Integrated Marketing Communications

Learning Objectives
1. Discuss the role of promotion in the marketing mix. 2. Discuss the elements of the promotional mix. 3. Describe the communication process.

Learning Objectives (continued)

4. Explain the goal and tasks of promotion. 5. Discuss the AIDA concept and its relationship to the promotional mix. 6. Describe the factors that affect the promotional mix. 7. Discuss the concept of integrated marketing communications.

Learning Objective

Discuss the role of promotion in the marketing mix.

Promotion

Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

Promotional Strategy

A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion

The Role of Promotion

Overall Overall Marketing Marketing Objectives Objectives Marketing Mix Marketing Mix Product Product Distribution Distribution Promotion Promotion Price Price Target Market Target Market Advertising Advertising Public Relations Public Relations Personal Selling Personal Selling Sales Promotion Sales Promotion

Promotional Mix Promotional Mix

Promotion Plan Promotion Plan

Differential Advantage
High Product Quality High Product Quality Rapid Delivery Rapid Delivery Low Prices Low Prices Excellent Service Excellent Service Unique Features Unique Features

Features Features that provide that provide Differential Differential Advantage Advantage

Learning Objective
Discuss the elements of the promotional mix.

Promotional Mix
Advertising Public Relations Personal Selling Sales Promotion

Combination of promotion tools used to reach the target market and fulfill the organizations overall goals.

Promotional Mix
Advertising Advertising

Elements Elements of the of the Promotional Promotional Mix Mix

Public Relations Public Relations

Personal Selling Personal Selling

Sales Promotion Sales Promotion

Advertising
Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

Advertising Media
Traditional Traditional Advertising Media Advertising Media Electronic Electronic Advertising Media Advertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Computer modems Fax machines

Advertising
Advantages
Ability to reach large number of people Cost per contact is low Can be micro-targeted
Disadvantages
Total cost is high

Public Relations

The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

Public Relations
Functions of Functions of Public Relations Public Relations
Evaluates public Evaluates public attitudes attitudes Identifies areas Identifies areas of public interest of public interest

Executes Executes programs to win programs to win public public

Publicity

Public information about a company, good, or service appearing in the mass media as a news item.

Sales Promotion

Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness.

Sales Promotion
Sales Promotion Sales Promotion Targets Targets
End End Consumers Consumers Trade Customers Trade Customers Company Company Employees Employees

Sales Promotion
Free samples Free samples Contests Contests Premiums Premiums Trade Shows Trade Shows Vacation Giveaways Vacation Giveaways Coupons Coupons

Popular Tools Popular Tools for for Consumer Sales Consumer Sales Promotion Promotion

Personal Selling

Planned presentation to one or more prospective buyers for the purpose of making a sale.

Personal Selling
Traditional Traditional Selling Selling Relationship Relationship Selling Selling

Learning Objective
Describe the communication process.

Communication

The process by which we exchange or share meanings through a common set of symbols.

Marketing Communication
Categories of Categories of Communication Communication

Interpersonal Interpersonal Communication Communication

Mass Mass Communication Communication

The Communication Process 3

As Senders
Inform Persuade Remind

As Receivers
Develop messages Adapt messages Spot new communication opportunities

The Sender and Encoding

Sender Sender

The originator of the message in the The originator of the message in the communication process. communication process.

Encoding Encoding

The conversion of a senders ideas and The conversion of a senders ideas and thoughts into a message, usually in the thoughts into a message, usually in the form of words or signs. form of words or signs.

The Communication Process 3

Noise Noise

Sender Sender

Encoding Encoding Message Message

Message Message Channel Channel

Decoding Decoding Message Message

Receiver Receiver

Message Message Channel Channel

Characteristics of Advertising 3
Advertising Advertising
Communication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility Indirect and non-personal Indirect and non-personal Low Low Little Little Delayed Delayed One-way One-way Yes Yes Yes Yes Fast Fast Same message to all audiences Same message to all audiences

Characteristics of Public Relations

Public Relations Public Relations
Communication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility Usually indirect, non-personal Usually indirect, non-personal Moderate to low Moderate to low Little Little Delayed Delayed One-way One-way No No No No Usually fast Usually fast Usually no direct control Usually no direct control

