1. Marketing Communications
Chapter 15 Marketing Communications
Chapter 16
Marketing Communications
MKTG9
Lamb, Hair, and McDaniel
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2. © 2016 Cengage Learning. All Rights Reserved.
Chapter 15 Marketing Communications
LEARNING OUTCOMES
16-1 Discuss the role of promotion in the marketing mix
16-2 Describe the communication process
16-3 Explain the goals and tasks of promotion
16-4 Discuss the elements of the promotional mix
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3. © 2016 Cengage Learning. All Rights Reserved.
Chapter 15 Marketing Communications
LEARNING OUTCOMES
16-5 Discuss the AIDA concept and its relationship to the promotional mix
16-6 Discuss the concept of integrated marketing communications
16-7 Describe the factors that affect the promotional mix
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4. Discuss the role of promotion in the marketing mix
Chapter 15 Marketing Communications
The Role of Promotion
in the Marketing Mix
16-1
Discuss the role of promotion in the marketing mix
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Chapter 15 Marketing Communications
The Role of Promotion
Promotional Strategy
A plan for the optimal use of the elements of promotion:
Advertising
Public Relations
Personal Selling
Sales Promotion
Social Media
Notes:
Few goods or services, no matter how well developed, priced, or distributed, can survive in the marketplace without effective promotion—communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.
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6. 16.1 Role of Promotion in the Marketing Mix
Chapter 15 Marketing Communications
Notes:
As Exhibit 16.1 shows, the marketing manager determines the goals of the promotional strategy in light of the firm’s overall goals for the marketing mix.
Using the overall goals, marketers combine the elements of the promotional strategy into a coordinated plan.
This plan becomes an integral part of the marketing strategy for reaching the target market. The main function of promotional strategy is to convince target customers that the goods and services offered provide a competitive advantage over the competition.
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7. Competitive Advantage
Chapter 15 Marketing Communications
Competitive Advantage
Unique features
Excellent service
Low prices
Rapid delivery
High product quality
Notes:
The main function of a marketer’s promotional strategy is to convince the target market that the goods and services offered provide a competitive advantage.
A competitive advantage is the set of unique features of a company and its products that are perceived as superior over the competition. These features are listed on this slide.
Discussion/Team Activity:
Discuss companies and products that demonstrate a competitive advantage based on the features shown above.
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8. Describe the communication process
Chapter 15 Marketing Communications
Marketing
Communication
16-2
Describe the communication process
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Chapter 15 Marketing Communications
Communication
The process by which meanings are exchanged or shared through a common set of symbols.
Notes:
Promotional strategy is closely related to the process of communication. As humans, we assign meaning to feelings, ideas, facts, attitudes, and emotions.
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10. Marketing Communication
Chapter 15 Marketing Communications
Marketing Communication
Categories of
Communication
Interpersonal
Mass
Notes:
Communication can be divided into two major categories:
• Interpersonal communication is direct, face-to-face communication between two or more people.
• Mass communication refers to communicating a concept or message to larger audiences, usually through a mass medium such as television or newspapers.
When a company advertises, it does not know the consumers personally, nor is it able to respond immediately to reactions to the advertising message. Instead the marketing manager must wait and see how people are reacting to the mass-communicated promotion. Any clutter from competitors’ messages or other distractions can reduce the effectiveness of the mass communication effort.
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11. Marketing Communication
Chapter 15 Marketing Communications
Marketing Communication
As Senders
As Receivers
Develop messages
Adapt messages
Spot new communication opportunities
Inform
Persuade
Remind
Notes:
Marketers are both senders and receivers of messages. As senders, marketers inform, persuade, and remind the target market to adopt courses of action.
As receivers, marketers attune themselves to the target market in order to develop and adapt messages, and spot new communication opportunities.
Marketing communication is a two-way process.
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12. The Sender and Encoding
Chapter 15 Marketing Communications
The Sender and Encoding
Sender
The originator of the message in the communication process.
Encoding
The conversion of a sender’s ideas and thoughts into a message.
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13. The Channel and Noise Channel
Chapter 15 Marketing Communications
The Channel and Noise
Channel
A medium of communication used to transmit a message.
Noise
Anything that interferes with, distorts, or slows down the transmission of information.
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14. The Receiver and Decoding
Chapter 15 Marketing Communications
The Receiver and Decoding
Receiver
The person who decodes the message in the communication process.
Decoding
The interpretation of the message transmitted by the sender.
Notes:
In interpersonal communication, the receiver’s response to a message is called feedback.
