Chapter Fourteen
PROMOTION
SEVERAL PROMOTION METHODS ARE AVAILABLE
Promotion: Involves communicating information between seller and buyer to influence attitude and behavior
A) Personal Selling: Direct spoken communication
B) Mass Selling: Communicating with a large number of customers Advertising: Paid form of nonpersonal ideas, etc.
C) Publicity: Unpaid form of nonpersonal ideas, etc.
D) Sales Promotion: Activities other than A, B, and C, that stimulate interest, trial, purchase, etc.
See Exhibit 14-2, page 380 for examples of sales promotion activities.
WHICH METHODS TO USE DEPEND ON PROMOTION OBJECTIVES
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Reinforcing present attitudes or changing attitudes and behavior |
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Promotion seeks to shift demand curve. See Exhibit 14-3, page 384 |
Three types of promotion objectives:
1) Informing: educating
2) Persuading: Develop favorable attitudes
3) Reminding: Repeat sales
PROMOTION REQUIRES EFFECTIVE COMMUNICATION
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The communication process. See Exhibit 14-5, page 386 |
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Note: Different audiences see the same message in different ways. |
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When indirect channels are best -- middlemen can often help producers serve customer needs at a lower cost. |
HOW TYPICAL PROMOTION PLANS ARE BLENDED/INTEGRATED
Pushing: uses personal selling, advertising, sales promotion. Sales people handle most of important communication See Exhibit 14-8
Pulling: gets customers to ask middlemen for product. Aggressive promotion to final users. Uses sales promotion (contests, free samples, etc.)
ADOPTION PROCESS CAN GUIDE PROMOTION PLANNING
The AIDA model -- Awareness, Interest, Desire and Action
See Exhibit 14-9, page 396 for a model of the adoption curve.
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Innovators: first to adopt, take risks, young, well educated, mobile |
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Early Adopters: opinion leaders, young, mobile, important!! |
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Early Majority: avoid risk, try after early adopters |
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Late Majority: cautious about new ideas, older, little use of marketing
information Laggards: older, less educated, do things the way they have done in the past |
PROMOTION BLENDS VARY IN DIFFERENT SITUATIONS
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The budget |
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Nature of product/stage in life cycle |
Life cycle:
1) Introduction: primary demand ( your idea)
2) Growth: selective demand ( your brand)
3) Maturity: reminder type advertising
4) Decline: speed up or slow down
Next Steps: Please review the PowerPoint Overview slides (1-13) for this chapter. Then proceed to the Lecture Notes for Chapter 15.
