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marketingmanagement promotionandpricingstrategies 14 3 chapterobjectives discusshowintegratedmarketingcommunicationsrelatestoafirm spromotionalstrategy explaintheconceptofapromotionalmixandoutlinetheobjectivesofpromotion summarizethedifferenttypesofadvertisingandadvertisingmedia describetheroleofsalespromotion personalselling andpublicrelationsinpromotionalstrategy identifytheprofitabilitynfluencetheselectionofapromotionalmix discussthemajorethicalissuesinvolvedinpromotion outlinethedifferenttypesofpricingobjectivesanddiscusshowfirmssetpricesinthemarketplace summarizethefouralternativepricingstrategies discussconsumerperceptionsofprice 14 4 integratedmarketingcommunications promotion communicationlinkbetweenbuyerandsellerthatperformsthefunctionofinforming persuading andinfluencingapurchasedecision focusingonprimarydemandfocusingonselectivedemand 14 5 integratedmarketingcommunications coordinationofallpromotionalactivities mediaadvertising directmail personalselling salespromotion andpublicrelations toproduceaunifiedcustomer focusedmessage focusesoncustomerneedstocreateaunifiedpromotionalmessagefirmsneedabroadviewofpromotiontoimplementimc 14 6 thepromotionalmix promotionalmix combinationofpersonalandnonpersonalsellingtechniquesdesignedtoachievepromotionalobjectives personalselling interpersonalpromotionalprocessinvolvingaseller sface to facepresentationtoaprospectivebuyer nonpersonalselling consistsofadvertising salespromotion directmarketing andpublicrelations 14 7 comparingthecomponentsofthepromotionalmix 14 8 thepromotionalmix objectivesofpromotionalstrategyprovidinginformationdifferentiatingaproductincreasingsalesstabilizingsalesaccentuatingtheproduct svalue 14 9 fivemajorpromotionalobjectives 14 10 thepromotionalmix objectivesofpromotionalstrategyprovidinginformationmajorportionofu s advertisingisinformation orienteddifferentiatingaproductpositioning establishingaplaceinthemindsofcustomersbycommunicatingmeaningfuldistinctionsabouttheattributes price quality oruseofagoodorservice 14 11 thepromotionalmix objectivesofpromotionalstrategyincreasingsalesmostcommonobjectiveofapromotionalstrategystabilizingsalessalescontestsoftenusedduringslackperiodssalespromotionmaterialsoftendistributedtocustomerstostimulatesalesduringoff seasons 14 12 thepromotionalmix objectivesofpromotionalstrategyaccentuatingtheproduct svaluepromotionalstrategiescanenhanceproductvaluesbyexplainingoftenunrecognizedownershipbenefits 14 13 thepromotionalmix promotionalplanningincreasingcomplexityandsophisticationofmarketingcommunicationsrequirescarefulplanningtocoordinateimcstrategiesproductplacementguerrillamarketing 14 14 advertising advertising paidnonpersonalcommunicationdeliveredthroughvariousmediaanddesignedtoinform persuade orremindmembersofaparticularaudience 14 15 the15largestadvertisersintheunitedstates 14 16 advertising typesofadvertisingproductadvertising consistsofmessagesdesignedtosellaparticulargoodorserviceinstitutionaladvertising involvesmessagesthatpromoteconcepts ideas philosophies orgoodwillforindustries companies organizations orgovernmententities 14 17 advertising advocacyadvertising causeadvertising promotesaspecificviewpointonapublicissueasawaytoinfluencepublicopinionandthelegislativeprocess 14 18 advertising advertisingandtheproductcycleproductandinstitutionaladvertisingfallintooneofthreecategories basedonwhethertheadsintendtoinform persuade orremindinformativeadvertising usedtobuildinitialdemandforaproductintheintroductoryphaseoftheproductlifecycle 14 19 advertising advertisingandtheproductcyclepersuasiveadvertising attemptstoimprovethecompetitivestatusofaproduct institution orconcept usuallyinthegrowthandmaturitystagesoftheproductlifecyclecomparativeadvertising formofpersuasiveproductadvertisingthatcomparesproductsdirectlywiththeircompetitors 14 20 advertising advertisingandtheproductcyclereminder orientedadvertising oftenappearsinthelatematurityordeclinestagesoftheproductlifecycletomaintainawarenessoftheimportanceandusefulnessofaproduct concept orinstitution 14 21 advertising advertisingmediamustchoosehowtoallocateadvertisingbudgetallmediaofferadvantagesanddisadvantagesmustconsidercostandwhichmediaisbestsuitedforcommunication 14 22 advertisingmedia 14 23 advertising advertisingmedianewspapercontinuetodominatelocaladvertisingadseasilytailoredforlocaltastesandpreferencescancoordinatenewspapermessageswithotherpromotionaleffortsdisadvantage relativelyshortlifespan 14 24 advertising advertisingmediatelevisionamerica sleadingnationaladvertisingmediumanexpensiveadvertisingmediumpricefora30 secondadduringweeknightprimetimeonnetworktelevisiongenerallyrangesfrom 