1. PROMOTION MEANS EFFECTIVE COMMUNICATION
CHAPTER 15
4/21/2017
PROMOTION MEANS EFFECTIVE COMMUNICATION
15.1 Promotion as a Form of Communication
15.2 Types of Promotion
15.3 Mixing the Promotional Plan
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MARKETING

2. PROMOTION AS A FORM OF COMMUNICATION
GOALS for Lesson 15.1
Explain the three roles of promotion in marketing.
Describe how the communication process works in marketing.
Define the two types of communication that are important to marketers.
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3. The Role of Promotion in Marketing
Promotion – any form of communication used to:
Inform
Persuade
Remind
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4. The Role of Promotion in Marketing
Inform potential or current customers of a new product or service or of an improvement to an existing product
Introduction Stage of the Product Life Cycle
Benefits and characteristics
Changes and Improvements
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5. The Role of Promotion in Marketing
Persuade - attempts to encourage a customer to take a specific action, such as purchasing a product
Negative meaning to some customers
Growth Stage of the product life cycle
Advantages over the competitors product
Coupons, rebates, samples
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6. The Role of Promotion in Marketing
Remind customers about existing products on the market
Maturity Stage of the product life cycle
How good, how attractive, how it satisfies customer’s wants and needs
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7. The Communication Process
Noise
Sender
Encoding by Sender
Message Channel
Decoding by Receiver
Receiver
Feedback
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8. Promotion Is a Communication Process
Sender – source or originator of the message
may be an organization or person
Message to be shared with a group
“Pepsi Generation”
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9. Promotion Is a Communication Process
Encoding – putting the message into language or symbols that are familiar to the intended receiver
Pepsi – popular music, loud colors, young people
Message Channel – the medium the sender chooses to transmit the message
TV, radio, newspapers, magazines, direct mail, sales presentations, bill boards
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10. Promotion Is a Communication Process
Decoding – interpreting the message or symbols and converting them into concepts and ideas
Manipulate, alter the message to their needs
Receiver – the person or persons to whom the encoded message is directed
The target audience of a product or service
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11. Promotion Is a Communication Process
Noise – interference that can cause the message to be interpreted by the receiver incorrectly
Radio static, poor printing quality, unfamiliar words, misinterpretation
Feedback – the receiver’s reaction or response to the source’s message
Helps measure the effectiveness of a promotional activity
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12. The Communication Process
Noise
Sender
Encoding by Sender
Message Channel
Decoding by Receiver
Receiver
Feedback
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13. Types of Communication
Interpersonal communication
Two-way communication
Involves two or more people in some kind of person-to-person exchange
Mass communication
One-way communication
Involves communicating to huge audiences, usually through mass media, such as magazines, radio, television, or newspapers
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14. TYPES OF PROMOTION GOALS for Lesson 15.2
Describe the advantages and disadvantages of advertising and publicity as types of promotion.
Explain the advantages and disadvantages of personal selling as a type of promotion.
Define sales promotion and describe its advantages and disadvantages as a type of promotion.
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15. Advertising
Any paid form of nonpersonal communciation sent through a mass medium by an organization about its products
Advantages
reaches a lot for a low cost per person, geographical advantages, repeat the message
Disadvantages
costs, target audience might not be in the right place, impersonal
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16. Examples of Mass Media Advertising
Direct mail
Internet
Magazines
Newspaper
Outdoor
Radio
Television
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17. Publicity
A non-paid form of communication about a business or organization that is transmitted through a mass medium
Advantages
the Goodwill that is created (Disney and Safety Reports)
Disadvantages
organizations have little control over it
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18. Personal Selling
Person to person communication with potential customers in an effort to inform, persuade, or remind
Advantages
much more informative and persuasive, feedback is immediate and can be acted upon right away
Disadvantages
cost per person is high
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19. Sales Promotion Advantages Disadvantages
Activities or materials that offer consumers a direct incentive to buy a good or service (coupons, contests, samples, rebates)
Advantages
generated immediate short-term sales, supports other promotions (commercial – coupon)
Disadvantages
cost, on average $110 billion a year is spent on sales promotions
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20. MIXING THE PROMOTIONAL PLAN
GOALS for Lesson 15.3
Explain the four major factors that affect the promotional mix.
Describe the seven steps in the promotional planning process.
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21. Elements of a Promotional Mix
Advertising
Personal selling
Publicity
Sales promotion
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22. Factors that Affect the Promotional Mix
Marketing Mix
Target Market
Policy and Objectives
Financial Resources
Promotional
Mix
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23. Promotional Planning
The promotional plan is a carefully arranged sequence of promotions designed around a common theme responsive to specific objectives.
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24. The Steps in Promotional Planning
Analyze the market
Identify the target market
Develop promotional objectives
Achievable, measurable, fit into marketing plan
Develop a promotional budget
Select the promotional mix
Implement the promotional plan
Evaluate the results
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