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PRINCIPLES OF MARKETING - UNIT 5 Pormotion & Recent Developments2
PRINCIPLES OF MARKETING - UNIT 5 Pormotion & Recent Developments2
PRINCIPLES OF MARKETING - UNIT 5 Pormotion & Recent Developments2
MARKETING
Unit 5:
I. Promotion
II. Recent developments in marketing
IMPORTANCE OF PROMOTION
Creates awareness
Educates the consumers
Helps in changing attitudes about products
Helps in expansion of markets
Increases brand loyalty
Provides information to consumers
Enhances corporate and brand image
Helps in persuading the consumers
Help in countering competitors claims
Serves as reminder
COMMUNICATION
Marketing communications are the means by which firms attempt to inform,
persuade, and remind consumers—directly or indirectly—about the products and
brands they sell.
Marketing communications represent the voice of the company and its brands; they
are a means by which the firm can establish a dialogue and build relationships with
consumers.
show how and why a product is used, by whom, where, and when.
Consumers can learn who makes the product and what the company and brand
stand for, and they can get an incentive for trial or use
COMMUNICATION
Allow companies to link their brands to other people, places, events, brands,
experiences, feelings, and things.
Message- The set of symbols that the sender transmits—the actual McDonald’s
ad.
Media- The communication channels through which the message moves from
the sender to the receiver—in this case, television and the specific television
programs that McDonald’s selects.
Decoding- The process by which the receiver assigns meaning to the symbols
encoded by the sender—a consumer watches the McDonald’s commercial and
interprets the words and images it contains.
MACRO MODEL- ELEMENTS IN THE
COMMUNICATIONS PROCESS
Receiver- The party receiving the message sent by another party—the customer
who watches the McDonald’s ad.
Response - The reactions of the receiver after being exposed to the message—
any of hundreds of possible responses, such as the consumer likes McDonald’s
better, is more likely to eat at McDonald’s next time, hums the “i’m lovin’ it”
jingle, or does nothing
All these models assume the buyer passes through cognitive, affective, and behavioral
stages, in that order.
.
MICRO MODEL OF CONSUMER RESPONSES
This “learn-feel-do” sequence is appropriate when the audience has high involvement
with a product category perceived to have high differentiation, such as an automobile
or house.
By choosing the right sequence, the marketer can do a better job of planning
communications.
MICRO MODEL OF CONSUMER RESPONSES
Response Hierarchy Models
MICRO MODEL OF CONSUMER RESPONSES
Knowledge. The target audience might have brand awareness but not know much
more.
Liking. Given target members know the brand, how do they feel about it?
Preference. The target audience might like the product but not prefer it to others.
The communicator must then try to build consumer preference by comparing
quality, value, performance, and other features to those of likely competitors.
Conviction. A target audience might prefer a particular product but not develop a
conviction about buying it.
Purchase. Finally, some members of the target audience might have conviction but
not quite get around to making the purchase
MARKETING COMMUNICATIONS MIX
Personal selling- Personal customer interactions by the firm’s sales force for the
purpose of engaging customers, making sales, and building customer relationships.
Public relations (PR)- Building good relations with the company’s various publics by
obtaining favorable publicity, building up a good corporate image, and handling or
heading off unfavorable rumors, stories, and events.
Direct and digital marketing- Engaging directly with carefully targeted individual
consumers and customer communities to both obtain an immediate response and
build lasting customer relationships
PROMOTION MIX
Events and experiences—Company-sponsored activities and programs designed to
create daily or special brand-related interactions with consumers, including sports,
arts, entertainment, and cause events as well as less formal activities.
Public relations (PR)- press releases, sponsorships, events, and web pages
Direct and digital marketing- includes direct mail, email, catalogs, online and
social media, mobile marketing, and more.
CHARACTERISTICS OF THE
MARKETING COMMUNICATIONS MIX
ADVERTISING
Advertising can reach masses of geographically dispersed buyers at a low
cost per exposure, and it enables the seller to repeat a message many
times.
Beyond its reach, large-scale advertising says something positive about the
seller’s size, popularity, and success.
On the one hand, advertising can be used to build up a long-term image for
a product (such as Coca-Cola ads)
ADVERTISING
Advertising also has some shortcomings. Although it reaches many people
quickly, mass media advertising is impersonal and lacks the direct
persuasiveness of company salespeople.
For the most part, advertising can carry on only a one-way communication
with an audience, and the audience does not feel that it has to pay
attention or respond.
2. Amplified expressiveness—
3. Control—
The advertiser can choose the aspects of the brand and product on which to
focus communications.
