Chapter 16: Promotional Planning for Competitive Advantage

Prepared & Designed by Laura Rush, B-books, Ltd.

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Learning Outcomes
LO1 LO2 LO3 LO4 Discuss the role of promotion in the marketing mix Describe the communication process Explain the goals of promotion Discuss the elements of the promotional mix

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Learning Outcomes
LO5
Discuss the AIDA concept and its relationship to the promotional mix Discuss the concept of integrated marketing communications Describe the factors that affect the promotional mix

LO6

LO7

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The Role of Promotion in the Marketing Mix

Discuss the role of

promotion in the marketing mix.

LO1

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The Role of Promotion

Promotions Communications 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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The Role of Promotion

Promotional Strategy - A plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales production.
Competitive Advantage - One or more unique aspects of an organization that cause consumers to patronize that firm rather than competitors.

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The Role of Promotion in the Marketing Mix

Overall Marketing Objectives

Marketing Mix Product Place Promotion Price

Promotional Mix

Advertising Public Relations Sales Promotion Personal Selling

Target Market
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Competitive Advantage
High product quality Rapid delivery
Low prices

Excellent service
Unique features
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Review Learning Outcome

The Role of Promotion in the Marketing Mix

LO1

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Marketing Communication

Describe the communication process.

LO2

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Communication

The process by which we exchange or share meanings through a common set of symbols.

Online
http://www.mcdonalds.com
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Marketing Communication
Categories of Communication

Interpersonal Communication

Mass Communication

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Marketing Communication
As Senders As Receivers

Inform

Develop messages Adapt messages

Persuade
Remind

Spot new communication opportunities

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The Communication Process

Noise

Sender

Encoding Message

Message Channel

Decoding Message

Receiver

Feedback Channel
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The Impact of the Internet

Web sites facilitate feedback through analytics. Social media allow marketers to personalize feedback channels.

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Review Learning Outcome

The Communication Process

LO2

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The Goals of Promotion

Explain the goal of promotion.

LO3

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Goals of Promotion
Informing
PLC Stages: Introduction Early Growth

Reminding
PLC Stages: Maturity

Target Audience

PLC Stages: Growth Maturity

Persuading
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Informing
Informative Promotion Increase awareness Explain how product works Suggest new uses Build company image

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Persuading
Persuasive Promotion

Encourage brand switching

Change customers perceptions of product attributes Influence immediate buying decision Persuade customers to call

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Reminding
Reminder Promotion

Remind customers that product may be needed Remind customers where to buy product

Maintain customer awareness

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The Promotional Mix

Discuss the elements of the

promotional mix.

LO4

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The Promotional Mix

Combination of promotion tools used to reach the target market and fulfill the organizations overall goals. Advertising Public Relations Sales Promotion Personal Selling

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Advertising

Any form of impersonal (one-way) paid communication in which the sponsor or company is identified.

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Advertising Media
Traditional Advertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

New Advertising Media

Internet Banner ads Viral marketing E- mail Interactive video

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Public Relations
The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be

interested in, and executes a program

of action to earn public understanding and acceptance.

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The Function of Public Relations

Maintain a positive image Educate the public about the companys objectives Introduce new products

Support the sales effort

Generate favorable publicity
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Personal Selling
A purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other.

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Personal Selling
Traditional Selling

Relationship Selling

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Sales Promotion
Marketing activities other than personal selling, advertising, and public relations that stimulate consumer buying and dealer effectiveness.

Online
http://www.nabiscoworld.com
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Sales Promotion
Free samples

Contests
Premiums

End Consumers

Trade Shows
Vacation Giveaways

Company Employees

Trade Customers
Coupons
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Characteristics of the Elements in the Promotional Mix

Exhibit 16.3 Characteristics of the Elements in the Promotional Mix

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Review Learning Outcome

Elements of the Promotional Mix

LO4

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Promotional Goals and the AIDA Concept

Discuss the AIDA concept and its relationship to the promotional mix.

LO5

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The AIDA Concept

AIDA Concept (Attention, Interest, Desire, Action)- Model that outlines the process for achieving promotional goals in terms of stages of consumer Involvement with the message.

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The AIDA Concept

Action

Desire
Interest Attention

Conative (doing)

Affective (feeling)

Cognitive (thinking)

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Review Learning Outcome

The AIDA Concept

LO5

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Integrated Marketing Communications

Discuss the concept of integrated marketing communications.

LO6

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Integrated Marketing Communications

The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.

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IMC Popularity Growth

Proliferation of thousands of media choices
Fragmentation of the mass market Slash of advertising spending in favor of promotional techniques that generate immediate response

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Review Learning Outcome

Integrated Marketing Communications

LO6

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Factors Affecting the Promotional Mix

Describe the factors that affect the promotional mix.

LO7

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Factors Affecting the Choice of Promotional Mix

Nature of the product Stage in PLC Target market factors Type of buying decision Promotion funds Push or pull strategy
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Stage in the Product Life Cycle

Sales ($)

Maturity Introduction Time Growth Decline

Preintroduction Publicity, light advertising

Heavy use of advertising & PR to build awareness; sales promotion for trial

Advertising, PR, brand loyalty; personal selling for distribution

Ads decrease; sales promotion; personal selling; reminder & persuasive

AD/PR decrease; limited sales promotion; personal selling for distribution

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Target Market Characteristics

Advertising
Sales Promotion For Widely scattered market

Less Personal Selling

Informed buyers
Brand-loyal repeat purchasers

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Type of Buying Decision

Advertising

Routine
Sales Promotion Advertising Public Relations Personal Selling

Neither Routine nor Complex

Complex
Print Advertising

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Available Funds
Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements

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Push and Pull Strategies

PUSH STRATEGY
Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer Consumer buys from retailer

Orders to manufacturer

PULL STRATEGY
Manufacturer promotes to consumer Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer

Orders to manufacturer
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Review Learning Outcome

Factors Affecting Promotional Mix

LO7

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Chapter 16 Company Clip

Vans has a carefully planned marketing strategy that resonates with the youth culture the companys target market for shoes and athletic apparel
http://www.cengage.com/marketing/book_content/ 9781111821647_lamb/videos/ch16.html

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