12/15/14. Chapter Fourteen. The Promotion Mix. The Promotion Mix. Communica)ng Customer Value: Integrated Marke)ng Communica)ons Strategy
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1 Communicating Customer Value: Integrated s Strategy Topic Outline Chapter Fourteen Communica)ng Customer Value: Integrated Marke)ng Communica)ons Strategy The Promo*on Mix Integrated Marke*ng Communica*ons A View of the Communica*ons Process Steps in Developing Effec*ve Marke*ng Communica*on SeDng the Total Promo*on Socially Responsible Marke*ng Communica*on The promo*on mix is the specific blend of adver*sing, public rela*ons, personal selling, and direct- marke*ng tools that the company uses to persuasively communicate customer value and build customer rela*onships Adver)sing is any paid form of non- personal presenta*on and promo*on of ideas, goods, or services by an iden*fied sponsor Broadcast Print Internet Outdoor 1
2 Sales promo)on is the short- term incen*ve to encourage the purchase or sale of a product or service Discounts Coupons Displays Demonstra*ons Personal selling is the personal presenta*on by the firm s sales force for the purpose of making sales and building customer rela*onships Sales presenta*ons Trade shows Incen*ve programs Public rela)ons involves building good rela*ons with the company s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Press releases Sponsorships Special events Web pages Direct marke)ng involves making direct connec*ons with carefully targeted individual consumers to both obtain an immediate response and cul*vate las*ng customer rela*onships through the use of direct mail, telephone, direct- response television, e- mail, and the Internet to communicate directly with specific consumers Catalog Telemarke*ng Kiosks 2
3 Integrated Marketing Communications The New Marke)ng Communica)ons Model Consumers are beqer informed More communica*on Less mass marke*ng Changing communica*ons technology Integrated Marketing Communications The Need for Integrated Marke)ng Communica)ons Integrated marke)ng communica)ons is the integra*on by the company of its communica*on channels to deliver a clear, consistent, and compelling message about the organiza*on and its brands Integrated Marketing Communications Strategy A View of the Communication Process The Communica)on Process 3
4 Identify the target audience Communication Iden)fying the Target Audience Determine the communication objectives What will be said How it will be said Design the message Choose the media Select the message source When it will be said Who will say it Where it will be said Determining the Communica)on Objec)ves Marketers seek a purchase response that results from a consumer decision- making process that includes the stages of buyer readiness Designing a Message AIDA Model Get AQen*on Hold Interest Arouse Desire Obtain Ac*on 4
5 Designing a Message Message content is what to say Message format is how to say it Message Content Ra)onal appeal relates to the audience s self- interest Emo)onal appeal is an aqempt to s*r up posi*ve or nega*ve emo*ons to mo*vate a purchase Moral appeal is directed at the audience s sense of right and proper Choosing Media Personal communica)on involves two or more people communica*ng directly with each other Face to face Phone Mail E- mail Internet chat Personal communica)on is effec*ve because it allows personal addressing and feedback Control of personal communica*on Company Independent experts Word of mouth Choosing Media 5
6 Choosing Media Personal Communica)on Opinion leaders are people within a reference group who, because of their special skills, knowledge, personality, or other characteris*cs, exerts social influence on others Buzz marke)ng involves cul*va*ng opinion leaders and gedng them to spread informa*on about a product or service to others in their communi*es Non- Personal Communica)on Channels Non- personal communica)on is media that carry messages without personal contact or feedback, including major media, atmospheres, and events that affect the buyer directly Non- Personal Communica)on Channels Major media include print, broadcast, display, and online media Atmospheres are designed environments that create or reinforce the buyer s leanings toward buying a product Nonpersonal Communica)on Channels Events are staged occurrences that communicate messages to target audiences Press conferences Grand openings Exhibits Public tours 6
7 Selec)ng the Message Source The message s impact on the target audience is affected by how the audience views the communicator Celebri*es Athletes Entertainers Professionals Health care providers Collec)ng Feedback Involves the communicator understanding the effect on the target audience by measuring behavior resul*ng from the behavior SeNng the Total Promo)on Budget Affordable budget method sets the budget at an affordable level Ignores the effects of promo*on on sales SeNng the Total Promo)on Budget Percentage of sales method sets the budget at a certain percentage of current or forecasted sales or unit sales price Easy to use and helps management think about the rela*onship between promo*on, selling price, and profit per unit Wrongly views sales as the cause rather than the result of promo*on 7
8 SeNng the Total Promo)on Budget Compe))ve- parity method sets the budget to match compe*tor outlays Represents industry standards Avoids promo*on wars SeNng the Total Promo)on Budget Objec)ve- and- task method sets the budget based on what the firm wants to accomplish with promo*on and includes: Defining promo*on objec*ves Determining tasks to achieve the objec*ves Es*ma*ng costs Shaping the Overall Promo)on Mix The Nature of Each Promo)on Tool Adver*sing reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many *mes Is impersonal and one- way communica*on Shaping the Overall Promo)on Mix The Nature of Each Promo)on Tool Personal selling is the most effec*ve method at certain stages of the buying process, par*cularly in building buyers preferences, convic*ons, ac*ons, and developing customer rela*onships However, it is most costly tool 8
9 Shaping the Overall Promo)on Mix The Nature of Each Promo)on Tool Sales promo)on includes coupons, contests, cents- off deals, and premiums that aqract consumer aqen*on and offer strong incen*ves to purchase, and can be used to drama*ze product offers and to boost sagging sales Not as effec*ve at building rela*onships and brand preference Shaping the Overall Promo)on Mix The Nature of Each Promo)on Tool Public rela)ons is a very believable form of promo*on that includes news stories, features, sponsorships, and events Direct marke)ng is a non- public, immediate, customized, and interac*ve promo*onal tool that includes direct mail, catalogs, telemarke*ng, and online marke*ng Shaping the Overall Promotion Mix Promo)on Mix Strategies Socially Responsible Marketing Communication Communicate openly and honestly with consumers and resellers Avoid decep*ve or false adver*sing Avoid bait- and- switch adver*sing Conform to all federal, state, and local regula*ons Follow rules of fair compe**on Do not offer bribes Do not aqempt to obtain compe*tors trade secrets Do not disparage compe*tors or their products 9
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