Chapter 13 Notes: Promotion - Integrated Communications

Chapter 13 Notes PROMOTION-- INTEGRATED COMMUNICATIONS PROMOTION--communicating information between seller and potential buyer or others in the channel to influence attitudes and behavior. PERSONAL SELLING--direct spoken communication between sellers and potential customers. MASS SELLING--communicating with large numbers of potential customers at the same time. ADVERTISING--any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor. PUBLICITY--any unpaid form of nonpersonal presentation of ideas, goods, or services. SALES PROMOTION--promotion activities--other than advertising, publicity, and personal selling--that stimulate interest, trial, or purchase by final customers or others in the channel. • Less is spent on advertising than personal selling or sales promotion SALES MANAGERS--managers concerned with managing personal selling. ADVERTISING MANAGERS--managers of their company's mass selling effort--in television, newspapers, magazines, and other media. PUBLIC RELATIONS--communication with noncustomers-including labor, public interest groups, stockholders, and the government. SALES PROMOTION MANAGERS--managers of their company's sales promotion effort. • Marketing manager talks to all, blends all INTEGRATED MARKETING COMMUNICATIONS--the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message. • Informing, persuading, and reminding are basic promotion objectives • Informing is educating • Persuading usually becomes necessary • Reminding may be enough, sometimes • Promotion objectives relate to adoption process • The AIDA model is a practical approach AIDA MODEL--consists of four promotion jobs--(1) to get Attention, (2) to hold Interest, (3) to arouse Desire, and (4) to obtain Action. COMMUNICATION PROCESS--a source trying to reach a receiver with a message. SOURCE--the sender of a message. RECEIVER--the target of a message in the communication process, usually a potential customer. NOISE--any distraction that reduces the effectiveness of the communication process. ENCODING--the source in the communication process deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver. DECODING--the receiver in the communication process translating the message. MESSAGE CHANNEL--the carrier of the message. THE CUSTOMER MAY INITIATE THE COMMUNICATION PUSHING--using normal promotion effort--personal selling, advertising, and sales promotion--to help sell the whole marketing mix to possible channel members. • Promotion to middlemen emphasizes personal selling • Push within a firm--with promotion to employees • Pulling policy--customer demand pulls the product through the channel • PULLING--getting customers to ask middlemen for the product. ADOPTION PROCESSES CAN GUIDE PROMOTION PLANNING ADOPTION CURVE--shows when different groups accept ideas. INNOVATORS--the first group to adopt new products. EARLY ADOPTERS--the second group in the adoption curve to adopt a new product, these people are usually well respected by their peers and often are opinion leaders. -Opinion leaders help spread the word EARLY MAJORITY--a group in the adoption curve that avoids risk and waits to consider a new idea after many early adopters have tried it--and liked it. LATE MAJORITY--a group of adopters who are cautious about new ideas. LAGGARDS or NONADOPTERS--prefer to do things the way they've been done in the past and are very suspicious of new ideas. PROMOTION BLENDS VARY OVER THE LIFE CYCLE • Stage of product in its life cycle • Market introduction stage--"this new idea is good" PRIMARY DEMAND--demand for the general product idea, not just the company's own brand. • Market growth stage--"our brand is best" SELECTIVE DEMAND--demand for a company's own brand rather than a product category. • Market maturity stage--"our brand is better, really" • Sales decline stage--"let's tell those who still want our product" SETTING THE PROMOTION BUDGET • Size of budget affects promotion efficiency and blend • Find the task, budget for it TASK METHOD--an approach to developing a budget--basing the budget on the job to be done.