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16.2
Communication
Process
Chapter 15 Marketing Communications
Notes:
Marketing communication is a two-way process, as shown in Exhibit 16.2.
The sender originates the message.
Encoding is the conversion of the sender’s ideas and thoughts into a message, usually words or signs.
Transmission of a message requires a channel—some communication medium. Reception occurs when the message is detected by the receiver. Transmission may be hindered because of noise—anything that interferes with, distorts, or slows down the transmission of information.
Decoding is the interpretation of the language and symbols sent. Proper match between the message to be conveyed and the target market’s attitude is the job of the marketing manager. Differences in culture, age, social class, education, and ethnicity can lead to miscommunication. Marketers targeting consumers in foreign countries must also worry about translation and miscommunication issues.
The receiver’s response to a message is direct feedback to the source. Since mass communicators are cut off from direct feedback, they rely on market research or analysis of viewer perceptions for indirect feedback.
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16. Communication and the Internet
Traditional advertising model:
Impersonal
Numbers driven
Unquantifiable consumer behavior
Internet and social media advertising:
Personal
Direct communication
Feedback driven
Highly visible communication
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17. Explain the goals and tasks of promotion
Chapter 15 Marketing Communications
The Goals of Promotion
16-3
Explain the goals and tasks of promotion
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18. Goals and Tasks of Promotion
Chapter 15 Marketing Communications
Goals and Tasks of Promotion
Informing
Reminding
Persuading
Target
Audience
Connecting
Notes:
Promotion seeks to modify behavior and thoughts in some way. It also strives to reinforce existing behavior.
Promotion has four basic tasks. It can inform, persuade, remind, or connect with the target audience. Often a marketer will try to accomplish two or more of these tasks at the same time.
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19. Goals and Tasks of Promotion
Chapter 15 Marketing Communications
Goals and Tasks of Promotion
Connecting
Informing
Reminding
Persuading
Target
Audience
PLC Stages:
Introduction
Early Growth
Growth
Maturity
All
Notes:
Informative promotion seeks to convert an existing need into a want or to stimulate interest in a new product. It is more prevalent during the early stages of the product life cycle.
Persuasive promotion is designed to stimulate a purchase or an action. It becomes the main promotion goal when the product enters the growth stage of its life cycle.
Reminder promotion is used to keep the product/brand name in the public’s mind. It is effective during the maturity cycle.
Connecting is designed to form relationships with customers and potential customers to encourage them to be brand advocates. This helps introduce new products, stimulate purchase, and keep the brand in customer’s minds, which makes connecting important for all stages in the PLC.
A discussion of each category follows.
Discussion/Team Activity:
Name products/brands and discuss the stage of their product life cycle. Categorize the type of promotion—informative, reminder, or persuasive—that is used in the product/brand promotional mix.
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20. Goals and Tasks of Promotion
Chapter 15 Marketing Communications
Goals and Tasks of Promotion
Increase awareness
Explain how product works
Suggest new uses
Build company image
Informative Promotion
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21. Goals and Tasks of Promotion
Chapter 15 Marketing Communications
Goals and Tasks of Promotion
Encourage brand switching
Change customers’ perceptions of product attributes
Influence immediate buying decision
Persuade customers to call
Persuasive Promotion
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22. Goals and Tasks of Promotion
Chapter 15 Marketing Communications
Goals and Tasks of Promotion
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
Reminder Promotion
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23. Goals and Tasks of Promotion
Chapter 15 Marketing Communications
Goals and Tasks of Promotion
Form relationships through social media
Encourage transparent information exchange
Customers become brand advocates
Connect Promotion
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24. elements of the promotional mix
Chapter 15 Marketing Communications
The Promotional Mix
16-4
Discuss the
elements of the promotional mix
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Chapter 15 Marketing Communications
The Promotional Mix
A combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. The promotional mix includes:
Advertising
Public Relations
Sales Promotion
Personal Selling
Social Media
Notes:
Most promotional strategies use several components of promotion, which may include advertising, public relations, sales promotion, personal selling, and social media to reach the target market.
The more emphasis is placed on a particular promotional element, the more important that element is considered to be in the overall promotional mix.
A discussion of each of the promotional mix elements follows.
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Chapter 15 Marketing Communications
Advertising
Most commonly distributed by traditional media, though increasingly through non-traditional media, such as Web sites, , blogs, and interactive video kiosks in malls and supermarkets.
Notes:
Almost all companies use some form of advertising, ranging from a newspaper classified ad to a multimillion-dollar campaign.
