Chapter 14

Chapter 14 - Chapter 14: Promotion and Pricing Strategies...

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Chapter 14: Promotion and Pricing Strategies I. Chapter Overview a. Promotion: communication link between buyer and seller that performs the function of informing, persuading, and influencing a purchase decision i. Primary Demand: consumer desire for a general product category 1. i.e. “Got Milk?” ad increases growth for all firms ii. Selective Demand: desire for a specific brand 1. i.e. Verizon advertisements II. Integrated Marketing Communications (IMC): coordination of all promotional activities—media advertising, direct mail, personal selling, sales promotion, and public relations—to produce a unified customer-focused message a. i.e. Nike Golf had advertisements of Tiger Woods/Nick Faldo to Nike Golf Spring Swing, included TV commercials, feat. On Fox Sports Ntwk., a national consumer sweepstakes, and more III. The Promotional Mix a. Promotional Mix: combo of personal and nonpersonal selling techniques designed to achieve promotional objectives i. Personal Selling: direct person-to-person promotional presentation to potential buyer, can occur in meeting, via telephone, videoconferencing, or interactive computer link ii. Nonpersonal Selling: consists of advertising, sales promotion, direct marketing, and PR b. Objectives of Promotional Strategy i. Providing Information: example is print ad describing features/availability of a new breakfast cereal ii. Differentiating a Product 1. Positioning: marketers attempt to est. their own places in the minds of customers, idea is to communicate meaningful distinctions about attributes, price, and quality of a g/s iii. Increasing Sales 1. example is end of aisle grocery displays to encourage impulse purchases iv. Stabilizing Sales 1. Stable sales evens out production cycle, reduces mgnt/prod. Costs, simplifies financial, purchasing, and marketing planning 2. examples, holding contests during slow sales periods v. Accentuating the Product’s Value 1. enhance product value by explaining unrecognized ownership benefits 2. Examples a. Saab accentuates the fun drivers of its new auto model will have to parasailing c. Promotional Planning
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i. Product Placement: growing # of marketers pay placement fees to have their products showcased in moves/television shows ii. Guerilla Marketing: innovative, low costing marketing efforts designed to get consumer’s attention in unusual ways IV. Advertising: Paid nonpersonal communication delivered through various media and designed to inform, persuade, or remind members of a particular audience a. Types of Advertising i. Product Advertising: consists of messages designed to sell a particular good/service ii. Institutional Advertising: involves messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or gov’t entities iii. Advocacy Advertising (Cause Advertising): promotes a specific viewpoint on a public issue as a way to influence public opinion & the legislative process about issues such as drug abuse, hunger, etc. b.
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This note was uploaded on 11/28/2010 for the course BUS 101 taught by Professor Hunter during the Spring '08 term at Bryant.

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Chapter 14 - Chapter 14: Promotion and Pricing Strategies...

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