Characteristics of Sales Promotion

Sales Promotion Sales Promotion
Communication Mode Usually Indirect and non-personal Communication Mode Usually Indirect and non-personal Communication Control Moderate to low Communication Control Moderate to low Feedback Amount Little to moderate Feedback Amount Little to moderate Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility Varies Varies Mostly one-way Mostly one-way Yes Yes Yes Yes Fast Fast Same message to varied target Same message to varied target

Characteristics of Personal 3 Selling

Personal Selling Personal Selling
Communication Mode Communication Mode Communication Control Communication Control Feedback Amount Feedback Amount Feedback Speed Feedback Speed Message Flow Direction Message Flow Direction Message Content Control Message Content Control Sponsor Identification Sponsor Identification Reaching Large Audience Reaching Large Audience Message Flexibility Message Flexibility Direct and face-to-face Direct and face-to-face High High Much Much Immediate Immediate Two-way Two-way Yes Yes Yes Yes Slow Slow Tailored to prospect Tailored to prospect

Learning Objective
Explain the goal and tasks of promotion.

Goals and Tasks of Promotion 4

Informing Informing Reminding Reminding

Target Target Audience Audience

Persuading Persuading

Goals and Tasks of Promotion 4

Informing Informing
PLC Stages: Stages Introduction Early Growth

Reminding Reminding
PLC Stages: Maturity

Target Target Audience Audience

PLC Stages: Growth Maturity

Persuading Persuading

Goals and Tasks of Promotion 4

Informative Objective
Increase awareness Explain how product works Suggest new uses Build company image

Goals and Tasks of Promotion 4

Persuasion Objective
Encourage brand switching Change customers perception of product attributes Influence buying decision Persuade customers to call

Goals and Tasks of Promotion 4

Reminder Objective
Remind customers that product may be needed Remind customers where to buy product Maintain customer awareness

Learning Objective
Discuss the AIDA concept and its relationship to the promotional mix.

The AIDA Concept

Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.

The AIDA Concept

Action Desire Interest Attention

AIDA and the Promotional Mix 5

Awareness Interest Awareness Interest
Advertising Public Public Relations Relations Sales Promotion Personal Selling
Very effective Very Very effective effective Somewhat effective Somewhat effective Very effective Very Very effective effective Somewhat effective Very effective

Desire Desire
Somewhat effective Very Very effective effective Very effective Very effective

Action Action
Not Not effective effective Not Not effective effective Very Very effective effective Somewhat Somewhat effective effective

Learning Objective

Describe the factors that affect the promotional mix.

Factors Affecting the Promotional Mix

Nature of Product Nature of Product Stage in PLC Stage in PLC Target Market Factors Target Market Factors

Factors Factors Affecting Affecting Choice of Choice of Promotional Mix Promotional Mix

Type of Buying Decision Type of Buying Decision Promotion Funds Promotion Funds Push or Pull Strategy Push or Pull Strategy

Nature of the Product

Factors that influence promotional mix
Product characteristics Business product vs. consumer product Costs and risks Social risk

Stage in the Product Life Cycle 6

Maturity
Sales ($)

Introduction

Growth

Decline

Time

Product Life Cycle and the Promotional Mix

Sales ($)
Maturity Introduction Growth Decline

Time
Light Heavy use of Advertising, advertising, prePR for introduction awareness; Publicity sales promotion for trial Advertising, PR, Brand loyalty Personal Selling for distribution Ads decrease. Sales Promotion, Personal Selling Reminder & Persuasive AD/PR decrease Limited Sales Promotion, Personal Selling for distribution

Target Market Characteristics 6

FOR: Widely scattered market Informed buyers Repeat buyers
Advertising Sales Promotion Less Personal Selling

Type of Buying Decision

Routine Routine
Advertising Sales Promotion Advertising Public Relations

Type of Type of Buying Decision Buying Decision affects affects Promotional Promotional Mix Choice Mix Choice

Not Routine Not Routine or Complex or Complex

Complex Complex

Personal Selling

Available Funds
Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements

Push and Pull Strategies

PUSH STRATEGY
Manufacturer Manufacturer promotes to promotes to wholesaler wholesaler Wholesaler Wholesaler promotes to promotes to retailer retailer Retailer Retailer promotes to promotes to consumer consumer

Consumer Consumer buys from buys from retailer retailer

Orders to manufacturer

PULL STRATEGY
Manufacturer Manufacturer promotes to promotes to consumer consumer Consumer Consumer demands demands product product from retailer from retailer Retailer Retailer demands demands product product from wholesaler from wholesaler Wholesaler Wholesaler demands demands product from product from manufacturer manufacturer

Orders to manufacturer

Learning Objective

Discuss the concept of integrated marketing communications.

