Section 13

• The promotional mix


  • Advertising
  • Sales promotion
  • Personal selling
  • Public relations
  • Direct marketing
  • Events/experiences
  • Integrated marketing communications

  
• Advertising


  Paid, nonpersonal communication about an organization and its products transmitted to a target audience through mass media
• Advertising


  • Cost efficient per person
  • Can enhance brand image
  • Repeatable
• Advertising


  • Total cost can be high
  • Slow feedback
  • One-way message
  • Not flexible
• Sales promotion


  An activity or material that acts as a direct inducement, offering added value or incentive for the product
• Sales promotion tools


  • Rebates
  • Contests, games, sweepstakes
  • Coupons
• Sales promotion


  • Can be implemented quickly
  • Can help to move seasonal items
  • Enhance effectiveness of other promotional mix elements
• Sales promotion


  • Not good for luxury products
• Personal selling


  Paid, personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation
• Personal selling


  • More influential
  • Immediate feedback
  • Flexible
• Personal selling


  • High cost per person
  • Time intensive
• Public relations


  Broad set of communication efforts used to create and maintain favorable relationships between organization and its stakeholders
• Public relations


  • Publicity can help build brand image
  • Support other promotional efforts
• Public relations


  • Firm cannot control what news agencies say
• Integrated marketing communications


  Carefully coordinating all promotional messages to assure the consistency at every touchpoint between a company and the consumer
• Marketing communication process


  The way in which a sender encodes a marketing idea and conveys it through message and medium so receivers can decode and understand it, and then respond with feedback
• AIDA concept


  Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message
• AIDA stages


  • Attention
  • Interest
  • Desire
  • Action
• Goals and tasks of promotion

  • Informing
  • Reminding
  • Persuading
• Informative promoting


  • Increase awareness
  • Explain how product works
  • Suggest new uses
  • Build company image
• Persuasive promoting


  • Encourage brand switching
  • Change perceptions
  • Influence buying decision
  • Customers to call
• Reminder promoting


  • Remind customers that products may be needed
  • Remind customers when to buy product
  • Maintain customer awareness
• Evaluating impact: Source control

  Word of mouth, public relations, personal selling, sales promotion, advertising
• Evaluating impact: Credibility


  Personal selling - sales people, public relations, sales promotion, advertising, word of mouth
• Personal selling - sales people


  Representatives of a company interact directly with other company personnel to provide information to help the personnel make a buying decision about a product or service
• Personal selling - one to one interaction


  • Address specific customer needs
  • Alter message
  • Provide additional information
• Personal selling - best in a B2B context


  • Push strategy
  • Complex product
  • Expensive
  • Negotiate
  • Custom product
  • Infrequent purchase
• Advantages of personal selling

  • Detailed explanation or demonstration
  • Variable sales message
  • Directed to qualified products
  • Controllable adjustable selling costs
  • More effective than other promotion in obtaining sale and gaining customer satisfaction
• Relationship selling


  Sell advice, counsel, focus on customer bottom line, wants to form a relationship and truly help while selling their product
• Traditional selling


  Sell products, focus on closing sales, just wants to sell, does not care about customer
• Generating leads


  • Recognized need
  • Buying power
  • Receptivity and accessibility