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1、Marketing Management,Promotion and Pricing Strategies,14-3,Chapter Objectives,Discuss how integrated marketing communications relates to a firms promotional strategy.Explain the concept of a promotional mix and outline the objectives of promotion.Summarize the different types of advertising and adve
2、rtising media.Describe the role of sales promotion,personal selling,and public relations in promotional strategy.Identify the Profitabilitynfluence the selection of a promotional mix.Discuss the major ethical issues involved in promotion.Outline the different types of pricing objectives and discuss
3、how firms set prices in the marketplace.Summarize the four alternative pricing strategies.Discuss consumer perceptions of price.,14-4,Integrated Marketing Communications,Promotioncommunication link between buyer and seller that performs the function of informing,persuading,and influencing a purchase
4、 decision.Focusing on Primary DemandFocusing on Selective Demand,14-5,Integrated Marketing Communications,Coordination of all promotional activities media advertising,direct mail,personal selling,sales promotion,and public relations to produce a unified customer-focused message.Focuses on customer n
5、eeds to create a unified promotional messageFirms need a broad view of promotion to implement IMC,14-6,The Promotional Mix,Promotional Mixcombination of personal and nonpersonal selling techniques designed to achieve promotional objectives.Personal Sellinginterpersonal promotional process involving
6、a sellers face-to-face presentation to a prospective buyer.Nonpersonal sellingconsists of advertising,sales promotion,direct marketing,and public relations,14-7,Comparing the Components of the Promotional Mix,14-8,The Promotional Mix,Objectives of Promotional StrategyProviding InformationDifferentia
7、ting a ProductIncreasing SalesStabilizing SalesAccentuating the Products Value,14-9,Five Major Promotional Objectives,14-10,The Promotional Mix,Objectives of Promotional StrategyProviding InformationMajor portion of U.S.advertising is information-oriented Differentiating a ProductPositioning:establi
8、shing a place in the minds of customers by communicating meaningful distinctions about the attributes,price,quality,or use of a good or service,14-11,The Promotional Mix,Objectives of Promotional StrategyIncreasing SalesMost common objective of a promotional strategy Stabilizing SalesSales contests
9、often used during slack periodsSales promotion materials often distributed to customers to stimulate sales during off-seasons,14-12,The Promotional Mix,Objectives of Promotional StrategyAccentuating the Products ValuePromotional strategies can enhance product values by explaining often unrecognized
10、ownership benefits,14-13,The Promotional Mix,Promotional PlanningIncreasing complexity and sophistication of marketing communications requires careful planning to coordinate IMC strategiesProduct PlacementGuerrilla Marketing,14-14,Advertising,Advertisingpaid nonpersonal communication delivered throu
11、gh various media and designed to inform,persuade,or remind members of a particular audience.,14-15,The 15 Largest Advertisers in the United States,14-16,Advertising,Types of AdvertisingProduct Advertisingconsists of messages designed to sell a particular good or serviceInstitutional Advertisinginvol
12、ves messages that promote concepts,ideas,philosophies,or goodwill for industries,companies,organizations,or government entities,14-17,Advertising,Advocacy Advertising(Cause Advertising):promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process,1
13、4-18,Advertising,Advertising and the Product CycleProduct and Institutional Advertising fall into one of three categories,based on whether the ads intend to inform,persuade,or remindInformative Advertisingused to build initial demand for a product in the introductory phase of the product life cycle,
14、14-19,Advertising,Advertising and the Product CyclePersuasive Advertisingattempts to improve the competitive status of a product,institution,or concept,usually in the growth and maturity stages of the product life cycle Comparative Advertisingform of persuasive product advertising that compares prod
15、ucts directly with their competitors,14-20,Advertising,Advertising and the Product CycleReminder-oriented advertisingoften appears in the late maturity or decline stages of the product life cycle to maintain awareness of the importance and usefulness of a product,concept,or institution,14-21,Adverti
16、sing,Advertising MediaMust choose how to allocate advertising budgetAll media offer advantages and disadvantagesMust consider cost and which media is best suited for communication,14-22,Advertising Media,14-23,Advertising,Advertising MediaNewspaperContinue to dominate local advertisingAds easily tai
17、lored for local tastes and preferencesCan coordinate newspaper messages with other promotional effortsDisadvantage:relatively short life span,14-24,Advertising,Advertising MediaTelevisionAmericas leading national advertising mediumAn expensive advertising mediumPrice for a 30-second ad during weekni