Integrated Marketing Communications

A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused.

IMC Popularity Growth

Proliferation of thousands of media choices Fragmentation of the mass market Slash of advertising spending in favor of promotional techniques

Integrated Marketing Communication and Connections Planning

Case Study
Its Crunk!!! time again

Budget still only have $25 Million Target still Urban and suburban hip-hop youth Discuss how these five responses to diminished effectiveness would shape your media strategy Integrated Marketing Communications Segmentation Relationship Marketing Database Marketing Connections Planning

IMC Basics
Coordinate various communications approaches into a mutually supportive, thematically unified, coordinated whole Must manage all sources of information about a product that moves the customer towards a sale and maintains loyalty

Bridging Elements
Marry behavior-changing efforts of promotions and direct response with image-building efforts of PR and advertising - seamless connection

Tactically-oriented - Integrated executions Strategically-oriented -- Coordinated campaigns

Model of IMC

Primary Goal of Marketing

First task is to retain satisfied customers, not just produce new customers

Difference between creating a single sale and creating a lifelong customer The basis for relationship marketing

Media Planning and Media Relations

Critical to coordinate paid and unpaid media as part of IMC efforts

Timing of Message Placement Reinforcement Across Channels Compatibility of Editorial Tone

All with the goal of building relationships

Marketing Public Relations

Use of public relations to directly support marketing efforts to build sales, not simply image and issue management

Planning, executing, and evaluating programs that encourage purchase and consumer satisfaction through credible communications 70% of PR billing are for Marketing PR

Power of PR
Marketers find is increasing difficult to reach consumers hearts and minds Decline of mass marketing and limited effectiveness of target advertising Power of news, events, and community programs to regain a share of voice

Credibility is Key
PR more credible than advertising Key to reaching skeptical consumers Particularly when targeting youth, who want to be told not sold

Important for building brand awareness Critical for building brand credibility

How MPR Works with IMC

Builds excitement before advertising breaks
Ex. Teasers for upcoming movies

Drives communications when there is no advertising

Ex. During Hiatus or Economic Downturn

Makes advertising news when no product news

Ex. Coverage of Super Bowl spots as news

Brings advertising to life

Ex. California Raisins, Got Milk, Tony the Tiger

Extends promotion programs

Ex. Publicity can grow geometrically

MPR and IMC, Continued

Builds personal relationships with brand
Ex. Butterball Talkline, Pillsbury Bake-Off

Influences the influencers

Ex. Secondary Effects Through Opinion Leaders

Communicates new product benefits

Ex. Arm & Hammer, Aspirin, Cranberry Juice

Demonstrates social responsibility and build trust

Ex. Ben & Jerrys, Body Shop, McDonalds

Defends products at risk and gives permission to buy

Ex. Tylenol, Pepsi, Robert Downey Jr.

Media Planning and IMC

Media Planning Shape IMC Strategy Media Planning More Critical Than Ever Media Explosion Creating an Info Glut

Must find the balance points

Integrated Media Planning

Earlier involvement in strategic planning

Brand insights and research sharing More conceptual and qualitative analysis Coordinate all elements, set the timing Must balance efficiencies of mass comm with advantages of one-to-one Zero-based, market-by-market media planning Replaces broad-market approach

Expand definition of communication

Develop market specific approach

Techniques in IMP
Mass marketing vs market-driven approaches

Micro-marketing - specialized market segments Data mining - building information profiles of consumers One-to-one targeting - build relationship with consumers Consumer-initiated - customers begin communication\ Sports and entertainment marketing

Promotion and Integrated Marketing Communication

Advertising Public Relations/ Publicity Personal Selling Sales Promotion Direct Marketing

