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Marketing Chapter 13
Terms in this set (54)
Refers to promotion activities- other than advertising, publicity, and personal selling - that stimulate interest, trial, or purchase by final customers or others in the channel. Sales promotion may be aimed at consumers, at intermediaries or even at a firms own employees
Is communicating information between a seller and a potential buyer or others in the channel to influence attitudes and behavior. A key part of modern marketing is the use of several promotion tolls that work together to achieve a company's overall promotion goals
Direct spoken communication between sellers and potential customers
- Salespeople get quick feedback and can adapt to the 4 pls on the spot. A sales force can be very expensive to build and maintain.
communicating with large numbers of potential customers at the same time, useful when the target market is large and geographically dispersed.
Advertising is any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor. Media include television, radio, magazines, billboards, direct mail, and the Internet.
Publicity is any unpaid form of nonpersonal presentation of ideas, goods, or services. Publicity professionals try to get stories about their company's products placed in mass media vehicles without having to pay media costs.
Examples of sales promotion aimed at final consumers include: contests; coupons; aisle displays; samples; trade show displays; point-of-purchase materials; banners and streamers; frequent-buyer programs; and sponsored special events.
Examples of sales promotion aimed at wholesalers or retailers include: price deals; promotion allowances; sales contests; calendars; gifts; trade show displays; meeting sponsorships; catalogs; videos; and other merchandising aids.
Examples of sales promotion aimed at the company's own sales force include: contests; bonuses; meeting sponsorships; customized portfolios; displays; sales aids; and training materials.
Sales promotion can be implemented quickly and get results sooner.
Most sales promotion efforts are designed to produce immediate results.
More money is spent on sales promotion and personal selling than on mass media advertising.
Sales managers: are concerned with managing personal selling.
This may involve building and maintaining channels of distribution.
In smaller companies, the sales manager may double as the marketing manager.
Advertising managers: manage the company's mass selling effort, using in-house advertising departments or external agencies.
advertising manager may also handle publicity or use an internal or external specialist in public
Sales Promotion managers
Sales promotion managers: manage the sales promotion effort
Marketing manager: must determine the blend of promotional activities and coordinate them. The individual promotion specialists can then focus on the details of implementation.
Effective blending of promotion efforts is achieved through integrated marketing communications, so that the firm can send a consistent and complete message.
Informing, persuading, and reminding are basic promotion objectives. More specific promotion objectives should describe who the target is and why.
Informing is educating. Promotion helps customers learn about products. Informing is especially important for products that are really new.
Persuading usually becomes necessary in order to convince the market to buy the firm's products instead of some other firm's products.
A reminding objective might be suitable (sometimes) if target customers already have positive attitudes about a firm's marketing mix.
Adoption process: the process consumers go through in adopting a new idea or product.
Informing and persuading are related to the adoption process in that these objectives may be needed to affect the potential customer's knowledge and attitudes about a product and then bring about an adoption.
Later promotion can remind the customer about the favorable experience and confirm the adoption decision.
The AIDA model is a practical approach for looking at what promotion tries to accomplish. Its four promotion jobs include:
Attention: Promotion first seeks to break through the clutter of information in the marketplace and get the attention of a person in the target market.
Interest: Next, promotion seeks to arouse curiosity and stimulate greater interest in the product.
: Promotion then seeks to get an emotional response, a "buy-in" whereby the customer has a strong desire for the product.
Finally, promotion helps the customer take action—to "buy now."
The communication process consists of all the elements that go into the creation, transmission, reception, and interpretation of meaning from one party to another. Marketing managers must be aware of each element of the process and how obstacles to effective communication with target customers can be overcome.
The source is the sender of the message. In marketing communications, the source is the seller.
The receiver is the intended audience of the message, the target customer.
is the process of deciding what to say and how to say it—translating the meaning the source has into words and symbols that will mean the same thing to the receiver.
is the carrier of the message. A marketing manager may choose advertising, a website, a salesperson, a sales brochure—or many other channels to deliver the message
Decoding is the process of the receiver translating the message sent by the source.
Noise is any distraction that reduces the effectiveness of the communication process.
The model also recognizes feedback that a receiver might give to a source. Personal selling has the advantage of getting immediate feedback. Mass marketers may include toll-free numbers or web addresses to speed up feedback from customers.
Direct-response promotion is more than direct-mail advertising.
