Promotion Means Effective Communications Marketing Chapter 15

Role of Promotion Promotion –Any form of communication used to inform, persuade, or remind

Role of Promotion To Inform –First task of promotion –Often done when product is in introduction stage of life cycle To Persuade –Attempts to encourage customer to take specific action –Important during growth stage of life cycle

Role of Promotion To Remind –Final role of promotion activities –Frequently used in maturity stage of life cycle

Communication Process The transfer of a message from sender to a receiver –Sender Originator of the message –Encoding Putting message into language or symbols that are familiar to the intended receiver

Communication Process –Message Channel The medium the sender chooses to transmit the message –TV, radio, billboard, Internet, newspaper, magazine, direct mail, sales presentation –Decoding Interpreting the message or converting it into meaning or ideas

Communication Process –Receiver Person/persons to whom the encoded message is directed –Noise Interference that can cause the message to be interpreted by receiver incorrectly –Feedback Receivers reactions or response to the sources message

Types of Communication Interpersonal Communication –Involves two or more people in some kind of person-to-person exchange Mass Communication –Communication to a huge audience, usually through mass media such as magazines, radio, television, or newspaper.

Types of Promotion Advertising –Any paid form of non-personal communication sent through a mass medium by an organization about its product

Types of Promotion Advertising –Advantages Reaches millions of people Can reach geographically diverse people at the same time Repeats messages many times

Types of Promotion –Disadvantages High cost Target audience may not be at the right place to receive message Impersonal in nature

Publicity Non-paid form of communication about a business or organization or its products –Usually a news story Advantages –Creates goodwill (positive feelings) Disadvantages –Organization had little control over story – generated by media

Personal Selling Person-to-person communication with a potential customer in an effort to inform, persuade, or remind them to purchase an organizations product. Advantages –Personal contact –Customer feedback is immediate Disadvantages –Per person cost is high –Every sales encounter does not result in a sale

Sales Promotion Activities or materials that offer consumers a direct incentive to buy a good or service Advantages –Generates immediate short-term sales –Used to support other parts of the promotional campaign Disadvantages –Cost If the promotion does not result in a significant sales increase, the business will lose money.

Advertising is a Marketing Tool Marketing Responsibilities –Marketing Strategy Show the products value –Stand Out in the Crowd Focus on features/attributes that makes product unique –Target the Customer Focus on the type of customer most likely to purchase the product –Contribute to Revenue Creating sales

Advertising as a Marketing Tool –Brand Loyalty Image and repeat customers –Enhance Customer Satisfaction Reinforcing consumer decision to buy your product –Life of Product Good advertising generates revenue and profit