MARKETING MARKETING COMMUNICATIONS COMMUNICATIONS

MARKETER INITIATED TECHNIQUES USED TO SET UP MARKETER INITIATED TECHNIQUES USED TO SET UP CHANNELS OF INFORMATION AND PERSUASION WITH CHANNELS OF INFORMATION AND PERSUASION WITH TARGETED AUDIENCES TO INFLUENCE ATTITUDES TARGETED AUDIENCES TO INFLUENCE ATTITUDES AND BEHAVIOR AND BEHAVIOR Promotion Promotion Message and Media Message and Media MARKETING COMMUNICATIONS MIX MARKETING COMMUNICATIONS MIX Tool Box of Media and Techniques Tool Box of Media and Techniques Integration and Coordination Integration and Coordination

Based on Communications Model Based on Communications Model

MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS

Informing Informing Persuading Persuading

Reminding Reminding

MARKETING COMMUNICATIONS OBJECTIVES

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 Establish a Product Image Influence Sales Volume Establish, Modify, or Reinforce Attitudes Develop Sales Leads Stimulate Interest Establish Understanding Build Support & Acceptance

ELEMENTS OF THE MARKETING COMMUNICATIONS MIX

1. Advertising 1. Advertising 5. Direct Marketing 5. Direct Marketing 2. Public Relations 2. Public Relations

4. Personal Selling 4. Personal Selling

3. Sales 3. Sales Promotion Promotion

Integrated Marketing Communications (IMC) is the strategic integration of multiple means of communicating with target markets

MARKETING COMMUNICATIONS PLANNING

Marketing Plan Review Marketing Plan Review Situation Analysis Situation Analysis Communications Process Communications Process Analysis Analysis

METHODS PUSH vs. PULL

Budget Development Budget Development Program Development Program Development Integration & Implementation Integration & Implementation Monitoring, Evaluating, Monitoring, Evaluating, Controlling Controlling

Push and Pull Strategies

Push strategy is directed toward the channel members

Provide incentives for those in the distribution channels to buy the product

Pull strategy is directed toward the ultimate purchaser

The focus is on creating demand at the household or ultimate consumer level

Approaches to Determining the Promotional Budget Percentage of sales

A fixed amount of money per past or projected sales

Probably the most widely used as it is simple But, what about cause and effect?

All available funds/All you can afford

Budget what is left over for promotional expenditures

New companies often put all available funds into promotion to penetrate the market But, you can miss opportunities or overspend

Approaches to Determining the Promotional Budget Competitive parity/Follow the competition

Adopt the average ratio for promotional expenses to sales for the industry or main competitor; or the same absolute amount as a competitor
But, what if they do not know what they are doing and/or strategies and tactics are different?

Objective and task

1) Determine objectives; 2) Determine relationship between expenditures and ability to achieve objective; 3) Set a budget that allows the achievement of these goals

Psychological Processes
The high involvement decision process
Need -> search -> evaluation -> purchase -> outcomes

The adoption process

Awareness -> interest -> evaluation -> trial -> adoption -> post-adoption confirmation

Buyer readiness states/Hierarchy of effects

Awareness -> knowledge -> liking -> preference -> conviction -> purchase

AIDA

Awareness -> Interest -> Desire -> Action

Selection of the Promotional Mix

PRODUCT CHARACTERISTICS

Industrial good/technical good

Need personal selling; customers want to receive information, inspect and compare the products

Consumer package goods/frequently purchase items

Advertising and sales promotion to reach market

Unit value
Low cost must use mass media approaches, with high unit cost personal selling is effective

Customization
Customized often requires personal selling

Selection of the Promotional Mix

CUSTOMER CHARACTERISTCS

Industrial versus consumer market

Consumers are easier to reach (decision maker) through media sources; industrial buyers typically have a more formal buying process, requiring personal selling

Number of customers
For a small number of customers, personal selling can play a much more important role

Geographical dispersion
Not only affects the type of promotional effort, but the media choices

Advertising Defined
ADVERTISING

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
Magazines, newspaper, outdoor posters, direct mail, radio televisions, etc. Key issues

The time or media space is paid for The sponsor is identified and has control over the promotional activity

