Mktg

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

A plan for the optimal use of the elements of promotion: advertising, public relations, personal selling and sales promotion.

To convince target customers that the goods and services offered provide a competitive advantage over the competition. A competitive advantage is the set of unique features of a company and its products that are perceived as significant and superior to the competition.

• Advertising
• Public Relations
• Sales Promotion
• Personal Selling

Pros: Control over what consumer sees and, with enough funding, the ability to reach a widespread audience for a low cost per contact.

Cons: Extremely high overall cost. May have low credibility. Advertising wearout.

PR is the marketing function that evaluates public attitudes, id's areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance. Marketers use PR not only to maintain a positive image, but also to educate the public about the company's goals and objectives, introduce new products, and help support the sales effort.

Pros: Relatively high credibility. Fairly low cost.

Cons: Lack of control over message. Difficult to evaluate.

Personal Selling is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other. Primarily used in B2B sales or large/expensive purchases.

Pros: Message can be tailored to the receiver. Immediate feedback.

Cons: High cost per contact. Difficult to maintain consistent message across sales reps.

All other marketing activities-excluding Ads, PR, and Personal Selling-that stimulate consumer purchasing and dealer effectiveness. (ex) Sephora University

Sales Promotion examples include: free samples, contests, trade shows, vacation giveaways & coupons.

Pros: Encourages immediate action.

Cons: Difficult to cut through coupon clutter.

• Interpersonal: Direct, face-to-face communication between two or more people. Salesperson to client.
• Mass: Large audience. Tv ads.

• Nature of the Product
• Stage in the Product Life Cycle
• Target Market Characteristics
• Budget
• Push vs. Pull Strategy.

• Inform the target audience
• Persuade the target audience
• Remind the target audience

• Create awareness
• Stimulate interest in a new product
• Explain the new product's benefits

• Change customers' perceptions
• Create brand preference, brand switching
• Encourage immediate action

• Reinforce the brand awareness
• Remind that the brand may be needed

• Informing: early stages of the product life cycle
• Persuading: upon entering the growth stage of the product life cycle or for very competitive mature products (soft drinks)
• Reminding: the maturity stage of the life cycle

• Attention
• Interest
• Desire
• Action

It is a classic model for reaching promotional goals by using promotion to propel consumers along the four steps in the purchase-decision process.

• The nature of the product.
• The stage in the product's life cycle.
• Target market characteristics.
• The type of buying decision.
• Funds available for promotion.
• Whether Push/Pull will be used.

Producers of most business goods rely more heavily on personal selling because business products are often custom-tailored to the buyer's exact specifications and not well suited for mass promotion.

• *BIG FACTOR*
• Preintroduction-small amts of advertising, light PR
• Intro-Heavy AD & PR to raise awareness, Sales Promotion to induce trials, Personal Selling to obtain distribution
• Growth- Heavy AD & PR to build brand loyalty, decreasing use of Sales Promotion, Personal Selling to maintain distribution
• Maturity- ADs slightly decreased (more persuasive aand reminder in nature), increased use of Sales Promotion to build market share, Personal Selling to maintain distribution
• Decline- AD & PR drastically decreased, Sales Promotion & Personal selling maintained at low levels.

Although industrial installations may be sold to well-educated ppl w/ extensive work experience, salespeople must be present to explain the product & work out purchase details - therefore Personal Selling

• Routine vs. Complex!
• In buying toothpaste, ADs and Sales Promotion are the most productive tools.
• In buying a car, Personal selling is most effective.

• Lots of $$$ = Lg mix of promotional elements
• Lil $ = Reliance on free publicity and online strategies as well as PR efforts.

• Push Strategy
• 1) Marketer promotes to wholesaler
• 2) Wholesaler promotes to retailer
• 3) Retailer promotes to customer
• 4) Customer buys from retailer

• Pull Strategy
• 1) Market promotes to customer
• 2) Customer demands products from retailer
• 3) Retailer demands products from Wholesaler
• 4) Wholesaler demands product from Marketer

• Integrated Marketing Communications
• It is the careful coordination of all promotional messages for a product or service to assure the consistency of messages at every contact point where a company meets the consumer.