Marketing Management - session 10-Marketing Communication p1.pptx

marketing communication part 1

1. Marketing Management Prepared by Shahin Rasoulian 1 Session 10: Chapter 9 Communication 1 Session 10

2. Objectives Know what marketing communications is Define the seven tools in marketing communications Understand the basic concepts of marketing communications Describe three of the seven marketing communication methods: sales promotion, public relations and sponsorship Explain the concepts of a communication plan and a communication program Session 10 2

3. Session 10 3

4. Communications Goals Communications has the following goals: Informing consumers about a product or service and where they can buy it Reminding consumers to keep using the product Persuading consumers to use one particular product instead of another Building a relationship with consumers 4 Session 10

5. Marketing communications 5 Session 10

6. Sales promotion 6 Session 10

7. Sales promotion Definition: “ The media and non-media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial or increase consumer demand .” Such as: contests, discount coupons, samples, premiums, temporary reductions and discounts, special events, in-store tasting. 7 Session 10

8. Sales promotion Very popular method because it induces immediate action and because its results are easy to measure Gives the buyer, the distribution channel member or the seller an additional incentive to buy or sell the product or service 8 Session 10

9. Promotions for final customers Bonus: An item offered as a gift or at a very low price when buying a product. Promotional items: Similar to Bonus, but customers do not need to make a purchase to get one. 9 Session 10

10. Promotions for final customers Contest: Consumers are offered a chance to win money, an item, a car, a trip, etc. This form of promotion is used to improve the product’s image, increase consumption, get consumers to try a new product, get consumers to find out about a product. 10 Session 10

11. Promotions for final customers Deferred payment: The company gives buyers a grace period before they have to pay principal. Demonstration: Get customers to try a product or service, show how it is used, or let consumers taste it. 11 Session 10

12. Session 10 12

13. Session 10 13

14. Promotions for final customers Discount coupon: A coupon that gives a reduction on the purchase of a specific brand of product. Loyalty program: To give customers a premium in the form of points or play money at the time of purchase. 14 Session 10

15. Promotions for final customers Packaging: Offer a discount coupon on the next purchase (on the package) or a larger quantity of the product for the price of the usual amount. Price cut: A temporary reduction in the usual price of a product. 15 Session 10

16. Promotions for final customers Refund: Offer to refund all or part of the price of the product if the customer is not satisfied. Samples: Consumers can try the product or service for free. Session 10 16

17. Session 10 17

18. Session 10 18

19. Sales promotion Strengths and weaknesses 19 Strengths Weaknesses It induces people to act Does not give a long-term reason to keep buying Available to all types of organizations Not a way to stem declining sales of a product or service Adds the value of the product Over use of discount and price cut r educes the product’s value Expand customer database Facilitates the introduction of new products Session 10

20. Promotions for intermediaries Assistance contract: A short-term contractual agreement under which a manufacturer compensates an intermediary for marketing its products. (contributing to advertising, providing stands for demonstration or free samples, providing point-of-sale material, etc.) Bonus pack: Providing a certain quantity of a product free to promote the purchase of a specific quantity of this or another product. Demonstration: Lending product to intermediaries for a short time. Gifts: Gifts are given to intermediaries that agree to offer a product or who have reached certain objectives. 20 Session 10

21. Promotions for intermediaries Follow-up rebate: Following a special offer to the intermediary, the manufacturer gives a certain rebate on purchases based on the quantity of product purchased during the offer. Rebate: A short-term promotion that involves giving an intermediary a reduction on a certain quantity of products purchased during a given period. 21 Session 10

22. Promotions for intermediaries 22 Session 10

23. sale promotion objectives It is a short term tactic to: Promoting the purchase of a brand Encouraging customers to try a new product Increasing repeat purchase after a trial Defending market share from the competition Motivating intermediaries Getting in-store visibility Session 10 23

24. Some points When launching a new product sending sample or in-store tasting is useful, while in the maturity stage , it is better to run a contest or offer discounts. In the decline stage , it is better to do very little promotion. Session 10 24

25. Public relations 25 Session 10

26. Public relations Definition: “Strategic management of relationships between an organization and its diverse publics through the use of communication, to achieve mutual understanding, realize organizational goals and serve the public interest” 26 Session 10

27. Public relations tools Press releases Press conferences and news briefings Specialized articles Photographs Letters to the editor Prestige advertising Financial advertising Advocacy advertising Talks given by its executives Radio or television appearances Association with a non-profit organization Crisis management 27 Session 10

28. Session 10 28 http://www.advocate.com/politics/2013/09/26/barilla-gays-eat-someone-elses-pasta

29. Session 10 29 http://www.nasdaq.com/article/best-buy-sales-bounce-back-ahead-of-holidays--2nd-update-20141120-00896

30. Public relations objectives Launching a new product (talking about new projects in media, not advertising a new product.) Lobbying government (inform the public and lawmakers about their legal barriers). Drawing attention to the company’s social commitment or publicizing its sense of social responsibility. Enhance the image of an organization Manage a crisis 30 Session 10

31. Session 10 31 Johnson & Johnson’s Crisis management after an unintentional product defect http://news.google.com/newspapers?nid=2457&dat=19821125&id=_J8zAAAAIBAJ&sjid=XTgHAAAAIBAJ&pg=3471,4204240

32. Session 10 32 http://www.wric.com/story/18173445/mcdonalds-accused-of-bribing-bloggers

33. Public relations Strengths and weaknesses 33 Strengths Weaknesses Reach target audiences that cannot be reached by advertising or other methods of communication No control over the final message delivered by the news media Manage crises and minimize their negative effects on a company’s image The information provided by the company is not always reported by the media More credible than advertising Access to media is not easy Cheaper than other methods of communication Hard to measure the effectiveness Session 10

34. Public relations Advertising Public relations Image of the product Image of the company Controlled and paid for by the company Controlled by the media and not paid for by the company reported on in the article Communications designed to captivate Communication striving for understanding 34 Differences between advertising and public relations Session 10

35. Sponsorship 35 Session 10

36. Sponsorship Definition: “ Sponsorship is the financial support that a business or an advertiser provides to a cultural, sports or humanitarian activity with which it is not directly related and with which it wants to associate the brand of a product or service in consumers’ minds.” It is not a donation Business expects spinoffs from its investment in terms of marketing 36 Session 10

37. Sponsorship objectives Image sponsorship: Focuses on strengthening an existing image, changing it or even building a new image for a new product. Commercialization sponsorship: Makes a product or business known to target groups or motivates staff or distribution channel members Session 10 37

38. Sponsorship types and tools Event sponsorship Sponsorship of sporting events Product placement 38 Session 10

39. Session 10 39 In Jamaica

40. 40 http://www.cbcf.org/central/GetInvolved/Events/Pages/RunForTheCure.aspx https://www.cibc.com/ca/inside-cibc/community-matters/cibc-run-for-the-cure.html Session 10

41. Sponsorship Strengths and weaknesses 41 Strengths Weaknesses Provides visibility Hard to generate sales directly and solely from a sponsorship program Helps to personalize a product or service Difficult to measure the results generated Gives a chance to anchor positioning Session 10