Chapter 14 – promotional mix



Chapter 14 – promotional mixTHE MARKETING MIXProduct price promotion and place variables that can be manipulated to meet channel needs Divided into Personal sellingNon-personal selling Promotions Involves any forms of purposeful communications employed by channel members with the intent of Informing RemindingPersuading prospects and customers regarding some of their market offering Pricing Form of promotion in that the seller is suggesting a sense of value Personal selling Interpersonal communication process by which a seller uncovers and satisfies the needs of a buyer, to the mutual long-term benefit of both parties Non personal sellingall the other types of promotionsadvertisingreseller support publicitysales promotion (displays, demonstrations, trade shows) PROMOTIONAL TOOLS Free sample high acceptance rateincrease the follow-up purchasedevelop positive brand attitude Coupon passing along savings directly to consumerscreate added traffic for retailersincrease purchase incentives Loyalty program stop competing on price with competitorsretain existing customersincrease customer lifetime value build personal relationships create brand advocates PROMOTIONAL MEDIA StrengthWeaknessNewspapersGood selection of socio-professional categoriesEphemeral messagePrinting qualityMagazinesGood selectivityPrinting qualitySlownessSaturation of some journalsTVGood coverageComplete mediaHigh coststime of purchaseLow selectivityRadioSpeedGood selectivityNo image building Low attentionBillboardsHigh impact (events)Geographic selectivityLow attentionNecessary RepetitionCinemaGood memorizationSlownessHigh production costsInternetLow costImmediacy MeasurabilityIntrusiveLow attentionLow reliability PULL STRATEGY VS. PUSH STRATEGYPull strategies persuasive communication aimed at the ultimate consumer supermarket coupons customer demands pull the product through the channelconsider all of the advertising for prescription drugsPush strategies aimed at channel intermediaries, and typically consist of some type of price reductionsCan includeAllowancesAdvance noticeTraining and support Channel Promotional StrategyNo inherent conflict exists between the push and pull approaches and they are often used in conjunction with one another The effectiveness of promotional strategy is dependent upon securing the cooperation from independent channel members in the promotion of productsThe promotion must be mutually beneficial to manufacturer and channel memberPROMOTIONAL STRATEGY44% of every $ spent on advertising and promotion on consumer goods take the form of discounts and allowances to retailers (push)this is partially because of the huge amount of new products introduced every yearin the grocery field, 15 000 new products compete because only 5% of them will be accepted Cooperative Advertising manufacturer splits the cost of the channel members advertising channel member musthave sufficient inventory of the advertised product on hand offer adequate point-of-purchase displaysprovide selling support if necessary Sponsorshipsports sponsorshipentertainment sponsorshipfestivals annual events Event Marketing developing a themed activity, occasion, display or exhibit to promote a product cause or organization Brand placement any form of audio-visual commercial communication consisting of the inclusion of or reference to a product, a service or the trade mark thereof so that it is featured within a program Displays and selling aids usually expensive and must give retailers promotional allowancesonly about 50 end of Aisle displays available with 1000 items on promotion at any given time in the grocery storethe salesforce is usually the best source of feedback on its effectiveness Point-of-Purchasedisplay designed by the manufacturer and distributed to retailer to promote a particular brand or group of products in the store the size of retailerthe customers the location In-store promotionsshort term events intended to create excitement hair/make up clinics by celebrity cosmeticiansgourmet cooking celebrity endorsersfood sampling expensive and requires a high level of cooperation from the retailer Contests and Incentives designed to stimulate channel member sales efforts can be among the most difficult form of promotion to administer without creating ill will and conflict in the channel upset the salespeople with poor administration of the programmecould be seen as clashing with channel member’s objectives by forcing products people don’t want can be viewed as a one-sided deal in the manufacturer’s interest Potential Promotional Problems trade loading or forward buying when channel member buy far more than they can sell in a reasonable time results in extra good throughout the channel creating gridlock and reducing the distribution processcosts consumers $20 billion of the $400 billion they spend on groceries each yearonly 30% of the discounts go to customers, 35% lost in inefficiencies, 3% in the retailers’ pocket deals can erode brand loyaltysend poor imagediminish the perceived quality of the productsencourages switching customers & channel members may decide to buy only when there is a deal if they are too frequent merchandise may be resold to other retailers or wholesalers at a price below what they would pay the manufacturer (pass through) INTEGRATED MARKETING COMMUNICATIONSIMC involves carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent and compelling message about the organization and its products. ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download