1 / 55

Promotion and Pricing Strategies in IMC

This quiz focuses on the promotion and pricing strategies used in Integrated Marketing Communications (IMC), including the promotional mix, objectives, advertising, and advertising media.

gorej
Download Presentation

Promotion and Pricing Strategies in IMC

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Quiz # 04 • Date: 07 August, 2014 (Thursday). • Syllabus: Chapter 11 & 12

  2. Chapter 13 Promotion and Pricing Strategies

  3. Promotion • Promotion— communication link between buyer and seller that performs the function of informing, persuading, and influencing a purchase decision. • Focusing on Primary Demand • Focusing on Selective Demand

  4. Integrated Marketing Communications (IMC) • Coordination of all promotional activities – media advertising, direct mail, personal selling, sales promotion, and public relations – to produce a unified customer-focused message. • Focuses on customer needs to create a unified promotional message • Firms need a broad view of promotion to implement IMC

  5. The Promotional Mix • Promotional Mix— combination of personal and nonpersonal selling components designed to meet the needs of a firm’s target customers and effectively and efficiently communicate its message to them. • Personal Selling— the most basic form of promotion: a direct person-to-person promotional presentation to a potential buyer. • Nonpersonal selling—consists of advertising, sales promotion, direct marketing, and public relations

  6. Comparing the Components of the Promotional Mix

  7. The Promotional Mix • Objectives of Promotional Strategy • Providing Information • Differentiating a Product • Increasing Sales • Stabilizing Sales • Accentuating the Product’s Value

  8. Five Major Promotional Objectives

  9. The Promotional Mix • Objectives of Promotional Strategy • Providing Information • Major portion of U.S. advertising is information-oriented • Differentiating a Product • Positioning: establishing a place in the minds of customers by communicating meaningful distinctions about the attributes, price, quality, or use of a good or service

  10. The Promotional Mix • Objectives of Promotional Strategy • Increasing Sales • Most common objective of a promotional strategy • Stabilizing Sales • Sales contests often used during slack periods • Sales promotion materials often distributed to customers to stimulate sales during off-seasons

  11. The Promotional Mix • Objectives of Promotional Strategy • Accentuating the Product’s Value • Promotional strategies can enhance product values by explaining often unrecognized ownership benefits

  12. The Promotional Mix • Promotional Planning • Increasing complexity and sophistication of marketing communications requires careful planning to coordinate IMC strategies • Product Placement • Guerrilla Marketing

  13. Advertising • Advertising—paid nonpersonal communication delivered through various media and designed to inform, persuade, or remind members of a particular audience.

  14. Advertising • Types of Advertising • Product Advertising—consists of messages designed to sell a particular good or service • Institutional Advertising—involves messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities

  15. Advertising • Advocacy Advertising (Cause Advertising): promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process

  16. Advertising • Advertising and the Product Cycle • Product and Institutional Advertising fall into one of three categories, based on whether the ads intend to inform, persuade, or remind • Informative Advertising—used to build initial demand for a product in the introductory phase of the product life cycle

  17. Advertising • Advertising and the Product Cycle • Persuasive Advertising—attempts to improve the competitive status of a product, institution, or concept, usually in the growth and maturity stages of the product life cycle • Comparative Advertising—form of persuasive product advertising that compares products directly with their competitors

  18. Advertising • Advertising and the Product Cycle • Reminder-oriented advertising—often appears in the late maturity or decline stages of the product life cycle to maintain awareness of the importance and usefulness of a product, concept, or institution

  19. Advertising • Advertising Media • Must choose how to allocate advertising budget • All media offer advantages and disadvantages • Must consider cost and which media is best suited for communication

  20. Advertising Media

  21. Advertising • Advertising Media • Television • America’s leading national advertising medium • An expensive advertising medium • Price for a 30-second ad during weeknight prime time on network television generally ranges from $100,000 to more than $500,000

  22. Advertising • Advertising Media • Internet • Online and interactive media have already changed the nature of advertising. Starting with simple banner ads, Internet advertising has become much more complex and sophisticated • The rising number of smart phones and tablets is affecting this increase, as is the rapid multiplication of social media An expensive advertising medium • Viral Advertising

  23. Advertising • Advertising Media • Newspaper • Continue to dominate local advertising • Ads easily tailored for local tastes and preferences • Can coordinate newspaper messages with other promotional efforts • Disadvantage: relatively short life span

  24. Advertising • Advertising Media • Radio • Average U.S. household owns five radios • Captive audience of listeners as they commute to and from work • In major markets, many stations serve different demographic groups with targeted programming

  25. Advertising • Advertising Media • Magazines • Includes consumer publications and trade journals • Can often customize their publications and target advertising messages to different regions of the country • A natural choice for targeted advertising • Direct Mail • Average American household receives about 550 pieces of direct mail each year, including 100 catalogs • e-mail another option • Must overcome junk-mail and spam classification

  26. Advertising • Advertising Media • Outdoor Advertising • Just over 2 percent of total advertising spending • Share is growing • Majority of spending is for billboards • Other types include: signs in transit stations, stores, airports, and sports stadiums • Disadvantages include: • Brief messages are required • Mounting concern for aesthetic and environmental issues • Online and Interactive Advertising • Range from Web sites and CDs to information kiosks • Currently commands only 3 percent of media spending, but is the fastest-growing media segment

  27. Advertising • Advertising Media • Sponsorship—involves providing funds for a sporting or cultural event in exchange for a direct association with the event • Sports sponsorships attract two-thirds of total sponsorship dollars • Primary benefits: exposure to the event’s audience and association with the image of the activity

