Promotional activity
Publicity in Personal selling veterinary to intermediaries magazines Advertising to Advertising differentiate Salesforce calling Puppy Chow on intermediaries attributes from Sales promotion those of in form of competing free samples brands
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Product Characteristics
Three specific types of product characteristics to be considered: 1. Complexity of the product/service 2. Degree of risk represented by the product/ service purchase a. financial risk b. social risk c. physical risk 3. Ancillary services with the product/service
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2000 McGraw-Hill Ryerson Limited
Stages of the Buying Decision The importance of the promotional elements varies with the three stages in a consumers purchase decision: 1. Prepurchase stage 2. Purchase stage 3. Postpurchase stage
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2000 McGraw-Hill Ryerson Limited
PP19-4 How the Importance of Promotional Elements Varies During the Consumers Purchase Decision
High Importance of promotional tool Personal selling
Sales promotion
Direct Marketing
Public rel
ations
Low
19-18
PP195 A Comparison of Push and Pull Promotional Sstrategies A. Push strategy B. Pull strategy
Manufacturer Manufacturer
Flow of demand stimulation Flow of promotion; mainly personal selling directed to intermediaries
Manufacturer Manufacturer
Flow of demand stimulation
Wholesaler Wholesaler
Wholesaler Wholesaler
Retailer Retailer
Retailer Retailer
Consumer Consumer
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Consumer Consumer
2000 McGraw-Hill Ryerson Limited
Integrated marketing communications refers to the concept of designing marketing communications programs that coordinate all promotional activities -- advertising, personal selling, sales promotion, public relations, and direct marketing -- to provide a consistent message across all audiences.
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2000 McGraw-Hill Ryerson Limited
Integrated Marketing Communications (IMC) Successful IMC programs use a process referred to as the IMC audit, which a. analyzes the internal communication network of the company, b. identifies key audiences, c. evaluates customer databases, d. assesses messages in recent ads, public relations releases, packaging, video news releases, signage, sales promotion pieces, and direct mail, e. and determines managers knowledge of IMC.
19-21
2000 McGraw-Hill Ryerson Limited
Concept Check
1. 2. 3. For consumer products, why is advertising emphasized more than personal selling? Explain the differences between a push strategy and a pull strategy. Integrated marketing communications provide a __________ message across all
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audiences.
2000 McGraw-Hill Ryerson Limited
Implementation Executing the promotion program - pretest the promotion - carry out the promotion
Control Evaluating the promotion program - posttest the promotion - make needed changes
Corrective actions
Corrective actions
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1. 2. 3. 4.
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The ideal execution of a promotion program involves pretesting each design before it is actually used to allow for changes and modifications which will improve its effectiveness. Posttests are recommended to evaluate the impact of each promotion and the contribution of the promotion toward achieving the program objectives.
19-27
2000 McGraw-Hill Ryerson Limited
Concept Check
1. What are the characteristics of good promotion objectives? 2. What are the weaknesses of the percentage of sales budgeting approach? 3.
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How have advertising agencies changed to facilitate the use of IMC programs?
2000 McGraw-Hill Ryerson Limited
The Value of Direct Marketing - Responses It Generates The value of direct marketing can be described in terms of the responses it generates. Direct orders: the result of offers that contain all the information necessary for the prospective buyer to make a decision to purchase and complete the transaction. Lead generation: the result of an offer designed to generate interest in a product or service and a request for additional information. Traffic generation: the outcome of an offer designed to motivate people to visit a business
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2000 McGraw-Hill Ryerson Limited
Concept Check 1. The ability to design and use direct marketing programs has increased with the availability of ________ and _________. What are the three types of responses generated by direct marketing activities?
2000 McGraw-Hill Ryerson Limited
2.
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