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Chapter 13 Promoting Products: Communication and Promotion Policy and Advertising

Chapter 13

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Page 1: Chapter 13

Chapter 13Promoting Products: Communication and

Promotion Policy and Advertising

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Some possible objectives for promotion

• Create awareness• Establish image, help position• Change image, help reposition• Generate sales• Send messages to public• Inform, Persuade, Remind customers about products

• COMMUNICATION is KEY

Viral Marketing

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Promotion/Communication Mix

• A Promotion Mix is a company’s total marketing communications program and it consists of a specific blend of 5 tools:– Advertising (paid, non-personal)– Sales Promotion (short-term incentives)– Public Relations (Building Relationships + Crisis

Management)– Personal Selling (personal presentation, relationship

building)– Direct Marketing (Interactive Communication: direct mail,

phone, email, internet, etc.)

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Step 1. Identifying the Target Audience

Step 2. Determining the Communication ObjectivesBuyer Readiness Stages

Purchase

Conviction

Preference

Liking

Knowledge

Awareness

Steps in Developing Effective Communication

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Step 3. Designing the Message

Message ContentRational Appeals

Emotional AppealsMoral Appeals

Message StructureDraw Conclusions

Argument TypeArgument Order

Message FormatHeadline, Illustration,

Copy, & ColorBody Language

Steps in Developing Effective Communication

• http://www.youtube.com/watch?v=Qvpnoc6P8Vo&feature=related• http://www.youtube.com/watch?v=03WjUebwc2s

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Steps in Developing Effective Communication

Step 4. Select the Communication Channel(Personal and Non-Personal channels)

Step 5. Select the Message Sources

Step 6: Measure the Communications’ Results(Evaluate memory, feeling, attitude)

http://www.youtube.com/watch?v=vF4FtWghQAw&feature=relatedhttp://www.youtube.com/watch?v=z9IilLW1aEwhttp://www.youtube.com/watch?v=q5cfA_H8knI&feature=related

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Nature of Each Promotion Tool

Advertising

Personal SellingSales

PromotionPublic

Relations Direct

Marketing

Large audiences, Repeat message many times, image building.

Impersonal, not persuasive, costly Personal interaction, rel’p building, set preference, conviction & purchase

Most expensive promo toolWide assortment of tools, create strong and quick response, short-

lived efforts/don’t build loyaltyVery believable, dramatize a

company or product, infomercial, Underutilized

Nonpublic, immediate, customized, interactive, one-to-one relationship, best on highly

targeted mktg efforts

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Major Decisions in Advertising• Advertising is any paid form of non-personal

presentation and promotion of ideas, goods, or services by an identified sponsor

1. Setting the Objectives

2. Setting the Budget

3. Message Decisions

4. Media Decisions

5. Campaign Evaluation

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1. Setting the Objectives• Informative advertising is used to inform consumers

about a new product or feature to build primary demand

• http://www.youtube.com/watch?v=H_fk5ttSjuM&NR=1

• Persuasive advertising is used as competition increases and a company’s objective becomes building selective demand

• http://www.youtube.com/watch?v=TxqRg2Nohso&feature=PlayList&p=0637AFA43A7FE49C&playnext=1&playnext_from=PL&index=13

• http://www.youtube.com/watch?v=WaGLeDE-Rwg

• Reminder advertising is used for mature products since it keeps consumers thinking about the product

http://www.youtube.com/watch?v=0eN9KP6lOZs

Deal based advertising- what are you giving up to receive the deal?

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2. Set the Budget– Stage in product life cycle– Competition and clutter Market share high

share, high $– Frequency– Product differentiation

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3. Message Decisions• Message Generation

– Services pose challenges (hotel stay?)http://www.youtube.com/watch?v=gKMOgBkRwbw

• Message Evaluation and Selection – Meaningful, distinctive, believable

• Message Execution– Style, tone, words and format

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Execution Styles

• Slice of Life• http://www.youtube.com/watch?v=W-

ZsjTipYqY&feature=PlayList&p=C85DE02318108032&index=0&playnext=1

• Lifestyle• Fantasy• Mood or Image

• Musical

• Personality• Technical Expertise

• http://www.youtube.com/watch?v=mCe6DvdGgH8&feature=related

• Scientific Evidence• http://www.youtube.com/watch?v=zmzC8tYVkz0

• Testimonial Evidence• http://www.youtube.com/watch?v=vghuB11j88M

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4. Media Decisions

• Deciding on Reach, Frequency, and Impact• Reach = # in target market exposed to ad over a given time• Frequency = # of times a person in target market is exposed to ad• Impact = qualitative value of message exposure through given

medium

• Media Types• Newspaper, television, direct mail, radio, magazine, outdoor, internet• See Table 13-1 (page 386) for advantages and limitations

• Selecting Specific Media Vehicles• Which newspaper, television station, magazine…

• Media Timing

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5. Campaign Evaluation• Measuring the Communication Effect

(pre- and post-testing

• Measuring the Sales Effect

• Measuring the Awareness Effect