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Chapter 15 Marketing Communications
Advertising Media
Traditional
Advertising Media
New Advertising
Media
Television
Radio
Newspapers
Magazines
Pay-per-click advertising
Banner advertising
Direct mail
Billboards
Transit advertising
Web sites
Blogs
Videos
Interactive games
Notes:
Media choices are plentiful and fragmented. In addition to the traditional advertising media, new methods are being used to reach consumers.
Internet advertising is being increasingly used as a vital component of many companies’ promotion and marketing mixes.
Discussion/Team Activity:
Some consumers and lawmakers feel that consumer privacy is being violated with Internet advertising methods. Discuss this as a class.
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Chapter 15 Marketing Communications
Advertising
Advantages
Disadvantages
Total cost is high
National reach is expensive for small companies
Reach large number of people
Low cost per contact
Can be micro-targeted
Notes:
Advertising has the advantage of being able to reach larger numbers of people, but it can also be microtargeted to small groups.
Although the cost per contact in advertising is low, the total cost to advertise is typically very high, and can be restrictive of advertising on a national level.
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Chapter 15 Marketing Communications
Public Relations
Evaluates public attitudes, identifies areas within the organization that public may be interested in, and executes a program to earn public understanding.
Notes:
Many organizations spend large amounts of money to build a positive public image.
Public relations help an organization communicate with stockholders, customers, suppliers, government, employees, and the community.
Social media sites like Twitter can provide large amounts of publicity quickly.
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30. The Function of Public Relations
Chapter 15 Marketing Communications
The Function of Public Relations
Maintain a positive image
Educate the public about the company’s objectives
Introduce new products
Support the sales effort
Generate favorable publicity
Notes:
Public relations is used to maintain a positive image, as well as the functions shown on this slide.
Nothing sells a product better than free publicity, but publicity should not be viewed as free. Preparing news releases, staging events, persuading media personnel to print or broadcast them costs money.
Discussion/Team Activity:
Discuss current examples of publicity regarding organizations.
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Chapter 15 Marketing Communications
Sales Promotion
Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.
Notes:
Sales promotion is generally a short-run tool used to stimulate immediate increases in demand.
Sales promotion is used to improve the effectiveness of other ingredients in the promotion mix, especially advertising and personal selling.
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Chapter 15 Marketing Communications
Sales Promotion
Free samples
Contests
Premiums
Trade Shows
Vacation Giveaways
Coupons
End
Consumers
Trade Customers
Notes:
Sales promotion can be aimed at end consumers, trade customers, or a company’s employees.
A major promotional campaign might use several of the tools shown on this slide, along with the other elements of the promotion mix.
Discussion/Team Activity:
Discuss a few recent product releases. What sales promotion techniques were used to complement the other components of the marketing mix? What techniques make sales promotion efforts effective on college campuses?
Company Employees
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Chapter 15 Marketing Communications
Personal Selling
Planned presentation to one or more prospective buyers for the purpose of making a sale.
Notes:
Personal selling is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other.
Both buyer and seller have specific objectives. The buyer may need to minimize cost or assure a quality product, while the salesperson may need to maximize revenue and profits.
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Chapter 15 Marketing Communications
Personal Selling
Traditional
Selling
Attempts to persuade the buyer into a specific point of view; creates a win-lose outcome.
Relationship
Selling
Long-term relationships; creates a win-win outcome.
Notes:
Traditional methods of personal selling include a planned presentation to one or more prospective buyers. The seller tries to persuade the buyer to accept a point of view or take action. Frequently, the traditional view of personal selling creates a win-lose outcome at the expense of the buyer.
Relationship selling emphasizes a win-win outcome and the accomplishment of mutual objectives that benefit both buyer and salesperson in the long-term. The goal is a long-term, committed relationship based on trust and customer loyalty.
Personal selling is increasingly dependent on the Internet to attract potential buyers seeking information.
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35. Chapter 15 Marketing Communications
Social Media
Promotion tools used to facilitate conversations among people online.
Notes:
Social media include blogs (online journals), microblogs (Twitter), podcasting (online audio and video broadcasts), and social networks such as Facebook and LinkedIn.
Social media are ubiquitous—it just depends on how deep that layer goes for each brand.
Discussion/Team Activity:
Have students discuss marketing activities they experience on their favorite social media. Ask for positive and negative examples, and have them discuss what made the experience good or bad. How could it have been improved if it was negative?
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36. The Communication Process and the Promotional Mix
Chapter 15 Marketing Communications
The Communication Process and the Promotional Mix
Shift from one-way communication to customer-controlled, customized, many-to-many communication.