100 000tomorethan 500 000 14 25 advertising advertisingmediaradioaverageu s householdownsfiveradioscaptiveaudienceoflistenersastheycommutetoandfromworkinmajormarkets manystationsservedifferentdemographicgroupswithtargetedprogramming 14 26 advertising advertisingmediamagazinesincludesconsumerpublicationsandtradejournalscanoftencustomizetheirpublicationsandtargetadvertisingmessagestodifferentregionsofthecountryanaturalchoicefortargetedadvertising 14 27 advertising advertisingmediadirectmailaverageamericanhouseholdreceivesabout550piecesofdirectmaileachyear including100catalogse mailanotheroptionmustovercomejunk mailandspamclassification 14 28 advertising advertisingmediaoutdooradvertisingjustover2percentoftotaladvertisingspendingshareisgrowingmajorityofspendingisforbillboardsothertypesinclude signsintransitstations stores airports andsportsstadiumsdisadvantagesinclude briefmessagesarerequiredmountingconcernforaestheticandenvironmentalissues 14 29 advertising advertisingmediaonlineandinteractiveadvertisingrangefromwebsitesandcdstoinformationkioskscurrentlycommandsonly3percentofmediaspending butisthefastest growingmediasegment 14 30 advertising advertisingmediasponsorship involvesprovidingfundsforasportingorculturaleventinexchangeforadirectassociationwiththeeventsportssponsorshipsattracttwo thirdsoftotalsponsorshipdollarsprimarybenefits exposuretotheevent saudienceandassociationwiththeimageoftheactivity 14 31 advertising advertisingmediaothermediaoptionsinfomercials 30 minuteprogramsthatresembleregulartvprograms butaredevotedtosellinggoodsorservicesothermediaoptionsinclude adsinmovietheatersadsonairlinemoviescreensprintedprograms subwayticketsturnpiketollreceiptsautomatedtellermachines 14 32 salespromotion salespromotion nonpersonalmarketingactivitiesotherthanadvertising personalsellingandpublicrelationsthatstimulateconsumerpurchasinganddealereffectiveness potentialadvantages short termincreasedsalesincreasedbrandequityenhancedcustomerrelationships 14 33 salespromotion consumer orientedpromotionsgoalsofaconsumer orientedsalespromotioninclude gettingnewandexistingcustomerstotryorbuyproductsencouragingrepeatpurchasesbyrewardingcurrentusersincreasingsalesofcomplementaryproductsboostingimpulsepurchases 14 34 spendingonconsumer orientedpromotions 14 35 salespromotion consumer orientedpromotionspremiums itemsgivenfreeoratareducedpricewiththepurchaseofanotherproduct couponsoffersmallpricediscountsrebatesoffercashbacktoconsumerssample agiftofaproductdistributedbymail door to door inademonstration orinsidepackagesofanotherproduct 14 36 salespromotion consumer orientedpromotionsgames contests andsweepstakesofferingcash merchandiseortravelasprizestoparticipatingwinnersoftenusedtointroducenewgoodsandservicesandtoattractadditionalcustomerscourtrulingsandlegalrestrictionshavelimitedtheuseofcontests 14 37 salespromotion consumer orientedpromotionspromotionalproducts specialtyadvertising becausethesespecialtyadvertisingproductsareuseful peopletendtokeepandusethemgivesadvertisersrepeatedexposureoriginallydesignedtoidentifyandcreategoodwillforadvertisersnowgeneratessalesleadsanddevelopstrafficforstoresandtradeshowexhibitors 14 38 salespromotion trade orientedpromotionstradepromotion salespromotiongearedtomarketingintermediariesusedtoencourageretailersto stocknewproductscontinuecarryingexistingonespromoteproductseffectivelytoconsumers 14 39 salespromotion trade orientedpromotionspoint of purchase pop advertising displaysordemonstrationsthatpromoteproductswhenandwhereconsumersbuythemtakesadvantageofmanyshoppers tendenciestomakepurchasedecisionsinthestoretradeshows promotegoodsorservicestointermediaries 14 40 personalselling personalselling interpersonalpromotionalprocessinvolvingaseller sface to facepresentationtoaprospectivebuyer usedmostoftenwhen customersarerelativelyfewinnumberandgeographicallyconcentratedproductistechnicallycomplex involvestrade ins andrequiresspecialhandlingproductishighinpriceproductmovesthroughdirect distributionchannels 14 41 personalselling salestasksorderprocessing selling mostlyatthewholesaleandretaillevels thatinvolvesidentifyingcustomerneeds pointingthemouttocustomers andcompletingorderscreativeselling personalsellinginvolvingsituationsinwhichaconsiderabledegreeofanalyticaldecisionmakingonthebuyer spartresultsintheneedforskillfulproposalsofsolutionsforthecustomer sneeds 14 42 personalselling salestasksmissionaryselling indirectformofsellinginwhichspecializedsalespeoplepromotegoodwillamongindirectcustomers oftenbyassistingcustomersinproductuse 14 43 personalselling thesalesprocesssevenstepsinthesalesprocess 14 44 personalselling thesalesprocessprospecting qualifying