DEVELOPING AN ADVERTISING CAMPAIGN

Design Creative Strategy

Select Target Market

Determine Advertising Objectives

Determine Advertising Budget

Evaluate Advertising Effectiveness

Select & Schedule Media

ADVERTISING STRATEGY ADVERTISING STRATEGY

MESSAGE STRATEGIES MESSAGE STRATEGIES Objective vs. Subjective Messages Objective vs. Subjective Messages Comparative Message Techniques Comparative Message Techniques Emotional Techniques: Mood, Fear, Humor Emotional Techniques: Mood, Fear, Humor Celebrity Endorsements vs. Non-Celebrity Images Celebrity Endorsements vs. Non-Celebrity Images MEDIA STRATEGIES MEDIA STRATEGIES Broadcast: Television, Radio Broadcast: Television, Radio Print: Newspapers, Magazines, Journals Print: Newspapers, Magazines, Journals Specialized: Outdoor, Transit, Direct Mail, Internet Specialized: Outdoor, Transit, Direct Mail, Internet

ADVERTISING STRATEGY ADVERTISING STRATEGY

RELATIVE STRENGTHS AND WEAKNESSES OF RELATIVE STRENGTHS AND WEAKNESSES OF STRATEGIES STRATEGIES Effectiveness and Efficiency: Reach and Frequency Effectiveness and Efficiency: Reach and Frequency Target Capabilities Target Capabilities Cost Cost Believability Believability Appropriateness for Message (Image, Details) Appropriateness for Message (Image, Details)

Reach & Frequency

Reach: number of different target consumers who are exposed to a message at least once during a specific period of time Frequency: number of times an individual is exposed to a given message during a specific period of time Cost per contact: cost of reaching one member of the target market

Allows comparison across advertising strategy vehicles

EVALUATING ADVERTISING EFFECTIVENESS

Pretesting Pretesting
Tools: Focus Groups Screening Persuasion Scores Tools: Unaided Recall Tests Aided Recall Tests Inquiry Evaluations Tools: Monitor Sales

Posttesting Posttesting

Sales Effectiveness Sales Effectiveness Evaluations Evaluations

PUBLIC RELATIONS PUBLIC RELATIONS

EFFORTS TO IMPROVE AND MANAGE EFFORTS TO IMPROVE AND MANAGE RELATIONSHIPS WITH PUBLICS RELATIONSHIPS WITH PUBLICS Customers Customers Stock Holders Stock Holders Community Community Government Government News Media News Media PROACTIVE vs. REACTIVE PROACTIVE vs. REACTIVE DuPont vs. Exxon DuPont vs. Exxon PUBLICITY PUBLICITY Not Overtly Sponsored Not Overtly Sponsored High Credibility High Credibility

PUBLIC RELATIONS
Public Relations Functions
Press Press Relations Relations Advising Advising Management Management Product Product Promotions Promotions

Lobbying Lobbying

Corporate Corporate Communications Communications

Personal Selling
PERSONAL SELLING

Oral presentation in a conversation with one or more prospective purchasers for the purpose of making a sale Personal selling represents the most popular promotional effort in terms of financial expenditures and number of people employed Personal Selling is:
(1) Dyadic, (2) Flexible, (3) Focused (personalized), and (4) Often results directly in a sale Other promotional elements move the customer toward the sale, personal selling closes the sale

PERSONAL SELLING AND PERSONAL SELLING AND SALES MANAGEMENT SALES MANAGEMENT FUNCTIONS AND CONTRIBUTIONS OF

FUNCTIONS AND CONTRIBUTIONS OF PERSONAL SELLING PERSONAL SELLING Boundary Spanner Role, Relationship Boundary Spanner Role, Relationship Management ((Trust) Management Trust) Two-Way Information Channel (Diffusion of Two-Way Information Channel (Diffusion of Product and Market Information) Product and Market Information) Facilitate Exchange Facilitate Exchange

THE MARKETINGCOMMUNICATIONS MIX:

Relative Emphasis in Consumer and Business Markets
BUSINESS MARKETS
EMPHASIS

CONSUMER MARKETS
EMPHASIS

SALES SALES FORCE FORCE COMPLEMENT

ADVERTISING ADVERTISING PROMOTIONS PROMOTIONS DIRECT MKT. DIRECT MKT.