Consumer-generated content
Paid media
Earned media
Owned Media
Notes:
Consumer-generated content impacts the brand image and marketing message because social media makes it easier for large numbers of consumers to connect with each other—something that traditionally has not affected mass-media marketing. Promotional tactics needed new classification:
Paid Media: media based on the traditional ad model where a brand pays for media space.
Earned Media: media based on a public relations or publicity model that gets customers talking about the brand.
Owned Media: new category of media based on brands publishing their own content to maximize brand value.
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37. © 2016 Cengage Learning. All Rights Reserved.
16.3
Chapter 15 Marketing Communications
Digital Media Types
Owned Media
Web Sites
Blogs
Social Media Presence
Earned Media
Media Coverage
SEO
Publicity activities
Paid Media
Banner ads
Sponsored posts
Social Media is concentrated here, between owned and earned media, with some (but not much) paid media depending on the strategy.
Notes:
As a result of the impact of social media as well as the proliferation of new platforms, tools, and ideas, promotional tactics can also be categorized according to media type—paid, earned, or owned, as shown in Exhibit 16.3.
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38. 16.4 Characteristics of the Elements in the Promotional Mix
Chapter 15 Marketing Communications
Characteristics of the Elements in the Promotional Mix
Notes:
The four elements of the promotional mix differ in their ability to affect the target audience. Exhibit 16.4 summarizes these differences.
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39. Discuss the AIDA concept and its relationship to the promotional mix
Chapter 15 Marketing Communications
Promotional Goals and the AIDA Concept
16-5
Discuss the AIDA concept and its relationship to the promotional mix
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40. © 2016 Cengage Learning. All Rights Reserved.
Chapter 15 Marketing Communications
The AIDA Concept
Attention
Interest
Desire
Action
Notes:
The goal of any promotion is to get someone to buy a good or service, or take some action. A classic model for reaching promotional goals is called the AIDA concept—attention, interest, desire, and action—the stages of consumer involvement.
This model proposes that consumers respond to marketing messages in a cognitive (thinking), affective (feeling), and conative (doing) sequences.
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.
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The AIDA Concept
Chapter 15 Marketing Communications
Action
Desire
Interest
Attention
Conative (doing)
Affective (feeling)
Cognitive (thinking)
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42. 16.5 The Promotional Mix and AIDA Attention Interest Desire Action
Chapter 15 Marketing Communications
Attention
Interest
Desire
Action
Advertising
Public Relations
Sales Promotion
Personal Selling
Social Media
Notes:
Exhibit 16.5 depicts the relationship between the promotional mix and the AIDA model. It shows that although advertising does have an impact in the later stages, it is most useful in gaining attention for goods or services.
Very Effective
Somewhat Effective
Not Effective
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43. Discuss the concept of integrated marketing communications
Chapter 15 Marketing Communications
Integrated Marketing
Communications
16-6
Discuss the concept of integrated marketing communications
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44. Integrated Marketing Communications
Chapter 15 Marketing Communications
Integrated Marketing Communications
The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.
Notes:
Marketers determine what roles each aspect of the promotional mix will play in the marketing mix. This includes the timing of promotions and examining campaign results. These activities are generally coordinated by the marketing communications director.
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45. © 2016 Cengage Learning. All Rights Reserved.
Chapter 15 Marketing Communications
IMC Popularity Growth
Proliferation of thousands of media choices.
Fragmentation of the mass market.
Slash of advertising spending in favor of promotional techniques that generate immediate response.
Notes:
Integrated marketing communications (IMC) is the careful coordination of all promotional messages—traditional advertising, direct marketing, social media, interactive, public relations, sales promotion, personal selling, event marketing, and other communications—for a product or service to assure the consistency of messages at every contact point where a company meets the consumer.
Following the concept of IMC, marketing managers carefully work out the roles that various promotional elements will play in the marketing mix.
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46. Describe the factors that affect the promotional mix
Chapter 15 Marketing Communications
Factors Affecting the Promotional Mix
16-7
Describe the factors that affect the promotional mix
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47. Target market characteristics Type of buying decision
Chapter 15 Marketing Communications
Factors Affecting the Choice of Promotional Mix
Nature of the product
Stage in PLC
Target market characteristics
Type of buying decision
Promotion funds
Push or pull strategy
Notes:
Promotional mixes vary a great deal from one product and one industry to the next.