18、ght prime time on network television generally ranges from$100,000 to more than$500,000,14-25,Advertising,Advertising MediaRadioAverage U.S.household owns five radiosCaptive audience of listeners as they commute to and from workIn major markets,many stations serve different demographic groups with t
19、argeted programming,14-26,Advertising,Advertising MediaMagazinesIncludes consumer publications and trade journals Can often customize their publications and target advertising messages to different regions of the country A natural choice for targeted advertising,14-27,Advertising,Advertising MediaDi
20、rect MailAverage American household receives about 550 pieces of direct mail each year,including 100 catalogse-mail another optionMust overcome junk-mail and spam classification,14-28,Advertising,Advertising MediaOutdoor AdvertisingJust over 2 percent of total advertising spendingShare is growingMaj
21、ority of spending is for billboardsOther types include:signs in transit stations,stores,airports,and sports stadiumsDisadvantages include:Brief messages are requiredMounting concern for aesthetic and environmental issues,14-29,Advertising,Advertising MediaOnline and Interactive AdvertisingRange from
22、 Web sites and CDs to information kiosks Currently commands only 3 percent of media spending,but is the fastest-growing media segment,14-30,Advertising,Advertising MediaSponsorshipinvolves providing funds for a sporting or cultural event in exchange for a direct association with the eventSports spon
23、sorships attract two-thirds of total sponsorship dollars Primary benefits:exposure to the events audience and association with the image of the activity,14-31,Advertising,Advertising MediaOther Media OptionsInfomercials:30-minute programs that resemble regular TV programs,but are devoted to selling
24、goods or services Other Media options include:Ads in movie theatersAds on airline movie screensPrinted programs,Subway ticketsTurnpike toll receiptsAutomated teller machines,14-32,Sales Promotion,Sales promotionnonpersonal marketing activities other than advertising,personal selling and public relat
25、ions that stimulate consumer purchasing and dealer effectiveness.Potential advantages:Short-term increased salesIncreased brand equityEnhanced customer relationships,14-33,Sales Promotion,Consumer-Oriented PromotionsGoals of a consumer-oriented sales promotion include:Getting new and existing custom
26、ers to try or buy productsEncouraging repeat purchases by rewarding current usersIncreasing sales of complementary productsBoosting impulse purchases,14-34,Spending on Consumer-Oriented Promotions,14-35,Sales Promotion,Consumer-Oriented PromotionsPremiumsitems given free or at a reduced price with t
27、he purchase of another product.Coupons offer small price discountsRebates offer cash back to consumersSamplea gift of a product distributed by mail,door-to-door,in a demonstration,or inside packages of another product,14-36,Sales Promotion,Consumer-Oriented PromotionsGames,Contests,and SweepstakesOf
28、fering cash,merchandise or travel as prizes to participating winnersOften used to introduce new goods and services and to attract additional customers Court rulings and legal restrictions have limited the use of contests,14-37,Sales Promotion,Consumer-Oriented PromotionsPromotional Products(Specialt
29、y advertising)Because these specialty advertising products are useful,people tend to keep and use them Gives advertisers repeated exposureOriginally designed to identify and create goodwill for advertisersNow generates sales leads and develops traffic for stores and trade show exhibitors.,14-38,Sale
30、s Promotion,Trade-Oriented Promotions Trade promotionsales promotion geared to marketing intermediaries Used to encourage retailers to:Stock new productsContinue carrying existing onesPromote products effectively to consumers.,14-39,Sales Promotion,Trade-Oriented Promotions Point-of-purchase(POP)adv
31、ertising displays or demonstrations that promote products when and where consumers buy themTakes advantage of many shoppers tendencies to make purchase decisions in the store Trade showspromote goods or services to intermediaries,14-40,Personal Selling,Personal sellinginterpersonal promotional proce
32、ss involving a sellers face-to-face presentation to a prospective buyer.Used most often when:Customers are relatively few in number and geographically concentratedProduct is technically complex,involves trade-ins,and requires special handlingProduct is high in priceProduct moves through direct-distr
33、ibution channels,14-41,Personal Selling,Sales TasksOrder Processingselling,mostly at the wholesale and retail levels,that involves identifying customer needs,pointing them out to customers,and completing ordersCreative Sellingpersonal selling involving situations in which a considerable degree of an