PERSONAL SELLING
Personal selling is the most effective tool at certain stages of the buying
process, particularly in building up buyers’ preferences, convictions, and
actions.
Personal selling also allows all kinds of customer relationships to spring up,
ranging from matter-of-fact selling relationships to personal friendships.
Finally, with personal selling, the buyer usually feels a greater need to
listen and respond, even if the response is a polite “No, thank you.
PERSONAL SELLING
Personal selling has three notable qualities:
Whereas advertising says, “Buy our product,” sales promotion says, “Buy it
now.”
Thus, direct and digital marketing are well suited to highly targeted marketing
efforts, creating customer engagement, and building one-to one customer
relationships
Forms of Direct and Digital Marketing
DIRECT AND DIGITAL MARKETING
Direct and interactive marketing messages take many forms—over the
phone, online, or in person. They share three characteristics:
1. Influential—Because people trust others they know and respect, word of mouth
can be highly influential.
2. Personal—Word of mouth can be a very intimate dialogue that reflects personal
facts, opinions, and experiences.
3. Timely—Word of mouth occurs when people want it to and are most interested,
and it often follows noteworthy or meaningful events or experiences.
EVENTS AND EXPERIENCES
EVENTS AND EXPERIENCES There are many advantages to events and
experiences as long as they have the following characteristics:
In general, personal selling is used more with complex, expensive, and risky goods and
in markets with fewer and larger sellers (hence, business markets).
FACTORS AFFECTING PROMOTION MIX
DECISIONS
Consumer readiness to make a purchase
Advertising and publicity play the most important roles in the awareness-building
stage.
Closing the sale is influenced mostly by personal selling and sales promotion.
Reordering is also affected mostly by personal selling and sales promotion, and
somewhat by reminder advertising.
FACTORS AFFECTING PROMOTION MIX
DECISIONS
FACTORS AFFECTING PROMOTION MIX
DECISIONS
In the introduction stage of the product life cycle, advertising, events and experiences,
and publicity have the highest cost-effectiveness, followed by personal selling to gain
distribution coverage and sales promotion and direct marketing to induce trial.
In the growth stage, demand has its own momentum through word of mouth and
interactive marketing.
Advertising, events and experiences, and personal selling all become more important in
the maturity stage.
In the decline stage, sales promotion continues strong, other communication tools are
reduced, and salespeople give the product only minimal attention
INTEGRATED MARKETING
COMMUNICATIONS (IMC)
Companies use direct marketing to tailor their offers and content to the
needs and interests of narrowly defined segments or individual buyers.
In this way, they build customer engagement, brand community, and sales.
Through direct marketing, buyers can interact with sellers by phone or on the
seller’s website or mobile app to create exactly the configuration of
information, products, or services they want and then order them on the spot
RECENT DEVELOPMENTS IN
MARKETING
E-MARKETING
E-marketing can be defined as “the art of crafting and
delivering a message in the electronic form or over
internet that will influence a recipient’s behaviour”.
The form of marketing that use the web and email to drive direct sales via
electronic medium, in addition to sales from websites or emails.
Advantages Disadvantages
Types of Services:
2. B2B
Many companies provide services to enterprises and
organizations. These can be networks, finance, travel,
technology services etc.
RECENT DEVELOPMENTS IN
MARKETING
Types of Service Marketing
Sustainable marketing:
Sustainable marketing calls for meeting the present needs of consumers and businesses
while preserving or enhancing the ability of future generations to meet their needs.
Whereas the marketing concept recognizes that companies thrive by fulfilling the day-
to-day needs of customers.
RECENT DEVELOPMENTS IN
MARKETING
Social Marketing
Sustainable marketing:
sustainable marketing calls for socially and environmentally responsible actions that
meet both the immediate and future needs of customers and the company.
Environmentalism
Is an organized movement of concerned citizens, businesses, and government agencies
designed to protect and improve people’s current and future living environment.
Are concerned with marketing’s effects on the environment and the environmental
costs of serving consumer needs and wants.
RECENT DEVELOPMENTS IN MARKETING
Environmentalism
Environmentalists are not against marketing and consumption;
They simply want people and organizations to operate with more care for the
environment.
Other issues include the loss of recreational areas and the increase in health problems
caused by bad air, polluted water, and chemically treated food.
RECENT DEVELOPMENTS IN MARKETING
Environmental sustainability
A management approach that involves developing strategies that both sustain the
environment and produce profits for the company.
Today’s enlightened companies are taking action not because someone is forcing them
to or to reap short-run profits but because it’s the right thing to do—because it’s for
their customers’ well-being, the company’s well-being, and the planet’s environmental
future
THANK YOU !!!