Advertising and personal selling are used to promote goods and services, supplemented by sales promotion. Public relations helps develop a positive image for the product and the organization. A firm may choose not to use all four promotional elements, or it may choose to use them in varying degrees.
This slide shows the factors affecting the promotion mix chosen by a firm. Subsequent slides describe the key points of each factor.
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48. 16.6 Product Life Cycle and the Promotional Mix
Chapter 15 Marketing Communications
Product Life Cycle and the Promotional Mix
Notes:
The Product Life Cycle is a factor in designing a promotion mix, as shown in Exhibit 16.6.
In the introduction stage, the basic goal of promotion is to inform the target audience of product availability. Advertising and public relations inform the target audience, while sales promotion encourages early trial. Personal selling gets retailers to carry the product.
During the growth stage, advertising and public relations continue to be important, although sales promotion can be reduced because customers need fewer incentives to purchase. The promotional strategy is to emphasize the product’s differential competitive advantage. Persuasive promotion is used to build and maintain brand loyalty. Personal selling has succeeded in obtaining adequate distribution for the product.
In the maturity stage, competition becomes fiercer, and persuasive and reminder advertising are more strongly emphasized. Sales promotion comes back into focus to try to increase market share.
As the product enters the decline stage, all promotion, especially advertising, is reduced. Nevertheless, personal selling and sales promotion efforts may be maintained, particularly at the retail level.
Light
Advertising;
Pre-introduction
publicity
Heavy
Advertising;
PR for
awareness;
sales
promotion
for trial
Advertising,
PR, brand
loyalty;
personal
selling for
distribution
Ads
decrease;
sales promotion;
personal selling; reminder &
persuasive
AD/PR decrease; limited sales promotion; personal selling for distribution
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49. Target Market Characteristics
Chapter 15 Marketing Communications
Target Market Characteristics
For…
Widely scattered market
Highly informed buyers
Brand-loyal repeat purchasers
Advertising
Sales Promotion
Less Personal Selling
Notes:
Sometimes personal selling is required even when buyers are well informed and geographically dispersed.
Print advertising can be used to find potential customers in markets were they are hard to locate.
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50. Type of Buying Decision
Chapter 15 Marketing Communications
Type of Buying Decision
Advertising
Sales Promotion
Routine
Personal Selling
Neither Routine
nor Complex
Public Relations
Print Advertising
Complex
Notes:
For a routine buying decision, such as the purchase of toothpaste, the most effective promotional tools are advertising and especially sales promotion.
For buying decisions that are neither routine nor complex, advertising and public relationships help establish awareness.
In contrast, consumers making complex decisions need large amounts of information, and personal selling is the most effective tool. Print ads are also effective for conveying large amounts of information.
Discussion/Team Activity:
Consider recent purchases of routine and complex products. What promotion tool(s) were effective to reach the buyer and influence the purchase decision?
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51. © 2016 Cengage Learning. All Rights Reserved.
Chapter 15 Marketing Communications
Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
Notes:
When funds are available to permit a mix of promotional elements, a firm will try to optimize its return on promotion dollars while minimizing the cost per contact.
The cost per contact is high for personal selling, public relations, and sales promotions. On the other hand, the cost per contact is low for national advertising since it reaches a large number of people.
There is a trade-off among the funds available, the number of people in the target market, the quality of communication needed, and the relative costs of the promotional elements.
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52. 16.7 Push Strategy versus Pull Strategy
Chapter 15 Marketing Communications
Notes:
Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler/retailer to carry and sell their merchandise. This is known as a push strategy. The wholesaler, in turn, pushes the merchandise forward by persuading the retailer to handle the goods. The retailer uses advertising and other forms of promotion to convince customers to buy the “pushed” products.
At the other end is a pull strategy, which stimulates consumer demand to obtain product distribution. The manufacturer uses a pull strategy by focusing promotional efforts on end consumers and opinion leaders. The wholesaler then places an order for the “pulled” merchandise from the manufacturer. Consumer demand pulls the product through the channel of distribution.
A company typically uses a mix of push and pull strategies.
The push and pull strategies are diagrammed in Exhibit 16.7
Discussion/Team Activity:
Discuss products and/or industries that utilize push and/or pull strategies in their promotion mix.
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53. © 2016 Cengage Learning. All Rights Reserved.
Chapter 15 Marketing Communications
Chapter 16 Video
Pepe’s Pizzeria
Pepe’s Pizzeria is a popular restaurant located in Connecticut. The CEO discusses the thought process behind their marketing strategy, how promotions work for Pepe’s and the general location strategy that comes into play when opening new locations.
CLICK TO PLAY
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