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Chapter 17--Promotion part 1 (Promotional elements (Direct marketing (Uses…
Chapter 17--Promotion part 1
Promotional mix
Definition: Combination of one or more of advertising, personal selling, sales promotions, public relations, direct marketing
Inform prospective buyers
Persuade consumers to try the product
Remind consumers of the benefits
Integrated marketing communication (IMC)
Designing marketing communication program that coordinate all promotional activities to provide a consistent message across all audience
Recognizes the value of a comprehensive plan
Types of communication disciplines
Direct marketing (Customized)
Advertising (Mass) (focused)
Personal selling (Customized)
Public relations/Publicity (Mass) (focused)
Sales promotions (Mass) (focused)
Combines the disciplines to provide: clarity, consistency, maximum communications impact
Promotional elements
Advertising
Paid form of non-personal communication about an organisation, good, service or idea by an identified sponsor
Paid aspect--space for advertising message must be bought
Non-personal component--no immediate feedback
Advantages-- attention getting, communicate benefits, control over what, whom, when
Disadvantages--costs
Sales promotion
Short-term inducement of value offered to arouse interest in buying a good or service
Advantages--stimulate sales during promo period
Disadvantages--sales gain temporary
PR & Publicity
Public relations
Tools: special events, lobbying efforts, annual reports, press conferences, image management, and most importantly publicity
E.g. new conference to reduce damage to company's reputation, volunteer activities, donation to charity to create visibility
Form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services
Publicity
Non-personal, indirectly paid (free) presentation of an organization, good, or service,--can take the form of a new story, editorial, or product announcement
Advantages--people tend to believe media reports
Disadvantages--lack of control over what is said, to whom, or when
Personal selling
Two way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision
Face-to-face, less wasted coverage
Advantages--can modify the message
Disadvantages--inconsistent
Direct marketing
Uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet
Forms of communication--direct selling, direct mail & catalogs, telemarketing, television, direct response advertising, and online marketing
Advantages--can develop & adapt message quickly to facilitate one-to-one relationships with customers
Disadvantages: database management, privacy issue
Marketers can customize communication efforts & create one-to-one interaction
Many forms, e.g. direct mail, catalog, TV home shopping, telemarketing, direct selling
Variety of media, e.g. printed mailer sent to homes, text message, social media
Developing the promotional mix
Determine balance of five promotional mix/tools/elements
Factors affecting decisions
Target audience: consumers (values, attitudes, lifestyles) or intermediaries
Stage of product life cycle: intro growth maturity decline
Characteristics of the product: complexity, risk, ancillary services
Channel strategies: direct, indirect distribution; dist density: intensive, selective, exclusive
Decision stage of buyer: pre-purchase, purchase & post-purchase
Coordinate promotional effort and ensure integration of the marketing communication program