pom lec 10
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8/13/2019 Pom Lec 10
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Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response.
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A plan for the optimal use
of the elements of
promotion:
Advertising
Public Relations
Personal Selling
Sales Promotion
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Promotional Mix
•Advertising•Public Relations•Personal Selling•Sales Promotion
Promotion Plan
Overall MarketingObjectives
Marketing Mix• Product
• Distribution
• Promotion
• Price
Target Market
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Combination of promotion tools used toreach the target market and fulfill theorganization’s overall goals.
The company’s total promotion mix (alsocalled the marketing communicationsmix) consists of a specific blend of:› Advertising› Sales promotion› Public relations› Personal selling› Direct marketing
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Several factors are changing the face ofmarketing communications:› Consumers are better informed and more
communications empowered.
› Mass markets have fragmented, leadingmarketers to a shift away from mass marketing.
› Changes in communications technology havecreated new media for interacting with targetedconsumers.
These factors have shifted the marketingcommunications model so that firms aredoing less broadcasting and morenarrowcasting.
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A strong need for integrated marketingcommunications exists.
Integrated marketing communications:› Carefully integrating and coordinating the
company’s many communication channelsto deliver a clear, consistent, and
compelling message about the organizationand its products.
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Impersonal, one-way mass communicationabout a product or organization that ispaid for by a marketer.
Nature of advertising:› Can reach masses of geographically
dispersed buyers at a low cost per exposure
› Can repeat a message many times
› Consumers view advertised products asmore legitimate
› Is impersonal, one-way communication
› Can be very costly for some media types
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Planned presentation to one or moreprospective buyers for the purpose of makinga sale.
Nature of personal selling:› Involves personal interaction between two or
more people
› Most effective tool at building preferences,convictions, and actions
› Allows relationship building and two-waycommunication
› Requires long-term commitment to sales force
› Most expensive promotion tool
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Marketing activities--other than personalselling, advertising, and public relations--that stimulate consumer buying anddealer effectiveness.
Nature of sales promotion:› Wide assortment of tools
› Attracts consumer attention
› Can be used to dramatize product offers› Offers strong incentives to buy
› Invites and rewards quick consumer response
› Effects are short-lived
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Free samples
Contests
Premium Offers
Trade Shows
Buy one get one free
Coupons
Popular ToolsforConsumer SalesPromotion
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The marketing function that evaluates public
attitudes, identifies areas within theorganization that the public may be interestedin, and executes a program of action to earnpublic understanding and acceptance.
Nature of public relations:› Very believable› Reaches people who avoid salespeople and
ads› Can dramatize a company or product› Planned use can be effective and
economical
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Evaluates publicattitudes
Identifies areasof public interest
Executesprograms to“win” public
Functions of
Public Relations
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Nature of direct marketing:
› Many forms of direct marketing exist.
› Direct marketing forms share four primarycharacteristics:
Nonpublic
Immediate
Customized
Interactive
› Well suited to highly targeted marketing.
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Push strategy:› Promotion strategy that calls for using the
sales force and trade promotion to push the
product through channels.
Pull strategy:› Promotion strategy that calls for spending a
lot on advertising and consumer promotionto induce final consumers to buy theproduct.
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Advertising has been used for centuries.
Advertising is used by:
›
Business firms› Not-for-profit organizations
› Professionals
› Social agencies
› Government
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Setting advertising objectives
Setting the advertising budget
Developing advertising strategy Evaluating advertising campaigns
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Advertising objective:› Specific communication task to be
accomplished with a specific targetaudience during a specific period of time.
Advertising objectives can be classifiedby purpose:› Inform
› Persuade› Compare
› Remind
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Setting the advertising budget:
› Affordable method
›
Percentage-of-sales method› Competitive-parity method
› Objective-and-task method
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Developing advertising strategy:
› Creating advertising messages.
Message strategy and message execution
must break through the clutter
› Selecting advertising media.
Set reach, frequency, and impact goals
Choose among major media types
Select specific media vehicles
Decide on media timing
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Planning the message strategy:
› Identify customer benefits
›
Develop compelling creative concept — the“Big Idea”
› Choose an ad advertising appeal that is:
Meaningful
Believable
Distinctive
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Slice of Life
Lifestyle
Fantasy
Mood orimage
Musical
Personalitysymbol
Technicalexpertise
Scientificevidence
Testimonial
evidence orendorsement
Message execution styles:
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Message execution process:
› Choose the execution style
›
Choose a tone Use memorable, attention-getting words.