34、alytical decision making on the buyers part results in the need for skillful proposals of solutions for the customers needs,14-42,Personal Selling,Sales TasksMissionary Sellingindirect form of selling in which specialized salespeople promote goodwill among indirect customers,often by assisting custo
35、mers in product use,14-43,Personal Selling,The Sales ProcessSeven Steps in the Sales Process,14-44,Personal Selling,The Sales ProcessProspecting,Qualifying,and ApproachingProspecting involves identifying potential customersQualifying involves identifying potential customers who have the financial ab
36、ility and authority to buy.Before making the initial contact:Careful preparations are madeAvailable data about a prospective customer and other pertinent information is analyzed,14-45,Personal Selling,The Sales ProcessPresentation and DemonstrationInvolves communicating promotional messagesMajor fea
37、tures of the product,highlights of the advantages,and examples of satisfied consumers are typically presentedInvolves the prospect in the sales presentationReinforces the message that the salesperson has been communicating,14-46,Personal Selling,The Sales ProcessHandling ObjectionsAllows sales perso
38、nnel to remove obstacles and complete the saleCan become a positive part of the sales process Allows the salesperson to present additional information,14-47,Personal Selling,The Sales ProcessClosingCritical point in a selling relationship the time at which the salesperson actually asks the prospect
39、to buyIf the presentation effectively matches product features to customer needs,the closing should be a natural conclusion.,14-48,Personal Selling,The Sales ProcessFollow-upSalespersons actions after the sale may well determine whether the customer will make another purchaseBuilding a long-term rel
40、ationship By calling soon after a purchase,the salesperson provides psychological reinforcement for the customers decision to buyAlso gives the seller a chance to correct any problems,14-49,Personal Selling,Recent Trends in Personal SellingTelemarketingOutbound telemarketingwhen a sales representati
41、ve calls you at your place of business Inbound telemarketingwhen the customer calls a toll-free phone number to get information or place an order.,14-50,Personal Selling,Recent Trends in Personal SellingRelationship Sellingwhen a salesperson builds a mutually beneficial relationship with a customer
42、through regular contacts over an extended periodConsultative sellingmeeting customers needs by listening to them,understanding and caring about their problems,paying attention to details,suggesting solutions,and following through after the sale,14-51,Personal Selling,Recent Trends in Personal Sellin
43、gTeam sellingjoins salespeople with specialists from other functional areas of the firm to complete the selling processSales force automation(SFA)incorporates a broad range of tools,from e-mail,telecommunications devices like pagers and cell phones,and laptop computers to increasingly sophisticated
44、software systems that automate the sales process,14-52,Public Relations,Public Relationsorganizations communication and relationships with its various audiences.Publicitystimulation of demand for a good,service,place,idea,person,or organization by disseminating news or obtaining favorable unpaid med
45、ia presentations.,14-53,Promotional Strategies,Selecting a Promotional MixGuidelines for allocating promotional efforts and expenditures among personal selling and advertising:What is your target market?What is the value of the product?What time frame is involved?,14-54,Promotional Strategies,Pushin
46、g and Pulling StrategiesPushing strategypromotional effort by a seller to members of the distribution channel intended to stimulate personal selling of the good or service,thereby pushing it through the channelCooperative advertisingallowances in which firms share the cost of local advertising of th
47、eir product or line with channel partners,14-55,Promotional Strategies,Pushing and Pulling StrategiesPulling strategypromotional effort by a seller to stimulate demand among final users,who will then exert pressure on the distribution channel to carry the good or service,pulling it through the distr
48、ibution channel,14-56,Ethics in Promotion,Puffery and DeceptionPufferyexaggerated claims of a products superiority or use of doubtful,subjective,or vague statementsOther promotional elements can also involve deceptionSalespeople have deceived customers with misleading information,14-57,Ethics in Pro
49、motion,Promotion to Children and TeensRisk of deception is especially great with promotion targeted to children and teensChildren not sophisticated at analyzing promotional messages,14-58,Ethics in Promotion,Promotion in Public Schools and on College CampusesIncludes promotional book covers,posters,
50、and even curriculum materials provided to todays schoolsSome schools sign contracts that give certain brands exclusive access to their students Can generate a backlash,14-59,Price in the Marketing Mix,Priceexchange value of a good or service.Pricing Objectives,14-60,Price in the Marketing Mix,Profit
