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,Chapter8:PromotionIntroductiontoIntegratedMarketingCommunications,Whenyoufinishthischapter,youshould,ChapterObjectives,1.Knowthepromotionmethods.2.Understandtheintegratedmarketingcommunicationsconcept.3.Knowhowthecommunicationprocessaffectspromotionplanning.4.Understandhownewcustomer-initiatedinteractivecommunicationisdifferent.5.Understandtheimportanceofpromotionobjectives.,6.Knowpushingandpullingstrategies.7.Understandhowpromotionblendstypicallyvaryovertheadoptioncurveandproductlifecycle.8.Understandhowtodeterminepromotionbudgets.9.Understandtheimportantnewterms.,1.Whatispromotion?,Promotion(p419)communicatinginformationbetweenthesellerandapotentialbuyerorothersinthechanneltoinfluenceattitudesandbehaviour.Promotionjobtotelltargetcustomersthattherightproductsisavailableattherightplaceattherightprice.,Exhibit14-1,2.BasicPromotionMethods(p420),TargetMarket,Price,Promotion,Place,Product,SalesPromotion,PersonalSelling,Publicity,Advertising,MassSelling,DirectPromotion,3,Personalselling(p420),Directspokencommunicationbetweensellersandpotentialcustomers.Flexibility(face-to-face,immediatefeedback)Expensive,Massselling(p420),Communicatingwithlargenumbersofpotentialcustomersatthesametime.Lessflexible,lessexpensiveAdvertisinganypaidformofnon-personalpresentationofideas,goods,orservicesbyanidentifiedsponsor.(pervasive,expressive,impersonal)Publicityanyunpaidformofnon-personalpresentationofideas,goods,orservices.(credible,offguard),Salespromotion(p421),Promotionactivities(excludingadvertising,publicity,andpersonalselling)thatstimulateinterest,trial,orpurchasebyfinalcustomersorothersinthechannel.(incentive,invitation)Exhibit14-2Examplesofsalespromotionactivities(p421),Aimedatmiddlemen,PricedealsPromotionallowancesSalescontestsCalendarsGiftsTradeShowsMeetingsCatalogsMerchandisingaids,Aimedatfinalconsumersorusers,ContestsCouponsAisledisplaysSamplesTradeshowsPoint-of-purchasematerialsBannersandstreamersTradingstampsSponsoredevents,Aimedatcompanysownsalesforce,ContestsBonusesMeetingsPortfoliosDisplaysSalesaidsTrainingmaterials,SalesPromotionActivities,Directpromotion(p426),Direct-responsepromotion-Directcommunicationbetweenasellerandanindividualcustomerusingapromotionmethodotherthanface-to-facepersonalselling.Medium:Direct-mail,telephone,print,computernetworks,broadcast,interactivevideo,etc.,3.Howmarketerscommunicatewithmarkets,Thetraditionalcommunicationprocess(p423)Customer-initiatedinteractivecommunication(p428),4,TheTraditionalCommunicationModel,Messageinterpretation,Communicationprocess,Asourcetryingtoreachareceiverwithamessage.,Source,Sourcethesenderofamessage.,Receiver,Receiverthetargetofamessageinthecommunicationprocess,usuallyapotentialcustomer.,Noise,Noiseanydistractionthatreducestheeffectivenessofthecommunicationprocess.,Encoding,Encodingthesourceinthecommunicationprocessdecidingwhatitwantstosayandtranslatingitintowordsorsymbolsthatwillhavethesamemeaningtothereceiver.,Decoding,Decodingthereceiverinthecommunicationprocesstranslatingthemessage.,Messagechannel,Messagechannelthecarrierofthemessage.,Thesamemessagemaybeinterpreteddifferentlybytheencoderandthedecoder,MessageInterpretation,SelectiveexposureSelectivedistortionSelectiveretention,Customer-InitiatedInteractiveCommunication,Exhibit14-5,Managingpromotion(P430),IntegratedmarketingcommunicationSettingpromotionobjectivesPullingandpushingstrategiesAdoptionprocessesguidepromotionplanningPromotionblendsvaryoverthelifecycleSettingthepromotionbudget,Integratedmarketingcommunication,Theintentionalcoordinationofeverycommunicationfromafirmtoatargetcustomertoconveyaconsistentandcompletemessage.(P433)InafirmInachannel,Promotionobjectives(P433),Generalobjective-toincreasesalesInforminginformingthecustomersaboutanewproductandshowthatitmeetsconsumerneedsbetterthanotherproducts.Persuadingdevelopingafavourablesetofattitudessothatcustomerswillbuy-andkeepbuyingitsproducts.Remindingremindingthecustomersoftheirpastsatisfactionandkeepthemfromshiftingtoacompetitor.,chart,PromotionandAIDA,PromotionandtheDemandCurve(P434),PromotionandtheAIDAModel,Push-PullStrategies,Pushing(p437)Usingnormalpromotioneffortpersonalselling,advertising,andsalespromotiontohelpsellthewholemarketingmixtopossiblechannelmembers.Pulling(p439)Usingpromotiontogetcustomerstoaskintermediariesfortheproduct.,Push-PullStrategies(p437,439),Exhibit14-8,14-13,Promotionblendsvaryoverthelifecycle,MarketintroductionstageMarketgrowthstageMarketmaturitystageSalesdeclinestage,Marketintroductionstage,Thisnewideaisgood!InformativePrimarydemand:thatisdemandforthegeneralproductidea,notjustforthecompanysownbrand.Sellspromotionencouragecustomerstotryit.,Marketgrowthstage,Ourbrandisthebest!PersuasiveSelectivedemand:thatisdemandforacompanysownbrand.Morepotentialcustomersaretryingandadoptingtheproducts.Masssellingmaybemoreeconomical,Marketmaturitystage,Ourbrandisbetter,reallyM

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