module 6
Lucy Bell
Chapter11PowerPointSlidesmodule6.pptxChapter 11
Promotion
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Chapter 11 Learning Objectives
Understand the nature of the communication process.
Appreciate the evolving nature of communication in the Web 2.0 environment.
Recognize the alternative components of the promotional mix and their respective values in managing an integrated marketing communications approach.
Appreciate the range of sales promotion strategies for both consumers and the trade.
Know the alternative promotional strategy approaches for controlling the channel of distribution.
Introduction
Four basic components of promotional strategies
Advertising
Personal selling
Publicity
Sales promotion
Communication is at the heart of all these tools.
Learning Objective 1
The communication model
Sender—person or company
Receiver—target of communication
Encoding or developing the message
Message
Channel to send message
Decoding or interpreting message by receiver
Noise
Feedback
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See figure 11-1, p. 294.
FIGURE 11-1 The Communication Process
Learning Objective 2
Web 2.0 environment
Any user can be a content creator.
Historically communication was a unidirectional flow of information.
Web 2.0 environment communication is now a constellation.
FIGURE 11-2 The Constellation of the Web: The Challenge of the Web 2.0 World
The Message
Two-sided: Sender presents both pros and cons of service being promoted.
Has stronger impact on educated consumers
Comparative messages—claims relative to the competition
Emotional appeals—humor, fear
Testing the boundaries
Versus rational appeals
The Channel
Mass communication vs. personal approach
Health care—traditionally word-of-mouth
Opinion leaders
Learning Objective 3
The promotional mix
Four basic components of promotional strategies
Advertising
Personal selling
Publicity
Sales promotion
Online marketing (websites, blogs, social media)
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Learning Objective 3
Integrated marketing communications
Assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person.
Earned, owned, paid media
Learning Objective 3
Advertising—paid and nonpersonal
Advertiser can control to whom, when, what, and how often the message is delivered.
Most effective when buyer awareness is minimal
Also when industry sales are rising
When service features are not observable
When opportunities for differentiation are strong
When service is new
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Learning Objective 3
Personal selling
Strength—allows for direct feedback
More direct control over who receives message
More direct targeting of audience
Limitation—cost, personnel training
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Learning Objective 3
Personal selling vs. advertising
Trade-off
Decision making
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FIGURE 11-7 The Differing Impact of Advertising versus Sales
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Learning Objective 3
Public relations—most common to health care organizations
Indirectly paid form of communication
Credibility
Two important roles in health care: positively promote organization and crisis management
No control over when or how message is delivered
Planned vs. unplanned messages
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Learning Objective 4
Sales promotion strategies
Sales promotion—temporary inducements to buy
Coupons, sweepstakes, premiums
Samples, trade promotions, allowances
Cooperative advertising
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Learning Objective 4
Sales promotion objectives
To encourage trial usage
To encourage customers to buy more than one
To acquaint customers with service changes
To identify new customers
To build customer loyalty
To encourage customers to switch facilities or providers
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Learning Objective 4
Sales promotion objectives (cont.)
To gain entry into new markets
To encourage intermediaries to utilize the facility
To encourage intermediaries to devote more effort to selling/referring the product or service
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Learning Objective 4
Factors affecting sales promotion
Product life cycle
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Discuss push vs. pull strategies.
Learning Objective 5
Channel control strategies
Push—control of the channel by working through the intermediaries
Pull—controlling the channel by passing the intermediaries
FIGURE 11-10 Push versus Pull Strategies
Summary
Several factors are necessary for effective communication. Communication often is affected negatively by noise.
The Web 2.0 environment requires marketers to consider how to get their message into the constellation of communication.
Messages can take several forms: they can be one-sided, two-sided, or emotional.
Summary (cont.)
Integrated marketing communications has as a goal: consistent contact to a customer with relevant messages over time.
Organizations have to manage earned, owed, and paid media.
The promotional mix for an organization consists of advertising, personal selling, publicity, sales promotion, and on-line.
Summary (cont.)
A major advantage of advertising over publicity is in terms of control over the message.
Publicity has greater credibility than advertising.
Advertising and personal selling each have distinct values. The decision to use one promotional tool more than the other is based on the risk of the decision, size of the decision-making unit, the complexity of the service, the size of the market, and the geographic dispersion of the market.
Summary (cont.)
Advertising and personal selling have differing levels of impact in each stage of the consumer’s decision-making process. The more personal the post-purchase contact with the buyer, the more satisfied the buyer.
Sales promotion has been an underused tool of the promotional mix within health care. Sales promotion tactics can be directed to consumers or to the trade.
In a push strategy, the promotional efforts are directed to the intermediaries in the channel, while in a pull strategy, promotional efforts are directed to the end user.
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