› Choose format elements:
Illustration
Headline
Copy
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Sell the Sizzle, not the Steak”
Sell product’s benefits, not itsattributes
A benefit should answer
“What’s in it for me?”
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Setting media objectives:
› Reach: Percentage of people exposed toad.
› Frequency: Number of times a person isexposed to advertisement.
› Media Impact: The qualitative value of a
message exposure through a given medium.
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Each media type has specificadvantages and disadvantages.
Choosing among media typesrequires consideration of the:› Medium’s impact
› Message effectiveness
› Cost
Media mix should be regularlyreexamined.
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Media vehicles:› Specific media within each general
media type, such as Newsweek.
Factors to consider when choosingvehicles:› Cost
› Audience quality
› Audience engagement
› Editorial quality
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Must also decide how to schedule theadvertising over the course of a year.› Follow seasonal pattern
› Oppose seasonal pattern
› Same coverage all year
Choose media scheduling:
› Continuity› Pulsing
› Flighting
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ContinuousMedia Schedule
FlightedMedia Schedule
PulsingMedia Schedule
SeasonalMedia Schedule
Advertising is run steadilythroughout the period.
Advertising is run heavily everyother month or every two weeks.
Advertising combines continuousscheduling with flighting.
Advertising is run only when theproduct is likely to be used.
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Advantages
Year-round readership
Geographic selectivity
Immediacy
High individual marketcoverage
Short lead time
Disadvantages
Limited demographic selectivity
Little color
May be expensive
Low pass-along rate
Clutter
Mass market medium
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Good reproductionquality
Demographic selectivity
Regional/localselectivity
Long advertising life
High pass-along rate
Advantages
Higher cost percontact
Long-term advertisercommitments
Slow audience build-up
Limited demonstrationcapabilities
Lack of urgency
Long lead time
Disadvantages
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Advantages
Selectivity andaudience segmentation
Immediate andportable
Geographic flexibility
Entertainment carryover
Short-term adcommitments
Disadvantages
No visual treatment
Short advertising life
High frequency to
generate retention
Commercial clutter
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Advantages
Wide diverse audience
Low cost per exposure
Creative anddemonstrative
Entertainment carryover
Demographic selectivitywith cable
Disadvantages
Short life of message
Expensive with highcampaign cost
Little demographicselectivity with network
Long-term advertiser
commitments Long lead times
Clutter
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Fast growing
Ability to reach narrow targetaudience
Short lead time
Moderate cost
Advantages
Difficult to measure adeffectiveness
Ad exposure relies on “clickthrough”
Not all consumers have accessto internet
Disadvantages
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Return on advertising investment:
› Is equal to the net return on advertising
investment divided by the costs of theadvertising investment.
Evaluating advertising involves:
› Measuring the communication effects of
an ad —“Copy Testing.”
› Measuring the sales effects of an ad:
Is the ad increasing sales?
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Organization of ad function:› Small companies — one person in firm.
› Large companies — ad department that mayalso work with an ad agency.
› Advertising agencies employ specialists whoperform ad tasks better then the company’sown staff can.
Bring outside viewpoints to problem-solving. Wide range of experience.
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International advertising issues:
› To what degree should global advertising beadapted to various countries?
Greater need for standardization of globalbrand advertising strategies.
Specific advertising programs must usually beadapted to local cultures and other factors.
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Public relations:
› Building good relations with the firm’s variouspublics by obtaining favorable publicity,building up a good corporate image, andhandling or heading off unfavorable rumors,stories, and events.
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Public relations departments perform thefollowing functions:› Press relations or press agency
› Product publicity
› Public affairs
› Lobbying
›
Investor relations
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Public relations:
› May strongly impact public awareness at alower cost than advertising.
› Can yield spectacular results.
› Is beginning to play an increasinglyimportant brand-building role.
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News
Speeches
Special events
Written materials
Audiovisualmaterials
Corporateidentity materials
Public serviceactivities
Social networking
Company Website
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