University of Washington EMBA Program Marketing Management “Communications Mix Intro, Promoting the Offer” (Promotions!) Instructor: Elizabeth Stearns

Strategy Formulation Program Formulation Contention Differing Perspectives Marketing Finance Human Resources R&D Operations Sales Project Planning Consensus Execution Coordination Creativity The Strategy Development and Implementation Process

The Marketing Toolbox Product Marketing Mix Place (Distribution) Service Promotion (Communications) Price

Product Variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns Price List Price Discounts Allowances Payment Period Credit Terms Promotion (Communications) Sales Promotion Advertising Salesforce Public Relations Direct Marketing Channels Coverage Assortments Locations Inventory Transport Product Place (Distribution) Target Market Marketing Mix

Designing Offers for Customers Offer CostValue Price Time Effort Risk Brand Equity Product DeliveryServices Technical Innovation Sales Relation- ship

Promotion Definition: –Promotion is the means by which we communicate with, and attempt to influence, the attitudes and behavior of the customers that we have targeted

Advertising Personal Selling Public Relations and Sponsorship Marketing Direct Marketing Communications Sales Promotion Point-of-Purchase Communications Economic Environment Competitive Environment Technological Environment Social-Cultural Demographic Environment Regulatory Environment Product Decisions Distribution Decisions Promotion Decisions Pricing Decisions Environmental Influences Dryden Press

Tools Advertising –Any paid for form of non-personal communication Direct Response –Individually targeted and requests a response to the advertiser Sales Promotion –Any short term incentive to immediate purchase (consumer or trade) Publicity/Public Relations –Any not paid for, commercially significant news or comment

Tools Personal Selling –Any paid-for personal form of communication Trade Show –A physical location where potential customers can view the product Packaging –Material used to transport and display of goods for sale Point of Sale/Purchase –In-store displays to generate purchase

Key Issues in Promotion Management Multiple Customer Targets Push versus Pull Promotional Mix Designs Interactions and Integration in the Promotional and Marketing Mix Ethical Issues Budgeting

Push vs. Pull

General Choices Targeting Objective setting Budgeting Specific Choices Mixing Elements Creating Messages Selecting Media Establishing Momentum Program Evaluation Measuring Result Enhancing Brand Equity Structuring the Organization For Marketing Communication Decisions Monitoring and Managing the Marketing Environment The Marketing Communications Decision Process Making Brand Level Marketing Communications Decisions Harcourt, Inc

Target ObjectiveBudget General Choices Triangle Harcourt, Inc Key Question: HOW? What is the right mix?

Elements in the Communications Process Source (Encodes Message) Message Channel Receiver (Decodes Message) Noise Feedback Harcourt, Inc

Hierarchical Processes Think Feel Do Advocacy

Alternative Hierarchical Processes Think Feel Do Advocacy Persuasive Hierarchy Think Do Feel Low Involvement Do (Click Through) Think Feel No Involvement

Alternative Hierarchical Processes Think Feel Do Persuasive Hierarchy Think Do Feel Low Involvement Product Awareness Visits BEquity Internet Model? (Low switching costs between sites means lots of trial before Branding impact)

Marketing Plan Review Analysis of promotional program situation Analysis of the communication process Budget Determination Develop integrated marketing communications program AdvertisingDirect Marketing Sales Promotion PR/ PublicityPersonal Selling Create Awareness Develop Attitudes Change Attitudes Inform Persuade Generate a Sale Generate a Lead Qualify a Lead Enhance a db Relationship Building Create Excitement Stimulate demand/sales(short term) Support sales force/trade/customer (selling and buying) Fostering Goodwill between co. and publics Brand Awareness Build Attitudes Encourage purchase behavior Influence purchase needs Educate consumers Provide Product usage/marketing assistance/ After sale service and support

Thank You!