1. Principles of Marketing Lecture-32

2. Summary of Lecture-31

4. Place….Distribution Channel….Marketing Channel

5. Right Product Right Cost Right Place Right Condition Right Time

6. Compete on value (not just price.) Save customers time and energy. Make shopping fun.

8. Today’s Topics

10. Marketing Communications

11. Simple Marketing System Producer/SellerConsumer Communication Product/Service Money Feedback

13. Promotion and Its Goals

14. Builds Relationships Persuades Informs Reminds

15. Reminding Informing Persuading Basic Promotion Objectives Basic Promotion Objectives

16. Why is it so Hard to Get A Consumer’s Attention?

17.  Sensory overload (too many stimuli but limited info. processing ability)  Lack of consumer interest or motivation to process stimuli  Perceptual defense

18. The Marketing Communications Mix

19. Advertising Personal Selling Any Paid Form of Non- personal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Sales. Public Relations Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Personal Presentations by a Firm’s Sales Force.

20. Integrated Marketing Communications

21. The concept under which a Company Carefully Integrates and Coordinates Its Many Communications Channels to Deliver a Clear, Consistent, and Compelling Message About the Organization and Its Products.

23. Advertising Personal Selling Personal Selling Public Relations Public Relations Sales Promotion Sales Promotion Direct Marketing Direct Marketing Packaging Event Marketing Event Marketing Message

24. The Communication Process

25. Source EncodingMessage Channel Decoding Receiver Feedback Noise

26. Encoding The Message

27. – Words – Sounds – Colors – Space – Themes – Symbols – Pictures – Numbers – Gestures – Movement The Message

28. – Words – Sounds – Colors – Space – Themes – Symbols – Pictures – Numbers – Gestures – Movement Channel or Medium DECODING

29. OBJECTIVE ENCODING = DECODING

30. Source Encoding Message Channel Message Channel Decoding Receiver Feedback Noise

31. Marketing Communications Objectives

32.  Increase Market Penetration  Develop Repeat Purchase Behavior  Establish Customer Relationships  Increase Rate of Consumption  Encourage Product Trial  Stimulate Impulse Buying  Stimulate Demand  Differentiate the Product

33.  Establish a Product Image  Influence Sales Volume  Establish, Modify, or Reinforce Attitudes  Stimulate Interest  Establish Understanding  Build Support & Acceptance

34. Steps in Developing Effective Communication

35. Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives (Buyer Readiness Stages) Step 2. Determining the Communication Objectives (Buyer Readiness Stages) Purchase Conviction Preference Liking Knowledge Awareness

36. Step 3. Designing a Message Attention Interest Desire Message Content Rational Appeals Emotional Appeals Moral Appeals Message Structure Draw Conclusions Argument Type Argument Order Message Format Headline, Copy, Color, Words, & Sounds, Body Language Action

37. Nonpersonal Communication Channels Step 4. Choosing Media Personal Communication Channels

38. Step 5. Selecting the Message Source Step 6. Collecting Feedback

39. Setting the Total Promotion Budget

40. Percentage- of-Sales Method Affordable Method Competitive- Parity Method Objective- and-Task Method

41. AIDA Model Attention Interest Desire Action

42. Promotion

43.  Marketing activities used to communicate positive, persuasive info about an organization, its products and its activities to a target audience  Purpose: to directly or indirectly create sales, influence consumers.

44. Setting the Promotion Mix

45. Advertising Reaches Many Buyers, Expressive Impersonal Advertising Reaches Many Buyers, Expressive Impersonal Personal Selling Personal Interaction, Builds Relationships Costly Personal Selling Personal Interaction, Builds Relationships Costly Sales Promotion Provides Strong Incentives to Buy Short-Lived Sales Promotion Provides Strong Incentives to Buy Short-Lived Public Relations Believable, Effective, Economical Underused by Many Companies Public Relations Believable, Effective, Economical Underused by Many Companies Direct Marketing Nonpublic, Immediate, Customized, Interactive Direct Marketing Nonpublic, Immediate, Customized, Interactive

46. Advertising A paid form of non-personal communication about an organization and/or its products to a target audience through a mass medium.

47. Personal selling The direct presentation of a product to a prospective customer by a representative of the selling organization.

48. Sales promotion Demand-stimulating activity designed to supplement advertising and facilitate personal selling.

49. Public relations A planned communication effort by an organization to contribute to generally favorable attitudes and opinions toward an organization and its products.

50. Direct Marketing Direct connections with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationship

51. Relative Importance of Promotion Tools

52. Consumer Goods – Advertising – Sales promotion – Personal selling – Publicity Business Goods – Personal selling – Sales promotion – Advertising – Publicity

53. Changing Face of Marketing Communications

54. Marketers Have Shifted Away From Mass Marketing Less Broadcasting Marketers Have Shifted Away From Mass Marketing Less Broadcasting New Marketing Communications Realities Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting Improvements in Information Technology Has Led to Segmented Marketing More Narrowcasting

55. Enough for today...

56. Summary

58. Promotion and Its Goals

59. Builds Relationships Persuades Informs Reminds

60. The Marketing Communications Mix

61. Advertising Personal Selling Any Paid Form of Non- personal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Sales. Public Relations Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Personal Presentations by a Firm’s Sales Force.

62. The Communication Process

63. Source Encoding Message Channel Message Channel Decoding Receiver Feedback Noise

64. Steps in Developing Effective Communication

65. AIDA Model Attention Interest Desire Action

66. Next….

67. Advertising

68. Principles of Marketing Lecture-32