It includes telephone, print, e-mail, Internet, broadcast, and other media.
Consumers respond by making a purchase, asking for more information, calling a toll-free number, or clicking on a website. Marketers must coordinate direct-response efforts with other promotion.
Direct response promotion targets a customer directly using a database that can contain information about past purchase behavior and other segmenting characteristics.
An outbound model for promotion
Marketing managers gather information about target markets to encode messages target customers will understand.
The consumer initiates communication with a search process in a particular message channel, such as the Internet. The consumer actively controls where he/she goes for information.
After selecting a topic, the consumer decides how much information to get. A consumer can get as much, or as little information as he/she needs. Marketers do not control all information.
Custom communications will be more personalized. The Internet allows marketers to track requests for certain kinds of information and tailor new promotion efforts back to the seeker, often with a personalized address.
Promotion methods raise ethical concerns, including:
Viewing "Advertorials" unawares,
security of personal information in a database;
"cookies"--that are transmitted to customers' computers by Internet marketers.
Most marketers involved in promotion take steps to address these concerns.
There is no one right promotion blend for all situations. Accordingly, marketing managers must constantly examine each situation and adapt promotion tools to best address the needs of target customers in each particular situation.
Pushing a product through a distribution channel means using normal promotion tools to help sell the whole marketing mix to possible channel members.
This helps build channel commitment and cooperation and can take several forms.
A producer can get a push in the channel with promotion to intermediaries.
This form of promotion emphasizes personal selling. The direct contact of this approach helps emphasize the importance of the promotion to the company.
The challenge for the producer's sales rep is to show wholesalers and retailers that there is sufficient demand for the product and that it will be profitable.
Pulling means getting customers to ask for the product. It involves promotion activities directed at final consumers or business customers.
Pulling typically involves use of mass selling tools to stimulate demand for a particular brand.
Customers, who are aware of and interested in the product look for it at retail stores. Ads may even encourage consumers to ask the retailer to carry the product if the store doesn't have it in stock.
Resulting sales of the product encourage the intermediaries to order more or give the product more attention.
The adoption curve shows when different groups accept ideas. Marketers have long observed that the rate of adoption of a new-product idea varies across these different groups. Promotion must vary for different adopter groups.
are the first to buy and don't mind taking some risks. Innovators search out product information and rely on impersonal and scientific sources (or other innovators) when making decisions.
are well respected by their peers and also often serve as opinion leaders for others. Of all groups, this one has the most contact with salespeople. High satisfaction among early adopters can aid word-of-mouth information about a product, which is highly credible.
group wants to avoid risk and waits to consider a new idea until many early adopters have tried a product and like it. This is a group of deliberate decision makers. They have extensive contact with salespeople, mass media, and early adopter opinion leaders.
Whereas the early majority group is deliberate in decision making, the late majority is downright cautious. People in this group are often older than the early majority group and are more set in their ways. This group makes little use of marketing sources of information.
Laggards or non adopters hang on to tradition
and are very suspicious of new ideas. They are older and less well educated than the other groups. Laggards tend to listen most to other laggards, making them very difficult to reach.
In market introduction, the basic promotion objective is informing. For really new product concepts, promotion focuses on building primary demand—demand for the general product idea. Promotion in market introduction says, "this new idea is good." Appeals to final consumers tend to focus on personal selling, while both personal selling and sales promotion are useful in business markets.
In the market growth stage, the message changes to one of "our brand is best." Promotion builds selective demand—demand for the company's own brand. Mass selling becomes more feasible in this stage, especially among final consumers, but personal selling and sales promotion are still important in business markets
In market maturity, persuasive promotion takes priority. The main message is, "our brand is better, really." Mass selling and sales promotion may dominate the promotion mix for consumer products. Business products may benefit from more aggressive personal selling. Firms that have strong brands can use reminder-type promotion at this stage. Other communications and sales promotion may strengthen relationships with consumers.
In sales decline, the message is, "let's tell those who still want our product."
The most common method of budgeting for promotion expenditures is to compute a percentage of past or anticipated future sales. This method is very straightforward. But it is also mechanical and does not consider situational variables or other market forces.
Sometimes called zero-based budgeting, this method links the promotion budget to a careful determination of what must be done to reach the promotion and sales objectives. This method most embodies the marketing concept and is customer-oriented.
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