  28. Advertising • Advertising Media • Other Media Options • Infomercials: 30-minute programs that resemble regular TV programs, but are devoted to selling goods or services • Other Media options include: • Ads in movie theaters • Ads on airline movie screens • Printed programs, Subway tickets • Turnpike toll receipts • Automated teller machines

  29. Sales Promotion • Sales promotion— consists of forms of promotion such as coupons, product samples, and rebates that support advertising and personal selling. • Potential advantages: • Short-term increased sales • Increased brand equity • Enhanced customer relationships

  30. Sales Promotion • Consumer-Oriented Promotions • Goals of a consumer-oriented sales promotion include: • Getting new and existing customers to try or buy products • Encouraging repeat purchases by rewarding current users • Increasing sales of complementary products • Boosting impulse purchases

  31. Spending on Consumer-Oriented Promotions

  32. Sales Promotion • Consumer-Oriented Promotions • Premiums—items given free or at a reduced price with the purchase of another product. • Coupons offer small price discounts • Rebates offer cash back to consumers • Sample—a gift of a product distributed by mail, door-to-door, in a demonstration, or inside packages of another product

  33. Sales Promotion • Consumer-Oriented Promotions • Games, Contests, and Sweepstakes • Offering cash, merchandise or travel as prizes to participating winners • Often used to introduce new goods and services and to attract additional customers • Court rulings and legal restrictions have limited the use of contests

  34. Sales Promotion • Consumer-Oriented Promotions • Promotional Products (Specialty advertising) • Because these specialty advertising products are useful, people tend to keep and use them • Gives advertisers repeated exposure • Originally designed to identify and create goodwill for advertisers • Now generates sales leads and develops traffic for stores and trade show exhibitors.

  35. Sales Promotion • Trade-Oriented Promotions • Trade promotion—sales promotion geared to marketing intermediaries • Used to encourage retailers to: • Stock new products • Continue carrying existing ones • Promote products effectively to consumers.

  36. Sales Promotion • Trade-Oriented Promotions • Point-of-purchase (POP) advertising— displays or demonstrations that promote products when and where consumers buy them • Takes advantage of many shoppers’ tendencies to make purchase decisions in the store • Trade shows—promote goods or services to intermediaries

  37. Personal Selling • Personal selling—interpersonal promotional process involving a seller’s face-to-face presentation to a prospective buyer. Used most often when: • Customers are relatively few in number and geographically concentrated • Product is technically complex, involves trade-ins, and requires special handling • Product is high in price • Product moves through direct-distribution channels

  38. Personal Selling • Sales Tasks • Order Processing—selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders • Creative Selling—personal selling involving situations in which a considerable degree of analytical decision making on the buyer’s part results in the need for skillful proposals of solutions for the customer’s needs

  39. Personal Selling • Sales Tasks • Missionary Selling—indirect form of selling in which specialized salespeople promote goodwill among indirect customers, often by assisting customers in product use. • Telemarketing- personal selling conducted entirely by telephone, which provides a firm’s marketers with a high return on their expenditures, an immediate response, and an opportunity for personalized two way conversation.

  40. Personal Selling • The Sales Process • Seven Steps in the Sales Process

  41. Personal Selling • Recent Trends in Personal Selling • Telemarketing • Outbound telemarketing—when a sales representative calls you at your place of business • Inbound telemarketing—when the customer calls a toll-free phone number to get information or place an order.

  42. Personal Selling • Recent Trends in Personal Selling • Relationship Selling—when a salesperson builds a mutually beneficial relationship with a customer through regular contacts over an extended period • Consultative selling—meeting customers’ needs by listening to them, understanding and caring about their problems, paying attention to details, suggesting solutions, and following through after the sale

  43. Public Relations • Public Relations—organization’s communication and relationships with its various audiences. • Publicity—stimulation of demand for a good, service, place, idea, person, or organization by disseminating news or obtaining favorable unpaid media presentations.

  44. Pushing and Pulling Strategies • Pushing strategy- personalselling to market an item to wholesalers and retailers in a company’s distribution channels. • Pulling strategy promoting a product by generating consumer demand for it, primarily through advertising and sales promotion appeals.

  45. Promotional Strategies • Selecting a Promotional Mix • Guidelines for allocating promotional efforts and expenditures among personal selling and advertising: • What is your target market? • What is the value of the product? • What time frame is involved?

  46. Ethics in Promotion • Promotion to Children and Teens • Risk of deception is especially great with promotion targeted to children and teens • Children not sophisticated at analyzing promotional messages

  47. Ethics in Promotion • Promotion in Public Schools and on College Campuses • Includes promotional book covers, posters, and even curriculum materials provided to today’s schools • Some schools sign contracts that give certain brands exclusive access to their students • Can generate a backlash

  48. Price in the Marketing Mix • Price—exchange value of a good or service. • Pricing Objectives

  49. Price in the Marketing Mix • Profitability Objectives • Perhaps the most commonly used objective in firms’ pricing strategies • Some firms try to maximize profits by reducing costs rather than through price changes • Volume Objectives • Bases pricing decisions on market share • Market share: the percentage of a market controlled by a certain company or product

  50. Price in the Marketing Mix • Price to Meet Competition • Seeks to meet competitors’ prices • Prestige Objectives • Prestige pricing encompasses the effect of price on prestige • Prestige pricing establishes a relatively high price to develop and maintain an image of quality and exclusiveness

More Related