andapproachingprospectinginvolvesidentifyingpotentialcustomersqualifyinginvolvesidentifyingpotentialcustomerswhohavethefinancialabilityandauthoritytobuy beforemakingtheinitialcontact carefulpreparationsaremadeavailabledataaboutaprospectivecustomerandotherpertinentinformationisanalyzed 14 45 personalselling thesalesprocesspresentationanddemonstrationinvolvescommunicatingpromotionalmessagesmajorfeaturesoftheproduct highlightsoftheadvantages andexamplesofsatisfiedconsumersaretypicallypresentedinvolvestheprospectinthesalespresentationreinforcesthemessagethatthesalespersonhasbeencommunicating 14 46 personalselling thesalesprocesshandlingobjectionsallowssalespersonneltoremoveobstaclesandcompletethesalecanbecomeapositivepartofthesalesprocessallowsthesalespersontopresentadditionalinformation 14 47 personalselling thesalesprocessclosingcriticalpointinasellingrelationship thetimeatwhichthesalespersonactuallyaskstheprospecttobuyifthepresentationeffectivelymatchesproductfeaturestocustomerneeds theclosingshouldbeanaturalconclusion 14 48 personalselling thesalesprocessfollow upsalesperson sactionsafterthesalemaywelldeterminewhetherthecustomerwillmakeanotherpurchasebuildingalong termrelationshipbycallingsoonafterapurchase thesalespersonprovidespsychologicalreinforcementforthecustomer sdecisiontobuyalsogivesthesellerachancetocorrectanyproblems 14 49 personalselling recenttrendsinpersonalsellingtelemarketingoutboundtelemarketing whenasalesrepresentativecallsyouatyourplaceofbusinessinboundtelemarketing whenthecustomercallsatoll freephonenumbertogetinformationorplaceanorder 14 50 personalselling recenttrendsinpersonalsellingrelationshipselling whenasalespersonbuildsamutuallybeneficialrelationshipwithacustomerthroughregularcontactsoveranextendedperiodconsultativeselling meetingcustomers needsbylisteningtothem understandingandcaringabouttheirproblems payingattentiontodetails suggestingsolutions andfollowingthroughafterthesale 14 51 personalselling recenttrendsinpersonalsellingteamselling joinssalespeoplewithspecialistsfromotherfunctionalareasofthefirmtocompletethesellingprocesssalesforceautomation sfa incorporatesabroadrangeoftools frome mail telecommunicationsdeviceslikepagersandcellphones andlaptopcomputerstoincreasinglysophisticatedsoftwaresystemsthatautomatethesalesprocess 14 52 publicrelations publicrelations organization scommunicationandrelationshipswithitsvariousaudiences publicity stimulationofdemandforagood service place idea person ororganizationbydisseminatingnewsorobtainingfavorableunpaidmediapresentations 14 53 promotionalstrategies selectingapromotionalmixguidelinesforallocatingpromotionaleffortsandexpendituresamongpersonalsellingandadvertising whatisyourtargetmarket whatisthevalueoftheproduct whattimeframeisinvolved 14 54 promotionalstrategies pushingandpullingstrategiespushingstrategy promotionaleffortbyasellertomembersofthedistributionchannelintendedtostimulatepersonalsellingofthegoodorservice therebypushingitthroughthechannelcooperativeadvertising allowancesinwhichfirmssharethecostoflocaladvertisingoftheirproductorlinewithchannelpartners 14 55 promotionalstrategies pushingandpullingstrategiespullingstrategy promotionaleffortbyasellertostimulatedemandamongfinalusers whowillthenexertpressureonthedistributionchanneltocarrythegoodorservice pullingitthroughthedistributionchannel 14 56 ethicsinpromotion pufferyanddeceptionpuffery exaggeratedclaimsofaproduct ssuperiorityoruseofdoubtful subjective orvaguestatementsotherpromotionalelementscanalsoinvolvedeceptionsalespeoplehavedeceivedcustomerswithmisleadinginformation 14 57 ethicsinpromotion promotiontochildrenandteensriskofdeceptionisespeciallygreatwithpromotiontargetedtochildrenandteenschildrennotsophisticatedatanalyzingpromotionalmessages 14 58 ethicsinpromotion promotioninpublicschoolsandoncollegecampusesincludespromotionalbookcovers posters andevencurriculummaterialsprovidedtotoday sschoolssomeschoolssigncontractsthatgivecertainbrandsexclusiveaccesstotheirstudentscangenerateabacklash 14 59 priceinthemarketingmix price exchangevalueofagoodorservice pricingobjectives 14 60 priceinthemarketingmix profitabilityobjectivesperhapsthemostcommonlyusedobjectiveinfirms pricingstrategiessomefirmstrytomaximizeprofitsbyreducingcostsratherthanthroughpricechangesvolumeobjectivesbasespricingdecisionsonmarketsharemarketshare thepercentageofamarketcontrolledbyacertaincompanyorproduct 14 61 priceinthemarketingmix pricetomeetcompetitionseekstomeetcompetitors pricesprestigeobjectivesprestigepricingencompassestheeffectofpriceonprestigeprestigepricingestablishesarelativelyhighpricetodevelopandmaintainanimageofqualityandexclusi
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