Marketing Management 2nd Edition

1
Marketing Management2nd Edition
Michael R. Czinkota and Masaaki Kotabe

• Chapter 12
• Designing Effective Promotion and Advertising
  Strategies

2
Dialogue
Idea becomes message
Sender ENCODES the message.
Message is transmitted.
Receiver DECODES the message.
Receiver gets message.
3
Communications Process
Sender Message Encoding Media Decoding Receiver Re
sponse
N
N
N
N
Feedback
N
N
N
N
4
Push versus Pull Strategy
Manufacturer
PUSH STRATEGY Communicate through
the distribution channels
Wholesaler
Retailer
Customer
5
Push versus Pull Strategy
Manufacturer
PULL STRATEGY Communicate directly to customers
Wholesaler
Retailer
Customer
6
Consumer vs. Industrial Advertising
Consumer advertising targeted at end-user
Industrial advertising targeted at business
or institutions
7
Consumer Perceptions of Advertising

• A 2004 consumer study found that
• 65 of respondents feel constantly bombarded with
  too many advertising messages.
• 61 feel the volume is out of control.
• 60 have a much more negative opinion of
  marketing and advertising than they did a few
  years ago.
• 69 are interested in mechanisms that skip or
  block advertising completely.
• Over 60 feel that marketers and advertisers
  dont treat customers with respect.

Source Marketing Management, July/August 2004,
p. 5.
8
Creating the Correct Messages

• Awareness
• Interest
• Understanding
• Attitudes
• Buying Decision

9
The Message

• Unique Selling Proposition can be achieved
  through
• Product features
• Psychological features
• Association

10
The Message Other Issues

• Message consistency
• Opinion leaders
• Word of mouth
• Message selection
• Cognitive dissonance

11
Types of Media

• Newspapers
• Television
• Satellite TV
• Infomercials
• Radio
• Movies
• Billboards
• Internet

12
Promotional Mix Factors

• Budget
• Promotional message
• Complexity of product
• Market size location
• Distribution
• Product life cycle
• Competition
• Government regulations
• Ethics

13
Promotion of Services

• Personal selling and employees.
• Word-of-mouth (e.g., personal services)
• Tangibility (e.g., McDonalds Golden Arches)
• Consistency

14
Advertising Budgets

• Methods of determining budgets
• Affordability (21)
• Percentage of sales (44)
• Competitive parity (N/A)
• Objective task (18)

15
Researching Advertising Effectiveness

• Building Awareness (Informing)
• Creating Favorable Attitudes (Persuading)
• Maintaining Customer Loyalty (Reinforcing)

16
Selecting an Ad Agency

• Define the need
• Desk research
• Formulate short list
• Evaluation
• Narrow the selection
• Make final selection

17
Pre-Testing Marcom Campaigns

• Marketing professionals pre-test marketing
  communications campaigns
• 24 usually or always
• 27 occasionally
• 34 seldom
• 15 never
• Limiting factors for those who dont test
• Time (more than half)
• Budget (nearly one-quarter)
• No need to test (8)

Source Marketing Management, July/August 2004,
p. 7.