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Marketing Communications and Personal Selling

Explore the role of promotion in marketing mix, elements of promotional mix, and integrated marketing communications. Learn about personal selling, advertising, public relations, and sales promotions. Enhance your understanding of the communication process, goals of promotion, and AIDA concept.

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Marketing Communications and Personal Selling

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  1. Marketing Communications and Personal Selling Chapter 12 Prepared by Deborah Baker Texas Christian University

  2. Learning Objectives • 1. Discuss the role of promotion in the marketing mix. • Discuss the elements of the promotional mix. • Discuss the concept of integrated marketing communications. • 4. Describe the communication process.

  3. 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.

  4. Learning Objectives (continued) 8. Describe personal selling. 9. Discuss the key differences between relationship selling and traditional selling. 10. List the steps in the selling process. 11. Describe the functions of sales management.

  5. Learning Objective 1 On Line http://www.maxim-magazine.co.uk Discuss the role of promotion in the marketing mix.

  6. Promotion 1 Inform Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. Persuade Remind

  7. Promotional Strategy 1 A plan for the optimal use of the elements of promotion: Personal Selling Advertising Public Relations Sales Promotion

  8. Overall Marketing Objectives • Promotional Mix • Advertising • Public Relations • Personal Selling • Sales Promotion • Promotion Plan • Marketing Mix • Product • Distribution • Promotion • Price Target Market The Role of Promotion 1

  9. High Product Quality Rapid Delivery Features that Provide Competitive Advantage Low Prices Excellent Service Unique Features Competitive Advantage 1

  10. Learning Objective 2 Discuss the elements of the promotional mix.

  11. Personal Selling Elements of the Promotional Mix Advertising Public Relations Sales Promotion Promotional Mix 2 On Line http://www.nabiscoworld.com

  12. Personal Selling 2 Traditional Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. Relationship Selling

  13. Advertising 2 Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

  14. Traditional Advertising Media ElectronicAdvertising Media • Internet • Electronic mail • Interactive video • Television • Radio • Newspapers • Magazines • Books • Direct mail • Billboards • Transit cards Advertising Media 2 On Line http://www.olympics.org http://www.olympics.com

  15. Advantages Reach large number of people Low cost per contact Can be micro-targeted Disadvantages Total cost is high Advertising 2

  16. Public Relations 2 The marketing function thatevaluates 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.

  17. Functions of Public Relations Evaluates public attitudes Executes programs to “win” public Identifies areas of public interest Public Relations 2

  18. Publicity 2 Public information about a company, good, or service appearing in the mass media as a news item.

  19. Sales Promotion Targets End Consumers Company Employees Trade Customers Sales Promotion 2 GOAL is to stimulate consumer buying and dealer effectiveness.

  20. Free samples Popular Tools for Consumer Sales Promotion Contests Premiums Trade Shows Vacation Giveaways Coupons Sales Promotion 2

  21. Learning Objective 3 Discuss the concept of integrated marketing communications.

  22. Integrated Marketing Communications 3 IMC A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused.

  23. IMC Popularity Growth 3 • Proliferation of thousands of media choices • Fragmentation of the mass market • Slash of advertising spending in favor of promotional techniques

  24. Learning Objective 4 Describe the communication process.

  25. Communication 4 The process by which we exchange or share meanings through a common set of symbols.

  26. Categories of Communication Interpersonal Communication Mass Communication Marketing Communication 4

  27. Noise Sender EncodingMessage Message Channel Decoding Message Receiver Feedback Channel The Communication Process 4

  28. As Senders As Receivers • Inform • Persuade • Remind • Develop messages • Adapt messages • Spot new communication opportunities The Communication Process 4

  29. Advertising Communication Mode Indirect and non-personal Communication Control Low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Message Flexibility Same message to all audiences Characteristics of Advertising 4

  30. Public Relations Communication Mode Usually indirect, non-personal Communication Control Moderate to low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control No Sponsor Identification No Reaching Large Audience Usually fast Message Flexibility Usually no direct control Characteristics of Public Relations 4

  31. Sales Promotion Communication Mode Usually indirect and non-personal Communication Control Moderate to low Feedback Amount Little to moderate Feedback Speed Varies Message Flow Direction Mostly one-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Message Flexibility Same message to varied target Characteristics of Sales Promotion 4

  32. Personal Selling Communication Mode Direct and face-to-face Communication Control High Feedback Amount Much Feedback Speed Immediate Message Flow Direction Two-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Slow Message Flexibility Tailored to prospect Characteristics of Personal Selling 4

  33. Learning Objective 5 Explain the goal and tasks of promotion.

  34. Informing Reminding PLC Stages: Introduction Early Growth Target Audience PLC Stages: Maturity Persuading PLC Stages: Growth Maturity Goals and Tasks of Promotion 5

  35. Goals and Tasks of Promotion 5 Informative Objective • Increase awareness • Explain how product works • Suggest new uses • Build company image

  36. Goals and Tasks of Promotion 5 • Persuasion Objective • Encourage brand switching • Change customers’ perception of product attributes • Influence buying decision • Persuade customers to call

  37. Goals and Tasks of Promotion 5 • Reminder Objective • Remind customers that product may be needed • Remind customers where to buy product • Maintain customer awareness On Line http://www.tide.com

  38. Learning Objective 6 Discuss the AIDA concept and its relationship to the promotional mix.

  39. The AIDA Concept 6 Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. Attention Interest Desire Action

  40. Awareness Interest Desire Action Advertising Very effective Very effective Somewhat effective Not effective Public Relations Very effective Very effective Very effective Not effective Sales Promotion Somewhat effective Somewhat effective Very effective Somewhat effective Personal Selling Somewhat effective Very effective Very effective Very effective AIDA and the Promotional Mix 6

  41. Learning Objective 7 On Line http://www.nascar.com http://www.kelloggs.com Describe the factors that affect the promotional mix.

  42. Nature of the Product Stage in PLC Target Market Factors Type of Buying Decision Promotion Funds Push or Pull Strategy Factors Affecting the Choice of Promotional Mix 7

  43. Maturity Decline Growth Introduction Sales ($) Time Product Life Cycle and thePromotional Mix 7 Light Advertising; pre- introduction publicity Heavy use of Advertising; PR for awareness; 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

  44. Target Market Characteristics 7 On Line http://www.radioguide.com http://www.nytimes.com http://www.usatoday.com FOR: • Widely scattered market • Informed buyers • Repeat buyers Advertising Sales Promotion Less Personal Selling

  45. Routine Advertising Type of Buying Decision Affects Promotional Mix Choice Sales Promotion Advertising Not Routine or Complex Public Relations Complex Personal Selling Type of Buying Decision 7

  46. Available Funds 7 • Trade-offs with funds available • Number of people in target market • Quality of communication needed • Relative costs of promotional elements

  47. PUSH STRATEGY Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer Consumer buys from retailer Orders to manufacturer PULL STRATEGY Manufacturer promotes to consumer Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer Orders to manufacturer Push and Pull Strategies 7

  48. Learning Objective 8 Describe personal selling.

  49. Advantages of Personal Selling 8 • Provides a detailed explanation or demonstration of product • Message can be varied to fit the needs of each prospective customer • Can be directed to specific qualified prospects • Costs can be controlled by adjusting sales force size • Most effective method to obtain sales and gain satisfied customers

  50. Advertising & Sales Promotion are more important if... Personal Selling is more important if... Product has a high value Product has a low value Product is custom made Product is standardized Product is technically complex Product is simple to understand There are few customers There are many customers Customers are concentrated Customers are geographically dispersed Personal Selling 8

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