PERSONAL SELLING AND PERSONAL SELLING AND SALES MANAGEMENT SALES MANAGEMENT
ROLES OF SALESPERSON ROLES OF SALESPERSON Psychologist Psychologist Consultant Consultant Educator / Teacher Educator / Teacher Problem Solver Problem Solver Team Leader Team Leader TYPES OF SELLING POSITIONS TYPES OF SELLING POSITIONS New Business (Prospector) New Business (Prospector) Existing Business (Order Taker) Existing Business (Order Taker) Detailing Detailing Support (Marketing, Technical) Support (Marketing, Technical)

STEPS IN THE SELLING STEPS IN THE SELLING PROCESS: PROCESS: A RELATIONSHIP APPROACH A RELATIONSHIP APPROACH INITIATING RELATIONSHIPS
INITIATING RELATIONSHIPS Prospecting Prospecting Pre-Call Planning Pre-Call Planning Approach Approach DEVELOPING CUSTOMER RELATIONSHIPS DEVELOPING CUSTOMER RELATIONSHIPS Sales Communications and Presentations Sales Communications and Presentations Gaining and Managing Commitment Gaining and Managing Commitment ENHANCING CUSTOMER RELATIONSHIPS ENHANCING CUSTOMER RELATIONSHIPS Follow-Up Follow-Up Support Support TRADITIONAL vs. RELATIONSHIP APPROACHES TRADITIONAL vs. RELATIONSHIP APPROACHES

Consultative (needs-satisfaction) vs. Manipulative (product-focused) Consultative (needs-satisfaction) vs. Manipulative (product-focused)

SALES MANAGEMENT ISSUES SALES MANAGEMENT ISSUES

RECRUITING AND HIRING RECRUITING AND HIRING Difficult to Predict Success Difficult to Predict Success DEPLOYMENT DEPLOYMENT Territory Design Territory Design AUTOMATION AUTOMATION Use of Technology to Link Buyer, Salesperson, and Use of Technology to Link Buyer, Salesperson, and Organizations (Customer Relationship Management Organizations (Customer Relationship Management and Supply Chain Management) and Supply Chain Management) EVALUATION AND COMPENSATION EVALUATION AND COMPENSATION Outcome-Based vs. Behavior-Based Outcome-Based vs. Behavior-Based

Sales Promotion
SALES PROMOTION

Those marketing activities - other than advertising, public relations/publicity, and personal selling - that stimulate consumer purchasing and dealer effectiveness
Displays, shows and exhibitions, coupons, contests, samples

THE GROWTH IN SALES PROMOTION Reasons for the Growth in Sales Promotion:
Consumer Factors Consumer Factors Accountability Accountability Impact of Technology Impact of Technology Short-Term Focus Short-Term Focus Increased Retail Power Increased Retail Power

OBJECTIVES OF CONSUMER PROMOTIONS

Encourage Stimulate Repurchase Trial Complementary Increase Products Consumption Support Flexible Pricing Neutralize Impulse Competitors Purchasing

CONSUMER SALES PROMOTION TECHNIQUES

Price Deals Advertising Specialties Coupons

Sampling

Rebates

Premiums Contests, Games, Sweepstakes

CrossPromotions

OBJECTIVES OF TRADE PROMOTIONS

Avoid Price Avoid Price Reductions Reductions Defend Against Defend Against Competitors Competitors Increase Reseller Increase Reseller Inventory Inventory Gain/Maintain Gain/Maintain Distribution Distribution Influence Influence Reseller Promotion Reseller Promotion Influence Influence Price Discount Price Discount

LIMITATIONS OF SALES PROMOTION

Cannot Reverse Declining Sales Cannot Reverse Declining Sales Trend Trend Cannot Overcome Inferior Cannot Overcome Inferior Product Product May Encourage Competitive May Encourage Competitive Retaliation Retaliation May Hurt Profit May Hurt Profit

Direct Marketing
Techniques used to get consumers to make a purchase from their home, office or other nonretail setting

Direct mail, catalogs, mail order, telemarketing, electronic retailing

TECHNIQUES OF DIRECT MARKETING

Electronic Electronic Media Media Direct Mail Direct Mail

Telemarketing Telemarketing

Direct Selling Direct Selling

Print Print Media Media

Broadcast Broadcast Media Media