2. Chris Banman Fall 2010 471.21 Providence College

3. Chapter 13

4. Definition  Promotion  Communicating information b/w seller & potential buyer to influence attitudes & behaviour

5. “I am convinced that 50 % of our advertising is sheer waste, but I can never find out which half”

6. Promotional Methods Strategic Planning Promotion Personal Selling Massing Selling Sales Promotion

7. @ own sales force Contests Bonuses Meetings Portfolios Displays Sales aids Training materials

8. @ consumers  Contests  Coupons  Online coupons  Aisle display  Samples  Trade shows  Point-of-purchase materials  Banners & streamers  Frequent buyers programs  Sponsored events

9. @ middlemen  Price deals  Promotion allowances  Sales contests  Calendars  Gifts  Trade shows  Meetings  Catalogues  Merchandising aids  Videos

10. Relative to… Promotion Objectives Informing Persuading Reminding Adoption Process Awareness Interest Evaluation Trial Decision Confirmation AIDA Model Attention Interest Desire Action

11. Communication Process SourceEncoding Message Channel DecodingReceiver NOISE FEEDBACK

12. Lost in Translation  Schweppes  Schweppes Tonic Water  Schweppes Toilet Water  Pepsi  “Come alive with the Pepsi Generation”  “Pepsi will bring you ancestors from the dead”

13. Customer Relationship Management  Early efforts – direct-mail advertising  Now direct-response media  Telephone, print, email, web, broadcast, and interactive video

14. Customer Initiated Communication Process The times, they are changing

15. Customer Initiated PastPresent  Buyer = passive message receiver  Marketer stimulate attention, interest and desire  Target important (use $ efficiently)  Mass-selling – marketer gets customers attention  Direct-response – marketer takes 1 st step  Buyer access information independently  Interactive technologies  Interactive cable TV  Web searches

16. Customer Initiated ReceiverSearch Message channel Select a topic Source’s message

17. All about the blend… Pushing (through a channel)Pulling  Personal selling  Advertising  Sales promotion  Initiated by producers  Incentives  Internal marketing  Customer demands product  Ask middleman  Involves highly aggressive promotion (i.e. K-tel)  Use coupons or samples  Middleman should be warned

18. The Life Cycle  Market Introduction – “this new idea is good”  Market Growth – “our brand is best”  Market Maturity – “our brand is better, really”  Sales Decline – “let’s tell those who still want our product”

19. Setting the Promotion Budget  Economies of scale  % of sales (past or projected)  Match competitors  Per sales unit  Uncommitted revenue (budgeted profits)  Task method

20. KEY TERMS  Promotion  Integrated marketing communications  AIDA model  Communications process  Source  Receiver  noise  Encoding  Decoding  Message channel  Pushing  Pulling  Primary demand  Selective demand  Task method